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Editorial: Aixtron's Doing It Right
 
... MOCVD reactors are the backbone of today's compound semi industry. Everyone in the CS industry knows that, and Aixtron, one of our industry's two primary MOCVD suppliers (the other being Veeco) lives by it. Aixtron continues to put to work over 20 years of experience weathering the inevitable international...
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CS Companies, Anadigics and Intersil Announce Job Cuts and Cost Reductions
CompoundSemi News Staff

November 6, 2008...Anadigics, a maker of wireless and wireline components, reported that it would eliminate about 100 jobs by the end of the week. This cut will be about 15 percent of the company's workforce of about 660 employees. The company expects the cost reductions including the lay-offs will amount to savings of $15 to $20 million per year, after one-time costs for severance and benefits of about $2.2 to $2.4 million. Gilles Delfassy, chairman and interim CEO of Anadigics, said, “This was a difficult decision because of the impact it has on people, but was a necessary step in our plan to return the company to growth and profitability as soon as possible. We are continuing critical investments in new products and other strategic initiatives that focus on making our customers successful.” Anadigics News Release.

Intersil, a maker of electronic components for displays, and handsets, announced similar measures to cut 140 jobs or 9 percent of its workforce. The company will continue its previously announced Palm Bay, Florida fab consolidation. Dave Bell, Intersil’s President and Chief Executive Officer said, “We are taking action to lower our current and future operating expenses in order to align our cost structure with the current business conditions, and maintain our competitive position during this economic downturn.” Intersil expects to save $12 to $14 million annually with cost cutting and job cuts, after the one time pretax costs for the action of $20 to $23 million. Intersil News Release

IQE Opens New Singapore Facility
CompoundSemi News Staff

November 6, 2008...IQE, a provider of wafers and wafer services for wireless applications, has formally opened its new facility in Tampines, Singapore. The opening comes after relocating its MBE subsidiary's Singapore Singapore Science Park facility to Tampines. IQE says that the new facility will continue to produce wafers for wireless applications such as mobile phones and WiFi devices but will also provide capacity for materials for advanced electronics and high-efficiency solar cells (photovoltaics).

The 8,500 square meter facility will be housed within Singapore's newest industrial development area in Tampines. IQE points out that it will have 2,000 square meters of specialized cleanroom, and will allow for significant future manufacturing capacity expansion for the company in the Far East. Manufacturing tools were transfered from the original Singapore site, and equipment was also moved from the company's operation in Bethlehem Pennsylvania. IQE transfered other tools from its manufacturing facilities around the world also. IQE says it carefully orchestrated the manufacturing tool relocation to caused minimal disruption to existing production capacity.

At the opening of the new plant, Dr Drew Nelson, IQE's CEO stated, "Whilst it is unclear at this point what the impact of the global financial crisis will have on the wireless communications industry, the long term demand drivers for the industry are as strong as ever and the demand for wireless products appears set to grow rapidly over the coming years, and this new facility provides us with the capability to add capacity as and when required." Company News Release

Sony Confuses Tech Lovers With Blu-Spec CD Release
CompoundSemi News Staff

November 5, 2008...Sony has released a new music format disc technology it calls Blu-Spec CD. While the new CD does use the same polycarbonate material as the company's Blu-ray discs, it does not use the same encoding or decoding optics and blue laser technology that give Blu-ray its name. What give Blu-ray discs the high capacity of 25 GB is the use of a gallium nitride-based blue laser to encode and decode the data. The new Blu-Spec CD is essentially manufactured and cut the same way as a Blu-ray DVD. Other than being made out of the same material in the same way, the new Blu-Spec CD is nothing like a Blu-Ray DVD or the Blu-ray audio format. Sony does contend that the audio format is greatly improved over conventional CD audio. The company will be release some 60 titles in the new format. Roughly Translated Sony Music News Release

"Near Perfect” Absorption of Sunlight From All Angles Reportedly Achieved
CompoundSemi News Staff

November 3, 2008...Researchers at Rensselaer Polytechnic Institute have developed a new antireflective coating that could boost the light absorption capabilities of solar cells. According to the researchers, the nanoengineered coating allows panels to absorb the entire spectrum of sunlight captured by solar panels from any angle. “To get maximum efficiency when converting solar power into electricity, you want a solar panel that can absorb nearly every single photon of light, regardless of the sun’s position in the sky,” said Shawn-Yu Lin, professor of physics at Rensselaer

So, if effective, the coating could theoretically be used with most any solar cells including multi-junction cells, or silicon-based solar cells. The seven layer coating material reportedly absorbs 96.21 percent of sunlight. This is nearly 50 percent higher than the 67.4 percent absorption from silicon because of reflection. Furthermore the researchers say that the huge gain in absorption was consistent across the entire spectrum of sunlight. If the technology is as the researchers reported, it could some day make automatic solar tracking technology for solar panels obsolete, because it reportedly absorbs solar energy evenly and equally from all angles. Each of the seven layers of material has a height of 50 nanometers to 100 nanometers that is made up of silicon dioxide and titanium dioxide nanorods positioned at an oblique angle. A layer looks and functions like a dense forest where sunlight is “captured” between the trees. The nanorods were attached to a silicon substrate via chemical vapor disposition. Rensselaer Polytechnic Institute News Release

Replisaurus Secures Financing to Drive Commercialization its Packaging Technology
CompoundSemi News Staff

November 3, 2008...Replisaurus a company based in Kista, Sweden, has secured significant financing to commercialize its new, clean metallization technology for the chip packaging market. Noble Venture Finance committed €7 million in venture financing for Replisaurus. Replisaurus says that the funding gives it substantial resources to draw on as it integrates its metallization technology into a high-volume manufacturing solution. Replisaurus pointed out that earlier this year it won a EuroAsia IC Industry Cleantech award for its ElectroChemical Pattern Replication (ECPR) technology, which it contends eliminates many steps from the traditional packaging process and does away with solvents, developers, and strippers.

"Noble Venture Finance recognizes the game-changing opportunities our system offers to the global chip market, and given the difficult economic climate, it shows that companies with strong, forward-looking technology can still attract investments," said James Quinn, CEO of Replisaurus. "Our economical, fab-friendly, environmentally clean technology will help other companies reduce their carbon footprint, and we take great pride in that," he added. Replisaurus News Release

Surrey Nanosystems Customizes Sputtering Tool to Extend Capabilities
CompoundSemi News Staff

November 3, 2008...Surrey NanoSystems, a company based in New Haven, UK, announced that Low Demensional Systems Laboratory of Romania's National Institute of Materials Physics (NIMP) in Magurele has ordered one of its sputtering tools. NIMP wanted a Gamma sputtering tool with customized capabilities. Surrey says that NIMP wanted it to allow its software user interface to monitor its LEED and ellipsometer instruments in real time and dynamically modify deposition parameters of its Gamma sputtering tool.

"This sputtering tool will incorporate a very advanced collection of instrumentation that will significantly automate the trial and evaluation of thin film deposition," says Surrey NanoSystems' Duncan Cooper. "It's certainly one of the highest-specification sputtering tools we will ever have produced, and is probably one the most sophisticated configurations ever requested by the research community. We're extremely pleased to have won this significant order at a time when so much development activity in this sector is beginning." Surrey NanoSystems News Release

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Commentary & Perspective...

Aixtron's Doing It Right
Jo Ann McDonald, founding editor

November 8, 2008...MOCVD reactors are the backbone of today's compound semi industry. Everyone in the CS industry knows that, and Aixtron, one of our industry's two primary MOCVD suppliers (the other being Veeco) lives by it. Aixtron continues to put to work over 20 years of experience weathering the inevitable international economic ups and downs by not cutting back, but by investing in MOCVD technology.

The primary way Aixtron is tacking the challenges we face ahead in 2009 is by remaining debt free and investing even more in the one area that continually sets the CS industry apart from mainstream semiconductor companies. Aixtron is expanding their R&D budget in 2009, despite an expected slow down in orders. In my opinion, that's what makes Aixtron smarter than your average company. They plan for the future, even when that future is a little foggy.

According to an interview with CS magazine, Aixtron CEO Paul Hyland spoke words of wisdom saying, "Anybody claiming to predict what will happen more than two quarters out is probably deluding you," It was also noted that the overall strategy for his company is to "remain positive and proactive about Aixtron's future, and not to agonize over market forces that it cannot control."

Another thing that caught my eye was how much an average MOCVD reactor costs these days. The current pricetag averages between $2 million and $2.4 million (US dollars). Only ten years ago, before Emcore sold its MOCVD unit to Veeco, the average price was half that. While there are obviously various economic variables at work here, I'm sure a primary reason for the jump is that today's MOCVD reactors are considerably better, slicker, and smarter. Yet a doubling in price still seems like a surprising jump in only ten years. But then again... look around you at most of the machines that run in your fab and think back. Everything probably cost twice as much, yet most of it is better made to run slicker and act smarter.

Therein may lie the real challenge for the CS industry for 2009. How do you make what your company or lab is creating considerably better than what's currently available? The only way to address that challenge is through increased R&D.

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