Marcel Van Der Stroom’s Post

In addition to the innovation potential in this segment of the semiconductor industry—traditionally considered the lower end, thus not much potential to attract talent and innovation—the strategic importance lies in the fact that it is the final stage of the production chain. Whoever controls this stage, and thus overseeing the distribution of final products, will determine who gets the chips, especially in a crisis situation.

"China’s wafer fabs are currently self-sufficient in 22/28nm and older process technologies (given the available equipment tools). In the future, through government policies and subsidies, coupled with the support of China’s huge domestic demand market, it is expected that China will have a mature process market in 2030 (≥ 22nm) and will reach nearly 40% share (30% in 2023). China’s influence on the global semiconductor production capacity will also increase as it puts pressure on International Device Manufacturers (IDMs) and foundries focusing on mature nodes" #semiconductorindustry #china https://lnkd.in/egZn3e26

Part 1: The Hidden Giants of the Semiconductor Industry: OSATs in a Changing Market   Published in 2023, Edward Choi’s book on Outsourced Semiconductor Assembly and Test (OSAT) describes the challenges, competitive landscape, and evolutionary history of these hidden giants that drive much of today’s technological innovation.   The OSAT’s Role in the Semiconductor Market   The global semiconductor market, currently valued at around $600 billion, does not include two major sectors: the foundry market, which stands at nearly $130 billion, and the OSAT market, valued at $50 billion in 2022. OSATs are integral to the semiconductor value chain, specializing in assembly, packaging, and testing of semiconductor chips. While foundries manufacture the chips, OSATs ensure those chips are functional and durable, ready for the integration into electronic devices.   OSATs: The Key to Surviving in a Cyclical Market   Similar to foundries, OSATs must scale to survive in the highly competitive and cyclical semiconductor market. Their long-term success hinges on their ability to handle high-end semiconductors and develop proprietary advanced packaging technologies that can compete with IDMs (Integrated Device Manufacturers). Leading names like ASE (Taiwan), Amkor (USA), JCET (China), and SPIL (Taiwan) have mastered these skills. During an upturn in the semiconductor cycle, having sufficient inventory allows OSATs to quickly fulfill rising demand. However, during a downturn—like in 2022 following the COVID-19 pandemic—large inventory stocks become burdensome, leading to financial strain. Such downturns are often felt late by OSATs due to the inertia of production and demand.   Taiwan: The Global OSAT Powerhouse   According to Choi, a major factor in Taiwan’s dominance is the strong relationship between fabless companies (which design chips but don’t manufacture them) and local foundries, like TSMC, as well as OSATs. Companies such as ASE and SPIL form close alliances with Taiwanese foundries, facilitating a horizontal partnership that enables both foundries and OSATs to serve the same customers. These Taiwanese giants also diversify their portfolios by offering both, high-end and low-end products, helping to mitigate risks. Taiwanese OSATs cater to global customers and have developed their own advanced packaging technologies, allowing them to compete directly with IDMs. #semiconductor #FutureTech #OSAT #AdvancedPackaging

A huge win for Finland! 😍 Chips Joint Undertaking (#ChipsJU) funded by the European Union recently announced the selected semiconductor pilot line proposals! Negotiations has already begun with the four top-tier consortia in Belgium, France, Germany and Italy. We are proud to announce that #Finland is onboard as one of the main partners in the first 4 selected #ChipsJU pilot lines! Kudos to the Tampere University, Finland for securing a funding of 40 million euros to build a System-in-Package Fabrication (#SiPFAB) pilot line for semiconductor chip packaging in Tampere, Finland. 👏 ✅ Their target is to use this innovative #SiPFAB pilot line to do testing on Wideband-gap (#WBG) semiconductor technologies and as well as to build complete systems by integrating and packaging various chips.  ✅ This unleashes an enormous number of opportunities for SMEs in relevant fields to collaborate, negotiate and grow their businesses in the coming years!  All in all, this is a huge milestone for the European Union on their way to ensuring self-sufficiency and technological leadership in designing a semiconductor ecosystem! Read more on this exciting news by following the below link! https://lnkd.in/dpEX2C3K

BIIC Weekly Key EMS News Sharing / 8th July 1. The production capacity of the two HBM giants is sold out until 2025, and the increase in HBM4 is only because the sponsor is not short of money 2. The 9-year grudge is finally resolved! North Microsystems and Avago have reached a comprehensive settlement. On the morning of July 3, North Microsystems issued a statement saying that North (Tianjin) Microsystems Co., Ltd. and Avago Technologies Co., Ltd. (Avago, which has merged with Broadcom) have reached a settlement on all disputes between the two parties. 3. Changxin obtained 130,000 square meters of industrial land in Pudong and invested 17.1 billion to build a packaging plant. It is estimated to be put into production in mid-2026. 4. After 8 consecutive months of soaring, South Korea's chip exports in June increased by more than 50% year-on-year. South Korea is gradually achieving record export data. 5. WIPO said that China's generative AI patent applications are ranked first in the world! It is six times that of the United States. 6. ON Semiconductor officially announced the completion of the acquisition of SWIR Vision Systems. July 4th news: Automotive chip giant ON Semiconductor has recently completed the acquisition of SWIR Vision Systems, a leading provider of short-wave infrared (SWIR) technology (based on colloidal quantum dots)... 7. The US manufacturing PMI is released, shrinking 19 times in 20 months. 8. South Korean chipmakers Samsung Electronics and SK Hynix are seeking to dominate the "compound power semiconductor" market currently dominated by Europe, the United States and Japan. #ic #ems #semiconductor BIIC ELECTRONICS

Reshaping Global ICT Industry-under US-China Trade War. Last Friday, there was a seminar co-organized by Harvard University and Tsinghua University. I gave a one-hour speech on "Reshaping Global ICT Industry-under US-China Trade War." The focus was of course Taiwan's role in the US-China Trade War. From the perspective of the Asia-Pacific ICT industry supply chain, everyone is also very concerned about the current status and future of China's semiconductor industry. European and American consulting companies estimate that the global semiconductor market will be approximately US$620 billion in 2024. This US$620 billion will come from the contribution of IC design companies and major IDM manufacturers. I propose that covering the wafer foundry, packaging and testing, EDA and material equipment industries combined, 2024 will be the first year that the scale of the semiconductor industry exceeds 1 trillion US dollars. Regarding the development of semiconductors in China and Taiwan, I will share my views later.

China's #Semiconductor Industry Set for Significant Growth China's semiconductor sector is poised for a 40% increase in production capacity over the next five years, fueled by heavy investments in equipment and #fabrication facilities. TechInsights reports that silicon capacity will rise from 310 million square inches in 2018 to 875 million by 2029, with wafer fabrication spending climbing from USD 11 billion to nearly USD 30 billion. This expansion is expected to significantly impact the global semiconductor market, influencing pricing and trade dynamics as China's increased capacity enters the market. Source: https://lnkd.in/eRRHVSYU

KIKUYO, Japan—It was a signature feat for the country that made industrial policy famous. In less than two years, an $8.6 billion semiconductor factory on a plot the size of 40 football fields sprang up amid the cabbage fields here. The Japanese government, eager to boost the country’s standing as a chip-making hub, provided more than $3 billion in subsidies for Taiwan Semiconductor Manufacturing and helped round up thousands of workers to construct the buildings. The plant, operated by TSMC subsidiary Japan Advanced Semiconductor Manufacturing, is set to start mass production this year on schedule. Across the Pacific in Phoenix, TSMC is also building a semiconductor plant—but there are some differences. The Biden administration hasn’t committed to giving the company money. TSMC encountered resistance bringing in the Taiwanese specialists that the company said it needed to build the plant. And the company has backtracked from its original schedule, planning to open its first plant in 2025 instead of this year, while pushing back a second plant at least a year to 2027 or later. The two projects aren’t identical: The U.S. plant is bigger and slated to make more advanced chips. TSMC has said it doesn’t believe the U.S. and Japan projects should be compared because of differences in setup and scope. Still, the diverging timelines point to the experience and funding gap between the U.S. and Japan when it comes to the government directing high-tech investment. The U.S. is laying down more conditions that can slow down the process, say people involved in the projects. “I think there’s something of a culture of speed in Asia,” said Tokyo Electron CEO Toshiki Kawai, whose company supplies chip-making equipment to TSMC.

The CHIPS Act could expand to restrict certain manufacturing gear from China and similar nations, aiming to bolster US semiconductor production. While this supports the US industrial base, manufacturers may face short-term challenges with increased material costs. It's a critical step toward enhancing production capacity, but preparation is key. Stay informed on how this legislation shapes the future of semiconductor manufacturing! #CHIPSAct #Manufacturing #SupplyChainSecurity

Exciting update: A new Market Intelligence Report from the New Zealand Ministry of Foreign Affairs & Trade sheds light on the importance of Semiconductor chips in electronic goods. While our Incorporation may not be directly involved in this sector, our collaboration with Scion, Forest Research in Rotorua highlights our dedication to pioneering Science, Technology, and Innovation. These reports are instrumental in expanding our knowledge of global advancements in the Tech and Innovation landscape. #MarketIntelligence #SemiconductorChips #Technology #Innovation #GlobalAdvancements | Peter Gluckman | Stefan Korn | Callaghan Innovation | Ministry of Business, Innovation and Employment | New Zealand Ministry of Foreign Affairs & Trade | Radio Waatea News | Paul Te Poa Karoro Morgan CNZM, QSO, CFInstD