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Editorial: Will There Be Another Shortage of Gallium in the Future?
 
... Gallium (Ga) is obviously one of the critical starting ingredients in the creation of gallium arsenide (GaAs) and gallium nitride (GaN), from which the core compound semiconductor materials for the compound semi (CS) and solid state lighting (SSL) industries are formed. When our good friend Norm Schumaker (the founder...
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DOE to Fund Kyma and Rensselaer Researchers to Improve Green LEDs and GaN Technology

August 23, 2006...Makers of green LEDs are green with envy over the efficiency and performance of state-of-the-art blue and red LEDs, or so it would seem. A team from Kyma Technologies and researchers at Rensselaer Polytechnic Institute have won funding under the US Department of Energy (DOE) Solid State Lighting Core Technologies Program. (Ref: March 22 Coverage). The winning proposal, co-led by professors Christian Wetzel and E. Fred Schubert of Rensselaer Polytechnic Institute is entitled, “High Performance Green LEDs by Homoepitaxial MOPVE.” The company hopes to improve green LED performance and efficiency by making improvements in the quality of native polar and non-polar gallium nitride (GaN). LIGHTimes SecondPage Members can click here to view the extended version of this article.

SMI Receives Phase I SBIR Grant from DTRA to Develop More Reactive Coatings for Projectiles and Munitions
CompoundSemi News Staff

August 23, 2006...In one MOCVD application that you rarely hear about, Structured Materials Industries (SMI) has received a Phase I SBIR grant from the Defense Threat Reduction Agency (DTRA) to explore MOCVD and sputter processes to develop enhanced lethality coatings. In other words, the company will develop MOCVD and sputter process techniques to increase the realizable energy of a projectile or of the munitions’ structural components. The technology, based on the release of thermal energy of metal/metal-oxide powders, will use the thin films produced through MOCVD and sputtering techniques to facilitate controllable reactivity of the coatings. The release of metal/metal-oxide powders is well understood. The company hopes to use the precision of technologies such as MOCVD and PVD to produce thin films that have physical properties that make them more reactive. Company News Release

Skyworks Touts PAs That Power Smallest Camera Flip Phone
CompoundSemi News Staff

August 23, 2006...Skyworks Solutions Inc. of Woburn, Massachusetts USA, announced that its power amplifiers will power Cingular's GSM/GPRS Pantech C300 multimedia messaging handset. According to Skyworks, the handset is the smallest camera flip phone available today, weighing just 2.5 ounces, with an area one-third the size of a US dollar bill. The phone offers an impressive array of features that Skyworks says are usually featured on phones twice its size. It has bright, large font color screens, a video graphics array (VGA) camera with flash and zoom in liquid crystal display (LCD) mode, multimedia messaging for photos, text, and sound, customizable MP3, MIDI, and iMelody music ringtones, Yahoo! mobile instant messaging, high-speed data transmission availability using GPRS, 10 megabytes (MB) of usable memory for storage and e-mail.

With more and more multimedia features packed into smaller and smaller phones, designers are increasingly focused on form factor, battery life and system cost to be able to accommodate such multimedia features. Skyworks says that their PAs and front-end modules (FEMs) are ideally suited to support extremely compact, power-efficient and low-cost application. Brian M. Daly, vice president of marketing for Mobile Platforms at Skyworks, stated, "Our power amplifiers provide the required functionality and exceptionally small form factor for designing compelling ultra-thin phones that appeal to consumers of all ages around the world." Company News Release

NEC Boasts Highest Output Power Amplifier for 3G Base Stations

August 23, 2006...NEC Corporation of Tokyo, Japan, reported developing a compact gallium nitride (GaN) power transistor amplifier and GaN power amplifier (PA). The company touts the power amplifier as the world’s highest output power level of 400 Watts. The transistors used for this amplifier are made on a GaN epitaxial wafer, which was developed under the NEDO "High-Power, High-Frequency Gallium Nitride Device Project," and manufactured by Toyoda Gosei Co, Ltd.. The company said it features low distortion characteristics for 3G base stations. The development was the result of research project headed by professor Yasushi Nanishi of Ritsumeikan University. Company News Release

 

IQE Completes Acquisition of Emcore's Epi Business
CompoundSemi News Staff

August 21, 2006...IQE reports completing the acquisition of Emcore’s US epi foundry business, called the Electronic Materials Division (EMD). The acquisition was completed after shareholders approved the settlement of funds with Emcore. The acquisition cost a total of $16 million with 13 million of it in cash and $3 million in financing at 7.5 percent annual interest rate to be paid in equal payments in each of next four fiscal quarters. Emcore says it expects $9 to $11 million profit from the sale.

The IQE says the acquisition positions it as the leading global outsource supplier of wireless components including: pseudomprphic high electron mobility transistors (PHEMTs), heterojunction bipolar transistors (HBTs), integrated bipolar field effect transistors (BiFETs) and gallium nitride (GaN) technologies. IQE’s Directors believe that the new customer base and the new product offerings will help increase revenues. IQE now boasts the largest production capacity epi foundry in the industry.

Dr Drew Nelson, President & CEO of IQE plc commented, “We are very happy to have completed this acquisition, which represents a key step forward in IQE’s development as the leading outsource wafer supplier worldwide to the global semiconductor industry. The joining of the two companies allows IQE to offer a truly one stop wafer outsource service to its customers, with a complete range of current and next generation products. This transaction assures EMD’s current customers that as part of a larger wafer outsource group all the necessary resources are in place to fully support the joint customer base as their wafer demands continue to grow.” IQE News Release IQE’s products reportedly include components used in wireless infrastructure, optical communications, optical storage (CD, DVD), laser optical mouse, laser printers & photocopiers, thermal imagers, leading edge medical products, barcode, high efficiency LEDs and a variety of advanced silicon based systems.

EDGE Technology Still Has Its Place, ABI Research Says
CompoundSemi News Staff

August 21, 2006...EDGE technology can not provide all the features of mobile broadband, and has therefore been downplayed by the industry. However, ABI Research’s latest report on the wireless component industry predicts that EDGE handsets will reach about 14 percent of the total mobile phone market in 2006 with approximately 148 million shipments. Furthermore, ABI contends that currently many carriers who do not have licenses for 3G and are waiting for 4G technology, will choose EDGE technology. One reason they cite is that it comes closer to providing complete geographic coverage on a wide scale than WiMAX, LTE, or HSUPA.

Principal analyst Stuart Carlaw points out that, "EDGE is downplayed in the market because it cannot really provide a mobile broadband experience and is therefore not seen as being at the cutting edge of cellular handset evolution; it is viewed purely as an evolutionary step on the GSM ladder, and industry attention is very much focused on the newer technologies such as W-CDMA and HSDPA. That view is further compounded by the fact that operators do not actively report EDGE numbers in the public domain." ABI Research News Release

Silicon Gets Closer to Silicon Germanium in Transistor Speed Records
CompoundSemi News Staff

August 17, 2006...Researchers at Southampton University reported a record breaking silicon bipolar transistor with a clocked speed of 110 GHz. The researchers collaborated with STC Microelectronics to achieve the record. The previous record for silicon bipolar transistors, held by researchers with Philips Electronics, was 70 GHz. The researchers said that speeds are frequently one-tenth of their transistor counterparts and they suggested that a silicon chip with a speed of 10GHz might be within reach. The engineers with the School of Electronics and Computer Science used flourine implants to suppress boron diffusion at the base of the transistor to make it faster. “We have already beaten the world record,” commented Professor Ashburn. ‘We have just improved the performance of silicon to a level which was only previously possible with silicon germanium.” He added, “This means that the electronics industry will be able to achieve better performance at little extra cost.” The engineers hope to reduce the boron diffusion by another 50 percent, and they are beginning to look for other materials besides flourine which would accomplish this. Southampton University News Release

Avago Image Sensor Wins Award

August 17, 2006...Avago Technologies’ image sensor has received the Ultimate Product award from EE Times and eeProductCenter. Avago, located in San Jose, California USA, produces the ADCC3000 image sensor that won the top product award in the Ultimate Products 3.1 interconnect, passive and electromechanical (IP&E) category. According to the company the ADCC-3000 enables handset manufacturers to upgrade a one-quarter inch VGA (video graphics array) resolution camera to 1.3 megapixels. This 4x increase in resolution increases the ability to take sharper images. Avago says the 1280 by 1024 resolution of the image sensor has pixels of 2.8 microns by 2.8 microns, and it supports superior video and action shots, a smooth digital zoom, autofocus, and reduced image lag.

"Avago Technologies raises the price and performance bar with its 1/4-inch optical format, 1.3-megapixel (MP) CMOS image sensor," commented Gina Roos, editor at eeProductCenter. "The ADCC-3000 leverages the company ' s enhanced-performance (EP) pixel architecture and image-pipe processing technology touting much better picture quality than existing megapixel sensors for camera phones." Company News Release

Freescale Devises GaAs Substrate Compatible With Soft Solder Techniques

August 17, 2006...Engineers of Freescale Semiconductors, headquartered in Austin, Texas USA, have been awarded a patent for a method of producing a thin gallium arsenide substrate that is compatible with soft solder techniques and can be packaged using plastic packaging.
According to the patent by Jeffrey Crowder and Monte Miller of Phoenix, Arizona and Alexander Elliot of Tempe, Arizona, adding a copper-back metal layer to a gallium arsenide substrate allows the substrate “to be packaged using conventional plastic packaging technologies.” The patent describes that the copper-back metal layer gives the additional benefit of making the substrate thinner, reducing it to around 50 microns. The patent further explains that making the substrate thinner improves heat dissipation and allows soft solder technologies. Basically, the engineers reason that if the copper-backed metal layer is made sufficiently thick it can provide adequate mechanical support for the GaAs substrate during a soft-solder die attach process. Ultimately, the patent contends that enabling plastic packaging reduces costs. What this means for the industry and whether this means Freescale will take a more active interest in compound semiconductors remains to be seen. The inventors were issued U.S. Patent No. 7,092,890 on Aug. 15.

The Ahura Corporation Has Detection System Ready for Airport Screeners
Scott McMahan

August 16, 2006...The recent uncovering of a terrorist plot in the UK to use liquid explosives has sparked renewed interest in chemical detection technology. One company in Wilmington, Massachusetts USA, the Ahura corporation, has developed a hand-held chemical detection device called the FirstDefender. It uses Raman spectroscopy and sensors. The results are compared with a database of millions of substances to identify chemicals and mixtures enclosed in containers that are potentially harmful. The Raman laser and sensors both require compound semiconductors. The device was originally brought to market in the spring of 2005. (Ref: March 24, 2005 Coverage).

It is designed for military, security, law enforcement agencies, and hazmat teams and has already been proven numerous times in the field. The device has been adopted by numerous groups and agencies including: FBI explosives lab, British Ministry of Defense, US Army, US Customs and Immigration, FDNY, City of Seattle FD, Washington DC Fire Dept, NJ State Police and more than 100 other agencies in the US. The Ahura Corporation was honored at the American Business Awards for the Best New Product or Service Category on May 19, 2006. (Ref: Coverage). However, the Federal Aviation Administration (FAA) has not yet put such a devices in place in airports. One congressman, John Tearney of Boston, hopes to change that.

Currently in the United States the FAA has placed a ban on bringing liquids onto airplanes. The FAA says that until airport security has a way to screen liquid containers, the ban on passengers bringing liquids onto an airplane will continue. Ahura’s FirstDefender detection system has the ability to do just what airport screeners need. The FirstDefender is now available through the Department of Homeland Security (DHS) Commercial Equipment Direct Assistance Program (CEDAP). So hopefully, with the current media coverage, a FAA solution will soon be in place. (Link to CBS Boston Video)

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Commentary & Perspective...

Will There Be Another Shortage of Gallium in the Future?

August 22, 2006...Gallium (Ga) is obviously one of the critical starting ingredients in the creation of gallium arsenide (GaAs) and gallium nitride (GaN), from which the core compound semiconductor materials for the compound semi (CS) and solid state lighting (SSL) industries are formed. When our good friend Norm Schumaker (the founder of Emcore and Molecular Imprints) suggested the theme for an interesting CS News/LIGHTimes editorial might be exploring the prospects and probabilities of another international shortage of gallium starting material, we turned to gallium raw material expert, Terry Guckes, for the answers.

Terry Guckes is an independent consultant who has recently joined other CS experts in pursuit of opportunities further up the supply chain towards the burgeoning field of SSL. Prior to 2006, Terry served as corporate officer and Vice President of Electronic Chemicals for GEO Specialty Chemicals in Cleveland, Ohio. In his many years with GEO, Terry was instrumental in GEO's becoming the primary supplier of gallium and gallium chemical derivatives. While we don't want to create an uproar among today's or tomorrow's suppliers of gallium, nor undue concern among users, we do think Terry's input and perspective is as illuminating as the materials and end products ultimately produced with gallium.

According to Terry, "The gallium shortage in at the turn of the century was more of a result of a 'bubble' or 'spike' than a true case of actual market demand in final products outstripping supply." An anomaly, if you will, that not-so-coincidently can be compared to what happened to the telecom stocks on the Nasdaq exchange around the same time. About half of the world's production of gallium goes into cellphones, and Terry recalls that "certain projections" in 2001 were for cellphone sales to hit about 600 million units and by 2003 for sales to be about 1 billion units. Compare that to cellphone sales for 2006, which are currently projected to be around 940 million units. As he puts it, "The hugely overinflated end product demand sent a tsunami back through the supply chain for capacity and raw materials, and gallium in particular. GEO was selling virgin gallium at twice its rate of production in part of 2000 and 2001. GEO's cupboard of gallium, like its competitors', was beginning to get pretty bare."

Like a tsunami, the incoming tidal wave of orders was followed by a dramatic and catastrophic outgoing falloff of demand. "At about the same time as demand fell off a cliff, the Aluminum Company of China (Chalco) brought on-stream a massive increase in virgin capacity, helping to drive prices down to historic lows, which have continued pretty much through today. Other producers also contributed to the overcapacity situation. Had GEO continued with its planned 100 ton expansion in Australia, the situation for producers would have been even more dire. Fortunately, we at GEO at that time slowed, and eventually halted, our expansion plans."

While almost all gallium users have enjoyed the low prices of recent years, the question now is... What will happen in the future?

Will there be a real shortage where demand really is bigger than supply? Terry Guckes reports that the good news is, "Probably not... assuming we don't have another crazy spike in demand." He notes that total nameplate capacity for virgin gallium today is in the 160-170 ton/year range, and at least twice the market demand. Gallium is most commonly recovered as a by-product of the Bayer Process where bauxite is converted to alumina for smelting into aluminum metal. Minor amounts of gallium are also recovered in primary zinc refining operations. According to Terry, "Total alumina production in 2000 was around 60-65 million tons/year, and has been rising steadily and more rapidly given an insatiable world demand. Combining these levels of alumina production with the average level of occurrence of gallium, and the percentage recovery using technology similar to that employed by GEO, the maximum worldwide production of virgin gallium in this timeframe would have been around 820 tons/year."

The picture for gallium users is even brighter. In the Alcoa 2005 Annual Report on page 1, Alcoa has projected that consumption of aluminum is expected to double between 2006 and 2020. "Because of the almost linear relationship between aluminum production and alumina demand, this means we can expect alumina production to also approximately double in this timeframe. Assuming Mother Nature does not have any anomalies in store in regard to the level of gallium contained in the bauxite that will feed this alumina demand, the maximum world capacity should be greater than 1600 tons/year by 2020, and at least 20 times the current demand. And this does not include any huge growth in supply from zinc production or other sources," notes Terry. Can another shortage occur? "You bet," he cautions. "But that appears unlikely, given the wounds still healing from the last bubble.

" What about the growth in the number of PA's and switches in cellphones, and rise in GaN device in high brightness and blue spectrum LEDs, and advanced GaN electronics? Won't that heat up demand? Terry cautions that it will, indeed. "But on the non light-emitting side, it will be balanced by the type of chip shrinkage that has held overall gallium demand pretty much in check for a number of years. Even if there was to be a significant, integer-multiple type of growth in demand, with a very rough forecast gallium producers should have plenty of time to tap the available capacity." And on the light emitting side, we've come to rely on Strategies Unlimited of Mountain View, California for truly accurate market forecasts for GaN materials, HB-LEDs and all blue spectrum LEDs (whether true high brightness or of low to medium brightness). so as long as Bob Steele of Strategies is on the job, the numbers there should be bankable.

Will prices rise? Terry expects they will, but Bob Steele noted that "One nice feature of nitride LEDs in this regard is that gallium is used only in the very, very thin deposited layers, and not in the substrates, as is the case of GaAsP, GaP, InGaAlP, AlGaAs, etc. where a lot of gallium is consumed. So gallium consumption shouldn't be much of an issue for the blue, green and white devices.”

So there doesn't seem to be any reason to panic. As Terry concludes... "As long as the crystal ball that marketers use to forecast demand never again gets as cloudy as it was in 1999-2001, gallium users should be in good shape." For more details... or simply to chat with Terry Guckes to share and compare your anticipation of the prospecting going on further up the SSL supply chain... (which is where Terry is now headed) you can contact him in Ohio at: tel +1 440-666-5771 or by email at: tlguckes@yahoo.com. If you have opinions that either support or differ from Terry's assessment, let me know and we'll consider doing a follow-on treatment of the topic.

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His direct tel in Austin is +1-512-257-9888

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