December 4-6 is theInternational Electronics Circuit Exhibition(Shenzhen) (HKPCA Show) from 4-6 December at theShenzhen World Exhibition & Convention Center. The event will have a focus on high-end AI PCBs, high-performance materials,
and smart automation.
This year's HKPCA Show is themed “AI Powers the Future”.
More than 600 exhibitors (including 100 new ones) covering over 860,000 square feet (80,000 m2) will showcase the entire PCB and PCBA supply chain.
They includeTTM,JOVEPCB,Topsearch,SCHMOLL,UCE,MACHVISION,SCREEN, as well as other well known companies such asKLA,LST,SYMTEK,WKK,KINGBOARD, andYAYATECH.
November 2024
Glass core substrate technology
AMDhas been granted a significant patent (12080632) for its glass core substrate technology, which
marks a pivotal step toward the company’s plans to use glass substrates in ultra-high-performance system-in-package (SiP) designs starting around 2026. This patent ensures that AMD can pursue this
technology without the risk of legal challenges from patent trolls or competitors.
The new glass substrates are designed to replace traditional organic substrates in multi-chiplet processors.
However, working with glass substrates comes with challenges, one of which is the creation of Through Glass Vias (TGVs)-vertical pathways
within the glass that transmit data and power. AMD’s patent outlines methods for producing these vias using techniques such as laser drilling, wet etching, and magnetic self-assembly, the latter of
which is still a developing technology. Another important element of AMD’s design is the redistribution layer, which routes signals and power between chips and external components using high-density
interconnections. Unlike the main glass core, these layers will still use organic dielectric materials and copper, but will be built on the glass substrate’s surface.
The patent also describes a novel method for bonding glass substrates together using copper-based bonding rather than traditional solder
bumps. This new bonding technique ensures gap-free, reliable connections, and eliminates the need for underfill materials, making it more suitable for stacking multiple substrates.
AMD has plans to integrate glass substrates into its products by 2025-2026.
The development is also in line with the broader semiconductor industry’s push toward glass substrate adoption.Intelplans to begin mass production of glass-based chips as early as 2026, and companies likeSamsungandLG Innotekare making significant strides in this area. Source:
HuNan Printed Circuit Association of China, Nov 28,2024
OCTOBER 2024
CHIPS National Advanced
Packaging Manufacturing Program (NAPMP)
On October 22, 2024, theCHIPS Research and Development Officehosted a one-day meeting for potential applicants to doscuss the Notice of Funding Opportunity (NOFO) funded by theCHIPS
and Science Actto enable the United States semiconductor industry to adopt innovative new advanced packaging flows for semiconductor technologies.
Advanced packaging brings those components together in novel ways that improves performance of chips while reducing cost and power
consumption.CHIPS for Americaanticipates making available up to approximately $1.6 billion for funding multiple awards across
five research and development (R&D) areas, with the potential for follow-on funding for prototyping activities. This funding opportunity furthers theNational
Advanced Packaging Manufacturing Program’s (NAPMP) mission to establish a vibrant, self-sustaining, and profitable, domestic advanced packaging industry in the
United States.
This funding opportunity spans five R&D areas to address key challenges and technology gaps in advanced packaging detailed in the
NAPMP Vision Paper:
Equipment, Tools, Processes, and Process Integration Power Delivery and Thermal Management Connector Technology, Including Photonics and
Radio Frequency (RF)
Chiplets Ecosystem.
Expected outcomes from R&D efforts include new prototypes and innovative advanced packaging flows suitable for adoption by the U.S.
semiconductor industry.
Anticipated amounts of funmding will vary by R&D area and range from approximately $10 million to approximately $150 million in
Federal funds per award, with awards being made over a five-year period of performance. Additionally, CHIPS for America anticipates reserving up to $50 million to support awardees’ future prototyping
activities, to be conducted at the anticipatedNational Semiconductor Technology Center (NSTC) PrototypingandNAPMP Advanced Packaging Piloting Facility.
For more information about the CHIPS NAPMP program, visit CHIPS.gov
Counter to the trend or a new trend?
APCB has announced plans to close its Taiwan PCB facility effective December 24 and transfer production to its Chinese operations. The decision comes in response to
ongoing financial losses at the Taiwan plant.
The closure of the Taiwan facility follows the recent sale of APCB’s Thai subsidiary, Jingyi Electronics. The Thai facility accounted for approximately 25% of the
company’s total revenue, while Taiwan contributed around 20%. The Taiwan plant will continue to accept orders, which will be fulfilled by the Chinese operations.
The company will maintain its research and development department and relevant business personnel in Taiwan to ensure ongoing customer support and order
management.
More DOD funding
TheU.S. Dept. of Defense(DoD) announcedan award of $30 millionto TTM Technologiesto ramp up U.S.-based production of ultra-high density (uHDI) printed circuit boards (PCBs) at a facility being developed in Syracuse, NY.
From the IPC
Action Alert! HelpIPCSecure U.S. Defense Electronics
Funding: IPC is calling on you to take immediate action to support legislation that strengthens U.S. defense electronics manufacturing. As Congress finalizes government funding for Fiscal Year
2025, the Senate’s version includes $45 million for printed circuit board (PCB) manufacturing under the Defense Production Act (DPA) account. However, unless the House follows suit, this funding
could drop to zero, leaving the U.S. dependent on non-domestic sources of the PCBs that power all defense electronics.Rep. Derrick Van Orden(R-WI) is circulating a letter that urges House appropriators to approve this funding. To support these efforts,click this linkto send a message to your U.S. representative. It will only take you a minute, but it will make a
difference. You might also consider hosting government officials or candidates at your facility; we can help arrange and support such visits. IPC Contact:Rich Cappetto
Dateline: October 4, 2024
Taiwan Semiconductor Manufacturing Co. (TSMC) and U.S.-basedAmkor
Technology, Inc. have signed a memorandum of understanding (MOU) on collaborating to bring advanced packaging and test capabilities to Arizona.
TSMC will contract turnkey advanced packaging and test services from Amkor’s planned facility in Peoria, Arizona, to support its
customers, particularly those utilizing its advanced wafer fabrication facilities in Phoenix.
“The close collaboration and proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle
times,” the companies said in a joint press release.
The agreement also reflects a commitment to foster the development of a semiconductor manufacturing ecosystem in the United States and
support customers who want to geographically diversify their supply chain in front-end and back-end manufacturing, the statement said.
Liu Pei-chen, a researcher atTaiwan Industry Economics
Services, a databanks of theTaiwan Institute for Economic Research, said that
the latest move is expected to positively reinforce TSMC’s “Made in America” initiative.
TSMC is building two advanced fabs in Arizona, with the first scheduled to start mass production in the first half of 2025 using the
sophisticated 4 nanometer process.
The second is slated to mass produce wafers using the 3nm and 2nm processes in 2028 to tap into solid demand for artificial intelligence
applications. The 3nm process is currently the most advanced technology in mass production at TSMC.
TSMC has also announced a plan to build a third fab in Arizona using the 2nm process or more advanced technology, with production slated
to start by the end of 2030.
The third project would boost its total investment in Arizona to more than $65 billion!
SEPTEMBER 2024
UK Government buys semiconductor factory
The UK government has acquired a key semiconductor factory in
a significant step to strengthen the UK’s defense capabilities and ensures a crucial supply chain for UK military platforms. This acquisition
secures the future of the facility, which is the only secure site in the UK capable of producing gallium arsenide semiconductors, a critical component used to enhance fighter jet performance
and other military applications.
This acquisition comes ahead of the UK’s Investment Summit next month. The
company was acquired from its former parent company,Coherent Inc., and will now be rebranded asOctric Semiconductors UK.
Move from an "unfriendly" communist country to a "friendly" communist country to dodge
sanctions and take advatange of U.S. support ???
China's Victory Giant Technologyis investing $260 million in a high tech PCB facility in North
Vietnam. The scheduke is: Complete administrative procedures for the project by the first quarter of 2025, build the factory in Q1/2025-Q1/2026, install equipment and begin trial operation during
April-September 2026. Start official operation in October 2026.
The project will manufacture three million square meters of high precision multi-layer printed circuit board (PCB) and one million square
meters of high-density interconnect PCB, and assemble 5,000 square meters of PCB items per year. It will employ 2,300.
Unitech PCBbought 22 acres in Thailand to build an HDI PCB factory.
Still shrinking
Japan’s PCB output has shrunk for 20 consecutive months. Statistics released by theJapan Electronics
Packaging Circuits Association(JPCA) indicate that Japan’s printed circuit board (PCB; rigid board + flexible board + module substrate) production in June 2024
decreased by 10.9% to 751,000 compared with the same month last year. square meters, shrank for the 29th consecutive month.
In terms of type, Japan’s Rigid PCB output fell 13.6% to 587,000 square
meters in June compared with the same month last year, shrinking for the
28th consecutive month; output fell 7.5% to $210 million. From January to June 2024, Japan’s PCB production decreased by 11.0% to 4.403 million square meters compared with the same period last year,
and the output decreased by 9.2% to $1.85 billion.
Among them, the output of rigid boards fell by 14.4% to 3.457 million
square meters; the output of flexible boards increased by 0.8% to 664,000 square meters, andsubstrate production increased by 12.7% to 282,000 square meters.
Japan’s major PCB suppliers includeIbiden,CMK, NOK’sNippon Mektron, Fujikura, andMeiko Electronics.
AUGUST 2024
Cooperating
CCL makerElite Materialhas signed a strategic cooperation
agreement withZhen Ding. This partnership aims to enhance end-customer engagement, advance PCB material R&D, and promote
smart, sustainable development.
The agreement marks the first time the two companies will collaborate comprehensively on new materials and key technology research and
development to drive advancements and sustainability in the global PCB industry.
Elite Material seeks to strengthen cooperation in the substrate market and continuously increase its global market share in various
applications, including low-loss materials for servers and high-end networking, HDI, and new energy vehicles.
Charles Shen, chairman of Zhen Ding, said, “Looking ahead, the two companies will integrate their
respective resource advantages to jointly develop and expand target markets, and adopt a co-marketing strategy.”
More China plus 1
Shengyi Electronics plans to add $70 million to its investment for the construction of a new
printed circuit board production base in Thailand. The company originally planned to spend only $100 million on the project. The total projected investment is now $170 million.
A major event!!!!!
SEMICON Taiwan 2024's theme is “Breaking Limits: Powering the AI Era”.
Beginning on September 3, more than 20 forums will feature leaders fromASE,AMD,AWS,AUO,Broadcom,Continental,IBM,Infineon,Innolux,Intel,Marvell,MediaTek,Micron,Microsoft,NVIDIA,NXP,Qualcomm,Quanta,Samsung,SK
Hynix,Sony,STMicroelectronics,TSMC, and more.
There will be 1,100+ Companies exhibiting in 3,700+ Booths and 85,000+ Visitors from 56 Countries. to Explore the future of
Technology, AI Opportunities, its supply chain, advanced packaging and Innovative Solutions.
Another new PCB factory in.....
Japan'sMeiko Electronics, who broke ground on a printed circuit
board (PCB) factory in northern Vietnam’s in April, plans to initiate building a second factory in the project in October 2025. The first factory ill
produce electronic circuits for peripheral devices, computers, electronic home appliances, audio-visual equipment, solar cells, microprocessor chips, and controllers. The second factory will increase the project investment from $200 million to $500 million and employ 3,000 people.
What's different this time?
Bain Capitalhas agreed to acquire a controlling stake inSomacis, an Italian manufacturer of high-mix, low-volume printed circuit boards (PCBs), from Chequers Capital. Somacis serves high-performance
end-markets including aerospace and defense, medical technology, datacentres and AI. It has over 1,700 employees and production plants in Europe, North America and Asia.
Bain has invested in the PCB industry once before (in the now defunctDDi). How does this differ
from the past venture? What has changed since then?
JULY 2024
Isn't this nice?
TheU.S. Department of State, through theU.S. Embassy
Mexico City, is seeking applications for the Printed Circuit Boards (PCB) Workforce Development Program. The program aims to promote workforce development in the
PCB industry through curriculum development, certificate programs, vocational instruction, dual education, technical English language skills building, and support for internships in Taiwanese
PCB manufacturing firms IN TAIWAN OR MEXICO!!!
TheIPC,SMTA, andPCEAare working hard to attract and educate future workers in
the PCB & other electronic industry segments. But how many individual major American companies are doing for America whatPeng Shen
Technology, a joint venture betweenZhen Ding Tech Group(ZDT), the world’s number one PCB
manufacturer, andSaha Groupare doing for Thailand? They have initiated a collaborative project to develop local talent for
the PCB manufacturing industry in Thailand. They have signed cooperation agreements with five leading Thai educational institutions with the goal of increasing Thailand’s share of the world's PCB
production.
Japan and South Korea are now racing to develop GCS for next-gen chip packaging following Intel's
announcement
The government-backedJapan Investment Corporation(JIC),Dai Nippon Printing(DNP), andMitsui Chemicalsjoint
investment bid to acquire all shares ofShinko Electric Industries, an IC substrate subsidiary ofFujitsu, through a takeover bid is expected to be completed next month. DNP, which has been developing GCS technology since early 2023, announced
the development of a through-glass-via (TGV) GCS in March 2023. The company’s acquisition of a 15% stake in Shinko for $540 million is expected to create synergies between the two
companies.
Nippon Electric Glass(NEG) launched its new semiconductor substrate material, “GC Core,” last
month. This glass-ceramic substrate is particularly suitable for packaging chiplets and offers advantages such as facilitating through holes and allowing for thinner substrates without using
high-cost etching processes.
AGC(formerly Asahi Glass) has emphasized in its mid-term management plan for 2024-2026 that it will
focus resources on developing glass core substrates.
Ibiden, a key substrate supplier to Intel, has listed GCS among its R&D projects with future
growth potential.
FICT, another Japanese substrate manufacturer, has announced the development of a new multi-core layer
glass substrate called Glass All Layer Z-connection Structure (G-ALCS).
South Korean Companies Enter the GCS Market
SKC, a chemical subsidiary underSK Group, is emerging as a significant competitor to Japanese manufacturers in the GCS field. The company took the industry lead in 2021 by announcing GCS development and establishing a mass
production line in the U.S. through its subsidiaryAbsolics. With an initial investment of US$240 million and plans for
an additional $360 million by 2030, Absolics aims to secure major customers such asIntel,Nvidia, andAMD.
Other South Korean players are also entering the market.Samsung Electro-Mechanics(Semco) announced its entry into the GCS market at CES 2024 and has partnered with equipment suppliersLPKFandChemtronicsto jointly develop and build a supply chain for through-glass vias (TGVs), a critical process
in GCS manufacturing.
JUNE 2024
IPC Masters 2024
Aims To Enhance Operator Skills In China
To meet the needs of China's electronics industry,IPC AsiaandPudong New Area Association For Quality And Technology Shanghai, will jointly organize a comprehensive
skill competition event, IPC Masters 2024, 9:30 a.m. July 8, to 5 p.m. July 10 (CDT), in Shanghai, China. IPC Masters will include Hand Soldering Competition (HSC), Cable and Wire Harness Assembly
Competition (CWAC), BGA/BTC (Ball Grid Array/Bottom Termination Components) Rework Competition and IPC Standard Knowledge Competition.
IPC Mastersaims to provide a valuable platform for operators in the electronic industry across China
to enhance their skills and showcase their talents. Through this competition, contestants will have the opportunity to learn and apply their skills, contributing to the promotion of quality and
technical standards in China's electronics manufacturing industry.
The event also plays a pivotal role in talent development, enabling participants to step onto the international stage and demonstrate the
strength and charm of China's skilled craftsmen. Source: IPC
Packaging
Chinese OSATs includingJiangsu Changjiang Electronics Technology(JCET) andTongfu Microelectronics(TFME) have stepped up their deployments for advanced
packaging, offering services to capitalize on the AI chip boom as TSMC ’s CoWoS advanced packageshaves been in
short supply. Semiconductor packaging has seen strong growth for automotive chips and in the AI demand that has been driving 2.5D and 3D packaging.
JCET, the largest semiconductor backend house in China and the third largest in the world, has
been expanding its advanced packaging and testing capacity. It is leveraging its SiP, WL-CSP, FC, WLB, PiP, PoP, and XDFOI technologies for volume production. It has also raised the sales proportion for the automotive segment. Its subsidiary, JCET Automotive Electronics (Shanghai), has recently received funding to support the
construction of an advanced packaging site for automotive chips at Lingang, Shanghai. JCET is also building a pilot line for packaging and testing
automotive chips in Jiangyin, Jiangsu Province, providing power module turnkey solutions for Electric Vehicles (EV). JCET has facilities in China, South Korea, and Singapore, including two R&D
centers and six production bases. During the last quarter,China Resourcesannounced the acquisition of SMIC’s stakes in the JCET Group.
According to market research firmYole, the global
advanced packaging market will reach US$72.4 billion in 2028. Source: Digitimes
Did you see this?
The topic of additive manufacturing with metal inks was discussed byElectroninks,Notion Systems,American Standard Systemsand others at our UHDI Forum June 5 atPCB East 2024.
Elephantechannounced at Taiwan'sInnoveVex Startup Exhibitionthat it is seeking strategic partners to scale up manufacturing for rising demand of Printed Circuit Boards (PCBs) fabricated using metal inkjet printing.
Masaaki Sugimoto, Co-founder and Board Director of Elephantech, joined theInnoVex Startup
Exhibitionin Taipei at the invitation ofEpoch FoundationduringComputex 2024, told DIGITIMES Asia, “We are looking for strategic partners who can help us build a stable supply chain together.” said
Sugimoto. He explained that since the metal inkjet PCB is a very new process, Elephantech needs to collaborate tightly with other more experienced supply chain partners because it is difficult for
itself to expand its capacity.
MAY 2024
The planning of our UHDI and substrates Forum to be held at PCB East 2024 in Marlborough, MA is now complete with the addition of Nicola
Doria, President of Pluritec Italia who will speak on how system integration from lamination to drilling enables higher yields of UHDI and HDI circuitry. The down-to-earth real-world event has 9
speakers plus a panel of experts who will cover standards, design challenges, materials, process, equipment, inspection and repair of UHDI circuitry. New technologies from Europe and Asia will be
discussed. The forum is a must event for PCB designers and engineers faced with the challenges of AI induced advanced electronic packaging resulting in surging demand for these parts which now
account for about 20% of the global value of PCBs produced.
As an added bonus, Forum Delegates will receive an updated 2024 copy of all of the "Build-Up type Printed Wiring Boards and their
Application in Japan" chart developed by the internationally knownMatsamitsu (Matt) Aoki.
How does one recover from this type of dependency?
The EU only accounts for 2.3% of global PCB production ($2 billion) and 11.5% of electronic assembly according to
theIPC. Two-thirds of the PCBs (approximately 65%) imported to Europe originate from China.
Today, there are fewer than 180 PCB manufacturing facilities in the EU and the region’s dependence on China has only increased over
time.
China has doubled down on efforts to achieve self-sufficiency in its semiconductor industry
It has created the country’s largest-ever chip investment fund, disregarding mounting pressure from US tech sanctions and
a track record of corruption in these state-led programs.
Big Fund III has 19 equity investors led byChina’s Ministry of Financewith a
17% stake, followed by the state-ownedChina Development Bank Capitalwith 10% and state-asset manager Shanghai Guosheng
Group with 8%.
Aniother huge government support of an industry
The South Korean government is planning a semiconductor industry support package worth $7.3 billion or more, focusing on support for the
materials, components, equipment, and fabless sectors.Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mokunveiled the support measures during a meeting with chip exporters. Highlighting an “ecosystem” to enhance the competitiveness of the semiconductor industry, Choi unveiled the $7.3
billion program to support investment and research and development (R&D) “across all chip sectors,” from materials, components and equipment to fabless.
Another new build-up material!!!!
South Korean chemical giantLG Chemis testing its own build-up film with a potential flip-chip ball grid array (FC-BGA) customer, a company researcher said. The industry mostly uses Ajinomoto Build-Up Film
(ABF). Minyoung Lim, a researcher and a project leader for chip
material at LG Chem, said during the2024 Advanced Semiconductor Package Innovation Technology Conference, hosted byTheElec, the company was
developing a build-up film, or BF, used in FC-BGA. Source: ic-pcb.com
APRIL 2024
Taiwan’sKing Yuan Electronics Co(KYEC), one of the world’s largest semiconductor testing and packaging services
firms, has divested its entire stake in a subsidiary at manufacturing hub Suzhou as
part of efforts to exit mainland China amid geopolitical
tensions and cross-strait chip supply chain changes.
KYEC unitKYEC Microelectronics Cohas disposed of
its entire 92.16% share in subsidiaryKing Long Technology (Suzhou)for $676 million to a consortium that includesKing Legacy Investments,LePower (HK),Anchor Light Holdings,Suzhou Industrial Park Industrial Investment Fund,TongFu Microelectronics Co, and the Shanghai State-ownedEnterprises
Integrated Improvement and Experiment Private Equity Fund Partnership, according to an April 26 announcement published on the KYEC website.
That deal is expected to be completed within the third quarter of this year. The funds raised will be used to invest in
high-end testing technology and equipment “to meet the strong demand in artificial intelligence (AI), high-performance computing and related markets”, according to KYEC.
ASML, Europe’s largest tech firm and the biggest supplier of equipment to computer chip makers globally, welcomed the government
plan but said it is still in the process of deciding where it will grow in the future.Source: Reuters
MARCH 2024
Ouch !!!!
Southeast Asia is highly favorable for establishing PCB production bases, thanks to its huge labor force, low labor expenses, and less
geopolitical hazards, according to theTaiwan Printed Circuit Association(TPCA).
According to the TPCA 29 Taiwanese and Chinese PCB manufacturers constructed new factories in Southeast Asia between 2022 and 2023.
China currently accounts for around 62% of Taiwan’s PCB industry output value.
China is setting up its 3rd chip fund of $27+ billion to develop cutting-edge technologies to counter the U.S. campaign. TheNational Integrated Circuit Industry Investment Fund of Chinais amassing funds from local governments and state enterprises for its
3rd fund. The 2nd fund exceeded $20 billion. The 1st fund holds a stake in 74 companies and the 2nd one in 48 chip companies.
Bloombergstated that China’s move to develop a state-backed fund, named Big Fund, is in defiance of
the U.S.’s move to escalate technology curbs in a bid to rein in the progress of Chinese chip and artificial intelligence industry. The 3rd fund is directly under the control of China’s tech
ministry. Its goal is to develop domestic technologies to achieve self-reliance.
FEBRUARY 2024
A new first for EVs!
The world's first intercity air taxi flight (from Shenzhen to Zhuhai) utilizing an electric powered vertical take off and landing (eVTOL)
vehicle was completed late this month.AutoFlight's Prosperity eVTOL, which can accommodate one pilot and four
passengers, was used for this historic flight. Traveling 31 miles from Shenzhen to Zhuhai the normally 2 1/2 to 3 hour trip by car was completed in
20 minutes. This operation was the world's first use of an eVTOL to fly between two cities and across a large body of water (the Pearl River). As a result 100 of the eVTOLs have reportedly
been ordered.
A new beginning? Lofty goal makes one think of which came first, the chicken or the egg when one
considers the need for IC supply chain infrastructure i
A new beginning? Lofty goal makes one think of which came fiorst, the chicken or the egg when one
considers the need for IC supply chain infrastructure in India.
India gave the go-ahead to construction of three semiconductor plants worth $15.2 billion by firms includingTata GroupandCG Power. The country is targeting an IC market of $63
billion by 2026.
Another $50+ million HDI facility - in China
On February 22, the groundbreaking ceremony for Rex Electronics’ $55 million high-density interconnection printed circuit board production
project was held in Qiandeng Town, Kunshan. Xu Meidi, chairman ofRex Electronic Technology Co., Ltd.,Ji Junjun, general manager, andZhu Xiaoliang, deputy secretary of the
town party committee and mayor, attended the meeting.
Over the years, the company has been deeply involved in the R&D and manufacturing of high-density interconnected multi-layer
circuit boards and various types of printed circuit boards. It has 26 "practical" patents.
Peter Elstrom, Executive Editor at Bloomberg commented on TSMC's new fab in Japan this month contrasting it with its U.S.
activities.
I bolded phrases that caught my attention - Gene Weiner
"TSMCwill officially open its first Japan fab on Saturday, putting it on track to begin mass production later this year.Takashi MochizukiandYuki
Furukawatake a deep dive into how Japan pulled off an early victory in the race to make more chips domestically. Takeaways and a
gift link below:
- The success in Japan stems from a combination of factors not easily repeated elsewhere: efficient government
support, strict construction timetables and a low-cost workforce that flocked to the site from around the country and then labored 24-hours a day, seven days a week.
- Smoothing the entire effort was a deep partnership with local champion Sony, an investor in and customer for the chip factory. “We committed to getting it ready in two
years because that’s what TSMC asked us,” said the local governor. “Being on time is important to win trust.”
- While the US has also courted TSMC — the leading producer of advanced chips — the company has pushed back start dates for both of its planned Arizona facilities after
clashes with labor unions and delays in subsidy allocations.
- “The contrast between TSMC in Arizona and in Kumamoto is quite striking,” saidChris Miller, author of Chip War: The Fight for the World’s Most
Critical Technology. “The Japanese government has been less vocal, but perhaps even more supportive than the US and Europe.”
JANUARY 2024
Substrates
AT&Ssays it will begin mass producing chip substrate in Kulim, Malaysia, this year, primarily for
the U.S.'sAdvanced Micro Devices. This will be the first substrate supplier to move to Southeast Asia due to the U.S.-China
tech war.
Kinsus Technologyis also considering building a chip substrate plant in Malaysia.
Preparing for the future of ICs
ASML Holding NVreported that orders more than tripled last quarter from the previous three months.
Bookings rose to a record $9.98 billion in the fourth quarter of 2023. Advanced extreme ultraviolet lithography machines in the period accounted for more than 55% of the new orders.
While China.....
To counter the ban imposed by the US to slow down its development of advanced semiconductors while ensuring its dominance in
general-purpose semiconductors, China is aggressively importing semiconductor materials and components from South Korea. It increased its importation of blank photomasks last year from South Korea by
nearly 48% over 2022. South Korea’s semiconductor wafer inspection equipment exports also increased by 40% in 2023.Source: Digitimes
India rising
A sure sign of growth and future markets:productronica Indiaandelectronica Indiawill be held simultaneously in Greater Noida, Delhi, India September 11-13. But,
how about those pesky little items such as raw materials, supply chains and infrastructure?
Meanwhile, "back at the ranch"TSMCsays its second factory in Arizona will be delayed again.
It is the 2nd setback for the world’s largest chipmaker and its role in the U.S President’s attempt to promote American manufacturing.
The facility, most recently expected to start operations in 2026, will now begin in 2027 or 2028 according to ChairmanMark
Liu. He stated that the company needed to review “how much incentives … the US government can provide.”
Meanwhile, TSMC is considering another foundry in Japan.
TheWhite Houseannounced $162 million in funds toMicrochip Technology from the CHIPS and Science Act to expand operations in Oregon and Colorado. It will be used to triple the company's production capacity and create more than 700 new jobs in the respective
states.
DECEMBER 2023
An expression of confidence coupled with a leap of faith
Intelwill invest $23 billion to expand its chip factory in southern Israel at Kiryat Gat, northeast
of Gaza. Exopanded ooperations are expected to begin in 2028 and last through 2035. The company has already spent $50 billion over the past 50 years to develop its 4 centers in Israel.
Samsung Electronicsand Dutch semiconductor equipment companyASMLwill jointly invest $760 million (1 trillion won) to build a semiconductor research plant in South Korea dedicated to developing ultrafine
semiconductor manufacturing technologies.
Thailand rising
Taiwan's mother board makerElite Computerwill build a new
PCB factory in Thailand in response to geopolitics, changes in the global supply chain and customer needs. Elite plans to initiate production there in 2025.
China'sShengyi Electronicsbought about
120 acres in Thailandto build a production base there. Its purpose is to help the company to respond more flexibly to macro-environmental fluctuations,
industrial policy adjustments, and reduce the potential adverse impact that changes in the international trade pattern may have on the company.
Shrinking
Japan’s PCB output (except for module substrates) has shrunk for 12 consecutive months, and the decline has continued to reach
double-digit (more than 10%) levels.
Statistics released by theJapan Electronics Packaging Circuits Association(JPCA) on December 15 pointed out that Japan’s printed circuit board (PCB; hard board + flexible board + module substrate) production in October 2023 dropped significantly compared
with the same month last year. In terms of type, Japan’s Rigid PCB output fell 17.5% to 636,000 square meters in October from the same month last year, shrinking for the 20th consecutive month.
Flexible PCB output dropped 9.7% to 131,000 square meters, shrinking for the fifth consecutive month.
Japan’s major PCB suppliers includeIbiden,CMK,NOK’s Nippon Mektron,Fujikura, andMeiko Electronics.source: TPCA
A report from the HKPCA
There were few visitors from overseas, but many from the local China region. Some of the "big brands" such asKLA,MKS,Schmoll,Hitachi,Uyemura,Taiyoand some suppliers from Korea exhibited.
There were a lot of equipment and material suppliers from the local Chinese region, especially for laser drills, mechanical drills, direct
imaging, and automation system. It seems like all of these local suppliers are doing well in the mainland China market. They are all targeting high end processes such as AI, 5G, VR, and EVs.
These Chinese suppliers are "chasing" America, Japan and Europe in the industry.
In summary, theHKPCAshow this time was primarily for China-based
companies from South China. There were not many prospective customers from Japan, Korea, Taiwan or even other parts of China.
Public-private partnering
Albany Universitywill receive $1 Billion in funding from New York state for a semiconductor R&D
center. The investment will bolster New York’s case for federal grants under the CHIPS and Science Act, which will provide more than $52 billion for semiconductor research and manufacturing.
It’s part of a long-term plan wrest control of the industry away from competitors, particularly China.
Under the plan companies, including semiconductor designerIBMand
semiconductor manufacturerMicron, will match the state’s $1 billion investment with another $9 billion. Part of that money
will go towards the construction of a chip research facility at the University at Albany as well as the purchase of a next-generation lithography machine for making computer chips.
China + 1 = India ?????
According to a corporate filing to the stock exchanges in India,DixonsaidPadget Electronics, its wholly-owned subsidiary, has been awarded a manufacturing contract byLenovoto carry out manufacturing of notebooks underthe Production Linked
Incentive (PLI) scheme for IT hardware 2.0,subject to the signing of definitive agreement in due course. Source:
Digitimes
AT&S Establishes New R&D Center for IC Substrates and Packaging Technologies in Styria, Austria.
AT&Sis currently completing its new R&D center for IC substrates and packaging technologies in Leoben-Hinterberg. It will
start production at the beginning of 2024. The new competence center in Leoben will create a total of 700 new jobs.
This new R&D center with substrate production is an end-to-end cleanroom construction. With the ISO 3 and ISO 4 cleanrooms (or cleanroom 1000 and cleanroom
10,000) required for substrate production, these workplaces are cleaner than a hospital’s surgery room, as even the smallest particles of dirt and contamination such as hair or
make-up residue endanger the high-tech products. It is therefore fair to say that AT&S has established the cleanest working environment in Styria.
English is established as the corporate language in the multinational working environment at AT&S, but it is not a prerequisite for the production areas.
NOVEMBER 2023
BIG NEWS !!!! Back-filling the IC supply chain in the U.S.!!!!
TheU.S. Defense Departmenthas awarded nearly $40 million to an advanced electronics
manufacturer in Michigan’s Upper Peninsula,Pentagonofficials announced.
Under the $39.9 million initiative,Calumet Electronics Corp.will expand its engineering,
tooling, and manufacturing capabilities to produce components for advanced printed circuit boards used in national defense applications. The company, in particular, will make “high-density build-up”
substrates, including high-density interconnect PCBs and HBDU build-up layers.
The money was allocated through theDefense Production Act Investment Program, which directs
incentives to companies in order to bolster critical national security supply chains. The Calumet Electronics Corp. award brings the program’s total 2023 allocations to date to $714
million.
OCTOBER 2023
From the annual TPCA show
Assembly equipment shipments are improving in Asia. However, a considerable amount of the
current shipments are coming from orders placed in 2022, with some even placed in 2021. The current order bookings are down by 30-40% so the outlook is
gloomy.
PCB equipment and materials are doing better. However, the current upswing does not cover
weak first half. Most major PCB makers are forecasting minus 10-15% revenue growth in 2023. Stronger recovery is expected in the second quarter of 2024
according to those PCB makers interviewed. Source: NT Information
Japan’sNational Institute of Advanced Industrial Science and Technologyis working with domestic and overseas semiconductor companies on a project to launch a pilot line of 2-nanometre chips. It is also working with theTaiwan Semiconductor Manufacturing Company(TSMC) to develop an advanced 3D semiconductor packaging technology. These collaborative projects
showcase the Japanese government’s ambition to catch up to global leaders that are currently 10 years ahead of Japan in chip manufacturing technology.
SEPTEMBER 2023
Did you know???
Chinese copper foil makerLondian Wason Energy Techis reported to
be working withCitigroup Inc.andGoldman Sachs Group Inc.on preparations for an initial public offering (IPO) in the U.S. They plan to raise around $500 million through the IPO and a pre-IPO funding round. Londian supplies copper wire to
major electric vehicle (EV) battery makers, including Contemporary Amperex Technology Co. and BYD Co.
Another Chinese PCB company is Following Kinwong Electronics to Thailand
Shanghai based Chinese computer products and printed circuit boards providerFounder Technology
Groupsaid it will invest $129.6 million to build a smart manufacturing plant in Thailand to mainly produce high multi-layer boards and high-density interconnect
boards to help the com[pany improve its business positioning overseas and build up overseas capacities of supplying products to meet the demand of foreign clients.
Founder's first half operating revenue was nearly $209.3 million, down 34% from a year earlier. Net profit $6.7 million) for the six
months ended June 30, versus a net loss of $30+ million for the same period last year.
GlobalFoundries(GF), the world’s third-largest contract chipmaker, opened a $4 billion
manufacturing plant in Singaporenthis mionth. Cosntruction started in 2021. It'll boost capacity by 450,000 wafers to 1.5 million per year by 2026.
GF expects AI to be a key cartalyst enabling the industry to double in the next decade. The global semiconductor market is forecasted to
be down 10.3% this year recovering to grow 11.8% next year according toWorld Semiconductor Trade Statistics.
Mexico has just surpassed China as the U.S.'s leading trading partner
HPis working with suppliers to shift production of millions of consumer and commercial laptops to
Thailand and Mexico this year, in the top U.S. computer maker's first substantial move to diversify its personal computer supply chain beyond China.
The difference is -----------?
TheKumamoto Nichinichi Shimbunand the local news channelKKTstate thatTSMC’s subsidiary in Japan,Japan Advanced Semiconductor Manufacturing(JASM), new factory
construction in Kumamoto Prefecture is progressing smoothly with completion expected by year-end.
Employees dispatched from Taiwan are steadily arriving. About 600 TSMC employees and their family members are scheduled to
move in by this month's end. About 130 of their children will attendKumamoto International School(KIS). The TSMC
Kumamoto wafer factory is expected to employ about 400 (plus 750 family members).
Also, about 200 Japanese engineers fromSony, transferred to work
at JASM, are returning to Japan after receiving training in Taiwan. And, there are 125 new graduates who joined JASM in April 2023 that are currently undergoing training in
Taiwan. The final total number of JASM employees will be 1,700.
Mass production is expected to begon before the end of 2024 after the introduction of equipment and installation of production
lines.
The construction of TSMC’s Kumamoto wafer fab, personnel recruitment, and the arrival of Taiwanese employees have been relatively smooth
compared to TSMC’s construction plan in Arizona, USA. The construction of the Arizona site began in April 2021, one year earlier than the factory in Kumamoto. Although the originally planned
production date was also 2024, it has now been delayed to 2025, and personnel recruitment has encountered difficulties.
Meanwhile, back at the ranch, as the new U.S. ban on China's technical investment is slow to develop...
Huawei Technologieslaunched the Mate Pro 60, a new smartphone model, during Commerce SecretaryGina Raimondo’s recent visit to China. Teardowns by
research firmTechInsights confirmed that it uses a 7-nm
chip made by state-backedSemiconductor Manufacturing International Corporation(SMIC), China’s largest chip maker.
Dodging the geopolitical bullet
China’sKinwong Electronicsplans to invest $96.4 million in a new
factory in Thailand to better serve overseas clients and deal with the adverse impact of possible changes in the global economic and trade environment. Kinwong was the world’s 16th-largest PCB
supplier in 2022, having 11 plants across five production bases in China. Exports accounted for about 40% of Kingwong’s $1.4 billion. Its gross profit margin was nearly 28%.
Many other Chinese PCB producers, includingHuizhou China Eagle Electronic TechnologyandAohong Electronics, have also set out plans for factories in Thailand in response to the
shifting global supply chain landscape. The focus will be on overseas markets to better meet the orders of foreign clients, and effectively boost resilience to risk.
Near shoring
Intelwill invest $1.2 billion in Costa Rica over the next two years.to upgrade facilities and prepare
operations to enable cutting-edge technologies for upcoming next-generation semiconductor products.
The timing aligns closely with last month’s cooperative agreement between Costa Rica and the U.S. aiming to transform Costa Rica into a
regional powerhouse for semiconductor research, manufacturing, and talent development. That agreement opens access to U.S. funding starting in 2024 to position Costa Rica as a hub for this critical
high-tech industry.
AUGUST 2023
The assembly lines at all ofToyota’s auto plants
in Japan shut down August 29 over a problem with a computer system. The shutdown affected the 28 assembly lines across 14 Toyota auto plants located throughout Japan.
Unions blocking construction of AZ chips plant?
TSMCsays Arizona construction of its new multi billion dollar facility in Arizona has been delayed by
a shortage of skilled workers. It is seeking to bring in workers from Taiwan to get construction back on track. However, 1,500 members of theArizona Building
and Construction Trades Councilsent a letter to members of Congress, asking them to block the issuance of visas to Taiwanese workers because “TSMC has shown
a lack of respect for American workers."
Ensuring the future
Lithuania'sTeltonikacompany group launched the construction of a $154 million highly
automated state-of-the-art manufacturing plant in Liepkalnis, Vilnius' future technology park. Contracts with equipment suppliers from Germany, Italy, and Japan are now under
negotiation. Completion is expected in December, 2024.
A company spokesman stated that it will enable Teltonika to reduce lead times, minimize supply chain risks, and become independent from third-party political
decisions.
Mexico
BTU Internationalentered into an exclusive contract with an existing sub-contractor in Mexico with
standardized pricing and lead-times to manufacture reflow ovens there. In addition to the agreement with BTU, the manufacturer has existing business with other industrial and large automotive
customers – necessitating compliance with international quality standards. In addition, within the contract manufacturing agreement, BTU’s partner is restricted from making products that directly
compete with BTU. BTU will also leverage this agreement to enable greater capacity and cost savings in the supply chain for its other North American operations.
Japan'sKaga Electronicswill spend $34 million to build a new EMS
assembly plantin the central state of San Luis Potosi. The new plant is part of the company’s plans to expand its contract electronics manufacturing business, especially for the automotive market. It
will shut down its old plant and integrate operations into the new 20,000 square meter plantand will employ 2,000 workers - 4 times the current number.
How will America provide the PCB platforms, substrates, and chips for the currently surging AI demand?
The need is NOW. Not in 3 or 4, or 10 years.
The AI trend is now a worldwide phenomenon, withNvidiaCEOJensen Huangeven declaring that “Nvidia is betting everything on AI.” In 2023, the AI server supply chain became one of the few
highlights of the tech industry. This has also thrustTSMC’s CoWoS advanced packaging technology, which the company has been
working on for over ten years, into the spotlight overnight.
Sources in the packaging and testing sector say that TSMC’s 2023 CoWoS production capacity can only increase by 20-30%. This is not enough
to satisfy Nvidia’s roaring chip demand. Furthermore, there is also self-developed chip demand from the likes ofAMD,Broadcom,Marvell,Amazon, andMeta. However, their priority is no match for
Nvidia's.
The CoWoS and “quasi-CoWoS” (essentially the 2.5D advanced packaging that has been around for some time) demand from Nvidia alone has
taken up most of TSMC’s production capacity. Therefore, Nvidia approached OSATs likeAmkorand theASE Groupto inquire about their 2.5D testing and packaging technology.
Additionally, with Nvidia paying out of its own pocket to secure the order and production progress of silicon interposers, it has
persuaded OSATs that were previously reluctant to be involved with interposer supply to collaborate with Nvidia in 2.5D packaging.
The incredibly high demand for TSMC’s advanced packaging meant that companies like Amkor andSiliconwarehave also benefited from the overflow of orders. It’s estimated that Nvidia’s CoWoS advanced packaging capacity orders over the past
two years were divided between TSMC and Amkor with a ratio of 8:2.
WhileSamsunglags behind TSMC and the ASE Group in terms of both
testing/packaging technology and capacity, it possesses substantial resources, and despite common claims that Taiwan has the lead in semiconductor technology, the actual gap may only be around 2 to 3
years. Source: Taiwan Digitimes
Growing
ThePrinted Circuit Engineering Association(PCEA) announced it has closed the acquisition of the assets ofPCBDesign-Edu,
Inc., (dba PCE-EDU, Inc.), including its industry leading printed circuit designer training and certification
program. The deal extends PCEA’s position as the leading association for training printed circuit engineers worldwide.
The transaction includes the Printed Circuit Engineering Professional curriculum and related Certified Printed Circuit Designer (CPCD) certification exam, licensing agreements and customer database, among other assets, including the
400-page handbook created by the PCE-EDU founders –Mike Creeden, Stephen
Chavez,Gary Ferrari,Rick HartleyandSusy Webb.
“The PCB-EDU founders developed the best training handbook I’ve ever seen for PCB design,” saidMike Buetow, president, PCEA. “There is tight overlap between PCEA and PCE-EDU’s respective missions and approaches. We feel strongly we will be able to expand on the work of the PCE-EDU founders and reach a larger audience for the
CPCD curriculum.” “Training and certification are at the core of PCEA’s strategic plan,” saidStephen
Chavez, president, PCE-EDU.
It takes two to tango
Worsening geopolitical tensions between Beijing and the U.S.-led West have prompted some Western manufacturers to reduce their
reliance on China’s supply chain, which in turn is expected to erode trade ties between the two sides.
The latest data shows China to be on the brink of falling into deflation, a scenario that
many fear could drag the economy into a downward spiral.
Asia’s other export powerhouses are also grappling with crumbling global trade demand. South Korea’s exports fell 16.5% year over year in
July. Source: WSJ
Others are taking action while U.S. electronics firms are trying to get the attention of Congressional members to pass H.R.3249 -
Protecting Circuit Boards and Substrates Act. Otherwise, theChips Actwill only lengthen the supply chan needed to
package ICs produced as they will still have to be sent to Asia for packaging on substrates and advanced PCBs.
The South Korean government is initiating a major packaging technology R&D project aimed at assisting companies in quickly catching up
with international leaders likeTSMCin the advanced packaging field. The project will be headed by a former CEO ofAmkor Korea,Park Yong-chul.
TheMinistry of Trade, Industry and Energy(MOTIE) and theKorea Evaluation Institute of Industrial Technologyindicated that the “Semiconductor Advanced Packaging Leading Core Technology
Development Project” will cost $234–390.6 million over a period of 5–7 years.
The advanced package R&D project can be broadly categorized into two types: catch-up and lead. The R&D project has reportedly already reached the final drafting state and will soon undergo a preliminary review, but industry players are calling for the review process
to be exempted or simplified in order for South Korean semiconductor players to faster enhance their chips packaging competitiveness. - Source
Digitimes
In a related development,Yonhap News Agencyhas recently reported
that South Korea’sElectronics and Telecommunications ResearchInstitute (ETRI) has developed an advanced semiconductor chiplet
packaging technology that can save 95% of power consumption compared with the current Japanese technology. ETRI has achieved this by utilizing its newly developed materials and lasers, reducing the
manufacturing process from nine to three stages. The advancement holds promise for future applications in high-performance AI chips for self-driving vehicles and datacenters.
Will RCC rise again?
Apple's probable use of resin coated copper (RCC) foil in PCBs in fabricating HDI and UHDI circuitry for its 2024 iPhone series is
expected to drive demand up. Iteq jas developed a new RCC product that is has been testing at major fabricators and 5G phione makers for the past year.
RCC is considered a viable alternate to ABF in making HDI and UHDI circuitry.
JULY 2023
On the home front
Analog Devicescelebrated its more than $1 billion investment to expand its semiconductor wafer fab in
Beaverton, Oregon. The Beaverton site is ADI’s largest wafer fabrication facility by volume and serves customers in critical industries, such as industrial, automotive, communications, consumer, and
healthcare.
The facility investment expands cleanroom space to about 118,000 sq-ft and nearly doubles internal manufacturing of products running on
the 180-nanometer technology node and above. It is also expected to create hundreds of new, long-term employment opportunities, a significant increase to ADI’s current roughly 950 employees in
Oregon.
More than 10% of the total investment is for new, state-of-the-art fab tools intended to increase overall efficiency and utilize
chemistries that are more environmentally friendly. Despite nearly doubling production output, the facility is targeting to reduce absolute greenhouse gas emissions by approximately 75% and water
usage per production unit by approximately 50%.
It's time for YOU to join thePCBAA(Printed Circuit Board Association of America). PCBAA member companies, individuals, and Congressmen need your
help to pass house bill H.R. 3249designed to restore America's critical PCB manufacturing industry and to build a
domestic substrate capability! It contains tax breaks for purchase of boards made in the USA. It includes R&D funding for UHDI and substrate process development - and more.
YOUR voice is needed! It must be heard in the Halls of Congress to make this happen!!! What are you waiting for? Do not let this opportunity pass.
Join now!
I personally welcome my colleague and fellow member of theIPC's Raymond E. Pritchard Hall of Fame Dan Feinbergwho has joined me as an individual member!
Since the beginning of this year, the topic of AI (artificial intelligence) has swept the world,TPCAchairmanLi Changmingbelieves that HPC (high-speed computing) and AI are the mainstream of future technology. , AI servers will grow at a
compound annual growth rate of 22% in the future. These applications will use ABF carrier boards in large quantities, and the development of ABF carrier boards will also be carried out in the
direction of high-level numbers and large sizes. The process technology threshold is high and there are few manufacturers capable of production.
Wake up America! The TPCA says that Thailand will be the next volume location for these advanced PCBs.
H.R. 3249is needed NOW! Not in some distant future!
Yep, it IS complicated! How does one keep its competitive position in such a large market while protecting its own national defense interests? The Chinese press just
announced that US chip giant Intel is increasing its business ties in China with a new innovation hub in Shenzhen meant to help domestic start-ups - even as Washington puts increasing pressure on
semiconductor firms to reduce trade with the country. What was the purpose of Kissinger's recent visit to China and meeting with President Xi?
Meanwhile, TSMC announced that its new facility in Arizona will be a year late in initiating operations due to the shortage of the skilled workers needed to run and
maintain a complicated advanced IC foundry. TSMC is using its Taiwan staff to train training workers for the Phoenix start-up. In addition, the current American work culture is apparently not as
strong as that in Hsinshu.
Chinese electronics parts manufacturerVictory Giant Technology Huizhou announed on July,26 that it had agreed to buy Singapore’s flexible printed circuit board makerMFS Technologyfor $460 million. Victory Giant will pay in cash to acquirePole Star Limitedto indirectly own MFS Technology (S) and all its
subsidiaries.
Chip designerQualcomm, has confirmed it will build a new
operation in Tijuana Mexico. It is scheduled to open in Q4 of this year.
Geopolitical issues???
Based on statistics from theInvestment CommissionunderTaiwan’s Ministry of Economic Affairs, the electronics components industry in Taiwan is the largest sector in terms of either China-bound or
foreign investments. In the first four months of 2023, the electronics component industry accounted for 53.9% of Taiwan’s total outbound investments and 48.5% of Taiwan’s investments in
China.
Additionally, Taiwan’s investments in China shot up 167.8% on year in January-April 2023. Up to now, Taiwan manufacturers have registered an aggregate of 45,000
approved investment cases in China, with their accumulated investment value amounting to $204.0 billion, commanding 56.2% of total government-approved external investments. Accordingly, China
firmly remains the top outlet for Taiwanese investments.
Despite production relocation pressures from brand customers and geopolitical factors, it is difficult for Taiwanese companies to completely uproot and transplant
their production lines from China to other countries, given the factors such as industrial clusters, logistics, infrastructure and human resources management. The recent severe power shortage in
northern Vietnam has significantly affected operations of foreign and Taiwanese manufacturers that have relocated their plants to the region.
Taiwan’s deputy economics ministerChern-Chyi Chenhas previously pointed out that economic and
trade interactions between both sides of the Taiwan Straits is mutually beneficial and complementary, playing a crucial role in the regional and even global supply chains as well as global stability
and prosperity. It is generally believed that Blinken’s visit to China can reduce misjudgments between China and the US, avoid the outbreak of military conflicts and maintain the status quo of the
Taiwan Straits.
Industry observers said that bilateral investment and trade exchanges between Taiwan and China are expected to ramp up steadily, especially once US-China and
cross-strait relationships improve. - source: Digitimes
JUNE 2023
Intel's spending spree
Intelhas signed an agreement in principle with the Israeli government to invest in a $25 billion chip
manufacturing plant in Kiryat Gat. Prime MinisterBenjamin Netanyahusaid the Intel investment was “unprecedented” in that it is the largest investment ever by a global private company in the country.
Intel alsoannounced plans to invest $4.6 billion for a semiconductor assembly/test facility
near Wrocław, Poland'. The site which will employ 2,000, will help to meet anticipated demand for assembly and test capacity. Intel’s planned investment in Poland, combined with its existing wafer
fabrication facility in Leixlip, Ireland, and its planned $33 billion wafer fabrication facilities (2) in Magdeburg, Germany*, will help create a first-of-its-kind end-to-end leading-edge
semiconductor manufacturing value chain in Europe. It is also expected serve as a catalyst for additional ecosystem investments and innovation in Poland and across the European Union.
ChancellorOlaf Scholzhailed the Magdeburg investment as
Germany's biggest ever foreign investment. Berlin has agreed to provid Intel with subsidies worth nearly $11 billion.
What's going on?
There are power shortages in North Vietnam. Mexico stopped granting visas to Chinese engineers seeking to travel there to train Mexican
workers in booming high-tech factories. Reports from China continue to show broad sluggish performance with PCB and EMS segments of the electronics industry with problems associated with getting
component and parts.
Yet,Micron, the biggest U.S. memory chipmaker, just said it was
committed to China and would invest $603 million over the next few years in its chip packaging facility in the city of Xian. Last month it was targeted by China’s cyberspace regulator, which said the
firm had failed a network security review. The Chinese regulator added that it would block operators of key infrastructure from buying from the company. Micron made no mention of the regulator’s
decision in its June 16 statement, posted onWeChat.
“This investment project demonstrates Micron’s unwavering commitment to its China business and team,” it quoted CEOSanjay Mehrotraas saying. The investment will include buying packaging equipment from a Xian-based subsidiary of Taiwan’sPowertech Technology Inc.
In the first four months of 2023, the electronics component industry accounted for 53.9% of Taiwan’s total outbound investments and 48.5% of Taiwan’s investments in
China. Additionally, Taiwan’s investments in China shot up 167.8% on year in January-April 2023 according to theInvestment Commissionunder Taiwan’sMinistry of Economic Affairs.
Japan
Dr.Hayao Nakaharareports that a number of major PCB makers
in Japan have exited their JPCA membership. CMK,NOK(Nippon Mektron),Ibidenand other
former stalwarts of the JPCA are no longer members and did not exhibit at this year's event in Tokyo. One must wonder why, and whether or not they belong to other printed circuit associations,
and of so, which ones.
PCB fabricators, equipment suppliers and material providers that did participate showed advanced technologies - especially products
for IC substrates - an area in which Japan dominates.
Japan’sMeiko Electronicsis planning to invest $200 million to
build a fourth PCB factory in Vietnam. Meiko has so far invested $500 million in three factopries there. It employs 7,000 and contributes $30 million annually to the local state budget.
The three are located in the Thach That-Quoc Oai Industrial Zone and Thang Long Industrial Park in Hanoi, and Phuc Dien Industrial Zone in
Hai Duong province, all in northern Vietnam.
On a global scale, Meiko recorded a net income of $63.33 million on net sales of $1.2 billion in fiscal year 2022, down 22.7% and up
10.6%, respectively, according to the firm’s financial results.
Hong Kong
TheHKPCAcontinues to support its members by arranging a mission
to Thailand this month as members continue to seek sites for its PCB operations. It will also present the Webinar "Development of Advanced Packaging Technology and Discussion of Common Problems
of Processes in IC Substrate" to help provide up-to-date solutions to today's UHDI and organic substrate challenges. The Webinar will Introduce the production process of IC substrates
and discuss common problems in the process of substrate manufacturing.
China
There is no dearth of companies seeking business in China in spite of the geopolitical trade issues. More than 1,050 companies have signed
up to exhibit inSEMICON China 2023in Shanghai late this month. These inlude a number of subsidiaries of "Western" and other
(including Japanese) companies."
Aohong Electronics, a Chinese printed circuit board maker based in Changzhou, will build a new
$83.7 million plant in Thailand to better serve its overseas clients. Production will start in 2026.
Aohong's overseas clients includeLG Electronics,Whirlpool, andGeneral Electric. It has two production bases
in China with a total annual output of four million square meters of PCBs for home appliances, consumer electronics, power sources, network communications, and vehicle electronics.
MAY 2023
Bloombergreported thatFord Motor Co. will start to import from China theLincoln Nautilus. The restyled hybrid SUV will be marketed in the U.S.
in 2024. As other companies are abandoning the PRC, Ford seems to be deepening the connections it already has. The Nautilus will become the first
vehicle model that Ford will import from China.
Taiwan, one of the world’s most important exporters of hi-tech gear has fallen into recession,
owing to a drop in global demand for consumer electronics and trouble in major world markets.
Taiwan’s highest authority in charge of the budget – theDirectorate-General of Budget, Accounting and
Statistics– estimated that the world’s 21st-largest economy shrank by 3.02% from January through March, year on year, and by 6.37% compared with the final three
months of last year.
“Broad-based weakness in external demand for Taiwan’s exports of electronic products and information and communication technology
equipment will persist at least in the coming quarter,” saidGeorge Xu, director of sovereigns for theFitch Ratingscredit agency.
APRIL 2023
Sounds like a tough balancing act - remember that it takes two
to tango!
U.S. National Security AdvisorJake Sullivansaid that theBidenadministration is working to “de-risk,” not “decouple,” from China, making the case that the
administration’s industrial strategy is crucial to competing with its geopolitical rival.
“De-risking fundamentally means having resilient effective supply chains, and ensuring we cannot be subject to the coercion of any other
country,” Sullivan said in remarks at theBrookings Institutionin Washington that the White House billed as a major economic
address.
The U.S. is focused on making sure that no event, from a global pandemic to a war, can deprive the world’s largest economy of what it
needs, Sullivan said.
Export controls are narrowly aimed at technology that could be used to tilt the military balance against the U.S. rather than cutting off
trade, which climbed to a record last year, Sullivan said.
“These are tailored measures,” Sullivan said. “They are not, as Beijing says, a technology blockade. They are not targeting emerging
economies.”
He touted measures including theChips and Science
Act to bring high-end semiconductor production to the U.S. Source: Bloomberg
Dodging the bullet
TheChina Printed Circuit Association(CPCA) plans to make Thailand its new electronic equipment manufacturing base in a move to avoid the impact of the China-US trade war and
geopolitical conflicts, according to theThailand Board of Investment(BoI).
“China is seeking new investment and production destinations, following worries over the trade war and increasing tension between China
and Taiwan, which are considered business risks,” saidNarit Therdsteerasukdi, secretary-general of the BoI.
Chinese businesspeople believe Thailand has the potential to become the electronics hub of Asean because the government is promoting
investments in targeted industries, notably electric vehicles and smart electronics.
Representatives of more than 60 companies under the CPCA met the BoI between April 19-22 to discuss investment prospects and
incentives in the country.
Two companies -ASKPCBandWUS
Printed Circuit(Kunshan) - are planning to invest in Thailand, with a total investment value of around $350 million. They will also bring 200 suppliers in the electronics supply chain to Thailand!
The CPCA has 800 members, including manufacturers of printed circuit boards (PCBs) and special electronics equipment, as well as experts
from academic and research institutes.
The electronic and PCB industry in China is reported to have a market value of over $49.8
billion and employs up to 620,000 workers.
Mr Narit said the BoI would continue to encourage more PCB manufacturers to invest in Thailand and plans to meet 30 PCB companies from
Hong Kong in June, and 10 PCB companies from Taiwan in July. Thailand needs PCBs and electronic equipment as the country is promoting EVs and digital
technology.
Last year, the cabinet approved a package of incentives, including tax cuts and subsidies, to promote EV consumption and production
between 2022 and 2023.
According to officials, a plan to build a Silicon Tech Park, expected to be a model for Thai digital cities, is set to start this year in
the Eastern Economic Corridor (EEC).
The project, dubbed the “Silicon Valley of the East” was co-developed byPlanet Communications Asia
Plc,Ciscoand theEEC Office.
The BoI is implementing a five-year investment promotion strategy, which starts in 2023, to support investments in high technology, green
and smart industries, as well as businesses driven by creativity and innovation. Source: SyndiGate Media Inc.
Organic substrates
Taiwan-based BT and ABF substrate suppliers expect their sales to hit bottom for 2023 in the second quarter before heading for a gradual
recovery in demand from the second half. BT substrate suppliers expect their capacity utilization rate to fall by over 7% sequentially to below 60% in
the second quarter, while ABF players will see their utilization drop to 80% with flat ASPs.
However, overall substrate demand for HPC and AI applications remains robust. The supply of ABS substrate can become tight in the
second half due to increasing demand for heterogeneous integration and chiplet applications.
Most makers will likely slow down their expansion momentum this year, although some new production facilities will still become
available.
Nevertheless, the sources said that the top four substrate players,Unimicron,Nanya PCB,Kinsus Interconnect Technology, andZeng Ding Technology, will continue to strive for new product developments.
Nanya is optimistic about the long-term demand for substrate products from the electric vehicle (EV), datacenter, HPC, and 5G sectors,
while Kinsus believes that high-speed computing products are a promising growth driver.
Zhen DingCEO DZ Leestated that related substrate demand for AI,
server, and high-end autonomous driving mainboards will continue to grow. Source: Digitimes Asia
Germany’sBosch Grouphas agreed to buy key assets of California
chip manufacturerTSI Semiconductors and invest $1.5 billion to expand U.S. production of silicon carbide chips for electric
vehicles. Bosch said it will retool TSI’s chip production facilities in Roseville, California to start producing silicon carbide chips by 2026.
Bosch said that the investment “will be heavily dependent on federal funding opportunities” through the CHIPS
act as well as state subsidies, Bosch said in a statement.
Demand for silicon carbide semiconductors is growing by 30% annually. That demand has led to a surge in
investment in the chips. US-basedWolfspeed Inc. is building new plants to make silicon carbide chips
in New York
State and in Germany. Onsemi Corporation is also investing heavily in silicon carbide and has signed a strategic agreement withVolkswagento supply chips to the
automaker.
A contract chip maker backed by China’s top foundry is seeking to raise $1.4 billion in one of the world’s biggest initial public
offerings so far this year, as Beijing doubles down on efforts to develop its semiconductor industry amid heightened tech rivalry with the US.Semiconductor
Manufacturing Electronics Shaoxing(SMES) is offering 1.69 billion shares to raise the $1.4 billion. It will be the year’s second-biggest IPO in
Asia-Pacific afterNexchip Semiconductor’s $1.67 billion fundraising on the Star Market on April 18.
AT&Shas started construction of a facility to establish the first research and production center
for IC substrates in Europe!
Even Chinese PCB firms are doing it - building new facilities outside of the
PRC
Sihui Fuji Electronics Technologyearmarked $72 million to build a new printed circuit board factory
in Thailand, it said Tuesday. The Chinese printed circuit board supplier said the new factory will allow it to respond to the needs of its overseas
customers and further expand its international business as its production capacity is currently concentrated in China.
MARCH 2023
News from Taiwan
International and major IC substrate vendors are still proceeing with their long-term investment plans, and as the delivery times for ABF
substrate production equipment is rather long, their suppliers still see momentum for stable growth in 2023.
Group Up Industrial(GP) sees order visibility extend to the first and second quarter of 2024, and it
has an optimistic outlook for business in 2023, which it said will not be worse than 2022.
C Sunsaid that in the next three to five years, a total of 82 wafer fabs will establish new
production capacity, which will be a strong support for the IC substrate market. Although Taiwanese suppliers are collectively the leader in the ABF substrate market, there is strong challenge from
Chinese competitors.
Industry sources said at least 30 wafer fabs are still being built in China, which will boost demand for IC substrates as well as demand
for production equipment.
Taiwanese and Japanese firms are more conservative about expanding capacity than their Chinese competitors, the sources said. But in
general, C Sun said, the short-term headwinds are not deterring makers from increasing their capacity for making IC substrates.
GP said the impact of the US Chips Act has boosted equipment demand from the US, Europe and China, as American clients are asking their
suppliers to relocate their production lines out of China. The US-China trade war is also prompting Taiwanese firms to redirect their deployments to Southeast and South Asia.
Many substrate makers are making plans to move their facilities from China to Southeast Asia. But equipment vendors said their capacity
may not be able to fully support their clients’ needs if they move too quickly. - Source: Digitimes
From the PRC
Huawei TechnologiesfounderRen Zhengeisaid that the company has replaced more than 13,000 parts with domestic substitutes in its products that were hit by U.S. trade sanctions. He also stated that Huawei has redesigned
4,000 circuit boards for its products and that production of circuit boards had “stabilized".
Liu He, one of the vice premiers of China, said in a meeting in Beijing that Chinese PresidentXi Jinpingurged to mobilize national resources, including public and private, to develop the semiconductor industry in
China. Regarding the public sector, according to He, Beijing will formulate policies with pragmatic goals, assist entrepreneurs, attract long-term investments, and provide equal preferential
policies for domestic talents and national treatment to foreign experts to introduce and train people needed for the industry.
Japan
MKS Instrumentsannounced a major investment in its Yokohama Technical Center (YTC) in Japan that will
help its customers improve yields and develop the next generation of substrates for advanced packaging. It includes dedicated lasers, optics, and motion systems for high precision,
high-speed via formation in ABF build-up laminates, in combination with the latest process chemistry and equipment for desmear and electroless copper metallization.
February 2023
More support for 3D additive manufacturing
TheNaval Surface Warfare Center, Crane Divisionhas awarded $1.6
Million toMercury Systems,Raytheon,Charles Stark Draper,Johns Hopkins University Applied Physics Laboratory, andLockheed Martinto produce a prototype that will further Additive Manufacturing (AM) and Technology
Protection (TP) collaboration through enhanced capabilities focused on novel sensors, secure packaging, and integrated board-level protection. Through the AMP HTP prototype project, the DoD
Anti-Tamper experts are seeking to build upon 3D structures. The focus tech areas in this prototype project include advancements to additive manufacturing (AM), technology protection (TP), 3D
printing, hybrid printed electronics, printed electronics, hardware protection, and volume protection.
Texas Instruments will invest $11 billion to build a 2nd semiconductor plant in Lehi, Utah. The new 300mm fab will create 800 new jobs. TI
will also put anoher $49 million toward improving "student opportunities and outcomers." The announcement of the new Utah plant is the latest large domestic IC investment since the signing of the
CHIPS and Science Act last year.
General Motorshas signed a long-term agreement
with GlobalFoundriesto establish exclusive production capacity of U.S.-produced semiconductor chips.
The chip manufacturer will establish dedicated production capacity exclusively for key auto suppliers of the Detroit automaker at
its semiconductor facility in upstate New York.
* In November 2022,Fordsaid that it had signed a nin-binding
agreement to ciollabiorate on oriduction and technology advabncements with semicionductor supplier GlobalFoundries.
From India
India's commerce department has initiated investigation into dumping allegations on imports of certain printed circuit boards (PCBs)
originating from China and Hong Kong.
TheDirectorate General of Trade Remedies(DGTR), part of theCommerce and Industry
Ministry, in a notification on Tuesday said theIndian Printed Circuit Association(IPCA)
had alleged material injury to the domestic PCB industry owing to the dumping of these electronic goods and sought the imposition of anti-dumping duty on such imports from the two
jurisdictions.
India imported PCBs worth $478 million from China and Hong Kong during the April-October 2022 period.
From the TPCA (Taiwan Printed Circuit Assiociation)
In 2023, the PCB market will face the big environmental challenges, consumer electronics, PC/NB, mobile phones have not yet warmed
up, but the industry expects the second half to improve.
For the electronics supply chain, if the economic and consumer demand resumes growth in the second half of the year, it is estimated that
the global PCB output value still has the opportunity to maintain a slight growth of 3%, and the total output value is $90.84 billion. However, if one-third of the world’s economies fall into
recession, the overall PCB output value does not rule out facing a contraction dilemma, and it is prudent to predict that it will bring a recession resulting in a global PCB value of about
$90.01.
January 2023
I am sad to announce that the industry has lost another icon this month.John T. (Jack)
Fisher's long career atIBM, theIPC, theHDPUG(High Density Packaging Users Group), and notediNemiroadmap chairman greatly impacted the printed circuit industry.Jack was a mentor and friend to many. He shall be greatly missed. He was a inducted into theIPC's Raymond E. Pritchard Hall of Famein 2006.
RIP, my friend, Jack.
Are we headed for fewer than 100 PCB fabricators ibn the U.S.?
2022 ended with a whimper withGartnerreporting a major drop in
PC sales in Q4 of 28.5% while 2023 began with the announced acquisition ofAdvanced CircuitsbyACPTfor more about $220 million.
Dell Technologiesis planning to stop using Chinese-made chips next year and has told suppliers to
reduce the amount of other made-in-China components in its products. Source: Nikkei
Dell has also asked suppliers of other components, such as electronic modules and PCBs, as well as product assemblers to help prepare
capacity in countries beyond China, such as Vietnam, the report said.
This month, Dr. William A. LaPlante, Under Secretary of Defense for Acquisition and Sustainability (USD (A&S)) said at the 2022 Reagan
National Defense Forum, "We need all hands on deck - everyone from the large primes to the small start-up."
He also stated, "We need our designers and innovators on the front end to help us out on the back end to consider production."
One More time!
TheHKPCA'sInternational
Electronics Circuit Exhibition (Shenzhen)has announced a rescheduled show date of 24 – 26 May 2023 (Wednesday to Friday) at Shenzhen World Exhibition &
Convention Center (Bao’an) - if the Government and Covid do not postpone it again.
Wu's on the March
WUS Printed Circuit, which supplies printed circuit boards to Huawei
Technologies and others, and had earlier announced plans to spend $280 million building a new PCB production base in Thailand to help overseas clients sidestep geopolitical and trade risks
announced another major move that will strengthen its global reach.
Schweizer Electronic AGsuccessfully concluded negotiations to sell
around 57% of the shares in its subsidiarySchweizer Electronic (Jiangsu) Co., Ltd.based in Jintan/China (“SEC”) to WUS
Printed Circuit (Kunshan) Co., Ltd. WUS currently holds a stake of around 13% in SEC and will hold 70% of the shares in SEC upon closing of the transaction.
WUS subsequently intends to carry out a capital increase at the Jintan site, which will provide SEC with
sufficient funds to ensure further growth investments without restrictions. As a result, WUS’s share in SEC will increase to approximately 80%.
Sustio Sdn Bhd(SSB), a Malaysia-based subnsidiary of South Korea'sSimmtech is spending $50 million to fast-track an expansion of its Penang production lines. Completion is expected during the first quarter
of 2023.
Simmntech is a leading global manufacturer of semiconductor substrates, and a high density interconnect (HDI)
PCBs. The expansion will double its HDI production capacity while creating 400 jobs.
Fastprint Circuit Tech, a Shenzhen-based maker of printed circuit boards said it will pay $129 million
to acquire a Chinese subsidiary of Japan'sIbiden.
Ibiden, one of the world’s largest manufacturers of PCBs, established its China subsidiary in 2000. The unit, which has more than 1,300
employees, makes motherboards for leading smartphone suppliers, according to its website.
Better late than never
The Indian government has cleared a $10 billion package to boost semiconductor and display manufacturing. The program aims to provide attractive incentive support to
companies / consortia that are engaged in Silicon semiconductor fabs, display fabs, compound semiconductors / silicon photonics / sensors (including MEMS) fabs, semiconductor packaging (ATMP / OSAT),
semiconductor design. Additionally, incentives worth $30.16 billion will be available to position India as global hub for electronics manufacturing.
The US deputy assistant secretary, South and Central Asia,Afreen Akhter, is leading a trade
mission of semiconductors industry to India and has had meetings with India’s top government officials. The US intends to support India overcome challenges in the semiconductor supply chain and boost
its local semiconductor manufacturing capacity. The US publicly seeking to strengthen its partnerships with “like-minded countries” like India and Taiwan.
ISMC’s proposed $3 billion semiconductor fab may begin construction in Karnataka by February 2023, as per media reports. It will be
4-5 years till ISMC’s plant becomes operational.
The government in India is committed to building the entire electronics ecosystem in India. The Union minister of state for entrepreneurship, skill development,
electronics and technologyRajeev Chandrasekhar, while addressing a session on ‘India’s role in Electronics & Semiconductor
Manufacturing -said Prime MinisterNarendra Modihas set a target to increase production in the electronics sector to $300
billion by 2025-26, a “26 times” increase in a period of 10 years.
November 2022
From the TPCA
November 7, 2022: TheHehonghigh-density printed circuit board project with a total
investment of $137.8 MILLION has officially started construction!build a new plant and auxiliary buildings of 78,000 square meters, and build a fully
automatic printed circuit board production line with new automatic LDI exposure machine, semi-automatic exposure machine, X-ray inspection machine, automatic drying film line, automatic grinding
machine, semi-automatic printing machine, super large table 6-axis drilling machine and other equipment.
With the accelerated evolution of a new round of scientific and technological revolution and industrial revolution, high-density printed circuit boards will be widely
used in new energy vehicles, 5G communications, industrial control and other fields, and are the core and cornerstone of the electronic information terminal industry.
After the project is fully completed and put into operation, it is expected to produce 1.2 million square meters of automotive and 5G high-density printed circuit
boards per year, achieve invoice sales of $165 million, and profits and taxes of $19.3 million.
October 2022
The IPC's Advanced Packaging Symposium: Building the IC Substrate & Package Assembly Ecosystem held in Washington, D.C. was reported to be a resounding success
with more than 90 companies and 150 industry and government leaders discussing substrates, OSATs and other critical issues facing American companies engaged in advanced electronic packaging. There
seemed to be a consensus that when considering what is important to future domestic markets that there should be a focus on developing high mix-low volume systems materials, processes and equipment -
especially for medical, defense and communications needs. A spirit of cooperation was highly visible amongst attendees.
Have you read US House of Representatives HR7677 "Supporting American PCB's Act of 2022"? Do you think it supports the development and manufacture of advanced
electronic packaging and interconnects of the future? Or do its clauses relegate the U.S. to the past, remaining dependent on offshore suppliers for advances in materials, processes, PCBs, substrates
and chip packaging?
In our opinion, at a first reading, corrective and broadening/enlightening amendments seem to be urgently required.
Fuji introduced the FPM-Trinity 3D printer at Techblick in Holland. It has 3 functions: Resin printing, circuit printing, and part
placement. It is currently underdevelopment, and the company states that it plans to bring it to market in a year or two.
September 2022
Dateline September 30 - source The IPC
"Two of the electronics industry’s most far-sighted and innovative leaders have been named to theU.S.
Department of Commerce’s newIndustrial Advisory Committee(IAC), which will provide
guidance to the Secretary of Commerce on a range of issues related to CHIPS for America Act programs.
Meredith LaBeau, the Chief Technology Officer atCalumet
Electronicsin Calumet, Michigan, andCarol Handwerker, the Reinhardt Schuhmann, Jr.
Professor of Materials Engineering and Professor of Environmental and Ecological Engineering atPurdue University, are among
the first batch of nominees to be named. Both Handwerker and LaBeau have participated in IPC’s Thought Leaders Program, standards development and other IPC activities. They were chosen for their
expertise in semiconductor fabrication and advanced packaging.
IPCand theU.S. Partnership for Assured Electronics(USPAE) jointly nominated the pair, and electronics manufacturing is well represented on the panel in other ways. Several other panel members are associated with IPC
member companiesAnalog Devices,Microsoft, andIntel.
The IAC, established by Congress under the National Defense Authorization Act of 2021, will provide federal officials with advice on the
science and technology needs of the nation’s domestic microelectronics industry; the research and development programs funded through the CHIPS for America Act, including an advanced packaging
program that IPC has advocated for; and opportunities for new public-private partnerships."
The IPC's Raymond E. Pritchard Hall of Fame CouncilsupportsIPC’s Advanced Packaging Initiative. As a member of the Hall of Fame, I understand the importance of meeting the needs of today’s and tomorrow’s
advanced packages. Learn more at IPC’s first Advanced Packaging Symposium: Building the IC-Substrate and Package Assembly Ecosystem, Oct. 11-12, Washington, D.C. Registration is now open:
https://hubs.li/Q01kR-D70
Gene H. Weiner
How times have changed!
The September edition of NEPCON JAPAN concluded with just 183* exhibitors and 16,247* visitors - a good showing but a mere
fraction of pre-Covid NEPCON Japan (Tokyo) events.
*Including concurrent shows: RoboDEX, SMART FACTORY Expo, and AUTOMOTIVE WORLD.
Granite Partnershas
merged its holdings inPrinted CircuitsandAll Flexinto
one company namedAll Flex Solutions, Inc.
COVID continues to shut down electronic events in China
TheTaiwan Circuit Board Association(TPCA) announced the
postponement of theInternational Circuit Board Exhibition - Shenzhen, better known asTPCA
Show-Shenzhen. The trade group cited the "current severe situation of epidemic prevention and control in Shenzhen," and said it is taking the measures "in order to
maximize the health and life safety of exhibitors, visitors and partners." TPCA Show Shenzhen was originally scheduled to be held Sept. 14 to 16 at theShenzhen
World Convention and Exhibition Center.
It's a prime time for skilled retirees and consultants! UPWORK states that businesses that engage independent talent are already seeing
the benefits of embracing a more adaptable strategy while countering the skilled labor shortage. This may become necessary as more enterprises move towards advance packages. Chips with a 40 nanometer
(nm) node typically require 1 layout engineer per 4 design engineers. Developing a package with a 5 nm node IC requires 4 layout engineers per 4 design engineers. This also raises the question as to
when is such an advanced chip needed (e.g., MUST use less power?) - especially when there is a shortage of qualified engineers. Other (less expensive) design solutions that meet the required
performance are often available. It's up to the package provider to fully discuss this topic and alternatives with the (OEM or Tier 1) buyer!
August 2022
Sound familiar?
A PCB fabricator company president asked his purchasing manager to investigate someone with new processes and materials so that he would
have a better chance of becoming a qualified vendor for an overseas OEM that was seeking American sources of its boards. The board-maker's first submitted samples had failed testing by the OEM and
the company president wanted to prevent this reoccurance.
The buyer's first question to the new potemtial supplier was reported to be, 'What's the price?'' - not, "What process changes should we
make? What can this new material do for us?Can it help us qualify and increase first pass yields? Improve our quality? Reduce rework or inspection? Lower our total costs?"
When asked why he needed the price before obtaining technical, process, or product information he responded, "We are not going to let our
engineers evaluate new materials unless priced competitively to those that we are now using!"
All in all, a very discouraging saga. Discouraging because the President's philosophy and desires to improve so that his company can
survive and profit in a competitive environment where geographical distinctions are continuing to blur, do not appear to be accepted or understood by his company's key interface to its supply chain.
Discouraging because the loss of profit by sub-optimization could, in this case, be so easily rectified, but is not. We are saddened by the buyer's myopia. "Weiner's World", March 1990.
July 2022
Betting on the come?
SkyWater Technology announced plans to build a $1.8 billion U.S. semiconductor R&D and production facility in Indiana through a dynamic public-private partnership
with the State andPurdue Universityto pursue CHIPS
(Creating Helpful Incentives to Produce Semiconductors) for America Act funding. The Indiana facility, to be located on the Purdue campus in the Discovery Park District, will provide access to
SkyWater’s development services, volume production and heterogeneous integration solutions the company currently offers in its Minnesota and Florida facilities.“This endeavor to bolster our chip
fabrication facilities will rely on funding from the CHIPS Act. Federal investment will enable SkyWater to more quickly expand our efforts to address the need for
strategic reshoring of semiconductor manufacturing,” saidThomas Sonderman, SkyWater president and CEO.
What do YOU think?
Did you see the featured article "Two Reasons Why Tech Companies Should Look To Expand Into The China Market" in the July 22
EMS NOW written byCarl Hung,Season Grouppresident
and CEO? Season, founded in Hong Kong and now headquartered in the UK is a global EMS company with other related electronic services.
Good news, but - This does not help America's supply chain issues or alleviate dependency by domestic
printed circuit on foreign on foreign sources
Denkai America, America's only manufacturer of high-quality electrodeposited (ED) copper foil used in
printed circuits, will locate its new manufacturing facility and North American Headquarters in Georgia. The company’s initial investment will be $150 million to establish an ED copper foil
production facility, with a focus on electric vehicle (EV) battery foil, on a 115-acre site, with a goal to invest a total of $430 million and create 250 new jobs over the next five years.
I am excited to be presenting "An Additive, Semi-Additive, and Fully Additive 3D Circuit Manufacturing UpDate" at theAME Academyin Boston, MA on July 29th! Progress on many fronts is rapidly advancing. You can join me in person at theNortheastern SMART Centeror online. Just register your participation here:https://ame-academy.com/july-2022-summer-session?hsLang=en
Taiwan-basedNan Ya PCBreported unaudited sales of $184.7 million in June 2022, up by 5.6%
from the previous month and by 30% year-on-year. Total sales for the first half of the year was $994.9 million, up by 27.45% over the same period last year. For the 2nd quarter, Nan Ya's sales
totaled $507.9 million, up by 21.6% for the same period last year.
June 2022
Do you have anything related to additive or semi-additive manufacturing of electronic circuits/packages that you
would like mentioned in my *AME Academypresentation atNortheastern Universityin Boston next month? If so contact me ASAP as I am currently finalizing the presentation. A few Power Point slides would be helpful.
* (Additively Manufactured Electronics)
A growing China alternative
Vietnam and its 94 million people are becoming a leading electronics manufacturing center outside of China for many first-tier IT
companies. During the period 2015-2020, Vietnam's manufacturing industry saw foreign direct investments totaling $376 billion withSamsung Electronicscontributing one-fourth.
Intelestablished its largest chip packaging factory in Vietnam, whileLG Electronics, in 2021, announced a $1 billion in Vietnam's Haiphong for expanding its OLED display capacity. Samsung Electronics is also
constructing an R&D center in Hanoi. Qualcomm's only testing laboratory in Southeast Asia is also in Hanoi.
So far, Vietnam has a total of 335 industrial parks and is expanding these to satisfy rising demand from foreign investors.
More merger mania
Denmark'sGPVandEnicsannounced a pending merger to form the continent's second-largest EMS company with more than 7,500 employees and annual revenue of more than $990 million.
Bo Lybæk, CEO, GPV said, "In 2018, we successfully acquired the Swiss electronics manufacturer CCS,
which had revenue of DKK 1.6 billion. That lifted GPV into the top 10 of EMS companies in Europe."
Enics has seven factories in Europe and Asia across Finland, Sweden, Estonia, Slovakia, China, and Malaysia, while GPV has 12 factories
located in Denmark, Switzerland, Germany, Austria, Slovakia, Mexico, Sri Lanka, and Thailand. Enics is focused on electronics manufacturing and test, while GPV also specializes in product application
design, in-house mechanics, and cable-harness assemblies.
To the rescue!
Taiwan’sGlobalWaferswill invest $5 billion in a new Texas plant
to provide silicon wafers toIntel,TSMC. It
will create 1,500 U.S. jobs. GlobalWafers will also be eligible for a piece of the $52 billion for the IC industry being negotiated in Congress -
if and when it passes. Where are the American investors?
Chips
Shenzhen SwaySure Technology, a newly created chip start-up owned by the
Shenzhen government has recruitedYukio Sakamoto, former chief executive of Japanese DRAM makerElpida Memoryand more recently atTsinghua Unigroup, as its chief
strategy officer to help China take a bigger share of the global DRAM market dominated by US and South Korean players.
Samsung Foundryannounced a massive investment plan of around $355 billion that could help it
overthrowTSMCas the world’s biggest chip fabrication firm. To counter those moves, TSMC has announced an investment of around
$120 billion. As a part of that plan, it is building four new fabs worth $10 billion each in Taiwan. According to Nikkei Asia, all 4 new fabrication plants are intended for 3nm chips. Both
TSMC and Samsung Foundry are trying to attractAMD,Apple,Nvidia,Qualcomm, andMediaTekwith their advanced nodes, including 3nm and 5nm. Both firms are already manufacturing 4nm chips. Samsung Foundry and
TSMC have announced their plans to manufacture 3nm chips later this year. By 2025, both firms are planning to mass-produce 2nm chips. While Samsung is bringing advanced GAA technology with its 3nm
process, TSMC will bring it with its 2nm process. Only time will tell which brand will be the market leader.
Lenovo(China) opened a new assembly plant in Hungary capable of producing more
than 1,000 servers and 4,000 workstations a day-each one built specifically to customer requirements.
Da Nang's government has approved an investment of $59 million by the US'sVector Fabricationfor a PCB and micro-electro-mechanical systems factory. Construction of the 40,000-square-meter factory will start this year, with production to begin in 2025.
Vector Fabrication's customers includeApple,LogitechandTesla Motor. This will be Vector's 2nd factory in
Vietnam.
VFP Ink Technologyhas entered into a license and m,anufacturing agreement withNazdarto produce and distribute VPF's electronic ink for the conductive printing market in the US.
High entry barriers (costs) are not detering even mid-sized Taiwan companies from expanding HDI capacity to meet demands greater than
supplies for maturing processes for mobile phone motherboards, high-end laptop (NB), automotive electronics, and other growing applications. Bocheng,DynamicandTedingwill increase HDI production capacity this year to meet the burgeoning market demand.
China has ordered central government agencies and state-backed corporations to replace *foreign-branded personal computers with domestic alternatives within two years,
marking one of Beijing's most aggressive efforts to eradicate key overseas technology from within sensitive institutions. Source: Taipei Times
*The number one brand in China isLenovowhich was once owned by America'sIBM.
A gem from Jennie
"The bottom-line is to not rely on unreliable sources; and the ultimate challenge is to not create solutions that are worse than the
problems."-Dr.
Jennie S. Hwang
From the HKPCA
After a series of negotiation withShenzhen World Exhibition & Convention Center(Bao’an Hall), the Organizing Committee was finally given a date.The International Electronics Circuit Exhibition (Shenzhen)can now be rescheduled to 27 – 29 June 2022 (Monday to Wednesday) at Halls 13 – 16 of the Bao’an Hall. The event will also be conducted virtually.
It ain't over until ....
Boschhas suspended production at two sites in Shanghai and Changchun as it follows government
policies to contain a surge of COVID-19 cases. It has "paused" production at a Thermotechnology factory in Shanghai and an automotive components site in Changchu. Two other auto parts plants in Shanghai and neiarby Taicang are maintaining “closed-loop” operations, in which workers sleep, live and work in isolation from the rest of
society to prevent virus transmission. Source:
Reuters
APRIL 2022
Couple chiplets with additive manufacturing processing and packaging and you may have a new industry segment. Who will do the 3D
designing? Who will establish reliabilities? Who will write the new standards?
PCB Eastwas reminiscent of the Phoenix rising from the ashes (of the Covid epidemic). Its
resurrection as the PCEA's (Printed Circuit Engineering Association) first regional event successfully drew attendees from as
far as the West Coast and Florida. It was great to see so many old friends in the real world while being brought up to date by the many design and engineering programs conducted during the 3-day
meeting and exhibition by such notables asSusy Webb,Rick Hartley, andSteve Chavez. Our imaginations were stirred by a 2-hour introduction to 3D additive manufactured
electronics presented by Dr.Jaim Nulmanof theAME Academy. Our presentation of "From Possibility to Reality" held the filled lecture hall at rapt attention as new technologies from Israel, Germany, the U.S. and Japan were
described. IPC industry legendLaura Turbini(retired) came to join notable attendees which included Dr.Hayao Nakahara,Anaya Vardya,John
Vaughan,Chrys SheaandPeter Bigelow- CEO ofIMIand President of the Boston Chapter of theSMTA.
Washington, are YOU listening?
The Chinese government will increase its funding for technology innovation and to ensure the security and stability of its product supply
chains, which have been hit hard by the coronavirus pandemic.
The move, which is expected to help China remain competitive with other rivals in technology, especially the United States, was announced
by PresidentXi Jinping.
COVID lockdowns in Kunshan
China, which has for the past two months experienced its worst outbreak of the coronavirus since the start of the pandemic, has shut down
entire cities and multiple tech manufacturing factories in an effort to slow the spread of the virus. COVID lockdowns in Kunshan and other
high-tech manufacturing centers have impacted PCB makers, disrupting their production and shipments.
Taiwan-headquartered PCB manufacturers and suppliers such asElite MaterialandNan Yawere among those to confirm plans to stop production at their Kunshan facilities. Elite Material’s
production volume in Kunshan accounts for 30% to 40% of the company’s total, while 40% of Nan Ya’s production ordinarily happens in the city. Kunshan is also home to a large number of semiconductor
manufacturers. The Taiwanese PCB operations in Kunshan ofNandian,Taiwan
Optoelectronic and Xinxin also had closures early on the month.
Across the Atlantic River
Europe’s largest PCB manufacturer,Würth Elektronik Circuit Board Technology, andLuminovo, Europe's fastest growing software provider for the electronics industry, are connecting their
products to enable their customers to adapt a much simpler, faster and more accurate PCB prototype costing and quoting process.
Using the Würth Elektronik API (application programming interface), Würth Elektronik’s PCB online shop gets directly connected to
LumiQuote, Luminovo’s RfQ software. LumiQuote automatically extracts all relevant technical parameters of required PCBs using the modern PCB engine. The technical information is now sent directly to
the PCB online shop via the interface and prices as well as delivery times are sent back to the users in real time.
Luminovo was one of the featured companies in our Keynote presentation at PCB East earlier this month.
Taiwan & automotive PCBs
According toDr.Hayao
Nakahara, automotive PCB output of just one maker in in Taiwan is estimated to be larger than the entire automotive
PCB production in the US.
Although global automakers will suffer from insufficient supply of chips in 2021, and unfavorable news of production line shutdowns have
been reported, the actual shipments ofChin PoonandTripod, the major auto board suppliers in Taiwan, increased by 18.78% and 23.79% respectively last year.
Chin Poon’s revenue in 2021 is NTD, $659 million, the same below, an annual increase of 18.98%. Judging from the actual shipment amount of
Taiwan-based automotive boards in 2021, Chin Poon’s shipments last year was still is first among Taiwanese manufacturers. Chin Poon will increase the price of automotive boards in the 2nd quarter of
this year, as the NT$ is expected to depreciate.
Tripod’s revenue in 2021 wass 63 billion yuan ($2,279 million), an annual increase of 13.42%, of which
automotive board revenue was $408 million.
Dynamic’s sales in 2021 was $570 million, an annual
increase of 24.79%, of which automotive sheets account for 52% of revenue ($296 million). All of these are accelerating the opening of new production capacity this year, which is expected to push up
automotive PCBs. This year, together with HDI process boards and ABF IC PKG substrates, they have become the three major focuses of PCB factory revenue in Taiwan.
MARCH 2022
Now that the pandemic is waning here in the U.S. it's time to move on. I predict that meetings, exhibitions and conferences with
face-to-face meetings, technology exchanges and learning, seeing old friends and meeting new colleagues will be in full swing by April. Come join me at the Keynote speech of PCB East (the 11th to the
13th) in Marlborough, MA where I will talk about 8 of the many new innovations that I believe will broaden the current and future capabilities of EMS and fabrication designers and
engineers.
The Government of Japan has announced that effective from March 1, business travelers are allowed for new entry into Japan under the
responsibilities of receiving organizations.NEPCON JAPAN will support the documents necessary for visa application for
exhibitors. The next show will be held from August 31-Sep. 2, 2022 at Makuhari Messe, Japan.
Some locations are not yet out of the woods
Meanwhile, the Organizing Committee of the HKPCA's 2021International Electronic Circuit
Exhibitionhas postponed the event again due to the current COVID-19 conditions in Hong Kong and Shenzhen. The event ha been rescheduled to Aprikl,but now
has yet to have a new date confirmed.
Hong Kong is planning a massive 100% test of its inhabitants as it records record cases.
South Korea smartphone update
South Korean PCB fabricatorsKorea CircuitandDAPare expected to supply a combined total of more tham 50% of the total boards thatSamsungplans to buy in 2022. The remaining 40+% will be supplied by Japanese firmsIbidenandMeiko. Samsung uses high-density interconnect (HDI) boards on its
smartphones.
Samsung Electro-MechanicsandDaeduck Electronicsonce dominated the supply of HDI boards to Samsung but the companies ceased making boards in 2019 and 2020, respectively.
Orders from Samsung accounts for up to 50% of Korea Circuit’s sales and up to 75% of DAP's.
Korea Circuit says sales of its flip-chip ball grid array (FC-BGA) business are increasing annually, but HDI still accounts for the
majority of its business.
February 2022
No kidding, Dick Tracy! Where do you recommend we find them?
TheWhite Houseis warning the chip industry to diversify its
supply chain and find alternat sources in case Russia retaliates against threatened U.S. export curbs by blocking access to key materials. Estimates are that over 90% of U.S. semiconductor-grade neon
supplies come from Ukraine, while 35% of U.S. palladium is sourced from Russia.
January 2022
At the TPCA show theTaiwan Circuit Board Association(TPCA) released a high-level technical blueprint for PCB, materials and equipment, commenting
that HPC, B5G-Edge, B5G-Infrastructure, and high power are the focus of Taiwan’s PCB industry development.
2021 was a harvest year for Taiwan’s PCB industry. The total output value of the industry chain at home and abroad has a high growth rate
of 24%, setting a new record of $46 billion highlighting the resilience of the PCB industry in the epidemic.
The TPCA Show hjad 430 well-known domestic and foreign companies exhibiting, with a total of 1,172 booths, attracting 34,277 visitors, an
increase of 9% over last year. The “IMPACT International Assembly and Circuit Board Seminar” had 44 sessions, covering topics such as advanced packaging, heterogeneous integration, high-end carrier
boards, and PCBs. The TPCA Show 2022 will to be held at the Nangang Exhibition Center from October 26 to 28.
Partnering
How does one define partnering? Is there a way around the leverage that the bigger company exerts? How does the provider of an "in demand"
but short in availability product or service view partnering? A European company involved in digital transformation in the electronics supply chain is advertising for a "Partnering Manager". Is this
something we should all be investigating to navigate the troubled waters and opportunities of 2022? How would this differ from existing positions in marketing, service or management?
Washington, D.C. PAY ATTENTION!!!
At the TPCA Show, Taoyuan MayorZheng Wencansaid in person that PCB is a very important foundation for the electronics industry. In order to maintain the competitive advantage of Taiwan’s PCB industry, it will
face the two major challenges in the future, “international new net zero ecosystem” and “high-end manufacturing process”. To de-bottleneck investment”, it is necessary for the government to play a
more active role.
How does one define partnering? Is there a way around the leverage that the bigger company exerts? How does the provider of an "in demand"
but short in availability product or service view partnering? A European company involved in digital transformation in the electronics supply chain is advertising for a "Partnering Manager". Is this
something we should all be investigating to navigate the troubled waters and opportunities of 2022? How would this differ from existing positions in marketing, service or management?
What's going on?
The direct investment of the strategic investorWUS Printed Circuits (Kunshan) Co.,Ltd. (China)in the wholly-owned Chinese subsidiary ofSchweizer
Electronic AG.
Chips, chips and fewer chips
A 6.6 magnitude earthquake that rattled southwestern and western Japan early January 22 brought two chip fabs offline. It tookToshiba’s Oita and Buzen semiconductor production sites offline.
The Oita plant, which produces LSI chips for the auto and industrial machine industries, was damaged by the earthquake. Production lines
have been impacted, but the severity of the damage is not yet known.
Amid a lengthy chip shortage, a series of unrelated events have impacted the manufacturing sector, including a storm in Texas taking
outSamsung,NXP, andInfineonfabs; a fire at Japan’sRenesasfab (and another atASML); as well as power cuts and droughts in Taiwan.
It takes time
Intelwill spend $20 billion for 2 new fabs in Ohio, but where will the interconnect substrates be
made? Hopefully not in Malaysia where AT&S will spend $2.3 billion for new chip substrate facilities. How can the U.S. establish a secure primary and a secondary supply chain of PCBs for its
needs - both for its defense as well as commercial requirements? One more time, is sovereignty national or corporate and what are the risks for either case? Is anyone in D.C. addressing this? We know
that the PCBAA is.
Global equipment spending for front end chip facilities is expected to reach a new all-time high of nearly $100 billion in 2022.Why can't America's industry,
government (in partnership?), and those in its supply chain and partnerships spend just 1 or 2% of that for the infrastructure needed to connect the IC's? Remember, the ICs are useless unless they
are connected to each other and the outside world.
Memory chip makerMicron Technologywill shut its DRAM chip
designing operations in Shanghai by the end of this year. Micron will close its DRAM Engineering Group from its Shanghai Design Center over the next year, with completion expected by December
2022. TheSouth China Morning Post, citing industry sources, said that 150
Chinese engineers at the site will be asked to relocate to the United States or India.
Semiconductors have been at the heart of U.S.-China tensions and the United States has been looking to shift the balance back in favour of
the West and away from Asia, driven by intellectual property and supply chain concerns.
In 2018, theU.S. Department of Justiceindicted Taiwan-based chip
makerUnited Microelectronics Corp. (UMC) and China’sFujian Jinhua Integrated Circuit
Co. Ltd., alleging the companies conspired to steal trade secrets from Micron.
Fujian Jinhua Denied the allegations. UMC pled guilty to the charges and paid a $60 million fine