1. Webinar Agenda 10:00 – 10:05 am PST Introduction Eugenia Liu
Senior Marketing Manager
SEMI Headquarter
10:05 – 10:35 am PST “Global Semiconductor Market Data: What’s in Store?”
Lara Chamness
Senior Market Analyst Manager
SEMI Industry Research and Statistics
10:35 – 10:45 am PST Q&A Session
Additional Resource and Contact Information

2. SEMI Update: Lara Chamness
2018 Global Semiconductor Market, What’s in Store?
Lara Chamness
Senior Manager Market Analysis
January 24, 2018

3. Outline
About Us
Industry Overview
Fabs, Equipment, Materials
Summary

4. About Us

5. Collaboration segments
SEMI Connects the Electronics Manufacturing Supply Chain for Collaboration
Substrates
Materials
Components
Subassemblies
Equipment IP
Design
Fabless
Device Manufacturing
Packaging
Test
System Integration
Applications
Collaboration segments
Special Interest Groups:
Collaborative Alliance of Semiconductor Test (CAST)
Semiconductor Components, Instruments and Subsystems (SCIS)
Chemcial and Gas Manufacturers Group (CGMG)
SEMI integrated Packaging, Assembly and Testing (SiPAT)

6. About SEMI Industry Research & Statistics
The SEMI Industry Research and Statistics group provides market data and market research reports to serve customers in device manufacturing, semiconductor processing equipment, components, materials, semiconductor packaging materials, and etc.
Our Mission is to delivering authoritative, accurate, relevant, and unbiased market data to our members, covering the semiconductor and related manufacturing supply chains
For our major reports, we collect actual data from suppliers around the world following strict professional standards of confidentiality. Our reports provide trends, forecast, and outlook to help the industry make important investment, strategic, and business planning decisions.
For additional information regarding our products and SEMI data collection program, please visit us at or contact us at

7. Invitation to You: SEMI Data Collection Programs
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Tell us what data is required; and then assist us to identify key participants to contribute to the data set.
SEMI has the process and infrastructure to collect credible and timely data to support your needs.
Contact: Dan Tracy at or
Lara Chamness at or

8. SEMI Market Data Reports and Databases
Fab Forecast
Semiconductor, MEMS & Sensors, LED, Power Devices
SEMI FabView New Update
World Fab Forecast Feb 18
World Fab Watch Feb 18
Global 200mm Fab Outlook to 2021
Opto/LED Fab Forecast
Opto/LED Fab Watch
Customized Fab Reports
Worldwide OSAT Manufacturing Sites Database
Global Semiconductor Packaging Materials Outlook Coming soon!
China Semiconductor Packaging Market Outlook Coming soon!
Device Packaging and Testing Market
Material Market
Semiconductor Materials
Material Market Data Subscription Update
Photomask Characterization Report
Silicon Reclaim Wafer Characterization
Mass Flow Controllers Report
Equipment & Component Market
Equipment Market Data Subscription
Semiconductor Equipment Market Statistics (WWSEMS)
New Equipment Forecast
SEMI Secondary Fab Equipment Report Q3, 18
Mass Flow Controller Market Statistics
Globalfoundries
SEMI China IC Industry Outlook 2017 New! - a comprehensive report and database containing in-depth analysis of China’s wide-ranging IC manufacturing ecosystem within the global semiconductor industry.

9. Industry Overview
Industry Overview

10. Semiconductor Industry Outlook 2017 soars past $400 billion
4 years
$300B
13 years
$200B
Strong Growth in Memory
Rising ASPs in 2017
Byte demand growth through 2021
30% DRAM
45% NAND Flash
Growth Drivers
IoT
Complex Nodes
Centralize Processing (Datacenters)
Large-Scale Computing (Hyperscale)
SSD & Flash Arrays
AI & Deep Learning Systems
Automotive
Autonomous Vehicles
Conventional Features (Engine control, navigation, safety)
Consumer, Communication, …
According to Penn, the four “horsemen” of the Apocalypse (painting by Russian artist Viktor Vasnetov) -  are economy, unit demand, capacity and average selling prices (ASPs
Source: SIA/WSTS historical year end reports, WSTS Autumn 2017 Forecast

11. 3 Eras of Demand
Source: VLSI Research, ISS US January 2018

12. 2018 Semiconductor Forecasts
Source: SEMI January 2018
Average = 9.0%
-        

13. Industry Trends and Growth Drivers
Value
Data Centers
Big Digital SoCs
Storage – Solid State Memory
Gateways
Data Collection Hubs
IoT Nodes
Sensors
Actuators
Imagers
Transmitters
Source: Mentor, a Siemens Business, ISS US January 2018
Source: IHS Markit, ISS US January 2018

14. Forecasts: 2018 and Beyond
2018
2019
Source: SEMI January 2018

15. Fabs, Equipment and Materials

16. Fab Capacity by Product Type
Source: SEMI World Fab Forecast, December 2017
In 2000, Logic represented 28% of global fab capacity, followed by Memory, Foundry and Discrete
In 2017, Foundry represented 31% of global fab capacity, followed by Memory, Discrete, and Logic

17. Semiconductor Wafer Fab Migration to Asia-Pacific
Source: SEMI World Fab Forecast, December 2017
In 2000, Asia-Pacific-based companies (excluding Japan) represented less than 30% of the installed semiconductor fab capacity globally. China’s installed fab capacity was just 2%
With strong growth and investments by foundries and memory in Asia-Pacific, these companies now have 60% of the installed capacity base, with a 15% share for China

18. Fab Equipment* Spending by Device Manufacturer
Company
2017
(US$ Billion)
2018
Samsung
18.0
16.9
TSMC
7.2
Intel
5.6
6.7
Micron
4.2
6.5
SK Hynix
5.4
4.9
All Others
16.5
21.0
Total
56.9
63.2
Source: SEMI World Fab Forecast, December 2017
The Top 5 Device manufacturers accounted for 71% of the 2017 fab equipment market
Samsung alone accounted for 32% of the 2017 fab equipment market
The Top 5 Device manufacturers will account for 67% of the 2018 fab equipment market
Samsung alone accounted for 27% of the 2018 fab equipment market
* Includes new, used, and in-house equipment

19. Key Fab Projects – driven by NAND, DRAM and Foundry
Samsung Pyeongtaek P1
SK Hynix M14 3D NAND line
Micron Building 60 (Lehi) and Fab 10X in Singapore
Toshiba/Flash Alliance Fab 2, Fab 6 and new R&D Center
Intel Fab 68 in China
DRAM
Samsung Pyeongtaek P1 and Line 15
Micron Fab 15 (Hiroshima) and Fab 16
SK Hynix M14
Foundry
TSMC Fab 12, Fab 14 and Fab 15
Samsung S2 and S3
GLOBALFOUNDRIES Fab 1, Fab 8 and Fab 11
SMIC Beijing B2 and B3, new Shanghai 300mm fab and Shenzhen 300mm fab
UMC Fab 12A P5 and Xiamen fab
Source: SEMI World Fab Forecast, December 2017

20. Yet, the Growth is likely to Continue
2019/2020
Tsinghua Unigroup
Yangtze Memory Technology
Samsung Xian Phase 2
SK Hynix C3
GlobalFoundries
SMIC Beijing B3 and new Shanghai fab
Hefei Chang Xin Memory
Samsung
Samsung
China
Key Spending Projects
2017
Intel Fab 68 - upgrade to 3D NAND
SK Hynix C2
UMC Fab 12X
SMIC B2
2018
Intel Fab 68 Phase 2
TSMC Nanjing Phase 1
Hua Li Fab 2
Fujian Jin Hua - DRAM
2019/2020
Tsinghua Unigroup (Nanjing) and Yangtze Memory Technology (Wuhan)
Samsung Xian phase 2
SK Hynix C3
GlobalFoundries Chengdu
SMIC Beijing B3 and new Shanghai fab
Hefei Chang Xin Memory

21. SEMI® Year-End 2017 Equipment Forecast- By Market Region
Previous spending high
was in $48B in 2000
Korea- record spending year for any region
Previous spending highs:
$12.9B N. America (2000)
$12.2B Taiwan (2016)
China will claim the second spot this year as it accelerates is equipment investments
Source: SEMI/SEAJ, SEMI EMDS
New equipment, includes Fab, Test, and Assembly & Packaging. Totals may not add due to rounding

22. Wafer Fab Equipment Segments- Etch Equipment Share Surges in Era of 3D NAND and sub-20nm Technology
Device
Total
Etch Steps
Logic 40nm 35
Logic 28nm 50
Logic 10nm
>110
Logic 7nm
>140
2D Flash
3D Flash
DRAM 19nm 55
Source: SEMI ISS, G Yin AMEC, January 2017
Source: SEMI/SEAJ, SEMI EMDS

23. Total Equipment Revenue vs. Total Material Revenue Trends
“Irrational
Exuberance”
300 mm ramp
200 mm ramp
Source: Equipment: SEMI/SEAJ, SEMI EMDS
Materials: Rose and Associates , SEMI, MMDS January 2018

24. Wafer Fab Materials

25. Semiconductor Fab Materials Markets- 14% Revenue Growth in 2017; 7% Growth Forecasted for 2018
Region
2017F
$US B
2018F
China
$2.74
$3.02
Europe
2.79
2.89
Japan
4.55
4.91
South Korea
5.54
5.87
North America
4.68
5.00
SEA/ROW
1.54
1.63
Taiwan
6.37
6.98
Total
$28.2
$30.3
Totals may not add due to rounding
Source: SEMI, MMDS January 2017

26. Composition of Wafer Fabrication Materials Over Time
Source: SEMI, MMDS November 2017
*Other includes low k dielectrics, copper plating solutions, dielectric precursors, organometallic precursors, other substrates, etc

27. Silicon Wafer Market- Recovery in Aggregated Average Selling Price
Record revenues!
Record shipments
Peak revenues back in 2007
Several year period of declining ASPs while shipments increased
2017 rebound in ASPs to propel +17% revenue growth
Declining ASPs
Source: SEMI, MMDS November 2017

28. Merchant Silicon Suppliers
Year
1990s
2000s
Today
Suppliers
UniSil Corp.
Sumitomo Sitix (1993); OTC acquired Kyushu Electronic Metal (1992)
Topsil (1950s) acquired CeMat (1992)
MEMC (1989); Monsanto Electric Matl’s (1959), Dynamit Nobel (1961), Kawatec (1994)
Mitsubishi (1991) formerly Japan Silicon Co. (1959) that acquired Siltec (1986)
Komatsu (1960)
Shin-Etsu Handotai (1967) acquired Hitachi (1999)
Toshiba Ceramics* (1968)
Wacker Siltronic**(1968)
Nippon Steel (1984)
Showa Denko (1986), exited 1998
Sino-American Silicon (1981)
Lucky Advanced Materials (1987) changed name to Siltron*** (1991), acquired Kosil (1990) and Dongyang Electronic and Communications (1995)
Okmetic (1985) acquired Crysteco (1999)
Helitek (1986) merged with WaferWorks (1997)
MEMC Southwest (1995): JV between MEMC & TI
Shin-Etsu Handotai
Sumitomo Corp (2005); acquired Mitsubishi (2002) and Komatsu (2008)
Covalent*(2007)
Siltronic**(2004) acquired Nippon Steel (2003)
Topsil
Okmetic
WaferWorks
LG Siltron*** (2011)
MEMC****
Sino-American Silicon*****
Shanghai Technology Co. (2001)/Simgui (2009)
MEMC Southwest: exited (2001)
UniSil Corp.: exited (2001)
Siltronic
SUMCO
SK Siltron*** (2017)
Global Wafers (2011)***** acquired Covalent (2012), Topsil (2016) & SunEdison**** (2016)
Simgui (NSIG 31%)
Okmetic (NSIG 85%)
Zing Semiconductor (2014)
Small Domestic Chinese Suppliers:
JRH
Gritek
GuoSheng
Zhonghuan.
Total
25 -> 15
15 ->11 9
In the 1990’s: 7 acquisitions, 2 new suppliers, 1 supplier exited. Many merchant suppliers (TI, IBM, Motorola, Siemens, AT&T, etc.)
In the 2000s: 3 acquisitions 1 new supplier, 2 suppliers exited
In the 2010’s: 3 acquisitions, 1 new supplier
Source: MEMC 2008, revised by SEMI 2018
(year established)
(year acquired or name change)
green-field entrant

29. Global Silicon Wafer Diameter Trends
2017 Growth Rates:
200 mm +15%
300 mm +7%
Source: Rose Associates 1978 to 1995; SEMI SMG 1995 to 2017; MMDS November 2017

30. Packaging Materials

31. Packaging Trends and Transitions
Wire bond is not dead….but industry evolving to increased packaging and assembly at the wafer level
Memory industry at an inflection point in interconnect technology
Leadframe to organic substrate packages
WB to FC
FO-WLP is a disruptive technology
Traditional model:
Wafer is processed in fab
Wafer sent to assembly facility for singulation, assembly, and test
New model:
Some wafers stay at the foundry for packaging and assembly
Some OSATs install wafer processing (“like”) equipment to create package on the wafer
Image Source: TechSearch International
© 2018 TechSearch International, Inc.

32. Emergence of Outsource Packaging
Today:
>50+% of packaging revenues
Leading new packaging development…Cu pillar,
FO-WLP, SiP, and more…
2005:
~40% of packaging revenues
Fabless companies grow; IDMs shift to outsourcing
Foundries Compete with OSATs
for Advanced Packaging $
Image Source: ASE
1995:
~18% of packaging revenues
Emergence of leading Taiwanese and
Korean OSAT companies
1985:
~5% of packaging revenues
Manufacturing focus in the Philippines
PDIP & Transistors
Image Source: Siliconware
Source: Gartner and SEMI

33. Packaging and Assembly Trends
SiP remains a hot topic
Drivers remain the same…miniaturization #1
Heterogeneous integration drives this into high- performance applications
Silicon interposer finally moved into volume production (but small volumes)
FPGA with homogeneous and heterogeneous solution
GPU + stacked memory
Network systems
Artificial intelligence
Still waiting for the big TSV market, but we have production volume
DRAM with TSVs for servers
HMC
HBM
Image Source: Xilinx
Image Source: SK Hynix
© 2018 TechSearch International, Inc.

34. Trends Driving Heterogeneous Integration
As the industry moves to the next silicon nodes (10nm, 7nm, etc.) new packaging solutions are need to achieve the economic advantages that were previously met with silicon scaling
Heterogeneous integration is considered the answer and is taking various forms:
Silicon interposers
Alternatives such as Intel’s EMIB or Fan-out on Substrate
Future organic interposers
Requires collaboration across the entire supply chain
© 2018 TechSearch International, Inc.

35. Growing Number of FO-WLP Applications
Audio CODEC (4.25mm x 3.9 mm)
Baseband processors
Application processors
RF transceivers, switches, etc.
Power management integrated circuits (PMIC)
Audio CODECs
Connectivity modules
Radar modules (77GHz) for automotive
Microcontrollers
Sensors
Logic + memory for data centers and cloud servers
Image Source: TechInsights.
IoT Module
Source: Nepes
© 2018 TechSearch International, Inc.

36. Semiconductor Packaging Materials Markets 4% Revenue Growth in 2017; 2% Growth Forecasted for 2018
Region
2017F
$US B
2018F
China
$5.11
$5.30
N. America/Europe
1.21
1.23
Japan
2.53
2.57
South Korea
2.26
2.35
SEA/ROW
4.45
4.50
Taiwan
4.24
4.29
Total
$19.8
$20.2
Totals may not add due to rounding
Source: SEMI Materials Market Data Subscription, January 2018

37. Summary The Data Centric Era is upon us
Fabs have evolved with the market
Emergence of Foundry and Memory dominance
Shift to Asia Pacific
2017 Record Year for device and fab and equipment spending
Semiconductors > 20%
Equipment > 30%
Total Materials 10%
2018 is expected to be strong as well
Semiconductor forecasts average 9%
Equipment forecast 7.5%
Total Materials forecast 5%
Significant packaging transitions underway as function of mobility, connectivity, and performance

38. Q&A

39. Thank You for Joining Us
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9 segments for wafer fab related materials
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46. Global Customer Service at
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120+ companies list
280+ facilities in total
90+ facilities offering leadframe CSP
45+ facilities offering WLCSP technology
20+ bumping facilities, including 17 with 300mm wafer capacity
80 facilities in China, 78 in Taiwan, 37 in Southeast Asia

47. Global Customer Service at
Connect to the Trends in 200mm and Grow Your Business
Global 200mm capacity is growing and approaching levels close to those last seen in 2007, driven by demand for mobile, Internet of Things (IoT) devices, sensors, MEMS, analog devices, power semiconductors, and other applications suited for 200mm production.
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