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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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Sirenza Microdevices Expands Capacity at Facility in Nuremburg, Germany
CompoundSemi News Staff

June 4, 2007...Sirenza Microdevices, an RF component maker with headquarters in Bloomfield, Colorado USA, announced that it has expanded its manufacturing capacity at its facility in Nuremburg, Germany. The company said that the expansion is to support the growing demand for cable TV and for RF power amplifier modules. According to Sirenza, the expansion increased the facility’s surface mount assembly capabilities by about 25 percent, and it raised the facility’s electrical test capacity by up to 50 percent with the addition of high-speed surface-mount and aluminum wire bonding equipment. Also the facility’s test capacity was expanded when the company implemented more RF-amplifier test stations required to test 1 GHz CATV amplifiers.

“This expansion is in response to the growing demand for Sirenza’s 1GHz CATV amplifiers and for other applications such as RF-driven light sources for commercial video and TV applications,” stated Jerry Quinnell, PDI segment interim president. “In addition to our broad portfolio of 1GHz CATV forward and return path amplifiers, we currently market a complete family of CATV amplifiers in all the required frequency bands to support world-wide transmission network standards; additionally we currently market optical receivers for CATV applications up to 1GHz frequency.” Company News Release

Researchers Predict Indium will Run-Out in l0 Years or Less
CompoundSemi News Staff

June 4, 2007...Unlike silicon, the elements used in compound semiconductors and printed circuit applications are not virtually unlimited. For this reason, a company called, IDTechEx, Augsberg University in Germany, and the journal, New Scientist, have studied the availability of several rare earth elements used in printed circuits. They have estimated how soon our supplies of them will run out. They predict that in a mere 5 years or up to 10 years at most, the supply of indium will be gone. Armin Reller, a materials chemist at the University of Augsberg in Germany, notes that in January 2003 the price of the metal was about $60 per kilogram, but by August 2006 had rocketed to over $1000 per kilogram. He said that the current prices may have already begun to reflect the impending scarcity.

Researchers at the journal, New Scientist, did their own calculations of scarcity, and they were most concerned about the massive demand for indium gallium arsenide (InGaAs), and copper indium gallium diselenide (CIGS) solar cells. Reserves of both metals are disputed, but in a recent report René Kleijn, a chemist at Leiden University in the Netherlands, concludes that with current reserves he estimates that “gallium and indium will probably contribute to less than 1 per cent of all future solar cells - a limitation imposed purely by a lack of raw material." On the other hand, IDTechEx says that InGaZnO transistors will have a relatively insignificant roll in the future scarcity of the materials because of the extremely small amounts required. New Scientist News Release

Tellabs Renews Triplexer Transceiver Order with LumientOIC
CompoundSemi News Staff

June 4, 2007...LuminentOIC, an optical component manufacturer of Chatsworth, California USA, reported that it renewed its supply agreement to supply triplexer transceivers to Tellabs for use in broadband passive optical Network (BPON) through the end of 2008. Tellabs has reportedly used the triplexer transceivers in optical network terminals (OPTs) for fiber to the premise deployments since 2004. "To remain competitive and meet customer demand, we must forge long-term relationships with key suppliers," said John Brots, Tellabs executive vice president for global operations. "LuminentOIC has been an innovative supplier with demonstrated ability to provide us with critical components for next-generation applications."

Near Margalit, Chief Executive Officer of LuminentOIC, stated, "We are pleased to continue our long lasting relationship with Tellabs, a recognized industry leader in triple-play PON deployments, and are committed to providing highly reliable, complex technologies to mass volume deployments for current and next-generation PON requirements.” LumientOIC News Release

TriQuint Introduces Two Single Chip Sat-Com HPAs
CompoundSemi News Staff

June 5, 2007...TriQuint has introduced two new satellite communications (Sat-Com) high power amplifiers (HPAs) in a single chip design. According to TriQuint, the new die-level products, TGA4916 and TGA4906, are reportedly the latest of the company’s ground terminal sat-com RF amplifiers. The PAs boast better performance, a smaller footprint, and improved cost effectiveness for the design of sat-com ground terminal RF chipsets. The RF amplifiers are typically used for data connectivity for ATMs, supermarkets / retail outlets, hotels, airlines, car rental agencies – practically anywhere that digital information needs to be exchanged wirelessly at high speed. TriQuint says that the high power amplifiers, which are gallium arsenide MMICs, were developed as part of the company’s program to drive the evolution of VSAT (very small aperture terminal) components for ground station RF systems. Company News Release

GCS and RFIC Solutions Announce Strategic Alliance
CompoundSemi News Staff

May 31, 2007...Global Communication Semiconductors and RFIC Solutions have announced a strategic alliance to provide customers with a range of services from product design to finished parts. Global Communication Semiconductors (GCS), a III-V foundry service provider for RF and optoelectronic components, will combine its portfolio of foundry technologies including HBT, PHEMT, and InP with RFIC Solutions’ expertise. RFIC Solutions, a third party intellectual property and design service provider, will offer its IP and expertise in RFIC and MMIC products made using GaAs, PHEMT, Silicon and SiGe, CMOS and BiCMOS processes.

"We are pleased to partner with GCS since we have designed many of our IP blocks using GCS' GaAs HBT and other processes. We are designing power amplifiers, LNA, mixers, synthesizers, and transceivers for cellular, WiFi, WiMax, UWB, and Cable TV markets. Many of these markets require advanced GaAs and PHEMT processes that GCS offers. By partnering with GCS we offer one-stop shop, high performance, low cost RFIC and module design services," said Sanjay Moghe, President and CEO. GCS News Release

BOC Edwards Releases Helios 6 Gas Abatement System for CS MOCVD
CompoundSemi News Staff

May 31, 2007...BOC Edwards has introduced its new Helios 6 gas abatement system for compound semiconductor MOCVD, tungsten LPCVD, and Si and SiGe epitaxy. The system has six inlets for process gases. It has an additional inlet for gas box purges and other secondary operations. The system is based upon BOC Edwards’ inward-fired combustion technology. The company says its technology delivers unprecedented abatement performance while having the lowest cost of ownership. The new HELIOS 6 gas abatement solution reportedly can reduce hydrogen concentrations below the lower explosive limit (LEL) in flows as high as 200 slm,

"HELIOS 6 gas abatement solution extends the capability of our HELIOS product line to accommodate higher flow levels and more gas inlets, substantially lowering the overall cost of ownership," said Peter Holland, regional business manager, BOC Edwards. "High fuel efficiency and no requirement for compressed air contribute additional cost savings when compared to alternative technologies, while our unique combustor is designed to reduce the hydrogen content to safe levels even at the highest flow rates." The company now has two abatement devices meant for MOCVD. The previously released Spectra-G vacuum abatement system is designed specifically for nitride MOCVD. Company News Release

TriQuint to Release RF Product Selection Guide
CompoundSemi News Staff

May 31, 2007...TriQuint, like many companies in the tech field sells numerous radio frequency (RF) products with complex specifications. Additionally TriQuint has set the goal of simplifying connectivity. For these reasons, TriQuint of Hillsboro, Oregon, USA, announced that it will released a Product Selection Guide. The company will release the Product Selection Guide on June 5, 2007, at the IEEE MTT-S International Microwave Symposium in Honolulu, Hawaii. The company says that the guide will offer an overview of the company’s new and existing RF devices for engineers. Products detailed in the Guide are designed for RF applications such as: wireless base stations, WiFi, WiMAX, GPS, cellular, digital cable, satellite and optical communications systems. The Guide was sent as a ‘pre-release’ to 50,000 engineers in the May issue of Microwave Journal. The guide will incorporate new product releases announced at the Symposium, these include cost effective packaged products such as their HFET amplifiers that boost efficiency and performance of base stations.

“Completing a bill of materials just got easier for engineers,” said Paul Gilgallon, TriQuint Product Marketing Director and chief architect of the new Guide. “We took all the superb designs RF engineers have relied on for years, plus some great new products, and put them together in one volume. TriQuint is working to simplify connectivity in several ways and our new Product Selection Guide is an example of those efforts. Together with recently-announced changes in our distribution and representative sales forces, we’re making it simpler for our customers to buy TriQuint products.” 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

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

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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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