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Editorial: Get It Right and They Shall Buy
 
... When our news editor, Scott McMahan, wrote a guest editorial in this slot last week asking "Where are the LEDs?" following his trek through some local retail chainstores, it caused various readers to comment. One letter, in particular, pointed out that a major barrier for mainstreaming solid state lighting...
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NanoDynamics Wins Technology Innovation Showcase Award at Semicon West

July 12, 2006...At Semicon West in San Francisco, California USA, this week, NanoDyamics has again won the Technology Innovation Showcase (TIS) Award. This year NanoDynamics won the award for its atomic layer deposition (ALD) technology. The technology licensed by NanoDynamics from ALD NanoSolutions Inc., involves an encapsulation process in which an ultra fine layer of particles can be deposited over a material to give the encapsulated material properties of a deposited layer while maintaining some of the properties of the original material. The company says this allows for novel material development in certain cases where previous processing and reactivity deficits proved prohibitive. The company points to the good thermal conductor, boron nitride. Engineers have had little success with the material due to its surface reactivity. However, according to the NanoDyamics, a thin layer of aluminum oxide deposited with their ALD technology can prevent much of the reactivity by behaving chemically like alumina while maintaining the thermal performance of boron nitride.

"This year marks our second consecutive -- and fourth overall -- TIS award at Semicon, a milestone that we attribute to the pain points we're addressing in the Semiconductor industry and beyond," said Keith Blakely, CEO of NanoDynamics. "The ALD technology that we're bringing to market targets a key processing challenge for manufacturers -- their limited universe of materials options. Through the uniform, ultra-thin encapsulation of materials, ALD allows for 'materials fine-tuning' to achieve the desired combination of properties on every level." NanoDynamics News Release

Nexx Systems Ships 50th Nimbus Sputter Deposition System

July 12, 2006...Nexx Systems, a wafer level packaging equipment maker, celebrates the shipping of its 50th Nimbus Sputter Deposition system. According to the company, the Nimbus XP has remarkable versatility, excellent performance, and low cost of ownership. The Nimbus XP is used for applications including: LEDs, gold bump, solder bump, redistribution layers, backside metallization and integrated passives. It has been installed at many locations worldwide such as large memory companies, IDMs, and foundries. During a brief ceremony held at Semicon West 2006, Richard Post, CEO of Nexx Systems, commented, "This installation represents an exciting milestone for both Nexx Systems and the Nimbus product line. This 50th system represents the culmination of our efforts to address increasing demands for enhanced process parameters, a broader base of applications, greater throughput, and lower cost of ownership. And, we are delighted MOXTEK's business has grown to demand a second Nimbus tool at their facility." Company News Release

Anadigics’ PA Powers ZTE’s 3G Handset
CompoundSemi News Staff

July 12, 2006...Anadigics reports that its WCDMA power amplifier, the AWT6252, runs ZTE’s new 3G handset with color screen, digital camera, and MPEG-4 Video. ZTE reportedly utilizes Anadigics’ indium gallium phosphide (InGaP) heterojunction bipolar transistor (HBT) power amplifiers (PAs) for its F866 WCDMA handset. The handset is equipped with a two-inch color screen and an MP3 audio player. According to the company, the power amplifier provides 41 percent power added efficiency at 27.5 dBm and 22 percent power added efficiency at 16 dBm. The PA therefore offers superior handset talk and idle times. The company says that the module offers temperature stability, reliability, and ruggedness. Company News Release

Fox Group Introduces New UV LEDs

July 11, 2006...The Fox Group, which has locations in Deer Park, New York, and LED manufacturing in Montreal, Canada, has introduced a series of UV LEDs. The company, a maker of aluminum nitride substrates and LEDs, uses its proprietary FoxHVPE process to produce the LEDs which operate at an extremely consistent 350 nm peak wavelength (+/- 1nm) at 20 mA. (Ref: editorial content). These new UV LEDs have an average output power of greater than 200 microwatts at 20mA at a forward voltage of approximately 4.5V, and a robust 500 microwatts at 50mA drive current. The LEDs come in a variety of configurations including: packaged lamps of 5mm (T1-3/4) clear, UV-resistant polymer, TO-18 can with glass ball lens or flat glass window, and PLCC-2 (3528) SMD, TO-66 power-pack containing 60 dies, 320 x 320 micron LED dies, or 2-inch diameter epitaxial wafers. According to the company, the LEDs can be used for medical and biomedical applications, sensors of materials with fluorescence response in 350-355nm range, fluorescence “disclosing” and specialized inspection lamps, and scientific and other applications where absorption or response at 350-355nm is required. These new 350nm UV LEDs join Fox Group’s present 360nm UV LEDs, which have similar advantages: highly consistent and stable wavelength, 0.8mW output power at 20mA, 4mW output power at 100mA, and an extremely low rate of degradation. Company News Release

TriQuint Wins Navy Contract for High-Power Amplifiers

July 10, 2006...TriQuint Semiconductor, headquartered in Hillsboro, Oregon USA, has reportedly won a contract from the US Navy to develop gallum arsenide (GaAs) high power technology for S-band (2-4 GHz) amplifiers. The Office of Naval Research (ONR) has awarded TriQuint a 20-month $3.1 million contract to improve its methods for manufacturing high-power, high-voltage GaAs amplifiers. Anthony Balistreri, TriQuint’s contract program manager and director of R & D explained that the company's high voltage pHEMT (pseudomorphic high electron mobility transistor) technology provides the higher power density and efficiency required for near-term production applications for the Navy including: phased array radar, electronic warfare, and communications systems.

TriQuint has reportedly been developing the pHEMT technology since 2000 and developed a method of producing X-band (8 to 12 GHz) version of the pHEMTs. Balistreri said that the new contract will involve two primary tasks. He said that the first task will be MMIC (monolithic millimeter-wave integrated circuit) design optimization. The second phase or task is to reduce manufacturing costs. In the first phase, the company will design an S-band high power amplifier for a range of applications with high efficiency and 24volt operation. TriQuint will then utilize the amplifier to test and validate manufacturing process improvements in the second phase of the project which aims to improve manufacturing variability, reduce development cycle times, and improve wafer and device yields. Most of the work will reportedly be done at the company’s Richardson, Texas facility. Company News Release

Aixtron Receives First Order for ALD/AVD Hybrid
CompoundSemi News Staff

July 10, 2006...Aixtron has reported receiving its first order for its atomic layer deposition (ALD) and atomic vapor deposition (AVD) hybrid process modules. The modules combining the ALD and AVD technology will be installed at the customer’s 300mm R&D fab. The customer, a high-K dielectric DRAM capacitor producer, ordered the equipment which combines Genus 300 ALD technology called StrataGem with Aixtron’s AVD technology. The development contract comes one year after Aixtron’s merger with Genus. The joint development program aims to evaluate various high-k dielectrics and metal gate materials for large-scale production purposes. The program hopes to then integrate those materials into high-k gate stacks and advanced DRAM capacitors. Ultimately the project’s goal is to optimize DRAM and CMOS device structures for Sub-45nm. Installation at the undisclosed Asian wafer fab will reportedly start during Q3 of 2006. Company News Release

USA Leads in Fab Facility Construction
CompoundSemi News Staff

July 10, 2006...The USA is an attractive place to build a wafer fab facility, Strategic Marketing Associates (SMA) says. Since 1995, according to SMA’s Fab Futures report, US companies have opened 92 wafer fabrication facilities in the United States, and only 10 were opened by US companies in other countries. According to SMA, the market for semiconductor production equipment and materials worldwide will grow at an estimated 19 percent this year and 10 percent next year to reach about $40 billion dollars, the highest level since 2000. SMA president, George Burns (not the famous and deceased comedian) noted that as semiconductor equipment and materials purchases top $40 billion in 2007, overall capital spending by wafer fabs worldwide will reach an all-time high of $62 billion.

“The US as a region continues to be quite competitive in attracting new fabs,” confirms Burns. “The US is not only attracting US companies such as AMD to build a fab in New York, but it is also attracting offshore investments by companies such as Korea Based Samsung and Germany based Qimonda (Infineon) to build wafer fabs in Texas and Virginia, respectively.” While only a small percentage of wafer fabrication, the findings do hold true for the more specialized fabricators of compound semiconductors. According to the findings, the US has spent the most on fab facility construction since 1995 with about 30 percent of the total spending in this area for the period. The two countries tied in second place for their percentage of world spending for fab construction during the period are Japan, and South Korea, each at 19 percent. Strategic Marketing Associates News Release

AXT Promotes Robert Ochrym to VP of Business Development
CompoundSemi News Staff

July 10, 2006...AXT, a maker of compound semiconductor substrates, announced the promotion of Robert Ochrym to vice president of business development. The position was created to help enhance joint venture operations and worldwide sales efforts. According to the company, Mr. Ochrym will explore new business opportunities where there is a convergence between the company’s compound substrate and raw material product offerings. Ochrym joined AXT as director of international sales and joint venture operations in 2005. Previously he served as national sales manager at Aixtron. AXT News Release

Skyworks Solutions Inc. Listed on NASDAQ’s Global Select Market

July 7, 2006...Skyworks Solutions Inc., of Woburn, Massachusetts USA, a radio frequency (RF) solution specialist, has been included in NASDAQ’s Global Select Market. The requirements to be listed in the Global Select Market reportedly include the highest standards of finances and liquidity of any stock market in the world. On July 3, the NASDAQ announced a new three tier listing classification system which includes (in descending order of their exclusivity): the Global Select Market, the Global Market, and the Capital market. (Ref: Global Select Market Requirements). Skyworks News Release

Aviza to Receive Award for PVD System
CompoundSemi News Staff

July 7, 2006...Aviza Technology Inc., a semiconductor and nanotechnology equipment maker, announced it will receive the annual Editors' Choice Best Product Award by International Semiconductor Magazine for their Sigma fxP physical vapor deposition (PVD) system. Aviza will receive the award in a ceremony to be held on July 12, 2006 in San Francisco at Semicon West 2006. Semiconductor International Magazine will announce 20 winners whose products are making a difference in semiconductor manufacturing. The Sigma fxP is a single-wafer cluster tool designed for high-volume PVD processing. Its applications include creating uniform aluminum nitride layers for bulk acoustic wave (BAW) devices. Company News Release

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Commentary & Perspective...

Get It Right and They Shall Buy

July 12, 2006...When our news editor, Scott McMahan, wrote a guest editorial in this slot last week asking "Where are the LEDs?" following his trek through some local retail chainstores, it caused various readers to comment. One letter, in particular, pointed out that a major barrier for mainstreaming solid state lighting might be the big lighting companies themselves, such as Philips and General Electric. While not necessarily right in some people's estimation, it's logical that these giants would protect their traditional product lines of conventional bulbs, especially the oldest two: incandescents and fluorescents. As companies who make zillions out of replacement bulbs, I imagine an LED bulb that doesn't burn out must present upper management with a dilemma.

Think back. It took decades for Philips, GE and their peers to get halogen into the mainstream retail market. That halogen outmoded other product lines is obvious. It makes sense that they'd suppress the newer technologies as long as possible. It's what they do. SSL is simply next up in their queue. The longer they drag their heels, however, the more opportunities there are for LED upstarts and aggressive systems integrators.

As we in the compound semi and solid state lighting industries know, Philips and GE both have major stakes in solid state lighting, namely, Philips Lumileds in San Jose, California USA (now a wholly owned subsidiary of Philips in the Netherlands) and GE owns 51% of GELcore (Emcore, in Somerset, New Jersey being GELcore's other parent). Both GE and GELcore are based in Ohio. While not at the same level on the supply chain, Lumileds and GELcore are both considered major players in the burgeoning SSL industry, but they might not be as important to their parent companies as they are to their technical communities. To us, Lumileds' and GELcore's people are at the core of the still-fledgling SSL industry. Lumileds' HP roots and GELcore's Emcore roots are full of blue spectrum LED and GaN materials science pioneers.

So why... if Philips owns Lumileds and GE controls GELcore... don't Philips and GE simply ramrod SSL products into the mainsteam market? Actually, GE gave it a noble try early on in the LED lighting game. In the mid to late 1990s, GE matched some of their best razzle/dazzle lighting and marketing people in GELcore with Emcore's blue spectrum LED and MOCVD technical prowess, and came up with some great gimmicks to popularize general lighting with LEDs. The GELcore video, cica 1998, made it sound like you could simply hurry on down to your local hardware store or lighting showroom and have your home equipped in LEDs in no time. For sure your new car would be LED-laden and LED traffic lights were already prolific. Actually, GELcore came out with one of the first white LED nightlight plug-in products, which sold out at my Walmart within weeks. (I probably bought most of them. Haven't seen many more of them since then). And Lumileds' leading edge work was even featured on ABC news as traffic lights quickly transferred over to SSL technology. We all thought our homes would be innundated with LED lights by now. Unfortunately, all we have are a few white fairy lights and some token solar garden and pool lights.

What happened? I think our reader, as referred to above, was absolutely right when he said he'd been informed that the barrier to entry was likely the giants themselves who didn't want to adversely impact their old "Edison" technology lighting businesses. I'd add the caveat that it isn't so much that they don't want to impact their established businesses, but rather that they don't want to impact them too soon. And good, dependable LED-based lighting fixtures are still on the expensive side when compared to conventional lighting fixtures. Yes, you get tremendous energy savings and fresh aesthetic appeal, but getting those messages across takes clever and relentless marketing. Solid state lighting is much like its compound semi brethren: multijunction solar cells, HBT power amps, solid state lasers, UV LEDs, etc.... They're new to their respective end user communities. SSL isn't a fad. The general public needs to be gradually eased into long term adoption.

And most end users go for lower cost over higher quality/increased functionality. Scott visited Walmart, Home Depot and Lowes, i.e. large chain stores touting low cost. If he'd visited the specialty lighting stores on Burnet Road in Austin, he might have found more of what he was looking for... maybe. Newer technologies always appeal first to higher end buyers, who tend to shop at specialty stores, not Walmart. There's also the uncounted installed base. As Color Kinetics, Lumileds, Osram Opto, GELcore, and their counterparts worldwide have demonstrated, there are probably more HB-LEDs fielded for theatrical and architectural lighting than many may realize... especially when you add in all the Asian suppliers.

I think the natural market rollout of LED-based solid state lighting products is probably pretty much on course, and I know Strategies Unlimited's estimations are right on the money (Ref: June 21 news). Selling components to established systems integrators works. LED backlights in TVs are moving well. LED components selling into the autos market continue to do exceptionally well. They've always been in appliances, and judging by the increased brightness levels (too bright in my mind), those are definitely HB-LEDs in my computers. What we need now are LEDs in mainstream products like ceiling fans, porch lights, and retrofits for our favorite existing lamps that can easily be found at any Walmart or do-it-yourself home store, plus all the innovative undercounter, track lights, festoons, etc... that custom makers, like OptoLum are fielding. The leading indicators are there as we see the first announcements from fixture companies that LED lighting installations are happening throughout some trend-setting new housing developments, but it's still being marketed as "an exclusive kind of thing". there will surely be some newcomers arriving with mass market approaches we may not have expected, and I can't wait to see what they come up with.

We don't need a repeat of the HBTs in cellphones, where the precious components our people have slaved to develop become mere throwaways. We need good, lasting solid state lighting components, packages and fixtures. Get it right and they shall buy... something lasting.

If you have news or views to share about the compound semiconductor, LED or solid state lighting industries
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