Q1 2012 SEMI Americas – Members Update A Quarterly Information Webcast to Inform and Inspire WHAT WE CAN ACCOMPLISH TOGETHER Ray Morgan Director Outreach

Q1 2012 SEMI Americas – Members UpdateA Quarterly Information Webcast to Inform

and Inspire

WHAT WE CAN ACCOMPLISH

TOGETHERRay MorganDirector Outreach and [email protected] / 408.943.7043

mailto:[email protected]

Agenda

• Welcome Remarks– Karen Savala, President, SEMI Americas

• SEMI Update & Highlights from ISS and SMC – Ray Morgan, Director, SEMI Americas

• 2012 Market Outlook & Trends – Dan Tracy, Senior Director, Industry Research &

Statistics

• Member Spotlight: MVTS – Ross Martindale, Vice President Marketing, MVTS

• Q&A– Open to All

Agenda




Statistics



Welcome Remarks

Karen Savala is president of SEMI Americas, responsible for all regional events, products, services, and government relations.

Savala joined SEMI in 1984 and has served in numerous managerial and executive roles, including positions in International Standards, executive programs, publishing, and membership.

SEMI currently serves members in the global LED market through trade events, market data and information programs, public policy advocacy, EHS programs, and manufacturing standards development.

Agenda




Statistics



About SEMI• Global industry association• Over 1,900 members• Established in 1970 to serve

the semiconductor supply chain• Today serves members interests

in the following industries:– Semiconductor – Flat Panel Displays (FPD)– Photovoltaic (PV) / Solar– Emerging & Adjacent (LED, PE,

MEMS)

Member Services

•Expositions•Executive Conferences•Technical Programs•Industry Standards•Environment, Health &

Safety•Industry Research &

Statistics•Customer / Industry

Network•Advocacy•Special Interest Groups

WWW.SEMI.ORG – Learn More

SEMI – A Few Q4 2011 Highlights

• Trade Agreement with Korea – eliminates about 99% of tariffs

• New Programs & Standards on 450mm Transition• New Global Semiconductor Packaging Materials

Outlook• Launched Americas Oregon, Arizona Chapters• Global Events

– SEMICON Europa, Oct– PV Taiwan 2011 – Oct– SOLARCON India 2011 – Nov– International Trade Partners Conference (ITPC) - Nov– Power Electronics - Nov– SEMICON Japan, Dec– PVJapan 2011 - Dec

SEMI – How to Engage.

Get Involved •Public Policy •Environmental, Health and Safety Efforts •Standards Development •Special Interest Groups Get Connected (Special Interest Groups)•Chemical and Gases Manufacturers Group (CGMG)•Silicon Manufacturers Group (SMG) •Equipment SuppliersGroup(ESG)•Photovoltaic Manufacturing Group (PV Group)•North America SEMI Sales and Marketing Council (SSMC)•EHS / Global Care

• Statistics– Over 250 Attendees, 31 speakers, 3 industry panels, extensive networking

opportunities

• Major Topics– Geo-Economic Trends– Semiconductor Markets– Hot Topics: 450 mm, EUV, 3DIC– Strategic Materials– Strategic Technology Challenges & Collaboration– Expanding Market Opportunities

• Event/Industry Sponsors

• 450mm Wafer Transition

• EUV Lithography

• 3D Device Structures

Markets Industry Challenges

William M. Holt, SVP & GM, Technology and Manufacturing Group, Intel Corporation

Day 1 - Keynote

William M. HoltSVP & GM, Technology & Manufacturing Group, Intel Corporation

Day 1 - Keynote

William M. HoltSVP & GM, Technology & Manufacturing Group, Intel Corporation

Day 1 - Session II Semiconductor Markets

Bernard S. MeyersonIBM Fellow and VP





Day 2- Keynote

Mike SplinterChairman of the Board of DirectorsPresident and Chief Executive OfficerApplied Materials, Inc.

Day 2 - Session III Strategic Materials

Tim HendryIntel VP and Director of Fab Material Operations

Day 2 - Session III Strategic Materials

David Lazokvsky President and CEO of Intermolecular

Agenda




Statistics



SEMI Market Update

SEMI North America Members Dan Tracy

SEMIFebruary 2, 2012

Outline

• Brief Market Observations

• Semiconductor Fab Trends

• Semiconductor Equipment Outlook

• Semiconductor Materials Outlook

• Summary

Semiconductor Industry Outlook:2011 To Exceed $300 billion

150

204

139 141166

213228

248 256 249226

300 310298

328

$0$25$50$75

$100$125$150$175$200$225$250$275$300$325$350$375$400

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

F

2012

F

2013

F

-50%

-25%

0%

25%

50%

75%

100%

Semiconductor Revenue Annual Growth

Source: SIA/WSTS historical year end reports, WSTS November 2011 Forecast

Glo

bal

Sem

ico

nd

uc

tor

Rev

enu

e U

S $

B

(bar

gra

ph

)

An

nu

al G

row

th %

(li

ne

gra

ph

)

2012 Semiconductor Revenue Forecasts

3.3%

4.0%

4.5%

4.6%

7.0%

8.0%

10.1%

2.6%

0% 2% 4% 6% 8% 10% 12%

WSTS (Nov 11)

IHS iSuppli (Jan 12)

Henderson Ventures (Dec 11)

VLSI Research (Nov 11)

Gartner (Sept 11)

IC Insights (Jan 12)

Future Horizons (Oct 11)

Semico Research (Jan 12)

Source: SEMI

27

Installed Capacity by Region

28

Installed Capacity by Product Type

LED Fab Capacity by Region, 2011

Worldwide LED capacity to reach 1.57M in 2011 (4” equivalent per month)

Source: SEMI Opto/LED Fab Watch Nov. 2011

LED Market Outlook

• LED market is driven by LCD-backlit in the near term and general lighting in the longer term.

• Recent market slowdown is caused by LCD panel weakness, especially from TV. Demand is expected to pick up slowly from 1Q12 onwards because of new TV models.

• Rapid capacity build-up in China has raised concerns about oversupply and that may accelerate (China) industry consolidation in coming years.

• MOCVD shipment is expected to slow down significantly this year after two years of aggressive investment.

• 2” sapphire price has come to new low in 4Q11 which may delay the migration to larger substrate size.

SEMI North America Book-to-Bill Ratio

0.70

0.80

0.90

1.00

1.10

1.20

1.30

Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 (f) Dec-11(p)

Bo

ok-

to-B

ill R

atio

Source: SEMI January 2012

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 (f) Dec-11 (p)

US

$ M

illio

ns

Bookings Billings

North American Headquartered Manufacturers Global Capital Equipment Book-to-Bill(based on three month averages)

SEMI® 2011 Year-End Equipment Forecast by Market Region

Source: SEMI, November 2011

Totals may not add due to rounding

$0$5

$10$15$20$25$30$35$40$45$50

N. America Japan Taiwan Europe S.Korea China ROW

ROW 2.61 1.44 3.84 3.47 2.9 3.15

China 1.89 0.94 3.68 3.77 3.53 3.80

S.Korea 4.89 2.60 8.63 7.99 8.59 8.36

Europe 2.45 0.97 2.34 3.90 3.35 3.52

Taiwan 5.01 4.35 11.25 8.05 6.88 8.33

Japan 7.04 2.23 4.44 5.82 5.23 5.69

N. America 5.63 3.39 5.75 8.80 6.77 7.20

2008 2009 2010 2011 (F) 2012 (F) 2013 (F)

US

$ B

illi

on

s

$15.92

$39.93

$29.52

$41.80 $40.05$37.28

SEMI® 2011 Materials Forecast By Market Region

$0$5

$10$15$20$25$30$35$40$45$50$55

Taiwan Japan ROW South Korea China North America Europe

Europe 3.32 2.54 3.21 3.43 3.54 3.66

North America 4.99 3.76 4.57 4.92 5.10 5.25

China 3.57 3.28 4.28 4.80 5.09 5.57

South Korea 5.90 4.78 6.31 6.98 7.23 7.56

ROW 6.90 6.08 7.51 8.13 8.31 8.65

Japan 9.96 7.72 9.30 9.33 9.58 9.78

Taiwan 7.87 6.91 9.32 10.06 10.47 10.83

2008 2009 2010 2011F 2012F 2013F

US

$ B

illi

on

s

$42.52

$35.06

Totals may not add due to rounding.

Source: SEMI Materials Market Data Subscription November 2011

$47.64$44.50

$49.32 $51.31

Summary• Industry Outlook

– Economic challenges and risks remain in 2012– Low- to mid- single-digit growth forecasted for

semiconductor revenues

• Fab Investments– Forecasting 6% growth in fab capacity for 2012 – NAND capacity growth could surpass DRAM capacity

• Semiconductor Equipment Market– Originally forecasting a -11% decline in 2012. Spending

decline could be in the single-digits.

• Semiconductor Materials Market– 2012 outlook currently shows ~4% growth

Agenda




Statistics



Maximizing Investments in Products & Technology

Business: Technology Solutions Company

Markets: Semiconductor, Electronics and Aerospace

Ownership: Privately-held Company

Revenue Profile:

20% growth, YOY, last 3 years

Founded: 1994

Headquarters: Carlsbad, California

Global Presence:

7 facilities worldwide Local presence in 14 countries

Solutions:

Product Manufacturing Engineering Supply Chain

Employees: 150

Ross MartindaleVP of [email protected]

MVTS Technologies

• Sample Challenge/Issue– Increase awareness for third-party value-add in semiconductor

secondary equipment market– Not many standards / expectations for customers engaging

with third-party suppliers

• SEMI’s Role & Service– SEMI SEA group formed in 2009 after SEC/N integration– Broader forum of peers with common goals and business

models– Increasing visibility by defining and communicating standards

• Result– Standards and definition for the various business models– Clearer expectations on equipment quality, service levels and

post sale support

Agenda




Statistics



WHAT WE CAN ACCOMPLISH

TOGETHERRay MorganDirector Outreach and [email protected] / 408.943.7043

Documents

Q1 2012 SEMI Americas – Members Update A Quarterly Information Webcast to Inform and Inspire WHAT WE CAN ACCOMPLISH TOGETHER Ray Morgan Director Outreach