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Here are my takes on the Capex issues:

Revenue: SGD
FY2013 = 120 million
FY2012 = 113 million
FY2011 = 114 million
FY2010 = 129 million

Purchase of PPE : (Capex)
FY2013 = 1.994 million = 0.093 million (capital work in progress) + 1.901 million (plant & equipment) = 1.7% of Revenue.
FY2012 = 1.747 million = 0.432 million (capital work in progress) + 1.315 million (plant & equipment) =1.5% of Revenue
FY2011 = 7.481 million = 1.022 million (property) + 6.459 million (plant & equipment) = 6.6% of Revenue
FY2010 = 7.621 million = 2.105 million (property) + 2.339 million (plant & equipment) + 2.977 million (Payment for the year for prior year acquisitions) = 5.9% of Revenue)

Upkeep of machinery (under other expenses) : (maintenance capex)
FY2013 = 1.981 million (=1.7% of Revenue)
FY2012 = 1.438 million (=1.3% of revenue)
FY2011 = 1.188 million (=1.0% of revenue)
FY2010 = 1.294 million (= 1.0% of revenue)

Comments:
1) Utilization rate of UMS manufacturing facility currently at 60% to 70%,hence, I guess no capex for facility expansion (purchase of property) would be needed until utilization rate hits 90% to 100%
2) Purchase of plant & equipment over the the last 4 years totalling SGD 12.014 million or on average of SGD 3.0 million per year.
3) In addition to the purchase of PPE (Capex), UMS did spend SGD 1.0 plus million per year for the upkeep of its machinery (which could be considered as maintenance capex)
4) In short, unless utilization rate of manufacturing facility hits 90% to 100%, it would be reasonable to assume that big ticket item capex expenditure requirement, on top of maintenance capex under other expenses, would be confined to the purchase of plant and equipment - averaging SGD 3.0 million per annum over the last 4 years.
5) The amount spent on upkeep of machinery (maintenance capex) + capex on plant and equipment look normal and reasonable to me. It doesn't appear that UMS has 'under-spent" in these respects.
6) If utilization rate hits 90%, addtional capex on plant & equipment would be needed (may be a few millions), but I guess the incremental FCF generated (from increase of utilization rate from 60%/70% to 90%) would be more than sufficient to cover that requirement - and may even be enough to cover additional capex on new facilities as well.

(vested)

Both AMAT and TEL are PQS of Intel. Interestingly, Lam Research (which I would rank as AMAT's no:1 competitor) is not on the list.
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Intel Honors 18 Companies with Preferred Quality Supplier and Achievement Awards

Posted by IntelPR in Intel Newsroom on 2014-4-10 8:00:17

SANTA CLARA, Calif., April 10, 2014 – Intel Corporation today announced that 18 companies will receive the 2013 Intel Preferred Quality Supplier (PQS) award, which recognizes commitment to performance excellence and continuous improvement. These companies achieve PQS status by demonstrating industry-leading commitment across all critical focus areas on which they are measured: quality, cost, availability, technology, customer service, labor and ethics systems, and environmental sustainability.

In addition to the PQS award, Intel recognized one supplier with the Supplier Achievement Award, which is a focused recognition for extraordinary accomplishments in one or more key performance areas. This year's winner was acknowledged for significant contributions to Intel's success by delivering on challenging volume expectations and for demonstrating robust working hours management and extensive monitoring of its own global supply base. The 2013 PQS and Achievement winners will be honored at a ceremony tonight in Santa Clara, Calif.

"Every year, the world appears faster and more complex. It was especially true last year for supply chain as the market dynamics heightened the pressure on our agility, velocity, affordability and innovation," said Jacklyn Sturm, vice president, Technology and Manufacturing Group and general manager of Global Sourcing and Procurement at Intel. "We could not be successful without the Intel's Preferred Quality Supplier Award winners traveling with us, aligning their strategic capabilities and improvement plans to deliver exceptionally strong performance on all fronts, from technology innovations to corporate responsibility. Thank you for your exemplary commitment to your customers."

"Intel is delighted to recognize our Preferred Quality Suppliers for their industry-leading performance in 2013 in the areas of technology, affordability, velocity and sustainability," added Robert Bruck, vice president and general manager of Technology Manufacturing Engineering at Intel. "The close collaboration with these suppliers has been one of the crucial factors in enabling Intel to extend our industry-leading silicon, packaging and test technologies, and in enhancing value and responsiveness to our customers."

The PQS award is part of Intel's Supplier Continuous Quality Improvement (SCQI) program that encourages suppliers to innovate and continually improve. To qualify for PQS status, suppliers must exceed high expectations and uncompromising performance goals while scoring at least 80 percent on an integrated report card that assesses performance throughout the year. Suppliers must also achieve 80 percent or greater on a challenging continuous improvement plan and demonstrate solid quality and business systems. Additional information about the SCQI program is available at www.intel.com/go/quality.

The PQS winners provide Intel with the following products or services:

•Applied Materials*: wafer fab capital equipment, mask capital equipment, fab automation SW and services
•Amkor Technology Inc.*: wafer probe, wafer bump, assembly, final testing
•ASML*: semiconductor lithography equipment
•Daifuku Co. Ltd.*: automated transport and storage of WIP
•Dainippon Screen Mfg. Co. Ltd.*: wafer cleaning and anneal equipment and services for semiconductor manufacturing
•Fujifilm Electronic Materials*: formulated chemicals, developers, precursors, slurries and advanced photoresists
•Hitachi Kokusai Electric Inc.*: deposition and thermal film manufacturing equipment
•KLA-Tencor Corporation*: process control capital equipment and services
•Mitsubishi Gas Chemical Company Inc.*: chemicals for semiconductor device manufacturing
•Nikon Corporation*: semiconductor lithography systems for technology development and high-volume manufacturing
•Shin Etsu Handotai Co. Ltd.*: silicon wafers
•Siliconware Precision Industries Co. Ltd.*: semiconductor assembly and test services
•Siltronic AG*: polished and epitaxial silicon wafers
•Taiyo Yuden Co. Ltd.*: ceramic capacitors, inductors, filters
•Tokyo Electron Limited*: coater developers, dry etch, wet etch, thermal systems and test systems
•Tosoh Quartz Inc.*: quartzware for semiconductor wafer processing equipment
•Tosoh SMD Inc.*: sputtering targets for physical vapor deposition
•Veolia Environnement*: waste management services

The Supplier Achievement Award winner is:

•ModusLink Global Solutions Inc.*: integration and supply chain services for Intel customer products

http://newsroom.intel.com/community/inte...ent-awards

Browsing through AR2013 of AMAT, it is worth noting of the following :

a) Applied’s semiconductor customer base historically has been, and is becoming even more, highly concentrated as a result of economic and industry conditions. In fiscal 2013, three semiconductor manufacturers accounted for approximately 65 percent of Silicon Systems Group net sales and two customers accounted for 40 percent of Applied’s consolidated net sales.

b) AMAT’s Principal Properties (Office, Plant and Warehouse) / (Principal Use) are:
1) Santa Clara, California (Headquarters; Marketing; Manufacturing; Distribution; Research, Development, Engineering; Customer Support )
2) Austin, Texas (Manufacturing)
3) Rehovot, Israel (Manufacturing; Research, Development, Engineering; Customer Support)
4) Singapore (Manufacturing and Customer Support )
5) Gloucester, Massachusetts (Manufacturing; Research, Development, Engineering; Customer Support
6) Tainan, Taiwan (Manufacturing and Customer Support)

c) Products in the Silicon Systems Group are manufactured in Austin, Texas; Singapore; Gloucester, Massachusetts; and Rehovot, Israel.

d) Products in the Display segment are manufactured in Tainan, Taiwan; Santa Clara, California; and Alzenau, Germany.

Comments:
1) 3 key customers (namely Intel, Samsung and TSMC) accounted for 65% of SSG’s net sales in 2013 as compared to 60% in 2012 – concentration risk has certainly increased – but this trend may not continue in 2014 as AMAT has witnessed incremental spending from the non-top three customers.
2) Products in the SSG are manufactured only in 3 countries (USA, Singapore and Israel)
3) But Israel’s focus is on inspection and metrology system + R & D, according to the following link: http://www.investinisrael.gov.il/NR/exer...6B0E21.htm
4) As revenue of UMS is still less than 2% of SSG, it looks like majority of manufacturing work of SSG is still being done in USA.

(vested)

Industrial electronics chip market rebounds, says IHS

Press release; Alex Wolfgram, DIGITIMES [Tuesday 15 April 2014]

Powered by the freshly fueled gears of reviving economies, the global market for semiconductors used in industrial electronics applications overcame a serious fall in 2012 and roared back to life in 2013, boding well for an even more energetic 2014, according to IHS.

The industrial electronics chip market finished 2013 with worldwide takings of US$32.8 billion - up 9% following the perilous 5% plunge suffered by the space only a year earlier. The dive, an unexpected weakening of the market after stellar output, had raised fears and painful memories harkening back three years earlier, when the industry contracted also in the double digits at the height of the global recession.

All that, however, now lies in the past, as the market has rebounded convincingly. Employed in various sectors like medical electronics, factory automation, energy distribution and generation, building and home control, test and measurements, and military and civil aerospace, the industrial electronics chip market is forecast for even more potent growth in 2014, with revenues projected to climb 11% to US$36.4 billion, said IHS.

The next four years will also see continued expansion for the market at robust levels. By 2018, industry revenues will amount to some US$49 billion, the firm added.

Growth was strong in the US, spurred by an improved economic climate as well as optimism generated by recovery in the residential housing space. China, another area of growth, also enjoyed solid broad-based revenue increases in industrial segments such as medical electronics, energy, manufacturing, and building and home control, IHS said.

http://www.digitimes.com/news/a20140415PR201.html

(vested)

Among AMAT's top 3 customers, TSMC, the pure-play-foundry, seems to be doing very well.

TSMC's capex was USD 3.8 billion in 1Q - wondering how much of it was spent on buying tools from AMAT?

(vested)
__________________________________________________________________________________________________________________________________________________
Taiwan's TSMC books eighth straight quarterly profit growth

By Michael Gold

TAIPEI Thu Apr 17, 2014 7:19am BST

(Reuters) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) reported its 8th straight quarter of profit growth, as the world's largest contract chip maker booked wider profit margins following a boost in demand from mobile device manufacturers.

Asia's 10th biggest company by market value has been able to consistently profit thanks to the spread of smartphones and its ability to produce a high degree of defect-free chips compared with rivals such as Intel Corp, Samsung Electronics Co Ltd and GlobalFoundries, industry watchers say.

That helped net profit rise 21 percent to T$47.9 billion ($1.59 billion) in January-March, the company said in a statement on Thursday. That compared with the T$43.2 billion mean estimate of 19 analysts polled by Thomson Reuters.

The company previously reported first-quarter revenue of T$148.22 billion, 11.7 percent more than a year earlier, and 7.3 percent more than forecast in January.

Shares of TSMC have risen about 15 percent since the start of the year versus 2.8 percent in the Taiwan SE Weighted Index. Before the release, they closed 0.8 percent lower compared with a 0.2 percent rise in the benchmark.

TSMC had earlier forecast double-digit profit growth this year as its world-first 20-nanometer chip-making technology begins to supplant the 28-nanometer standard.

The technology allows for increased power and efficiency by packing more transistors onto each chip - which translates into wider profit margins. TSMC began manufacturing with 20-nanometer technology in January-March, though it has yet to book related revenue.

The company promises further efficiency - and wider margins - with larger silicon wafers, which it had previously said it would start manufacturing in the next few years. The more transistors on a chip, and the more chips on a wafer, the greater the cost efficiency. ($1 = 30.1440 Taiwan Dollars)

http://uk.reuters.com/article/2014/04/17...8L20140417

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TSMC posts net profits of nearly NT$48 billion in 1Q14

Steve Shen, DIGITIMES, Taipei [Thursday 17 April 2014]

Taiwan Semiconductor Manufacturing Company (TSMC) has reported net profits of NT$47.87 billion (US$1.59 billion) for the first quarter of 2014, increasing 6.8% from the previous quarter and 21% from a year earlier.

Diluted EPS for the first quarter of 2014 stood at NT$1.85 compared to NT$1.73 a quarter earlier and NT$1.53 a year ago.

First-quarter gross margin reached 47.5%, up 3pp from the previous quarter and 1.7pp from a year earlier. Meanwhile, operating margin and net profit margin for the first quarter stood at 35.4% and 32.3%, respectively, TSMC said.

First-quarter revenues of NT$148.22 billion were up 1.7% on quarter, due to favorable foreign exchange rates and higher blended ASP.

Shipments of 28nm process technology accounted for 34% of total wafer revenues in the first quarter, and 40/45nm process followed with a 21% share. Advanced technologies (40/45nm and below) accounted for 55% of total wafer revenues in the first quarter, up from 51% in the previous quarter.

Meanwhile, revenues from fabless/system customers accounted for 87% of total wafer revenues in the first quarter, TSMC added.

Capital expenditure reached US$3.80 billion in the first quarter. Total production capacity decreased 2.3% sequentially to 1.87 million 12-inch equivalent wafers during the January-March period, primarily due to fewer working days.

On a full year basis, total capacity is expected to increase 10% on year to 8.044 million 12-inch equivalent wafers in 2014, TSMC said.

http://www.digitimes.com/news/a20140417PB200.html

In 2013, TSMC replaced Samsung as AMAT’s No:1 customer.

AMAT’s Top 3 Customers In Terms Of Revenue Contribution (note：these were not revenue of SSG only but consolidated net sales of all divisions)
2010: Samsung (14%), TSMC (11%), Intel (<10%)
2011: Samsung (12%), TSMC (10%), Intel (10%)
2012: Samsung (20%), TSMC (16%), Intel (<10%)
2013: TSMC (27%), Samsung (13%), Intel (<10%)

Meanwhile, the race among AMAT's customers to outperform each other continues - Samsung is teaming up with GF (Globalfoundries) - the No:2 pure-play-foundry, after TSMC.

Interestingly, we have seen the rising adoption of FinFET (3D) transistors - Intel, TSMC, Samsung and now GF have adopted or are adopting the technology.

As transistors decrease in size, FinFET technology provides better circuit performance, power efficiency and processing speed, important features for today’s computing devices.

AMAT claims that the FinFET technology adoption is the most attractive opportunity in foundry spending. It views the use of more advanced materials in FinFET production as an important growth driver.

Will see how well AMAT will do this year - but things are looking good at least for 1H.

(vested)
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Samsung teams with GlobalFoundries on 3D chips

Agam Shah
Apr 17, 2014 3:15 PM

Samsung is partnering with chip manufacturer GlobalFoundries to increase the supply of low-power, high-speed chips for smartphones and tablets.

GlobalFoundries has licensed Samsung’s 14-nanometer FINFET chip making process, which is used to manufacture 3D transistors. Those transistors will allow GlobalFoundries to make chips that are 20 percent faster and use 35 percent less power than chips made using its current 20-nanometer technology, the companies said.

GlobalFoundries doesn’t use the chips itself. It’s a foundry supplier, which means it makes chips for other companies that outsource their chip production, such as Advanced Micro Devices, Nvidia and Qualcomm.

Chip makers are constantly racing to build faster, more power-efficient chips, and the deal with Samsung will help GlobalFoundries compete better with other foundry suppliers such as Taiwan’s TSMC.

In fact, GlobalFoundries had been pursuing its own 14-nanometer technology, which it planned to introduce this year. It has now dropped that technology, apparently deciding that Samsung’s FINFET process is a better option.

Moving to a more advanced process quickly is important to staying competitive. Many of today’s mobile devices use 28-nanometer chips, but Qualcomm recently announced its first 64-bit, 20-nanometer part, a step on the way to 14 nanometer.

Intel, which has some of the most advanced manufacturing plants in the world, is already making 14-nanometer chips. They’ll be introduced this year for PCs. Samsung, GlobalFoundries and others have been accelerating their manufacturing road maps to catch up.

TSMC, which is the world’s largest foundry supplier, will start producing 3D transistors this year using a 16-nanometer process. The number refers to the smallest circuits etched on the surface of the chips.

The deal between Samsung and GlobalFoundries could bring them certain advantages. They’ll be able to promise customers a steady supply of chips, because customers will now be able to order the same type of FINFET products from GlobalFoundries’ factory in Saratoga County, New York, as well as from Samsung’s factories in Korea and in Austin, Texas.

Intel and TSMC each use different 14-nm and FINFET technologies, so their customers don’t have the option to use other companies’ fabs.

GlobalFoundries will start making the 14-nm chips early next year, though they might not reach mobile devices until 2016, since device makers will first need to test and validate the chips in their products. The manufacturing process will be used for a range of graphics and application processors.

FINFET transistors can be used in all kinds of computers, including desktops and servers, but GlobalFoundries cut the deal with Samsung technology mainly to meet the growing demand for smartphone and tablet chips, said Ana Hunter, GlobalFoundries’ vice president of product management.

GlobalFoundries was formed when AMD spun out its chip manufacturing plants a few years ago. AMD is one of GlobalFoundries’ main customers, and last week the two companies extended their chip-making deal.

http://www.pcworld.com/article/2145440/s...chips.html

Communications Systems Forecast to Drive Regional IC Sales

RESEARCH BULLETIN by IC Insights
APRIL 17, 2014

Communications systems are forecast to be the driving force for IC sales in three out of the four major global geographic regions and overtake computer systems to become the largest system application for ICs for the first time in 2014, according to data found in the 2014 edition of IC Insights’ IC Market Drivers, A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits............

http://www.icinsights.com/data/articles/...ts/661.pdf

(vested)

GlobalFoundries ramping up S'pore chip operations
200 & 300mm wafer production lines running in parallel

By raju chellam

Published April 21, 2014

[SINGAPORE] The Singapore arm of GlobalFoundries (GF) - or what was previously Chartered Semiconductor Manufacturing - is ramping up to expand its 300mm silicon wafer production capacity to wring out a third more semicon chips compared to the older 200mm wafers. The facility has purchased about 1,000 leading-edge 300mm chip manufacturing tools from Taiwanese firm ProMOS DRAM fab.

Santa Clara, California- based GF acquired Singapore's flagship chip foundry Chartered Semiconductor for US$3.9 billion in January 2010. "In 2012, GF announced its Vision 2015 plan to expand its 300mm facility at Fab 7 in Singapore to one million wafers per annum," the company's senior vice-president and general manager for Singapore, Ang Kay Chai, told The Business Times.

"We are in the process of upgrading and converting our Fab 6 from 200mm to 300mm clean room. This is being done in phases to ensure we also protect our 200mm customers' business continuity needs. We are running 200mm and 300mm production lines in parallel in Singapore," he said.

GF makes semicon chips for companies that embed them in cellphones, other mobile devices, automobiles, computers and industrial equipment. GF is a wholly-owned subsidiary of ATIC (Advanced Technology Investment Company), the high-tech investment arm of Mubadala, which is the sovereign wealth fund of the government of Abu Dhabi.

ATIC has invested US$15 billion so far to create one of the fastest-growing semicon companies in the world. Early this year, it announced plans to commit an additional US$9 billion to beef up its semicon operations. ATIC was set up in 2008, at the nadir of the semicon industry downturn.

In 2009, for the second time in two consecutive years, the global chip manufacturing industry declined. "Never before has the semiconductor industry experienced revenue declines in back-to-back years, but this will occur in 2009," warned research house Gartner Inc in December 2008.

"Global semicon revenue is forecast to total US$219.2 billion, a 16.3 per cent decline from 2008. In 2008, chip revenues reached US$261.9 billion, down 4.4 per cent from 2007."

In early 2009, ATIC and AMD formed GF as a joint venture. In March 2012, GF acquired the remaining 8.6 per cent stake from AMD. The company's Singapore site hosts five wafer fabrication plants that make 200mm silicon wafers (four in Woodlands and one in Tampines) and one - called Fab 7 - that produces 300mm wafers. The Singapore sites employ about 6,000 staff.

"We are upgrading system infrastructure, including factory automation, in our 200mm fabs," Mr Ang said. "We have deployed a mobile robotics solution; set up a standardised manufacturing data platform, and are rolling out energy efficiency processes."

GF ranks second globally in wafer fab revenues after Taiwan giant TSMC (Taiwan Semiconductor Manufacturing Company) and has overtaken another Taiwanese company, UMC (United Microelectronics Corp).

GF is the only one with manufacturing sites in three continents: Singapore in Asia, Dresden in Europe, and New York in the US. Other players in this space include Samsung Semiconductor, IBM, MagnaChip and Singapore-based SSMC, a joint venture between TSMC and Nasdaq- listed NXP Semiconductors.

Singapore is a key site for GF. "Singapore has more than 25 years of foundry manufacturing excellence and is the largest manufacturing site in our global footprint," Mr Ang said. "Singapore's foundry expertise and broad customer base in the mainstream semicon market are key reasons ATIC acquired Chartered Semiconductor in 2010."

About 27 per cent of ATIC's parent Mubadala's total portfolio of US$55.4 billion has been invested in semiconductors. The rest is spread out among acquisitions in real estate, hospitality, aerospace, healthcare, renewable energy and ICT. The global market for semicon chips was worth US$332 billion in 2013, according to estimates from Gartner.

The United Arab Emirates is Singapore's 14th largest trading partner, with total bilateral trade crossing S$25 billion in 2012. In the Arabian Gulf region, the UAE overtook Saudi Arabia as Singapore's top regional trading partner in 2012.

"Singapore has brand equity in the UAE," Umej Bhatia, Singapore's first resident ambassador to the UAE, told visiting journalists from the Singapore Press Club in Abu Dhabi recently. "Abu Dhabi has chosen Singapore as one of its four models for development, along with Norway, Ireland and New Zealand in its ambitious 2030 plan."

The writer, BT's former BizIT editor, was a member of the recent Singapore Press Club mission to Abu Dhabi and Oman

http://www.businesstimes.com.sg/premium/...s-20140421

(vested)

Still going strong - bookings of at least USD 1.28 billion for each of the first three months of 2014 - much better than 1Q 2013.

4Q 2013 was a good quarter, but 1Q2014 looks even better.
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North American Semiconductor Equipment Industry Posts March 2014 Book-to-Bill Ratio of 1.06

SAN JOSE, Calif. — April 21, 2014 — North America-based manufacturers of semiconductor equipment posted $1.28 billion in orders worldwide in March 2014 (three-month average basis) and a book-to-bill ratio of 1.06, according to the March EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 1.06 means that $106 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in March 2014 was $1.28 billion. The bookings figure is 1.2 percent lower than the final February 2014 level of $1.30 billion, and is 16.1 percent higher than the March 2013 order level of $1.10 billion.

The three-month average of worldwide billings in March 2014 was $1.21 billion. The billings figure is 5.9 percent lower than the final February 2014 level of $1.29 billion, and is 22.3 percent higher than the March 2013 billings level of $991.0 million.

“Bookings levels for North American semiconductor equipment have remained consistent over the last few reports,” said Denny McGuirk, president and CEO of SEMI. "We look to the months ahead for signs of any inflection.”

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

Billings (3-mo. avg)
Bookings (3-mo. avg)
Book-to-Bill

September 2013
1,020.9
992.8
0.97

October 2013
1,071.0
1,124.5
1.05

November 2013
1,113.9
1,238.0
1.11

December 2013
1,349.7
1,380.8
1.02

January 2014
1,233.2
1,280.3 ( 19.0% HIGHER than January 2013 booking of USD 1.08 billion )
1.04

February 2014 (Final)
1,288.3
1,295.4 ( 21.0% HIGHER than February 2013 booking of USD 1.07 billion )
1.01

March 2014 (prelim)
1,212.1
1,280.4 (16% HIGHER than March 2013 booking of USD 1.10 billion)
1.06

http://www.semi.org/en/node/49576?id=highlights

(vested)

SEMIcon Southeast Asia to be Launched in 2015

Regional Exposition to Rotate between Singapore and other Areas in the Region

SINGAPORE — 23 April 2014 —Recognizing the changing dynamics of the microelectronics industry in Southeast Asia, SEMI today announced the expanded scope of its industry-leading SEMIcon regional exposition which will now rotate between Singapore and other locations within Southeast Asia. Building on the twenty-year history of SEMIcon Singapore, the expanded event — branded SEMIcon Southeast Asia — will have its inaugural event in in Penang, Malaysia in 2015. The announcement was made during SEMIcon Singapore 2014 (www.semiconsingapore.org), which is currently being held from 23-25 April at the Marina Bay Sands.

"While Singapore continues to serve as the hub of the microelectronics industry in Southeast Asia, SEMI recognizes the growth and importance of the industry across the region requires a new vision for serving our members and other customers where they do business," said Kai Fai Ng, president of SEMI Southeast Asia. "Through the rotation of SEMIcon Southeast Asia between Singapore, Malaysia, and the region, we will open new business opportunities for our customers and foster stronger pan-regional engagement in our programs and other events serving the industry. On alternating years, we will continue to support the host regions through high-level executive conferences in Singapore and Malaysia."

According to Gartner, the Southeast Asia microelectronics manufacturing market accounts for more than 27 percent of the world’s assembly, packaging, and test production and Malaysia alone represents over 10 percent of the global square footage, followed closely by the Philippines, Thailand and Singapore. According to the SEMI (www.semi.org) World Fab Forecast, Southeast Asia is among the top four regions in terms of growth rate for capacity. In 2014, approximately $800 million of front end fab spending will occur in Southeast Asia.

The new SEMIcon Southeast Asia will continue to focus on the key trends and technologies in semiconductor design and manufacturing, adding emphasis in serving the needs of expanding applications markets in areas including mobile devices and other connected "Internet of Things" (IoT) technologies, many of which require development of specialized materials, packaging, and test technologies, as well as new architectures and processes — technologies addressed by a growing number of companies located across Southeast Asia. SEMI will continue to maintain its regional headquarters in Singapore.

For more information on SEMIcon Singapore 2014, visit: www.semiconsingapore.org. To learn about SEMIcon Southeast Asia 2015 exhibition opportunities, visit www.semiconsea.org.

http://www.semi.org/en/node/49656?id=highlights

(vested)