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Editorial: CEOs Say Top Challenge is Establishing Excellent Execution, CEO Confidence Survey Says
 
... According to a study just out from a business research group called The Conference Board, CEOs around the world are currently more concerned with execution rather than profit and top-line growth. The survey involved 769 global CEOs from 40 countries. When asked to rate their greatest concerns from among...
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Cree Announces Commercialization of 100-mm Zero Micropipe SiC Substrates
CompoundSemi News Staff

October 15, 2007...Cree of Durham, North Carolina USA, announced the commercial production release of its 100-mm Zero Micropipe (ZMP), n-type silicon carbide (SiC) substrates. The commercialization is the result of a project that was partially funded by the U.S. Army and the Defense Advanced Research Projects Agency (DARPA). SiC can be used in power, light, and communications components, such as power-switching devices, light-emitting diodes (LEDs), and RF power transistors for wireless communications. Cree first demonstrated the 100-mm version of its Zero Micropipe substrates in late may 2007.(Ref: Coverage).

Cree named the SiC substrate product Zero Micropipe because the company says it virtually eliminates micropipes, a common crystalline defect in SiC. Micropipes can decrease overall device performance, reduce reliability, and can decrease the number of usable electronic devices per wafer. In late May, Cengiz Balkas, Ph.D., Cree vice president and general manager for materials stated, “...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.” (Ref: May 23, News Release). In the most recent announcement Balkas stated, “The integration of this technology across other Cree product lines is expected to accelerate the adoption of SiC as a high-volume, production-ready material platform.” Company News Release

SMI Receives SBIR Phase II Funding to Develop Dielectrics for SiC MOSFETs
CompoundSemi News Staff

October 15, 2007...SMI points out that SiC devices suffer from poor reliability and limited high temperature performance because the devices lack suitable gate dielectric materials and the associated fabrication techniques. SMI says it is applying high-k materials to SiC device manufacturing to produce more reliable transistor devices that have better high temperature performance. In Phase II SMI says it will integrate its high-k film structures into actual SiC device manufacturing, and it will continue refining production-worthy tools and process technologies for both the high-k film deposition and the SiC MOSFET fabrication. At the end of Phase II, we will have developed and demonstrated optimized SiC MOSFET devices, with significantly improved performance and reliability over present devices. Company News Release

Velox Gets Funding for Development of GaN on Silicon Switches
CompoundSemi News Staff

October 15, 2007...Velox Semiconductor, manufacturer of Gallium Nitride (GaN) transistors and diodes with headquarters in Somerset, New Jersey USA, reported that the company has received an ATP (Advanced Technology Program) award from the U. S. Department of Commerce's National Institute of Standards and Technology (NIST). The NIST award is for development of high-voltage (600 Volt and 1200 Volt), high-current (20 Amp and 100 Amp) electronic switches based on Velox's Gallium Nitride-on-Silicon (GaN on Si) technology. Velox indicated that the program funding will be used to help develop new enhancement-mode Field Effect Transistors (FETs). The ATP funding for the two year program will total $2,000,000 and matching funds from a variety of sources will make the total program cost of approximately $3,280,000.

In Phase I, Velox will develop 600V, 20A GaN FETs for improved power supply applications. In the next phase, 1200V, 100A devices will be developed, which are ideal for motor driver applications in the automotive industry. Velox says that the new switching devices will offer benefits to the automotive, computer laptop, consumer, and industrial power supply industries. According to Velox, successful introduction of the new FETs will significantly increase the fuel efficiency of the best hybrid vehicles. Additionally, Velox says that the new FETs will increase the efficiency and drastically decrease the size of power supplies used for consumer, computer, industrial, and telecom applications. Company News Release

Skyworks Ramping Production of High Performance Downconverters
CompoundSemi News Staff

October 15, 2007...Skyworks Solutions, Inc. of Woburn, Massachusetts USA, a developer of high performance analog and mixed signal semiconductors for mobile connectivity, reported that it is in volume production of many of its down converters. These include the SKY73032 and the SKY73021, and are part of the company’s linear product portfolio. Skyworks says that its linear product portfolio supports GSM/EDGE, CDMA, WCDMA, WiMAX, and Long Term Evolution (LTE) applications.

According to Stan Swearingen, Skyworks' vice president and general manager of Linear Products, the company has recently received several design wins from industry leading OEMs that lead to the production ramp of the down converters. He stated, "Our expansive portfolio supports infrastructure OEMs at any stage, from those implementing system upgrades to those developing next-generation designs, essentially providing customers with the ability to meet all their high performance downconverter needs with one supplier." Company News Release

nLight Acquires Liekki
CompoundSemi News Staff

October 10, 2007...nLight, a high-powered laser manufacturer headquartered in Vancouver, Washington USA, announced an agreement to acquire Liekki Corporation, a specialty fiber manufacturer based in Lohja, Finland. Terms of the acquisition were not disclosed, and the acquisition is subject to customary closing conditions. It is expected to be completed in the fourth quarter of 2007 Liekki produces fiber components and subassemblies (optical engines) for fiber amplifiers and lasers using its unique and proprietary Direct Nanoparticle Deposition (DND) technology. “This is a very important acquisition that integrates core technology for the rapidly growing markets for semiconductor and fiber lasers,” stated Scott Keeney, nLight’s president and CEO. “Combining the nLight and Liekki product portfolios will bring compelling solutions to our industry. We highly value the Liekki team and their operational excellence.” 

“The combination of our technology and teams will provide customers with a complete supply chain from semiconductor lasers and fibers to optical modules,” commented William Willson, Managing Director of the Fiber Division. “nLight is the fastest growing company in the semiconductor laser market and Liekki will bring its experience in fibers and modules; a unique, patented Direct Nanoparticle Deposition (DND) fiber technology process; and a specialized manufacturing facility, which scales efficiently in this growing market.”  nLight News Release

Kyma Extends PolyGaN Portfolio of Products
CompoundSemi News Staff

October 10, 2007...Kyma Technologies, a supplier of high quality nitride materials and related services, has introduced a dense form of ultra-high purity polycrystalline gallium nitride (GaN). The products will be part of Kyma’s PolyGaN product line. Kyma explains that it produces the PolyGaN products by leveraging the company’s patent-protected GaN boule growth process. Kyma boasts that its PolyGaN products have the highest purity in the industry at 99.999 percent (5-nines) or higher (5-nines+). They come in cylindrical disks with diameters of 2”, 3”, or 4” at thicknesses of 2mm to 10mm.

Since 2005, the company has offered higher surface area, lower density, and lower purity PolyGaN Pellets that are 99.99 percent pure (4-nines). Kyma says that the PolyGaN products can be used for plasma sputtering of III-nitride thin films and pulsed laser deposition (PLD) of III-nitride device layers. It can also be used as feedstock for ammonothermal growth of bulk crystalline GaN or as source material for sublimation growth of bulk crystalline GaN. Company News Release

Cyoptics and Kotura Win Funding to Develop Terabit Photonic Integrated Circuits (TERAPICS)
CompoundSemi News Staff

October 10, 2007...Cyoptics and Kotura announced that they have won $5.9 million in funding from the U.S. Commerce Department National Institute of Standards and Technology (NIST) Advanced Technology Program (ATP) to develop next generation Terabit Photonic Integrated Circuits (TERAPICS). Cyoptics, an indium phosphide (InP) optical chip component maker based in Lehigh Valley, Pennsylvania and Kotura, a producer of silicon photonics headquartered in Monterey Park, California USA, won the funding for a three year contract. The goal of the project is to demonstrate optical laser and receiver components for transmission speeds of up to 1 Terabit-per-second (1,000Gbps). The project hopes to use a combination of monolithic and hybrid integration to reduce hundreds of individual components to less than 10. “In network centers and high performance computing clusters TERAPICS will reduce the number of transceivers, connectors and fibers by a factor of 100,” stated Arlon Martin, Vice President of Sales and Marketing at Kotura.

Stefan Rochus, Vice President of Marketing and Business Development at CyOptics stated, “The TERAPICS development project will leverage CyOptics’ broad device portfolio of InP based lasers, receivers and integration processes as well as our highly automated assembly and packaging platforms.” Kotura will design the integrated silicon photonics chips upon which the laser and receiver arrays will be mounted. CyOptics will develop the monolithic arrays of high speed InP-based lasers and detectors, the automated assembly processes, and the laser and receiver components. Then, TERAPICS components will be assembled at CyOptics’ automated plant in Breinigsville, Pennsylvania, USA. Cyoptics News Release

Aixtron Acquires Nanoinstruments
CompoundSemi News Staff

October 8, 2007...Aixtron AG, an MOCVD equipment manufacturer headquartered in Aachen, Germany, has a reached an agreement to acquire Nanoinstruments, a maker of CVD and plasma enhanced CVD research systems for the production of carbon nanotubes (CNT) and other nanomaterials. Nanoinstruments, a spin-off of Cambridge University, is among many companies and research groups to develop CNT for many optical and electronic device applications such as flat panel displays, heat sinks, integrated circuits, sensors, or for electron guns. The new business unit, Aixtron Nanoinstruments, will reportedly focus on research and development of CNT and industrial scale CNT equipment. In the new business unit, Nanoinstruments will contribute its unique technology and expertise to Aixtron’s technical resources, manufacturing capabilities and its international customer service and support network. Key members of the Nanoinstruments management team will join the new Aixtron Nanoinstruments technology unit, including Nanoinstruments’ founders, Dr. Ken Teo and Dr. Nalin Rupesinghe.

Paul Hyland, President and CEO of AIXTRON said, “This emerging technology is highly complimentary to our core skill set. ...Coupled with our existing extensive experience and technical strength, we believe that we can, through the Nanoinstruments team, expand the business in the very interesting nanotechnology arena.”

Dr. Ken Teo added, “We are convinced that AIXTRON is the right partner to take our technology to the next level. ...We will be able to operate more closely with our customers through AIXTRON’s subsidiaries in Europe, USA, Japan, China, Korea and Taiwan.” Aixtron News Release

Update: Aonex and Sandia Demonstrate Cost-Effective GaN on A-GaN Substrate with Defect Density as Low as Bulk GaN

October 8, 2007...Arrowhead Research Corporation reported that its majority-owned subsidiary, Aonex Technologies, Inc. of Pasadena, California and its partner Sandia National Laboratories have successfully demonstrated the growth of high-quality gallium nitride on Aonex's proprietary A-GaN substrates. Laser diodes are manufactured by depositing (or 'growing') GaN-based device structures on expensive bulk GaN substrates. Aonex's A-GaN substrates are intended to offer a low-cost replacement for bulk GaN .

Aonex explains that blue LEDs are currently fabricated by depositing GaN-based device structures on sapphire and silicon carbide substrates, which results in lower quality devices and lower yield because of the lattice mismatch between the GaN and the substrate. Aonex acknowledges that superior devices can be produced using bulk GaN substrates, but says that these are prohibitively expensive compared to its A-GaN. GaN grown on A-GaN substrates is less expensive than both GaN on bulk GaN substrates and GaN on sapphire substrates. When Sandia researchers deposited GaN on A-GaN substrates they found it had about the same defect density as the original bulk GaN donor wafer (approximately 4 x 10-6 cm-2), but at a much lower cost. Aonex News Release

UF Engineer Wins Award for CS Process Technique Development
CompoundSemi News Staff

October 8, 2007...University of Florida College of Engineering professor, Steve Pearton, received the Institute of Electrical and Electronics Engineers Electron Devices Society’s J.J. Ebers Award. The Electrical and Electronics Engineers Electron Devices Society says that it gave Pearton the award for “developing advanced compound-semiconductor processing techniques, and clarifying the roles of defects and impurities in compound-semiconductor devices.” The University says that Pearton is the third UF engineering professor to hold the award. The others are Jerry Fossum, a professor of electrical and computer engineering won the award in 2004, and Chih-Tang Sah, a graduate research professor and Pittman Eminent Scholar of Electrical and Computer Engineering, received the award in 1981 while at the University of Illinois. Sah has been a UF faculty member since 1988. University of Florida News Release

Aixtron and CrystalQ Jointly Develop Tool and Processes for GaN on- 6-inch Sapphire Wafers
CompoundSemi News Staff

October 8, 2007...LED manufacturers have long understood that one of the best ways to increase throughput while reducing cost per LED is to increase the size of the wafer so that more LEDs can fit on each wafer. The majority of LED manufacturers use 2-inch wafers, and the high-end and high volume producers have switched to 3- or 4-inch wafers. Aixtron and CrystalQ have taken c-plane gallium nitride on sapphire wafers to the next level with 6-inch wafers. Aixtron developed and introduced a flexible mass-production deposition device, the AIX 2800G4 HT reactor, which can handle 6x6 inch sapphire wafers along with 2 inch wafers, while ensuring optimum uniformity of the epitaxy-layer growth.

With the same goal, CrystalQ, a maker of sapphire wafers, has improved upon its proprietary chemical mechanical polishing (CMP-polishing) process. CrystalQ’s innovative fabrication tool design allows controllability of roughness and flatness parameters of the of 6 inch C-plane sapphire substrates. The researchers worked to reduce the edge-exclusion zone to optimize the number of LED-chips per wafer. According to CrystalQ, this particular development gained impressive results: the standard deviation of the wavelength on the photoluminescence map was 2,48nm (0,55%) without edge exclusion. CrystalQ said that as part of the joint development project, the developers were able to successfully reuse (reclaim) 6-inch sapphire wafers after several steps to take ICs off of the sapphire wafers. CrystalQ News Release

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Commentary & Perspective...

CEOs Say Top Challenge is Establishing Excellent Execution, CEO Confidence Survey Says
Jo Ann McDonald, founding editor

October 10, 2007...According to a study just out from a business research group called The Conference Board, CEOs around the world are currently more concerned with execution rather than profit and top-line growth. The survey involved 769 global CEOs from 40 countries. When asked to rate their greatest concerns from among 121 different challenges, chief executives participating in this year’s survey chose excellence of execution as their top challenge and keeping consistent execution of strategy by top management as their third greatest concern. Sustained and steady top-line growth, which led the pack last year, now ranks second, with profit growth fourth, and finding qualified managerial talent fifth.

Since CEOs from compound semi industry companies probably aren't all that different from the mass population of global CEOs, I thought you might like to hear that. To me, it sounds a bit refreshing when CEOs focus is on doing a good job rather than simply bringing in profits. The other key challenges make you stop and think. Do I share the same concerns? Do I face similar challenges? Of course you do. Otherwise you wouldn't be a CEO... or aspire to be one. Let's look more closely at what the study revealed.

In case you don't know about the group, which I didn't until they kindly tagged me on a press release, The Conference Board is a nonpartisan and not-for-profit, business membership and research organization. It produces The Consumer Confidence Index and the Leading Economic Indicators for the USA and other major industrial nations, which are regarded as barometers that have the ability to have a major impact on financial markets. The Conference Board also produces a wide range of authoritative reports on corporate governance and ethics, human resources and diversity, executive compensation, outsourcing, profiting from a mature workforce, and corporate citizenship. Sounds like an interesting group. Their conference and council programs bring together more than 12,000 senior executives each year to share insights and learn from each other. You can find out more about them on www.conference-board.org .

According to Jonathan Spector, President and CEO of The Conference Board, “This year’s overall top challenge shows that CEOs from around the world are realizing that strong execution is a critical factor in driving profits and revenues. These executives are also becoming increasingly aware of the crucial role that people play in growing their companies.” I can't help but add (in possibly a really loud voice) that.... It's about time CEOs realized that business is all about building and maintaining good relationships!

The study went on to find that in the top 10 CEO concerns, finding qualified managerial talent (sixth place) and top management succession (seventh place) have become the dominant people issues for U.S. CEOs, replacing last year’s top HR concern, healthcare costs. The two concerns are closely intertwined, according to the study, because competition for talented managers will become even more fierce as many baby boomers (those born just after the end of World War II) depart the “top of the house” to move into “third-stage careers” and retirement.

After ranking seventh last year, the challenge of employee healthcare benefit costs slipped out of the USA top 10 in 2007. The study explained that its lower ranking as a greatest concern is most likely due to the downward movement of average annual rises in employee premiums for employer-sponsored health coverage, illustrating successful implementation of cost containment innovations. (We can only hope). The study also noted that the cost of employee healthcare benefits still ranks much higher for USA CEOs (16th) than it does for CEOs in Asia, where it ties for 69th place, or Europe where it ties for 71st place. The annual CEO Challenge Top 10 report from The Conference Board details specific challenges that CEOs face across regions, as well as by the company’s size, industry, and level of success – all factors affecting the concerns of CEOs.

CEOs in Asia rank finding qualified managerial talent as their top concern (38.6%), perceiving this need as being particularly acute, while it is only the sixth greatest concern for CEOs in Europe and the USA. Overall survey responses for Asia reveal other key differences. Chief executives in Asia are more focused on seizing opportunities for growth in China (fourth place) than their counterparts in Europe (19th place) and the U.S. (20th place). The same is true for expanding into India, a challenge top executives from Asia rank 10th, compared with 27th for European leaders and 30th for their USA colleagues. The study went on to point out that CEOs from Europe show a greater concern with getting new, more responsive ideas out sooner, a finding that might be based on the needs of companies operating in a more mature market. Therefore, execution in terms of speed, flexibility, adaptability to change is a more dominant theme in Europe (third place) than in Asia (tied for eighth) and the U.S. (10th place). Similarly, of the regional top 10 lists, speed to market only appears in the European top 10.

There's more to the study than meets the eye, of course. And we've only taken a glimpse at it here. The Conference Board’s CEO Challenge Survey 2007 was conducted during the first quarter of 2007. Respondents were asked to rate the magnitude that each challenge poses over the next 6-12 months on a scale of 0 (not applicable) to 5 (my greatest concern). A subsequent report will explore the implications of this year’s survey findings as articulated by chairmen and CEOs of leading companies from a range of industries around the globe. Their perspectives were gathered through a series of in-depth interviews, in which the topics ranged from balancing short-term and long-term goals under the relentless pressure for speed, addressing uncertainty and risk, succession planning and the availability of skilled labor, to the backlash against global outsourcing, the impact of rising energy costs, and what we are likely to see in the next wave of mergers and acquisitions.

And you thought being a CEO was cool. It is, but it's also a harder job than you may think. There's a reason CEOs get nice big paychecks, incentive plans and golden parachutes.

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