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3 MERCHANT IC VENDORS

NORTH AMERICAN IC VENDORS

The top ten North American IC manufacturers of 1995 are listed in Figure 3-1. Most of these com- panies enjoyed another year of healthy sales revenues. Collectively, they reported 33 percent growth in their sales of integrated circuits for the year, which comes after 27 percent growth in 1994. The figure also indicates to what level each company is involved in the ASIC business.

1995/1994 1995 ASIC Sales 1995 Percent as a Percent Rank Company1995 1994 Change of IC Sales

1 13,590 9,850 38 — 2 TI 7,800 5,500 42 12 3 7,252 5,868 24 5 4 IBM 5,705 4,575 25 5 5 Micron 2,705 1,575 72 — 6 AMD 2,430 2,135 14 13 7 National 2,304 2,014 14 4 8 Lucent 1,650 1,250 32 51 9 LSI Logic 1,268 902 41 93 10 Cirrus Logic 1,187 777 53 — Total 45,891 34,446 33 9

Source: ICE, "ASIC 1997" 20231A

Figure 3-1. Top Ten North American-Based Merchant Companies’ IC Sales ($M)

Since becoming the largest North American IC company in 1990, Intel has widened the gap between it and second place to nearly $5.8 billion. Intel has been very successful in promoting its Pentium CISC through aggressive pricing and marketing strategies. The compa- ny also has a top selling RISC (i960) and is the leading supplier. In mid- 1994, Intel sold its PLD business to Corporation for $50 million, and thus is no longer involved in ASICs.

INTEGRATED CIRCUIT CORPORATION 3-1 Merchant IC Vendors

After losing momentum in the early 1990’s, had two record-setting years in a row, allowing it to capture the number two spot from Motorola in 1995. Its IC business grew 36 percent in 1994 and 24 percent in 1995. Much of the company’s strategic emphasis in semicon- ductors is on processors, and as a result, its DSP sales have grown substantially faster than the DSP market in the past couple of years. TI has also seen strong demand for its DRAM, mixed-signal/analog ICs, and application-specific devices. In the ASIC industry, the company is the second largest North American-based supplier, behind LSI Logic.

A broad-based product portfolio has helped Motorola to maintain consistent IC revenue growth over the past several years. PowerPC RISC , fast SRAMs, digital signal proces- sors, customer-specific , CMOS gate arrays, and embedded processors were Motorola’s strongest product groups in 1995.

1995 marked the first year in which ICE classified IBM as a merchant IC compa- ny (i.e., more than about 25 percent of its total IC production is sold on the open market). The com- pany’s external IC sales represented approximately 30 percent of its total IC production in 1995*. As a result, the company is now the fourth largest merchant IC manufacturer in North America.

Consistently high demand for DRAMs and stable memory pricing in 1995, helped Micron to pro- pel itself up five spots from its position at the bottom of the top ten list in 1992. Micron’s IC sales (DRAMs and fast SRAMs) grew 93 percent in 1993, 68 percent in 1994, and 72 percent in 1995. To free itself from the volatile DRAM product cycle, Micron is busy developing other products such as flash memories and frequency identification (RFID) chips.

Capacity constraints, price erosion in the 486 microprocessor market, and delays in the introduc- tion of its fifth-generation K5 microprocessor stalled AMD’s sales in 1995. The company was hit hardest by a decline in Am486 MPU revenues. Demand for its other IC products, namely flash memories, Ethernet devices, and CMOS programmable logic devices, was very strong during the year. In early 1996, AMD decided to spin off its PLD business as a wholly owned subsidiary, in order to focus exclusively on the specific needs of its PLD customers.

After reporting nearly flat sales in 1994, National finished 1995 with relatively growth in sales. The company’s rebound can be attributed to a shift toward higher-margin analog and mixed-signal products and away from low-margin standard logic and memory businesses. In the first part of 1996, National made the decision to withdraw from the ASIC market, and has rede- ployed its ASIC to the development of standard products targeted at the telecom- munications equipment market.

* IBM hopes to achieve a 50/50 external/internal IC sales level in 1997.

3-2 ENGINEERING CORPORATION Merchant IC Vendors

The strongest products for Lucent Technologies (formerly AT&T Microelectronics) in 1995 were FPGAs and DSPs. In addition, Lucent remained the world’s largest supplier of ASICs, a position it has held for many years.

LSI Logic has been very successful in the standard cell ASIC market with its broad of CoreWare functional modules. In fact, LSI Logic advanced from the third to the second largest worldwide ASIC supplier in 1995.

Provided below are several ASIC-related announcements made by North American merchant companies between mid-1995 and mid-1996.

North American Vendor ASIC Highlights

• Actel and formed an alliance to produce a hybrid logic device that incorporates field-programmable (FPGA) and mask-programmed ASIC into sys- tem-programmable gate arrays (SPGAs). Products based on the new technology are expect- ed in the first half of 1997.

• Actel added a 20,000-gate device to its portfolio of FPGAs. The A32200DX is an device with on-chip dual-port SRAM that can be used for high-speed RAM functions.

• Actel introduced a series of radiation-hardened FPGAs designed for use in commercial satel- lites. The 0.8µm CMOS devices are offered in densities ranging from 2,000 to 8,000 gates.

• Actel signed an agreement with provider Technical Data Freeway (TDF) that gives Actel a wide range of synthesizable cores to be used in Actel devices. The cores include DSPs and MCUs, as well as telecom and cores.

• Altera announced the availability of the industry’s highest density PLD, a 100,000-usable- gate version of its FLEX 10K . The FLEX 10K100 has over 10 million and a size of over 600K square mils. The company says the key to achieving the high density is an embedded architecture, which allows the implementation of logic functions in the logic array blocks (LABs), as well as memory and specialized logic functions (e.g., mul- tiplier, ALU, and DSP) in embedded array blocks (EABs).

• Altera announced its MegaCore function library of preverified system-level blocks. The company also launched OpenCore, a program that allows designers to “test drive” the megafunctions before licensing them. The MegaCore library complements the Altera Megafunctions Partners Program (AMPP), launched in late 1995.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-3 Merchant IC Vendors

• Altera spruced up its MAX7000 line of PLDs with the addition of in-system programmabil- ity features. The new MAX7000S family includes chips with between 2,500 and 12,000 usable gates and offered in 7.5ns, 10ns, and 15ns speed grades.

• AMD signed a cross-license agreement with Cypress in 2Q96, ending its PLD litigation. The agreement calls for cross-licensing of certain PLD , but does not include technology or product exchanges.

• AMD licensed the ADSP 21xx digital signal processing core from Analog Devices Inc. AMD will use the core in upcoming ASIC products and plans to embed the core in communica- tions related ICs.

• AMD added (DSP) cores, as well as other cores, to its line of complex programmable gate arrays (CPLDs). AMD also released its plans for a new line of FPGAs due out in 3Q96 (the devices will not use antifuse technology).

• AMD added devices to its MACH complex PLD family that feature in-system programming capabilities. The chips are available with delays as low as 7.5ns (pin-to-pin) and are said to be PCI compatible.

• AMD spun off its PLD business as a wholly owned subsidiary in early 1996. The new sub- sidiary will , develop, and market PLD products using AMD’s technology and facilities.

• Atmel unveiled the AT6010, a member of its AT6000 FPGA family, which is based on the company’s Logic architecture. The 20,000-gate AT6010 features 6,400 registers and supports system speeds of 100MHz, making it well suited to process DSP functions. Atmel is, in fact, marketing the device as a DSP .

• Crosspoint Solutions introduced its CoreBank™ program, a library of synthesizable propri- etary and third-party systems building blocks for incorporation into made with Crosspoint’s high-density FPGAs.

• Crosspoint Solutions unveiled its CP100K family of CrossFire™ FPGAs having densities up to 100,000 gates. CrossFire is a proprietary sea-of-gates architecture that allows 60-80 percent gate utilization. The FPGAs will initially be implemented in a 0.5µm 3/4-layer metal CMOS process, with plans for a migration to 0.25µm technology resulting in chips at 250K and beyond gate levels. The CrossFire family is supported by a set of system-level cores, such as DSP , graphics accelerators, and ATM framers.

3-4 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

• Cypress entered the PLD core business with the introduction of a synthesizable VHDL PCI core in July 1996. The company’s core program has been named UltraCore.

• Cypress enhanced its Flash370 CPLD product line to create the new Flash370i family. The 370i chips add in-system reprogrammability, a new technique for controlling in - oriented I/Os, PCI-compliant outputs, and automatic power reduction.

• Cypress introduced the PALCE20V8, a flash erasable and reprogrammable device manufac- tured using the company’s 0.65µm flash CMOS technology.

• Cypress introduced a new generation of its advanced UltraLogic™ FPGAs, the Ultra38000 family. The antifuse-programmed devices are fabricated using a 0.65µm three-layer metal CMOS process and are available with up to 20,000 usable gates in 1,440 logic cells with 336 I/Os. QuickLogic is Cypress’s antifuse FPGA second-source partner.

• IBM entered the FPGA market in 2Q96 with the announcement of its Series 10000 FPGA fam- ily. The initial product was a 16,000-gate device. The family will eventually include devices with densities ranging from 8,000 to 42,000 gates.

• IBM revealed its most advanced ASIC family architecture, called System ASIC-12, which allows for up to 3.2 million usable gates. Volume production of SA-12 devices is expected to start in 2Q97.

• IBM launched what it calls its SystemCORE ASIC program, designed to bring additional PowerPC cores, along with other technologies such as the company’s Mwave DSP into the company’s library.

• In early 1996, IBM began accepting for its CMOS 5X process—the third and final derivative of the company’s 0.5µm ASIC process. The process uses 0.25µm effective gate lengths (0.35µm drawn) and offers up to 1.6 million usable gates and as many as 748 I/O pins. Other features of the architecture include 1.2µm metal pitch and 70Å oxide thickness.

• IBM rolled out its PowerPC 401GF core, which is targeted at low-cost battery-operated sys- tems. Initially offered in 25MHz and 50MHz versions, the 401GF consumes as little as 40mW (typical, @25MHz) from a 2.5V power supply. The chip, measuring 4.5mm2, is manufactured using IBM’s 0.5µm three-layer metal CMOS-5S process technology. 75MHz and 100MHz versions are expected to follow before the end of 1996.

• IMP introduced the second member of its electrically programmable analog circuit (EPAC™) family. The new chip integrates the functions of over 18 discrete analog and digital CMOS IC components, providing user-configurable monitoring, diagnostic, and features.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-5 Merchant IC Vendors

• Lattice extended its ispLSI 2000 line of CPLDs to include 3.3V devices. The family of low- voltage parts offer gate densities from 1,000 up to 6,000 and operating speeds as fast as 10ns (80MHz). Device specifications also feature 100,000 erase/write cycles.

• Lattice added three members to its ispLSI family that feature integrated predefined, func- tion-specific memory and - megacells. The three versions include either a sin- gle-port SRAM, a dual-port SRAM, or a FIFO.

• Lattice announced a pair of very fast GAL PLDs, both operating at 3.3V. The GAL22LV10D is rated at a 4ns propagation delay and 3ns -to-out time, making possible 182MHz . The GAL22LV8D features a 3.5ns propagation delay, a 2.5ns clock-to-out delay, and a 200MHz frequency.

• LSI Logic broke ground on a new fab complex in Gresham, Oregon. The first phase of the new facility is expected to cost between $600 million and $800 million. The line will have the capacity to run 4,000 200mm wafers per week for the production of 0.35µm design rule ASICs. Initial chip production is expected to take place in early 1997.

• LSI Logic announced a 10 year joint-development agreement with High Level Design Systems (HLDS) to create deep-submicron IC design methodologies and ASIC design kits. The agreement also calls for LSI’s 0.25µm and 0.35µm process technology and CoreWare design methodology to be integrated with HLDS’ expertise in IC floorplanning, and for LSI Logic to use HLDS’ internally and in its own design centers.

• LSI Logic added the new Gigabit SeriaLink™ interface core to its CoreWare cell library. The CMOS-based Gigabit SeriaLink supports the Fibre Channel data transmission protocol, which allows for the transmission of up to 1.0625 billion bits of data per second, the equiva- lent of several 350-page novels a second.

• LSI Logic revealed its G10 series of ASICs that can integrate up to five million usable gates or 49 million transistors on a single chip, using 0.35µm (0.25µm Leff) process technology. LSI Logic says the G10 ASICs are application-optimized. That is, customers can select from a variety of process, core, and library-cell options to make a chip that is better optimized for a specific system.

• Lucent Technologies unveiled its 0.35µm CMOS process technology, which is optimized for ASICs and FPGAs. The new technology will support designs of 2.5 million usable gates, 200MHz system frequencies, and 1G/sec. I/O interfaces. The first product implementation is a series of ORCA™ FPGAs with gate counts ranging from 4,000 up to 60,000.

3-6 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

• Lucent Technologies is preparing a major push beyond its traditional mixed-signal commu- nications focus in standard cell ASICs. The company plans to add a wide range of cores to its library, including the i960 and Sparc 32-bit MPUs; DSP cores; MPEG-decoder, video pro- cessing, and other multimedia cores; modules; and DRAM and flash mem- ory arrays.

• and nonvolatile memory manufacturer entered the programmable logic market through the acquisition of ASIC Technical Solutions (ATS) of San Jose, California. ATS provides its QuickASIC array family which replaces FPGAs and CPLDs with a masked ASIC at a reduced price.

• Mitel acquired the ASIC assets of Swedish-based ABB HAFO after buying the company from parent owner, ABB of Switzerland.

• Motorola introduced a new FPGA family based on the Pilkington antifuse technology. The FPGAs are reprogrammable SRAM-based devices manufactured on a standard 0.6µm triple- metal-layer CMOS process. Motorola also licensed the field programmable analog array (FPAA) technology from Pilkington.

• Motorola announced a new line of 0.65µm CMOS gate arrays, the H4EPlus series, that fea- tures a core architecture with 50 percent greater gate density than previous generations. Available gate counts for the devices range from 12,000 to 278,000.

• Space Inc. (SEI) introduced a radiation-hardened FPGA for space-borne appli- cations, such as , space craft, , and probes. SEI’s device is based on a 0.65µm CMOS antifuse process and is available with densities ranging from 2,000 to 9,000 gates. It also features chip-to-chip operating speeds of up to 135MHz with output delays of 3ns.

• Symbios Logic licensed the ARM7TDMI “Thumb” 32-bit RISC microprocessor core from Advanced RISC Machines.

• Texas Instruments added to its TCG Series of ASICs, the TCG4000 series of gate arrays and the TEG4000 series of embedded arrays. The arrays are manufactured using a four-level- metal 0.35µm CMOS process and offer up to 1.7 million usable gates.

• Texas Instruments introduced its Timeline technology, which is capable of achieving 0.18µm linewidths and 125 million transistors on a chip. The new technology features system-on-a- chip integration designed to enable OEMs to customize their chips with DSP, MCU, DRAM, SRAM, flash memory, and ROM capabilities.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-7 Merchant IC Vendors

• In October 1995 Vitesse Semiconductor announced a major advancement in high-perfor- mance gate arrays with the introduction of its GLX family of ASICs. Based on a 0.6µm five- layer-metal GaAs process, the GLX family of devices can perform at up to 800MHz and have up to 250K raw gates with 60-70 percent utilization. The GLX arrays provide per-gate power as low as 0.07mW and volume pricing below 0.1 cent per usable gate. Megacell blocks can also be embedded into base arrays.

• inaugurated its LogiCore program, which offers a PCI bus module as well as third party including DSP filters, bus interfaces, UARTs, and DMAs for various Xilinx PLDs.

• Xilinx unveiled its XC4000EX family of FPGAs, which feature between 28,000 and 62,000 nominal gates. The high density is accomplished through the use of a 0.5µm process and sig- nificant architectural changes. The major architectural difference between the XC4000EX and the older XC4000E is the approximate two-fold increase of routing resources available to the logic cells. The density of the 4000EX FPGAs will increase to 125,000 gates in 1997 when Xilinx moves to a 0.35µm process.

• Xilinx introduced its flash-based (5V-only) PLDs in late 1995. The 0.6µm devices allow 10,000 program/erase cycles and in-system programming. They are offered in usable gate densities of 800 to 12,000.

• Xilinx discontinued its XC8100 family of antifuse devices in mid-1996, citing lowered expec- tations for the devices.

U.S. IC TRENDS

The U.S. military industry continued to take a beating in 1995. As Figure 3-2 shows, defense-relat- ed spending and employment reached their highest levels in the mid- to late-1980’s and have con- tinued to steadily decline since then.

U.S. production of military electronics will continue to fall in 1996, the result of ongoing budget cuts and shifts in spending. Fortunately for the military contractors, defense electronics spending is forecast to flatten at about $37 billion dollars from 1996 through 2005 (Figure 3-3). A rise in spending on military communications, , and surveillance programs will compensate for a decline in spending for operations, maintenance, research, and development. Increasing electronic content in advanced military systems will also help balance spending levels.

Unfortunately, the military IC market has not been immune from many of the cutbacks that have been taking place at the Pentagon. Many military IC suppliers have found themselves squeezed between two factors—a steep drop in defense spending, which hit the

3-8 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

harder than first anticipated, and the growing acceptance of commercial off-the-shelf (COTS) elec- tronic components in military systems. It is these two factors that, in 4Q94, led AMD and Motorola to announce the termination of their military semiconductor product lines by mid-1996. As part of Motorola’s exit from the market, it sold to Omnirel, Inc. in May 1995, various manu- facturing assets, test equipment, and finished goods from its military operation. In November 1995, Altera made its formal announcement to exit the military IC business. It will continue to military-grade ICs through 1996.

National defense spending (based on FY95 constant dollars) 400 7,500 Total defense-related employment 375 7,000

350 6,500

325 6,000

300 5,500

275 5,000

Spending ($B) 250 Employees (Thousands) 4,500 225 4,000 200 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1997 (FCST) Fiscal Years Ending June 30 Source: Department of Defense/ICE, "ASIC 1997" 20235

Figure 3-2. The Decline Continues

As the defense budget dwindles, the military will be required to buy more commercial-grade products. The military procurement environment has changed dramatically since Defense Secretary William Perry announced a directive in June of 1994 that commercial-grade parts be used whenever possible (Figure 3-4).

A Defense Department report on semiconductor packaging, released in early 1996, urged the Pentagon to explore buying more -encapsulated ICs in place of more costly -pack- aged devices. According to the report, ceramic packages constitute more than 90 percent of all chips used in military systems, but that they are more expensive and, in many cases, are no more reliable than state-of-the-art plastic-packaged ICs available on the commercial market.

Figure 3-5 shows how the military percent of the total semiconductor market has declined in the past two decades. In 1975, the military semiconductor market accounted for 17 percent of the total semiconductor market. In 1996, it is forecast to account for about one percent of the total semi- conductor market.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-9 Merchant IC Vendors

80

70

60

R&D, Test and

50 Evaluation

40

30

Procurement 20 Constant 1995 Dollars (Billions)

10

Operations and Maintenance

0 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 Year Note: 1996-2005 Forecast Source: Electronic Industries Association/ICE, "ASIC 1997" 19537B

Figure 3-3. Electronic Content of DoD Budget

Initial directive announcement made in late June 1994.

Perry ordered that all DoD procurement contracts, including those for , use commercial and industrial specs and standards where they exist. The use of a mil-spec device will require a waiver. Radiation-hardened components are exempt from the directive.

Clarifications of and additions to the directive announced in October 1994.

• The action does not eliminate military specifications and standards. • It applies only to actions by the government and does not apply to standards proposed by a bidder in response to an RFQ. • If no commercial alternative exists that is cost effective, then a waiver may be granted. • Military specifications may be used for reprocurement of items already in inventory. • Military specifications may be cited "for guidance only." • A market analysis will be required for every new program to ascertain if commercial products are available. • Non-government standards such as those used by the automotive industry are preferable alternatives.

Source: ICE, "ASIC 1997" 20237A

Figure 3-4. William Perry’s Initiative

3-10 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

160 20

$141 140 17%

120 15

100

80 10

60 7.5% (Billions of Dollars) Semiconductor Market 40 5 Military Percent of Worldwide Worldwide Semiconductor Sales $24 20 1.1% $4.2 $0.7 $1.8 $1.5 0 0 1975 1985 1995

= Total Worldwide Semiconductor Market

= Total Worldwide Military/ Semiconductor Market

Source: TI/ICE, "ASIC 1997" 18958F

Figure 3-5. Declining Military/Aerospace Presence

Figure 3-6 provides a look at the worldwide market for military/aerospace semiconductors in 1995 by device type. Digital signal processors (DSPs), field programmable gate arrays (FPGAs), and programmable logic devices (PLDs) are a few of the IC products that are actually showing strong potential in the military market. Competition among vendors of radiation-hardened 32-bit microprocessors is heating up. Harris’ “Mongoose” version of the Mips R3000 became the first rad-hard 32-bit MPU to be used in a space application (aboard a NASA ).

In contrast, discrete and bipolar products will not be as large a share of the market in the future. Older ICs that once were in demand, but do not now require the dedicated support of a “leading- edge” supplier, are given over to companies such as Lansdale Semiconductor, which manufac- tures and supports discontinued IC products on a continuing basis making it possible to extend the lifecycle of past and present technologies.

The top ten U.S. military/aerospace IC manufacturers and their sales are shown in Figure 3-7. Grabbing the headlines in 1994 and 1995 were the stories of lessening emphasis or the phasing- out (e.g., Motorola) of military semiconductor businesses. Luckily for military semiconductor users, companies like TI and Intel stated that they were looking to increase their military business by gaining marketshare others were leaving behind.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-11 Merchant IC Vendors

Discrete and 8% Digital Bipolar 8%

MOS Micro Analog 9% 27% 1995 $1.5B MOS Memory MOS Logic 21% 27%

Source: ICE, "ASIC 1997" 18537E

Figure 3-6. Worldwide Military/Aerospace Semiconductor Market

1995/1994 Military/Aerospace Rank Company 1995 Sales 1994 Sales Percent Change Emphasis 1 Harris 150 145 3 Steady* 2 National 140 135 4 Steady 3 TI 135 125 8 Steady/Increasing 4 Analog Devices 132 125 6 Steady 5 Intel 110 100 10 Steady/Increasing 6 LSI Logic 76 68 12 Steady 7 Motorola 65 97 –33 Decreasing 8 Honeywell 42 40 5 Steady 9 Raytheon 35 35 — Steady 10 AMI 29 21 38 Steady — Others 176 219 –20 Decreasing Total 1,090 1,110 Ð2 Steady Note: It is estimated that 25% of the Military/Aerospace IC market is for rad-hard devices. *Decreasing Military, increasing Aerospace. Source: ICE, "ASIC 1997" 12137Q

Figure 3-7. Top Ten U.S. Military/Aerospace IC Suppliers ($M)

In general, the military/aerospace market is being influenced by numerous “forces.” Figure 3-8 shows some of the positive and negative influences on the market. Although there are some fac- tors that will positively affect the military semiconductor market in the future, the edict to use commercial ICs whenever possible in military systems will negate these factors.

JAPANESE IC VENDORS

After several years of struggling to get by, Japan’s semiconductor manufacturers finally reported a healthy year in 1995. Integrated circuit sales for Japanese companies increased 35 percent in 1995 in terms of U.S. dollars, or 24 percent in terms of Japanese yen (Figure 3-9). This compares

3-12 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

to a 1994 increase of 25 percent in dollars or 16 percent in yen. Figure 3-9 also shows what per- centage of the total IC sales by the Japanese companies in 1995 was represented by ASIC devices. As can be seen, all 10 are involved in the ASIC business to at least some extent. The Japanese are strongest in the gate array market. They held four of the top five spots in the 1995 worldwide gate array rankings. NEC captured the worldwide leading ASIC supplier position from in 1994, and continued to hold the position in 1995.

Negative – Edict to use more commercial ICs in military systems. – Flat military electronics budget. – Increasing use of cheaper plastic packaged devices. Positive + Increasing IC content in military electronic systems. + Increasing rad-hard aerospace market. + End-of-life buys will temporarily increase military IC market (1995-1996).

Source: ICE, "ASIC 1997" 19539

Figure 3-8. Factors Influencing the Military/Aerospace IC Market

1995 ASIC Sales 1995 1995/1994 Company1995 1994 as a Percent Rank Percent Change of IC Sales

1 NEC 11,045 7,855 41 11 2 Hitachi 8,630 5,940 45 7 3 8,615 6,415 34 11 4 Mitsubishi 4,435 3,286 35 5 5 Fujitsu 4,010 2,975 35 26 6 Matsushita 2,600 2,090 24 4 7 Sanyo 2,245 1,835 22 2 8 Oki 2,030 1,663 22 8 9 Sharp 2,020 1,640 23 4 10 Sony 1,875 1,475 27 1 Total 47,505 35,174 35 10 1994: 102¥ = $1.00 1995: 94¥ = $1.00 *Does not include hybrids. Source: ICE, "ASIC 1997" 20232A

Figure 3-9. Top Ten Japanese Companies’ IC Sales* (Calendar Year, $M)

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-13 Merchant IC Vendors

The strong performance of the Japanese in 1995 was a result of substantial growth (70 percent over 1994) in the country’s domestic shipments of PCs (Figure 3-10), as well as strong demand for semi- conductors in North America and the Asia-Pacific region. As shown in Figure 3-10, the Japan Development Association projects the growth in domestic PC shipments for fiscal 1996 (ending in March 1997) to slow to about 30 percent. Still, the collapse of DRAM prices in 1996, coupled with a significant amount of capacity (probably excess) still planned to come on-line, may remove any of the momentum built up by the Japanese in 1995.

10

Domestic Shipments

8

6

4

Number of Units Shipped (Millions) 2

0 1990 1991 1992 1993 1994 1995 1996* Fiscal Year *Projection

Source: Japan Electronic Industry Development Association/ICE, "ASIC 1997" 21210

Figure 3-10. Japan’s PC Shipments

While Japanese IC manufacturers are heavily dependent on the DRAM market, they are placing a high degree of emphasis on non-memory devices. Development work is very active in data com- pression chips, networking ICs, and microprocessors for PDAs, high-performance systems, and other multimedia equipment.

Provided below are selected ASIC-related announcements made by Japanese semiconductor com- panies between mid-1995 and mid-1996.

Japanese Vendor ASIC Highlights

• Fujitsu introduced its 0.65µm CG46/CE46 CMOS ASIC product family. The CG46 is a digi- tal CMOS gate array and the CE46 is an embedded array. The series features up to 89,000 usable gates in a channelless sea-of-gates architecture.

3-14 INTEGRATED CIRCUIT ENGINEERING CORPORATION Merchant IC Vendors

• Fujitsu developed a 0.25µm process for ASIC production. The company plans to begin sam- ple shipments within 1996 and volume shipments around mid-1997.

• In 4Q95 Hitachi began offering its SH-1 32-bit RISC controllers as part of its 0.5µm ASIC cell library. The company also added to its cell library, an MPEG decompression core licensed from CompCore Multimedia Inc.

• Hitachi began taking orders for its HG73G gate array and HG73E embedded array 0.35µm CMOS ASICs in April 1996. The triple-metal process enables designs of up to 1.5 million gates.

• Hitachi began selling FPGAs based on Crosspoint Solutions Inc.’s one-time-programmable architecture in the Japanese market in October 1995. Hitachi will develop libraries for the FPGAs for customers who wish to convert from Crosspoint FPGAs to Hitachi’s larger gate arrays.

• Mitsubishi has established a spin off company that will handle leading-edge system-on-a- chip designs. The new company, VSIS Inc., will leverage Mitsubishi’s R&D and fabrication facilities, as well as intellectual property from both inside and outside the company, to com- bine and software in next-generation ICs for the industrial-control, multimedia and other markets.

• In May 1996 Mitsubishi introduced its “0.35 Micron” ASIC architecture for gate arrays, embedded arrays, and cell-based ICs.

• In September 1995 NEC introduced its QB-8 ASIC family incorporating a new proprietary BiCMOS gate array architecture called “PUZZLE”. Based on a 0.5µm three-level metal process, the QB-8 family offers the low power and short turnaround time of a CMOS process combined with the high-speed of a bipolar ASIC. The PUZZLE process combines three dif- ferent size transistors into a single high-density architecture, with MOS elements used for input signals and BiCMOS elements used for output signals.

• NEC introduced its cell-based 0.35µm CMOS ASIC technology (CB-C9) in 4Q95. The CB-C9 technology is based on the company’s CMOS-9 architecture that has been used in the fabri- cation of gate arrays since mid-1995. Volume production of CB-C9 devices began in 1Q96.

• NEC licensed the ARM RISC microprocessor core of Advanced RISC Machines. NEC has the right to develop, manufacture, and market ASICs based on the 32-bit ARM7 RISC micro- processor core.

INTEGRATED CIRCUIT ENGINEERING CORPORATION 3-15 Merchant IC Vendors

• NEC introduced a high-speed 0.44µm BiCMOS gate array family (QB-8 Family) that is said to operate as fast as 0.35µm CMOS gate arrays and yet feature low power consumption.

• Oki licensed the ARM7 32-bit RISC microprocessor core from Advanced RISC Machines to design into ASIC devices.

• Toshiba introduced its TC220 Series of gate array, embedded array, and standard cell ASICs that offer up to 1.9 million usable gates (three million total). Based on 0.3µm CMOS process technology, the chips offer approximately 40 percent lower power consumption than their predecessors.

• Toshiba announced its line of mixed 3V/5V ASICs dubbed the TC203 family. The devices are based on 0.4µm double-layer or triple-layer metal CMOS technology.

EUROPEAN IC VENDORS

Figure 3-11 displays IC sales for the leading European IC companies in 1994 and 1995, along with their ASIC sales as a percent of total IC sales. On average, sales by these companies grew 38 per- cent in 1995, following 30 percent growth in the previous year. The growth was driven primarily by strong demand for PCs in Europe, but also by fast-growing demand for digital mobile phones and other equipment, and .

1995 ASIC Sales 1995 1995/1994 Company1995 1994 as a Percent Rank Percent Change of IC Sales

1 SGS-Thomson 2,964 2,207 34 11 2 2,936 2,106 39 1 3 2,382 1,584 50 3 4 TEMIC* 415 345 20 20 5 GEC 350 288 22 64 6 Ericsson 300 240 25 10 7 Alcatel Mietec 195 163 20 85 8 Austria Mikro Systeme 175 95 84 55 9 ITT Semiconductors 143 120 19 — 10 EM Microelectronic-Marin 84 65 29 20 Total 9,944 7,213 38 10 * Includes IC sales by Matra MHS, Siliconix, , and Telefunken Semiconductors.

Source: ICE, "ASIC 1997" 20233A

Figure 3-11. Top Ten European Companies’ IC Sales ($M)

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SGS-Thomson is focusing mostly on high-growth applications and on high-margin products— particularly emphasizing areas such as multimedia, mobile phones, , and automotive electronics. Its strongest performing IC products in 1995 were SRAMs, flash memories, micro- components (MPUs, MCUs, MPRs, and DSPs), standard cell ASICs, and analog ICs.

Having survived a couple of years of heavy restructuring, Philips Semiconductors is now in a much better position to compete with the world leaders in the IC industry. Philips is working hard to be among the world’s top ten semiconductor companies in the near future. The company aims to maintain its dominant position in -related products, while becoming an established leader in the digital communications and multimedia markets. The company has, therefore, chosen microcontrollers and standard high-performance logic devices as two areas of focus. Philips is already among the leaders in 8-bit MCUs, and it intends to become an equally serious player in 16-bit parts.

Siemens’ IC group focuses on four strategic product areas: memories, microcontrollers, chip cards, and communications ICs. As Europe’s only DRAM producer, the company plans to be among the top ten DRAM leaders in the world within the next few years; it is currently within the top 15. Siemens’ efforts in microcontrollers are targeted at applications in the industrial and automotive markets. In communications ICs, the company claims to be the second largest sup- plier after Lucent Technologies.

Provided below are selected ASIC-related announcements made by European IC companies between mid-1995 and mid-1996.

European Vendor ASIC Highlights

• Austria Mikro Systeme acquired a 51 percent controlling interest in SAMES Ltd., a South African IC manufacturer. SAMES has a 150mm wafer fab that is geared to build ASICs and provide foundry capacity for CMOS and BiCMOS technologies at 2.0µm, 1.2µm, and 1.0µm levels. The agreement includes from AMS to SAMES and the sharing of process technology.

• Philips formed a new business unit and strategy to develop and market 3.3V CPLDs for low- power and high-speed applications. For CPLD development, Philips will use its XPLA archi- tecture, which combines PLDs and PALs on one device and a fast zero power (FZP) design technique, resulting in low static and dynamic power.

• In 3Q95 SGS-Thomson introduced the first member (ST20C4) of its 0.5µm 32-bit RISC core processor (40MIPS at 50MHz) family. SGS-Thomson also introduced its ST486DX core for ASICs, which can run at up to three times the bus clock speed (maximum internal speed of 120MHz). The ST486DX core is based on a 0.35µm five-layer-metal CMOS process.

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• SGS-Thomson licensed its DSP core technology to as part of a second-source and development agreement. The deal included rights to SGS-Thomson’s D950 16-bit fixed- point DSP core and a second-sourcing pact for ASICs based on the core. In early 1996, the alliance was extended, giving Samsung a license to design and manufacture products based on SGS-Thomson’s ST20 32-bit microcontroller core, specifically designed for high-volume embedded control applications.

• Siemens recently broke ground on a new $1.8 billion fab facility in Newcastle, United Kingdom, for the production of ASICs and other logic devices. First production at the fab is expected to take place in the summer of 1997.

REST-OF-WORLD (ROW) IC VENDORS

Many ROW nations have in recent years undertaken major efforts to establish competitive semi- conductor industries. This has especially been the case for the rapidly developing countries in the Asia-Pacific region (excluding Japan). One of the main driving forces behind these efforts is the desire many of these countries have to build self-contained electronics industries.

The top 10 ROW IC vendors in 1995 are listed in Figure 3-12. This list is by far dominated by the Koreans—Samsung, LG Semicon, and Hyundai. On average, these three experienced a remark- able 93 percent growth in their sales of ICs in 1995. Korea has grown into a memory chip manu- facturing powerhouse in a very short time. Aided by strong demand for DRAMs through 1995, Korean IC companies continued to watch their sales break records.

1995 ASIC Sales 1995 1995/1994 CompanyCountry 1995 1994 as a Percent Rank Percent Change of IC Sales

1 Samsung Korea 8,183 4,815 70 2 2 Hyundai Korea 4,350 1,750 149 7 3 LG Semicon Korea 3,600 1,800 100 2 4 TSMC Taiwan 1,105 740 49 — 5 UMC Tawain 900 586 54 — 6 Winbond Taiwan 676 330 105 3 7 TECH Semiconductor Singapore 620 330 88 — 8 TI-Acer Taiwan 556 314 77 — 9 Mosel-Vitelic Tawain 540 285 89 — 10 Macronix Taiwan 328 221 48 — Total 20,858 11,171 87 3 Source: ICE, "ASIC 1997" 20234A

Figure 3-12. Top Ten ROW Companies’ IC Sales ($M)

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On the downside, the Koreans have become highly dependent on the DRAM market, which has traditionally been very volatile. However, they are working to lessen that dependence through alliances with and investments in companies that have strengths in other areas. A prime example is Hyundai’s early 1995 purchase of NCR Microelectronic Products from AT&T Corporation. Now called Symbios Logic, the business gives Hyundai a strong presence in the North American ASIC and ASSP markets.

In the matter of only a few years, several Taiwanese companies have grown to become significant players in the worldwide IC industry. Overall, the Taiwanese companies listed in Figure 3-14 increased their IC sales by 66 percent in 1995.

A good portion of Taiwan’s IC industry consists of foundry services. The country’s largest IC firm, TSMC, is entirely dedicated to foundry work, while UMC and Winbond, the second and third largest firms, have dedicated more space and funding to increase their foundry capabilities.

Aside from foundry work, IC production in Taiwan is largely focused on lower-margin products such as PC , , ROMs, and SRAMs. However, with backing from a pro-technolo- gy government and through partnerships with foreign IC firms, the Taiwanese are shifting their product mixes to more advanced devices like DRAMs, MPUs, flash memories, multimedia ICs, and communications ICs. Although the DRAM is expected to become Taiwan’s industry driver, it is not expected to dominate as it does in Korea.

The semiconductor industry is an increasingly important part of Singapore’s electronics infra- structure. Assembly, packaging, and testing remain the primary activities of semiconductor man- ufacturing in Singapore, but investment in front-end device fabrication is rising substantially. Singapore wants to duplicate the success of Taiwan’s semiconductor industry.

Provided below are a few ASIC-related announcements made by the ROW companies between mid-1995 and mid-1996.

ROW Vendor ASIC Highlights

• Hyundai formed an alliance with Design and Symbios Logic to develop 0.35µm five-layer-metal CMOS technology for ASIC devices.

• LG Semicon established a manufacturing and technology licensing agreement with Crosspoint Solutions, under which LG Semicon will provide Crosspoint two and three-layer metal 0.8µm and 0.6µm process manufacturing capacity. LG Semicon will receive license rights to develop and market products using Crosspoint’s CP20K FPGA technology.

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• LG Semicon licensed Advanced RISC Machines’ ARM7 microprocessor core technology. The company will merge the ARM7 into its ASIC library for use in PDA, communications, set-top box, and high-end consumer chip applications.

• Samsung announced a three-year agreement with Trident Microsystems Inc., under which Samsung will provide manufacturing capacity to Trident in exchange for mixed-signal, mul- timedia RAMDAC and clock technology. Samsung will incorporate Trident’s device tech- nology into its ASIC library. The two companies will also jointly develop ASIC libraries and design methodologies for advanced process technologies.

• Samsung licensed DSP core technology from SGS-Thomson as part of a second-source and development agreement. The deal included rights to SGS-Thomson’s D950 16-bit fixed- point DSP core and a second-sourcing pact for ASICs based on the core. In early 1996, Samsung and SGS-Thomson extended their alliance to include a license to design and man- ufacture products based on SGS-Thomson’s ST20 32-bit microcontroller core, specifically designed for high-volume embedded control applications.

• Samsung licensed the PineDSPCore from DSP Group. Samsung will incorporate the 16-bit, general purpose, low-power, low-voltage, and high-speed engine in its ASIC library for 0.6µm- and 0.5µm-based multimedia and communications products.

• Samsung signed a technology and product development agreement with NEC in the ASIC field. NEC agreed to provide microcontroller technology to Samsung, who will make NEC- specified MCUs and develop ASICs based on the MCU cores. Samsung also strengthened its alliance with NEC by agreeing to work together to improve production efficiency at both companies and to exchange highly sensitive information on manufacturing yields and pro- cessing techniques.

• TSMC licensed DSP Group Inc.’s PineDSPCore digital signal processor technology. The PineDSPCore is a 16-bit, general-purpose, low-power, low-voltage DSP core designed for speech and audio processing, , digital cellular, and embedded control applications. TSMC plans to integrate the core into its own ASIC library.

• TSMC teamed up with Compass Design Automation to simplify the ASIC design process. Under the agreement, Compass will verify TSMC’s foundry process and characterize physi- cal libraries to ensure first-time silicon success.

• Winbond licensed Aspec Technology Inc’s. Open Design Implementation Technology (DIT). Winbond also plans to use Aspec’s gate-array architecture as well as the EDA design kit.

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STARTUPS

Over the past decade, some 150 or more semiconductor startup companies have been established, and despite the increasingly competitive nature of the semiconductor industry, startup companies continue to emerge. Development programs cost more, require more time, and are much more risky. As a result, many technology advances require the financial resources of huge semicon- ductor companies. Nevertheless, many are still brought forth from small, entrepre- neurial ventures.

Anymore, startups in the U.S. rarely begin operations with a new fab. Looking back on the for- mative years of the semiconductor industry (the 1960’s), most firms included funding for a pro- duction facility as part of the capital needed to initiate business. In most cases, a wafer fab was a mandatory part of being in the IC business. With few exceptions, this thought process continued throughout the 1970’s and early 1980’s. Figure 3-13 lists the few firms that have started operations with a fab in recent years. It should be noted that three of the four companies in the figure (GMT, MiCRUS, and Mid-West) own fabs that were already in existence.

Company Location Products Processes Start Up Comments Date

GMT Microelectronics Valley Forge, PA ASICs, CMOS, 1996 A group of investors led by GMT management foundry BiCMOS purchased the facility formerly owned by Commodore. The operation offers 1-, 2-, and 3-micron double-level metal CMOS, 1-, 2-, and 3-micron BiCMOS, and active-matrix LCD process capabilities. MiCRUS Hopewell DRAMs, CMOS 1994 Joint manufacturing venture between IBM Junction, NY logic ICs and Cirrus Logic. MiCRUS fabricates DRAMs for IBM and logic ICs for Cirrus in a former IBM fab. Mid-West Lee's Summit, Foundry CMOS 1996 Former AT&T fab. Mid-West Micro intends to Microelectronics MO upgrade the facility to make memory and microprocessor-related chips. Seaway Livermore, CA Foundry CMOS 1995 Purchased Intel's vacated Fab 3, which Seaway Semiconductor Inc. will convert to a foundry by the end of 1997. Seaway is upgrading the first 14,000 sq. ft. fab into a Class 10 , with an expected capacity of 5,000 wafers per week. The second 13,000 sq. ft. fab is being upgraded to a Class 1 cleanroom, with an expected capacity of 3,750 wafers per week. San Jose, CA Foundry CMOS 1996 SVSC's fabrication facility is scheduled to be Semiconductor complete by the end of 1997. The company is Corporation (SVSC) led by Taiwanese investors. TwinStar Richardson, TX 16M and 64M CMOS 1996 A joint venture of Texas Instruments and Semiconductor Inc. DRAMs Hitachi. The company will produce DRAMs for the partners at a new $500 million, 200mm wafer plant in Texas. Initial production of 16M DRAMs was expected to begin in the summer of 1996.

Source: ICE, "ASIC 1997" 20236B

Figure 3-13. Sampling of North American Startups With Fabrication Facilities

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Production costs increased as process geometries shrank and the financial burden associated with fab ownership became too great for many startup companies. Thus, going the fabless route and using foundry capacity became the most common method for startup companies to get their prod- ucts to market. Figure 3-14 lists a number of fabless companies that have recently started opera- tions in the U.S. One interesting fact to note about the companies in the figure is, about a third of them are involved in graphics and/or multimedia-related chips. Another interesting fact is that all but a few are located in Silicon Valley.

ICE is not aware of any new Japanese IC manufacturers that have started operations in the past couple of years. Most startups in Japan in the past were the result of the country’s large automo- bile, , and chemical manufacturers and other conglomerates seeking to diversify their busi- nesses to include semiconductor production.

Figure 3-15 shows a few of Europe’s recent startups. Two of the three companies in the figure (SMST and Wesson) operate what were once IBM-owned and operated fabs.

Recent startups in the Asia-Pacific region have been located primarily in Taiwan. Taiwan’s semi- conductor industry continues to large sums of money into its fab facilities. Figure 3-16 pro- vides a sampling of recent IC startup firms in the Asia-Pacific region.

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START COMPANY LOCATION PRODUCTS PROCESS UP COMMENTS DATE

Aptos Semiconductor Santa Clara, CA FIFOs, PROMs, and CMOS 1994 Founded by former Cypress vice president. Will Inc. fast SRAMs second-source memory chips until design of its own ICs can be started. Chromatic Research, Mountain View, CA Multimedia processor CMOS 1993 Developed its Mpact Media engine and software that Inc. and software processes video, 2D and 3D graphics, audio, fax/, , and video conferencing on a single chip. DynaLogic Corp. Sunnyvale, CA FPGAs CMOS 1993 Targeting very high-speed FPGA market. Exponential San Jose, CA MPUs BiCMOS 1993 Exponential's high-speed, BiCMOS microprocessor Technology Inc. devices are based on the PowerPC architecture. Volume production of the MPUs are expected in early 1997. Galileo Technology San Jose, CA FIFOs and core logic CMOS 1993 Introduced what it claims to be one of the largest Inc. chips synchronous SRAM-based FIFOs (32-bits wide) Lanstar Arlington, TX DRAMs CMOS 1995 A wholly owned subsidiary of Lanstar Corp., Semiconductor Lanstar Semiconductor is initially operating as a fabless entity, but is seeking to purchase an existing foundry to expand its products to include SRAMs, VRAMs, and EPROMs. Marvell Cupertino, CA PRML read- CMOS 1995 A wholly owned subsidiary of Marvell Technology Group. Semiconductor Inc. channel ICs NeoMagic Corp. Santa Clara, CA Graphics controller CMOS 1993 Its single-chip graphics controller integrates an SVGA for mobil PCs accelerator, local-bus interface, RAMDAC, LCD controller, and nearly 1M of frame-buffer memory. Novalog, Inc. Costa Mesa, CA infrared ICs, — 1995 Founded as a wholly-owned subsidiary of Irvine ASICs Corporation, Novalog specializes in the design and development of analog and mixed-signal circuitry. Inc. Sunnyvale, CA Multimedia chips CMOS — Its ICs combine graphics, video, and 3D-rendering capabilities. Sensory Circuits, Inc. San Jose, CA Speech-recognition CMOS 1994 Supplier of low-cost speech-recognition ICs that are chips based on neural network technology. The company uses TSMC and Chartered for the production of the chips. Silicon Magic Corp. Cupertino, CA High-performance CMOS 1994 The company's charter is to find a place as a supplier of EDO DRAMs high-performance embedded memory solutions in graphics and multimedia applications. Synema Corp. Palo Alto, CA Graphics controller CMOS 1993 High-performance graphics for personal computers. chip TelCom Mountain View, CA Mixed-signal ICs, CMOS, 1993 TelCom emerged as a result of a management-led buy-out Semiconductor BiCMOS, of Teledyne Components. TelCom is building on ICs, sensors DMOS, Teledyne's strengths in analog and mixed-signal Bipolar technology to develop standard ICs for high volume consumer and commercial markets. 3Dfx Interactive, Inc. Mountain View, CA 3D graphics CMOS 1994 The company's first product made its debut in - accelerator operated arcade in early 1996. Vivid Chandler, AZ Flat panel CMOS 1993 Vivid's FPD chips are based on its patented "Dual Range" Semiconductor display ICs design architecture which allows high-voltage devices to be achieved on standard, low-voltage CMOS processes.

Source: ICE, "ASIC 1997" 12995Z

Figure 3-14. Sampling of Recent North American Fabless Startups

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Company Location Products Process Fab Start Comments

SubMicron Semiconductor Boeblingen, DRAMs, logic ICs CMOS 1994 A joint venture of IBM and Philips to manufacture Technologies GmbH (SMST) Germany chips at the former IBM-owned fab. Initially, the company is manufacturing 4M DRAMs for IBM and 0.8-micron logic ICs for Philips. Wesson France Corbeil-Essones, Telecommunications Bipolar 1995 The fab was purchased from IBM by Wesson France devices France SA, a new company representing a group of Hong Kong investors. The plant will process 1.0-micron bipolar chips primarily for Asian telecom markets. Zentrum Mikroelektronik Dresden, ASICs, DRAMs, SRAMs, CMOS, BiCMOS 1993 Emerged as a private company in 1993. Dresden GmbH (ZMD) Germany MCUs, DSPs, Foundry

Source: ICE, "ASIC 1997" 18545F

Figure 3-15. Recent European Startups With Fabrication Facilities

Company Location Products Process Fab Start Comments

Advanced Semiconductor Shanghai, China Foundry CMOS, BiCMOS 1996 Originally established by Philips in 1991, the fab is being Manufacturing Corp. of converted into a foundry operation jointly owned by Philips, Shanghai (ASMC) Northern Telecom, and several Chinese parties. Asian Semiconductor Hsinchu, Taiwan Foundry CMOS 1996 Building a 200mm wafer fab with a production capacity of 3,750 Manufacturing Co., Ltd. wafers per week. Iljin Suwon, Korea SRAMs CMOS 1997 Iljin began of its wafer fab in March 1996, and expects production to begin by the end of 1997. The facility will use 0.8µm CMOS technology licensed from IDT, and is expected to have a capacity of 3,750 wafers per week. Interconnect Technology Sarawak, Foundry CMOS 1997 Malaysia's first front-end wafer fabrication facility. Malaysia Nanya Technology Corp. Taipei, Taiwan DRAMs CMOS 1996 The Formosa subsidiary planned to begin processing 1,250 200mm wafers/week by July 1996 in a new fab. Semiconductor Hsinchu, Taiwan 16M and 64M DRAMs, CMOS 1996 Joint venture between Mitsubishi and Taiwan's UMAX group, a Corp. logic ICs scanner maker that took over Elitegroup, Taiwan's second largest mother board manufacturer. Mass production of 200mm wafers is expected to begin in 4Q96. Full capacity is expected to reach 5,000 wafers/week. Shougang NEC Beijing, China MCUs, linear ICs CMOS, Bipolar 1993 NEC Corp. (40%) and Shougang Corp. (60%) joint venture. 150mm wafers and 1.2-3.0µm feature sizes. Sintek Hong Kong SRAMs, ASICs 1993 Sintek plans to offer a standard-cell ASIC design service for ICs with embededded SRAM and ROM. Submicron Technology Bangkok, Foundry CMOS, BiCMOS 1996 Alphatec, traditionally a contract chip assembler, is building an Thailand $800 million wafer fab in Bangkok. Plans call for 6,000 200mm wafers per week capacity. Syntek Taiwan 4-bit, 16-bit MCUs, other CMOS 1994 28,500 sq. ft. fab completed in 1994. Will use 1.2µm CMOS domestic appliance ICs technology on 150mm wafers with 3,750 wafers/week capacity. TECH Semiconductor Singapore 4M and 16M DRAMs CMOS 1993 Joint venture between TI, HP, Canon, and Singapore Economic Singapore Ltd. Development Board. Producing 200mm wafers. United Semiconductor Hsinchu, Taiwan Memories, graphics CMOS 1996 Located at UMC's manufacturing complex, this company is Corp. chips, foundry jointly owned by UMC (50%), Alliance Semiconductor (20%), S3 Inc. (20%), and local investors (10%). Vanguard International Hsinchu, Taiwan 4M and 16M DRAMs CMOS 1995 Purchased from the Taiwanese government by a consortium of Semiconductor Corp. (VISC) companies including TSMC and Winbond. The consortium plans to build a second fab by 1996, at a total cost of $1-1.45 billion

Source: ICE, "ASIC 1997" 18544H

Figure 3-16. Recent Asia-Pacific Startups With Fabrication Facilities

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