Insights From Leading Edge

IFTLE 371 Semi ISS: Market Opportunities and Drivers

By Dr. Phil Garrou, Contributing Editor

Let’s take a look at some of the presentations given at the Semi ISS (Industry Strategy Symp) conference in January at Half Moon Bay.

VLSI Research

Lati of VLSI Research discussed “Market Opportunities in the Coming Technology Disruptions”

Six companies are now responsible for > 70% of Capex spending. Memory Capex hit $45B in 2017, more than 50% of total spending.

Fig 1 VLSI Res

– Samsung accounted for more than half of DRAM spending in 2017. Other suppliers will have to respond with increased spending in 2018 to prevent share losses.

Semiconductor assembly equipment is expected to account for $5.2B in sales in 2018 with assembly equipment trends shown below.



Versum Materials

Novo of Versum Materials discussed “The Semiconductor Industry from a Materials Suppliers Perspective.” He listed the following forces acting on Materials suppliers:

Fig 3 Versum

Consolidation means fewer and much larger customers…

  • Customer Centric vs. Market Centric model
  • Higher pressure
  • Access is critical for more limited POR opportunities
  • Risk/Rewards are greater
  • Too many suppliers for shrinking customer base

Shift to Asia requires footprint changes in terms of:

  • Supply
  • Distribution
  • Innovation

Giga sized fabs mean:

  • Greater Customer Expectations
  • Implications of Winning/Losing
  • Increased Ramp Complexity, Volume & Variability

They list the following as Criteria for Success in the 2020s:

Fig 4 Versum

IHS Markit

Jelenick of HIS Markit discussed Global Semiconductor Market Trends. Their breakout of the consumer electronics market by IC categories follows:

Fig 5 IHS 1

Electrification, automated driving and connectivity are expected to drive the growth in the automotive sector.

fig 6 IHS 2


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