ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(20-05-2015, 01:16 PM)BlueKelah Wrote: [ -> ]

(20-05-2015, 09:29 AM)CityFarmer Wrote: [ -> ]

(20-05-2015, 12:37 AM)BlueKelah Wrote: [ -> ]or the overheads and labour costs in singapore are just getting to expensive for them so they are pumping as much as they can from SG and then moving over somewhere else like Taiwan or maybe even USA.

by the way, is your customer ST Microelectronics?

One of the possibilities I am thinking of. The "somewhere else", might not necessary be Taiwan, and USA. The nearby Penang is a very good choice, with abundance of talent sources, lower operating cost, and local gov supports

FYI, UMS has started a new plant in Penang, recently.

(vested)

Yes a good place to go would be penang. only state in M'sia run by local chinese. IIRC, DELL set up shop there for asiapac region last time when they came into Asia. Think they still give out tax-free incentives for newcomers.

Not sure if this posted before, article I came by.

Penang to Host Inaugural SEMICON Southeast Asia
Organiser SEMI aims to champion regional collaboration to seize opportunities in this US$ 19 billion (RM66.5 billion) industry over the next two years

KUALA LUMPUR — 25 February 2015 — The inaugural SEMICON Southeast Asia, will run from 22–24 April at the Subterranean Penang International Convention and Exhibition Centre (SPICE) in Penang, Malaysia. The event promises to be larger and more comprehensive than its predecessor SEMICON Singapore, which has been held annually since 1993, with an expanded programme and larger audience base focusing on Southeast Asia communities in the semiconductor and microelectronics sector. The expanded strategy for the new SEMICON Southeast Asia Show — between Singapore, Malaysia and potentially the rest of the regions — will open new business opportunities for customers and foster stronger cross-regional engagement, according to SEMI, the event organiser. SEMICON Southeast Asia will feature a tradeshow exhibition, networking events, market and technology seminars, and conferences.

Penang is a good location because INTEL is there..

However, the INTEL CHIP ROBBERY in 2006 spooked all MNC fabs..
I think...

http://www.computerweekly.com/news/22400...h-millions

Vietnam is backend..

Samsung is building most advanced fabs in Xi An...

So I guess the trend of fab buildings is moving into 3rd tier China Cities...

And my customer is not ST Microelectronics..
It is a WAFERHOUSE... Makes bare wafers..
Only one left in SG...

=)

Good to see the introduction of another innovative product from AMAT with breakthrough technology on the Endura - PVD platform......more sales of Endura systems means more job for UMS..........

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APPLIED MATERIALS' BREAKTHROUGH PATTERNING HARDMASK ENABLES COPPER INTERCONNECT SCALING

New hardmask technology is essential for patterning closely spaced, thin interconnects to 10nm and beyond
Underscores PVD leadership with system now tool of record for multiple device generations at leading chipmakers


SANTA CLARA, Calif., May 19, 2015 - Applied Materials, Inc. today announced its Applied Endura® Cirrus™ HTX PVD* system with breakthrough technology for patterning copper interconnects at 10nm and beyond. As chip features continue to shrink, innovations in hardmask are required to preserve the pattern integrity of tightly packed, tiny interconnect structures. With the introduction of this technology, Applied enables scaling of the TiN* metal hardmask - the industry's material of choice - to meet the patterning needs of copper interconnects in advanced microchips............................................

http://www.appliedmaterials.com/company/...ct-scaling
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APPLIED ENDURA® CIRRUS™ HTX PVD

Revolutionizing physical vapor deposition (PVD) technology for titanium nitride (TiN) thin films, the Endura Cirrus HTX TiN solves hardmask extendibility challenges for next-generation devices. As chip features continue shrinking, innovations in hardmask are crucial for accurately patterning ever more complex, tiny interconnect structures. Leveraging years of expertise in PVD, the new system produces a breakthrough hardmask that ensures pattern fidelity beyond the 10nm node.

As chip designs advance, features are becoming progressively smaller with higher aspect ratios and are being packed more densely in creating advanced integrated circuits. Consequently, the robustness of materials used to define the patterns etched and metallized to create the circuitry (or interconnects) is vitally important in preserving the integrity of those patterns. The slightest flaw can make it impossible to properly metallize the device, rendering it unreliable or non-functional....................

http://www.appliedmaterials.com/products...us-htx-pvd

The figures are looking good...................
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North American Semiconductor Equipment Industry Posts April 2015 Book-to-Bill Ratio of 1.04

SAN JOSE, Calif. — May 21, 2015 — North America-based manufacturers of semiconductor equipment posted $1.57 billion in orders worldwide in April 2015 (three-month average basis) and a book-to-bill ratio of 1.04, according to the April EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 1.04 means that $104 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in April 2015 was $1.57 billion. The bookings figure is 12.9 percent higher than the final March 2015 level of $1.39 billion, and is 9.0 percent higher than the April 2014 order level of $1.44 billion.

The three-month average of worldwide billings in April 2015 was $1.51 billion. The billings figure is 19.3 percent higher than the final March 2015 level of $1.27 billion, and is 7.6 percent higher than the April 2014 billings level of $1.40 billion.

“Both bookings and billings trends have improved, with the ratio remaining above parity over the past four months," said Denny McGuirk, president and CEO of SEMI. “Orders are higher than last year’s numbers, and current spending is on target with 2015 capex plans.”

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars.

http://www.semi.org/en/node/56161?id=highlights

(Vested)

The top 3 positions are still being held by AMAT's top 3 customers - TSMC, Samsung and Intel.

For foundries, it is interesting to note that sales revenue of UMC is pretty close to that of GlobalFoundries - but still lagging far behind TSMC.

(vested)
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Six Top 20 1Q15 Semiconductor Suppliers Show >20% Growth

SK Hynix moves into top 5, MediaTek climbs into top 10, and Sharp and UMC move into the top 20 ranking.

http://www.icinsights.com/data/articles/...ts/786.pdf

TSMC to build 10nm pilot line in June, says report

Jessie Shen, DIGITIMES, Taipei [Tuesday 26 May 2015]
Taiwan Semiconductor Manufacturing Company (TSMC) is scheduled to establish a 10nm pilot line at its 12-inch wafer plant in Hsinchu (Fab 12), northern Taiwan, in June, according to a recent Economic Daily News (EDN) report.

TSMC with its 10nm FinFET node is eyeing orders for Apple's A10 SoC chips, but Samsung Electronics will also be involved in the race for orders, the report said.

Samsung recently announced that the company will enter mass production of chips using its 10nm FinFET process by the end of 2016, about the same time as TSMC.

TSMC chairman Morris Chang was quoted in previous reports that TSMC will break ground for a new fab at its 12-inch wafer plant in central Taiwan (Fab 15) in June 2015. The fab is designed to manufacture chips using 10nm process technology, with volume production scheduled for mid-2016.

http://www.digitimes.com/news/a20150526PB203.html
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Global Smartphone Growth Expected to Slow to 11.3% in 2015 as Market Penetration Increases in Top Markets, According to IDC

26 May 2015
FRAMINGHAM, Mass. May 26, 2015 – According to a new mobile phone forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone shipments are expected to grow 11.3% in 2015, which is down from 27.6% in 2014. This is on par with IDC's previous smartphone forecast of 11.8% growth in 2015. While overall smartphone growth will continue to slow, many markets will experience robust growth in 2015 and beyond, and worldwide shipment volumes are forecast to reach 1.9 billion units annually by 2019..........

https://www.idc.com/getdoc.jsp?containerId=prUS25641615

Rivalry for superiority in the 10 nm node intensified among AMAT's top 3 customers ...........
_______________________________________________________________________________________________________________________________
TSMC to beat Samsung in 10nm race

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Wednesday 27 May 2015]

TSMC is confident that the company will beat Samsung Electronics in ramping up production on its 10nm lines, according to the Taiwan-based foundry.

TSMC continued that in the 10nm FinFET race, Intel will be its major competitor.

Samsung disclosed during a recent technology forum in the US that the company plans to enter mass production of chips using its 10nm FinFET process by the end of 2016, about the same time as TSMC.

Intel might release its first chips made using 10nm process technology as early as in the middle of 2016, according to various tech media outlets.

TSMC is scheduled to hold its Taiwan Technology Symposium 2015 on May 28. At the upcoming event, the foundry is expected to talk about the progress and development of its FinFET manufacturing nodes.

TSMC chairman Morris Chang remarked earlier in 2015 that TSMC expects to gain a majority of market share in the FinFET segment in 2016.

http://www.digitimes.com/news/a20150527PD214.html

It seems to me that the major incentive for these companies (AMAT included) to be based in Singapore is tax benefits - wondering how long AMAT gets to enjoy this benefit for having its manufacturing hub here? Ha-ha!

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S'pore-based firm buying US chipmaker

Marissa Lee

The Straits TimesSunday, May 31, 2015

Singapore-based Avago Technologies is buying rival American chipmaker Broadcom for US$37 billion (S$50 billion), in what could be the largest- ever merger in the semiconductor business.

The combined company, to be named Broadcom Limited, will be worth US$77 billion and based in Singapore.

With an expected annual revenue of US$15 billion, it will be the world's third-largest chipmaker by revenue after Intel and Qualcomm, said Avago president and chief executive Tan Hock Eang in a conference call late on Wednesday night.

The deal is expected to be closed in the first quarter next year and is the last in a string of acquisitions mounted by Mr Tan to grow Avago's offerings.

In 2013, Avago roughly doubled in size after its US$6.6 billion purchase of LSI Corp, which gave it a stronger foothold in the corporate data storage market.

Broadcom is the biggest maker of Wi-Fi chips for mobile devices and a leader in delivering broadband and video services, with a revenue that was double that of Avago's last year.

Mr Tan, who will helm the new Broadcom post- merger, plans to build a diversified communication semiconductor business in wired and wireless end markets. "There is very little if any overlap in products of the two companies. We are both fairly substantial companies in the semiconductor space, but the overlap is zero - even though we may serve common strategic customers."

Among these common customers are Intel, Samsung, Hewlett-Packard, Huawei and Cisco.

Avago will pay Broadcom shareholders US$17 billion in cash and about US$20 billion of its shares, resulting in Broadcom shareholders owning about 32 per cent of the combined company, it said in a statement.

Avago will fund the US$17 billion cash consideration with US$8 billion in cash on hand from the combined companies and US$9 billion in new, fully committed debt financing from a consortium of banks.

Avago was listed on Nasdaq in 2009, following a buyout from Agilent Technologies, the semiconductor arm of Hewlett-Packard. It has headquarters in San Jose, California, and Yishun in Singapore.

Avago enjoys tax benefits from the Economic Development Board for maintaining certain operations here, including a corporate headquarters function and specified intellectual property activities, according to its annual report.

Mr Tan, who is a Penang-born American citizen, is based mainly in the United States. But Avago has about 970 employees here, for functions such as wafer fabrication, research and development, and sales and marketing.

Broadcom also has a presence in Singapore, though it moved some of its activities to Ireland last year following the termination of tax incentives that it enjoyed here.

http://business.asiaone.com/news/spore-b...-chipmaker

Global Semiconductor Sales Increase in April; Steady Growth Projected for Next Three Years

INDUSTRY FORECAST PROJECTS GROWTH OF 3.4 PERCENT IN 2015, 3.4 PERCENT IN 2016, AND 3.0 PERCENT IN 2017

Published Tuesday, June 2, 2015 4:00 pm

by Dan Rosso

WASHINGTON—June 2, 2015—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced worldwide sales of semiconductors reached $27.6 billion for the month of April 2015, 4.8 percent higher than the April 2014 total of $26.3 billion and 0.4 percent lower than last month’s total of $27.7 billion. The Americas market posted double-digit growth compared to last year, leading all regions. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. Additionally, a new WSTS industry forecast projects steady market growth for the next three years.

“Year-to-year semiconductor sales increased for the 24th straight month in April, thanks largely to continued growth in the Americas and Asia Pacific regional markets,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The global industry has posted higher sales through April than at the same point in 2014, and we expect continued growth for the rest of 2015 and beyond.”

Regionally, year-to-year sales increased in the Americas (12.2 percent), China (9.9 percent), and Asia Pacific/All Other (5.2 percent), while sales decreased compared with last year in Europe (-5.6 percent) and Japan (-10.7 percent). Compared with last month, sales were up in the Asia Pacific/All Other (2.3 percent) category, but down in Japan (-0.2 percent), China (-0.7 percent), Europe (-2.3 percent), and the Americas (-3.4 percent).

Additionally, SIA today endorsed the WSTS Spring 2015 global semiconductor sales forecast, which projects the industry’s worldwide sales will reach $347.2 billion in 2015, a 3.4 percent increase from the 2014 sales total. WSTS projects year-to-year increases for 2015 in Asia Pacific (7.0 percent) and the Americas (3.7 percent), with decreases projected for Europe (-3.6 percent) and Japan (-9.5 percent).

Beyond 2015, the industry is expected to grow at a modest pace across all regions. WSTS forecasts 3.4 percent growth globally for 2016 ($358.9 billion in total sales) and 3.0 percent growth for 2017 ($369.6 billion). WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends.
http://www.semiconductors.org/news/2015/...ree_years/

April 2015 chart and graph
http://www.semiconductors.org/clientuplo...elease.pdf

WSTS Spring Forecast Summary
http://www.semiconductors.org/clientuplo...ummary.pdf

The disclosure on AMAT paring down its stake in UMS was first made exactly one year ago today.

Well, I guess it is worth noting that one year later, it remains “business as usual” as far as UMS is concerned.

Fab Equipment Growth Continues into 2015

SAN JOSE, Calif. — June 4, 2015 — SEMI today announced the update of its World Fab Forecast report for 2015 and 2016. The report projects that semiconductor fab equipment spending (new, used, for Front End facilities) is expected to increase 11 percent (US$38.7 billion) in 2015 and another 5 percent ($40.7 billion) in 2016. Since February 2015, SEMI has made 282 updates to its detailed World Fab Forecast report, which tracks fab spending for construction and equipment, as well as capacity changes, and technology nodes transitions and product type changes by fab.

Capital expenditure (capex without fabless and backend) by device manufacturers is forecast to increase almost 6 percent in 2015 and over 2 percent in 2016. Fab equipment spending is forecast to depart from the typical historic trend over the past 15 years of two years of spending growth followed by one of decline. For the first time, equipment spending could grow every year for three years in a row: 2014, 2015, and 2016

The SEMI World Fab Forecast Report, a “bottoms up” company-by-company and fab-by-fab approach, lists over 48 facilities making DRAM products and 32 facilities making NAND products. The report also monitors 36 construction projects with investments totaling over $5.6 billion in 2015 and 20 construction projects with investments of over $7.5 billion in 2016.

According to the SEMI report, fab equipment spending in 2015 will be driven by Memory and Foundry ─ with Taiwan and Korea projected to become the largest markets for fab equipment at $10.6 billion and $9.3 billion, respectively. The market in the Americas is forecast to reach $6.1 billion, with Japan and China following at $4.5 and $4.4 billion, respectively. Europe/Mideast is predicted to invest $2.6 billion. The fab equipment market in South East Asia is expected to total $1.2 billion in 2015.............................

http://www.semi.org/en/node/56386?id=highlights