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Editorial: Focus on Communications
 
... TriQuint Semiconductor's CEO, Ralph Quinsey, made quite an impression in his plenary talk at CS Mantech, mainly because he was finally able to sound genuinely optimistic. In this installment of The McDonald Report, we'll try to convey the highlights of Ralph's uplifting message of what the compound semi industry...
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HelioVolt Hires Two VPs to Direct Manufacturing Expansion
CompoundSemi News Staff

May 29, 2007...HelioVolt, the CIGS thin film solar maker of Austin, Texas USA, has hired two vice presidents to direct manufacturing operations. While the company expands, Larry Peruffo will serve as vice president of supply chain and David Bown will serve as vice president of manufacturing operations. HelioVolt hired Larry Peruffo following his 24 years of service at Applied Materials where he most recently served as managing director of materials. There, Mr. Peruffo helped established dramatic manufacturing and supply chain process improvements. HelioVolt indicated that Mr. Peruffo will help develop a global supply chain that can take advantage of the company’s FASST manufacturing process. Previously, David Bowen worked at Essilor Laboratories of America, an ophthalmic optics company. He helped the company transition from research and development to large-scale production while serving as VP of operations and technology. HelioVolt says that Mr. Bowen will guide strategic operations as it expands product development and manufacturing capabilities in the U.S. and abroad.

B.J. Stanberry Ph.D., HelioVolt CEO commented, “HelioVolt is now ready to build on its core innovation – our proprietary FASST process for rapid CIGS thin film manufacturing – to secure economies along the entire value chain of the production process, from materials through systems-level engineering,” He added, “The operational, manufacturing, and global logistics acumen embodied by both Mr. Peruffo and Mr. Bowen will be an invaluable addition to our already strong team as HelioVolt executes on its plans for production scale-up and delivery to worldwide markets.” Company News Release

Micromem Successfully Tests Radiation Hardness of GaAs pHEMTs
CompoundSemi News Staff

May 29, 2007...Micromem Technologies Inc., of Toronto, Canada, reported successful radiation testing of its gallium arsenide (GaAs) pHEMT (high electron mobility transistor structures) which were prepared to mimic the bit cell environment of the company’s Hall Sensing MRAM. The samples were then exposed to cobalt 60 gamma radiation in a medical device sterilization chamber. Researchers tested the samples after the radiation exposure and found that their functioning and capabilities were not altered at even the highest level of the tested radiation exposure. In fact, the only radiation effects that were noted took place at temperatures below -70 degrees Celsius. The measurements proved that the pHEMT samples made highly sensitive Hall sensors that could function despite being dosed with high levels of radiation. Hall sensors operate by varying their voltage output in response to magnetic field density. Company News Release

TriQuint Makes Three MFC Family Products Available as Part of Plan to Simplify Connectivity
CompoundSemi News Staff

May 29, 2007...Radio frequency (RF) product maker, TriQuint Semiconductor of Hillsboro Oregon USA, reports that it has made available its first three products in its Multi-Function Circuit (MFC) family. The products, originally released in November 2006, now come in industry standard packages. (Ref: Coverage). According to the company this offers greater manufacturing flexibility for new and existing customers. The new MFC products will debut at the 2007 IEEE MTT-S International Microwave Symposium in Honolulu, Hawaii (June 5-7). The new MFCs were made from gallium arsenide for use in point-to-point (PTP) radio, and satellite communication applications. TriQuint has made the new products available as part of its vision to help customers simplify next-generation connectivity. (Ref: May Coverage).

The devices offer frequency upconversion (amplification) in the transmit (Tx) and local oscillator chains for digital radio and satellite communications systems to fulfill OEM needs. “Our new MFC products embody that vision, which includes offering more integrated devices for size and cost-constrained applications and providing more high frequency packaged product options. Packaging gives new and existing customers greater access to our vast portfolio of leading die-level designs, which also ties to easier product access — the third part of our vision for simplifying connectivity,” stated TriQuint Networks Vice President Brian Balut. Company News Release

Microsemi Adds Most Powerful PA for PTP Wireless LAN Access Point Devices
CompoundSemi News Staff

May 29, 2007...Microsemi Corporation, an analog and mixed signal IC maker, announced that it added its most powerful amplifier for wireless LAN access point applications. The LX5535, the new Microsemi power amplifier manufactured with InGaP processes, provides output power of 25dBm and extends the range of wireless LAN access point devices utilizing the 2.4-2.5 GHz frequency range in 802.11b/g/n applications. It is designed a two-stage monolithic microwave integrated circuit (MMIC) with active bias and output pre-matching. It uses a single 5V power supply and has a low forward current of 135 milliamps. It provides a power gain of 32 dB and it comes in a 0.09mm high, 16-pin 3mm square package.

“As the demand for wireless applications continues to grow, so does the need for ever more powerful amplifiers that can extend their range,'' said Steven G. Litchfield, Microsemi Executive Vice President and President of the Analog Mixed Signal Group. "Our new LX5535 amplifier provides more power, but consumes only 260 milliamps of total DC current in doing so," he said. Company News Release

 

Cree Demonstrates 100mm Zero Micropipe SiC Substrate
CompoundSemi News Staff

May 23, 2007...Cree of Durham, North Carolina USA, reported that it reached another milestone in its development of its Zero-Micropipe silicon carbide substrate technology. SiC is a compound semiconductor material used in the production of a range of power, light and communications components, including power-switching devices, LEDs and RF power transistors for wireless communication. For the first time, Cree demonstrated a 100mm (4-inch), Zero Micropipe (ZMP) n-type SiC substrate. Cree named the SiC substrate product Zero Micropipe because it virtually eliminates micropipes, a common crystalline defect in SiC. In a project partially funding by the U.S. Army and the Defense Applied Research Project Agency (DARPA), Cree was able to dramatically reduce SiC substrate defects. The latest demonstration takes it a step further, proving that it is possible to eliminate defects in large-area wafers also.

“Cree’s achievement of a 100-mm ZMP substrate further demonstrates our materials technology expertise. We expect that ZMP technology can significantly improve device yields, expand the range of products that can be designed and produced, and enable manufacturing at higher-volume levels than had been possible before,” stated Cengiz Balkas, Ph.D., Cree vice president and general manager for material. Company News Release

TriQuint Introduces Network Business Unit's Vision to Simplify Connectivity
CompoundSemi News Staff

May 23, 2007...TriQuint introduced its Network Business Unit’s vision to simplify connectivity in consumer voice, data, music, and video for fixed and mobile environments. The company indicated that part of the simplifying of the manufacturing process will come from the creation of gallium arsenide, surface and bulk acoustic wave (SAW/ BAW) technologies used too integrate multiple functions into smaller, and more efficient modules. TriQuint also reports that it is packaging more of its catalog of gallium arsenide die-level MMICs. According to the company, these give manufacturers surface mount amplifiers and switches. TriQuint says that previously, die-level components were accessible primarily to manufacturers who could handle non-packaged components. So with more packaged products, existing and new customers will have access to a wider selection of manufacturing options. This in turn will place products integrated with TriQuint components in new markets. TriQuint also sought to simplify sales channels and tools used to access company products.

“Our customers want integrated devices for size and cost-constrained applications, more packaged product options, especially for higher frequency applications, and a simpler way to get those products. Our vision is about anticipating these needs and helping them increase productivity. Our customers are developing next-generation products that will enable connectivity convergence, which is about ‘networking’ in the human sense; it’s the ability to work wherever a person is, staying in touch with family, playing games, sharing pictures, having access to ‘data’ such as digital music, movies, TV or spreadsheets, and web surfing,” said Brian Balut, TriQuint Networks Vice President. Company News Release

SatCon Awarded Air Force SBIR Contract to Develop Generator
CompoundSemi News Staff

May 23, 2007...SatCon Technology, a maker of power electronics and power management devices headquartered in Boston, Massachusetts USA, reported that it has been awarded a Phase I Small Business Innovative Research (SBIR) contract with the U.S. Air Force Research Laboratory to develop a high-speed, power dense generator for airborne applications. The device is to produce 100 to 300 kW and should be scalable to the MW class for directed energy weapon (DEW) power supplies.

SatCon is currently developing starter/generators, traction motors, and generators for ground and undersea vehicles. The new generator will be designed for aerospace applications and will be based on the company’s permanent magnet machinery design. SatCon points out that the work expands upon the development of a 410 kW hybrid electric vehicle generator the company designed for the U.S. Army at US Ft. Belvoir. The goal of the project is to create a generator that offers high-speed capability, rugged design, high power density, and affordable manufacturing capability. SatCon's President & Chief Executive Officer, David Eisenhaure, stated, "In addition to opening up opportunities for future military aircraft power applications, this new SatCon program further solidifies our push into the hybrid electric vehicle sector for military, commercial, and passenger applications. SatCon is targeting best in class solutions for the widest possible range of hybrid electric vehicle and power conversion applications through a broad array of developments." SatCon News Release

Emcore's New Manufacturing Facility in China Begins Shipping Products
CompoundSemi News Staff

May 23, 2007...Emcore Corporation of Albuquerque, New Mexico USA, a maker of optoelectronic components and compound semi-based solar cells, reported that it has begun shipping products from its new, low-cost manufacturing facility in China. The facility, about 20 miles southeast of Beijing in the export processing zone of Langfang City, has a 22,000 square foot, Class-10000 clean room for optoelectronic device packaging. The company says that an additional space of about 60,000 square feet is available for future expansion. Emcore says it will consolidate and move the manufacturing of certain cost sensitive optoelectronic device products to the facility. Dr. Charlie Wang, former Director of Engineering of Emcore Fiber Optics, has been appointed General Manager of Emcore China. "We chose this location because of its convenient access to infrastructures and talent pools of nearby Beijing and Tianjin metro areas. This facility will experience a very low operating cost in addition to tax and import/export benefits for being located in an export-processing zone," said Dr. Charlie Wang. "We will be packaging optical subassemblies for broader applications of storage-area network, local-area network, cable TV, and telecom markets. We have already transferred and started the qualification processes for certain products."

"The establishment of Emcore China is an important accomplishment as we focus on achieving our goal of profitability. Through our China operations, we will be able to tap into a vast talent pool of low-cost skilled labor and engineering resources. This facility, along with a strategic alignment with our existing contract-manufacturing partners, should enable us to improve our cost structure and gross margins across product lines within Emcore. We expect to develop and provide improved service to our global customers using a local presence in Asia." commented Reuben F. Richards Jr., Chief Executive Officer of Emcore Corporation. Company News Release

Veeco Surface Profiler Shipped to PrimeStar Solar for Production Ramp
CompoundSemi News Staff

May 21, 2007...In a separate announcement, Veeco reported that PrimeStar Solar, a maker of cadmium telluride photovoltaic modules purchased the Dektak 150 Surface Profiler. The Dektak 150 offers increased resolution for measuring thin films to 10 nanometers and below to meet the evolving requirements of today's photovoltaic cell applications.

"We chose Veeco's Dektak 150 stylus profiler because it has the great combination of measurement precision, performance versatility and an attractive price point," says Dr. Fred Seymour, PV Technology Director for PrimeStar Solar. "This is important for us since we are aiming to quickly provide the solar market with very low cost solar PV modules. As we continue our ramp up for production, we will rely heavily on the Dektak to calibrate our coatings." Veeco News Release

NSF University Centers Awarded Nanoelectronics Funding Boost
CompoundSemi News Staff

May 21, 2007...Nanoelectronics research projects at six National Science Foundation university centers across ten United States universities will receive a total of $2 million in funding from Semiconductor Research Corporation (SRC) and the National Science Foundation. The joint NSF-NRI supplemental grants were awarded to teams at six NSF centers in nanoelectronics research, along with their research leaders. SRC indicated that the goal of the research is to advance the search for replacement of the basic semiconductor logic structure that has served the world of computers and integrated circuits for more than 30 years. Specifically, the researchers want to replace complimentary metal oxide semiconductor (CMOS) field effect transistors (FETs). “Without a breakthrough, the phenomenal advances in semiconductor capabilities will slow drastically as we reach the fundamental limits of current technology in the next decade or so,” said Dr. Jeff Welser, director of the Nanoelectronics Research Initiative (NRI), a research entity of SRC. (Ref: Coverage).“The IT economy has enjoyed unprecedented growth during the microelectronics era of the past half-century. The government and universities have quickly supported the NRI program in order to pursue discovery of the next logic switch and continued leadership in the new nanoelectronics era.”

Several companies are taking participating the NRI including: Advanced Micro Devices, Inc.; Freescale Semiconductor, Inc.,; IBM Corp.; Intel Corp.; Micron Technology, Inc.; and Texas Instruments, Inc. The companies will assign researchers to collaborate with the university teams. NRI has the goal of demonstrating novel computing devices and their feasibility in simple computer circuits during the next 5-10 years. In order to reach this goal the NSF centers will work closely with the participating companies NSF News Release

Fairchild Semiconductor Files Infringement Countersuit Against Alpha & Omega Semiconductor Ltd.
CompoundSemi News Staff

May 21, 2007...Shortly after receiving a patent infringement lawsuit from Taiwan-based Alpha & Omega Semiconductor (AOS), power electronics company, Fairchild Semiconductor, reported that it filed a counter suit. The counter suit alleges that AOS infringed on several of its patents regarding the design and manufacturing of specific types of field effect transistors (FETs). Fairchild alleges that AOS power transistor products infringe at least four of its U.S. patents, including Nos. 6,429,481; 6,521,497; 6,710,406; and 6,828,195. Fairchild seeks monetary damages and an injunction to prevent AOS from selling or importing the allegedly infringing products into the United States. On May 18 in a company news release, AOS said it had filed a complaint alleging that Fairchild's products infringed patents AOS had purchased. (Ref: AOS News Release). Fairchild said it has not been served with that complaint. Fairchild said it reviewed the patents listed in the AOS’ news release and believes those patents are either invalid or are not infringed by Fairchild's products.

"AOS has chosen to take this dispute to the courts and we have no choice but to respond in kind," said Izak Bencuya, executive vice president and general manager for Fairchild's Functional Power Group. "We intend to enforce our intellectual property rights, preferably through negotiated license agreements, and if necessary through the courts." Fairchild Semiconductor News Release

John Peeler to Serve as Veeco CEO; Edward Braun to Step Down and Remain Chairman
Compoundsemi News Staff

May 21, 2007...Veeco ended its nearly 6-month search for a new CEO. (Ref: Coverage).The company of Woodbury, New York USA, reported that John R. Peeler will serve as chief executive officer, succeeding Edward H. Braun. Mr. Braun will remain chairman of the board. The announcement follows Veeco's November 2006 announcement that it had initiated a CEO succession search.

Mr. Peeler served as the president of the communications test and measurement business at JDSU. This was its largest and most profitable business segment, which earned approximately $600 million per year. Mr. Peeler reportedly brings nearly thirty years of diversified global management expertise in growing multi-product equipment and instrumentation technologies. Previously, Mr. Peeler was CEO of Acterna Inc. which was acquired by JDSU in 2005. Veeco indicated that it expects Mr. Peeler to join the company as CEO in early July. He will then be appointed to the Veeco board within thirty days of his start date. Mr. Braun commented, "John brings a proven track record of leadership, managing complex technology in high growth markets. His experience will be vital in leading Veeco to new levels of growth and profitability." Company News Release

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Commentary & Perspective...

Focus on Communications
Jo Ann McDonald

May 29, 2007...TriQuint Semiconductor's CEO, Ralph Quinsey, made quite an impression in his plenary talk at CS Mantech, mainly because he was finally able to sound genuinely optimistic. In this installment of The McDonald Report, we'll try to convey the highlights of Ralph's uplifting message of what the compound semi industry can look forward to in the next few years of predicted upturn.

The 2007 International Conference on Compound Semiconductor MANufacturing TECHnology (CS Mantech) was held May 14-17 in Austin, Texas. Approximately 400 industry manufacturing professionals attended and heard Ralph Quinsey's opening plenary session invited talk, titled: State of the Compound Semiconductor Industry
A Focus on Communications
. Ralph's abstract set the stage:

"The year 2006 will be remembered as a transition year for the compound semiconductor industry. This was the first year in many where worldwide GaAs supply and demand came back into balance. The long awaited commercialization of third generation data handsets (3G) has solidified GaAs as a critical technology. Additionally, GaN development efforts have demonstrated success for important performance and reliability milestones in 2006.

"Cellular phones, at one billion units sold per year, remain the highest unit volume consumer electronics device on the planet. Voice remains the killer application but the promise of 3G, un-tethered broadband data access, has moved into production, and GaAs is the enabling RF technology. Even as 3G units are just now reaching volume, the convergence of WiFi and WiMAX, LTE and UMB is on the horizon with next generation performance – lower cost and greater data rates.

"A clear trend is underway. Value is moving back into the compound semiconductor space. This industry suffered through an extended period between 2000 and 2005 where commoditization and over supply drained value and limited investment. The promise of ubiquitous wireless access remains a compelling vision and as standards and chipsets evolve, the compound semiconductor industry stands ready to reap the harvest of growing demand."

To follow are some of the highlights this commentator found especially interesting:

"WiMAX has gained significant support as a next generation standard for wireless broadband access. Often referred to as 'WiFi on steroids' WiMAX solves some of the implementation problems of WiFi hot spots. WiMAX provides greater range and a better quality of service. WiMAX will be on licensed frequency bands, with tighter controls reducing impact from interference as compared to WiFi networks. Most importantly, several major powerhouses in the industry have thrown their weight behind WiMAX including Motorola, Intel, and Sprint." Ralph pointed to Strategy Analytics's market numbers to back up the potential for this next round of GaAs products: "The GaAs market is currently $3.0 billion and growing at a 7% CAGR as forecasted by Strategy Analytics. Personal voice and data represent approximately 70% of that market." Thus, personal voice and data become the killer application, starting with GaAs MESFETs and migrating to HBTs and pHEMT devices as the best technology for maximum battery life. The true market joy is that the RF content in next gen phones is rising dramatically, from only $1.50 for GSM or CDMA to the $5 to $6 range in 3G phones.

Ralph also noted that the industry is "bifurcating into top tier suppliers where participation in the largest market, personal voice and data, will continue to drive growth and technology investment and small niche suppliers who serve unique strategic needs, and are typically embedded into larger vertically integrated businesses as captive units." He also noted that "GaN has made great strides in the last two years. Materials improvements, process improvements, and a better understanding of the application and reliability of the technology have been achieved." He added however, that "this technology is still very early in its cost learning curve. It will likely remain an R&D effort for the next several years with first production use coming from the defense industry." In conclusion, Ralph underscored that "healthy consolidation of the supply chain is continuing" and that, "it appears that in the highest volume application for GaAs, personal voice and data, it appears GaAs has confronted the silicon threat--at least for the foreseeable future."

The next chapter of what the future holds unfolds June 19-20, again in Austin, Texas, at our CS Vision executive business forum. That's when senior managers and strategic planners take talks like the fine one Ralph Quinsey presented at Mantech to the next level of scrutiny. Take a minute to look at the outstanding Vision agenda we have in store. We look forward to seeing you there.

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

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