Technology Drivers and Challenges in a Growing More-than ... · Global MTM Fab Capacity Forecast 1,319 1,307 1,298 1,117 1,127 1,130 4,171 4,415 4,530 4,633 4,724 4,805 629 731 802

Semicon Europa 2018 - External Use

Technology Drivers and Challenges in a Growing More-than-Moore Market Place

John C Cummings.,

Managing Director

200mm EPG Sales, Operations & Business Development


Outline

Introduction To Applied Materials

XXXXX

Conclusion / Discussion

Semiconductor Market Outlook

MtM Equipment Product Group

≤200mm Equipment Manufacturing

Core Availability and Tool Pricing Trends

Conclusion / Discussion



AMAT stock

listing on

NASDAQ

$14.5 billionrevenue

Headquartered

in California’s

Silicon Valley

~18,400 employees

90 locations

In 17 countries

semiconductor and display equipment company

World’s #1

>11,900patents

$1.8 billionR&D spending

Data as of fiscal year end, October 29, 2017


Applied Global ServicesComprehensive Services, Consulting, Equipment, Automation Software

FAB SERVICES

• Supporting

>33,000 tools

• >3,000 field engineers

• Innovative, flexible

and technology-based

service solutions

EQUIPMENT

• 200mm semi

• Fab environmental

solutions

• Dedicated R&D

for emerging

technology

• Technology and

productivity upgrades

• Legacy solar

and display

SOFTWARE

• Performance

improvement systems

• Manufacturing

execution

systems (MES)

• Equipment and process

control systems

• Material control systems

COMPONENTS

• Certified Parts

• Flexible spares

delivery programs

• High performance

part options

• Advanced coatings

and cleaning

FABVANTAGE

• FabVantage

benchmarking

• Tool output

and cost

• Yield and predictability

• Fab productivity


Industry is ChangingGrowth + Increased Stability

2000 2010 2016

PC + Internet

Mobile + Social Media

Visual Computing +Artificial IntelligenceVR / ARIoTBig DataAI / Machine learningSmart vehiclesPersonalized medicineAdditive manufacturing

Av. WFE = $25.5B*

σ = $8.0B

Av. WFE = $31.7B**

σ = $2.7B* 2000 - 2009 ** 2010 – 2016F


Smartphones$121B, 3%

Automotive$43B, 10%

PC$34B, 1%

Tablets$10B, -3%

Consumer Electronics$47B, 4%

Industrial$47B, 10%

Storage$31B, 12%

Server$47B, 9%

$-

$20

$40

$60

$80

$100

$120

$140

$160

-4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16%

Mkt Size ($B)

CAGR (%)

2018 End Markets - Market Size ($B), CAGR (%) 2017-2022

$479B, 5%

Source: Gartner Semiconductor Forecast Worldwide Revenue- by Semiconductor Device (June

► Smart Phone: Chip content increase - driving both new technologies and capacity adds

► Automotive: ADAS, Electrification, Telematics (4G/5G), Infotainment are key factors

► Datacenter/Server: IoT / Increased ‘Cloud’ and ‘AI’ presence - onset of photonic technology inflection

► Communication Infrastructure: 4G/5G transition and 5G preparation at Base Station, Handset and Repeater

► Industrial: Industry 4.0, Building Automation and Control, Robotics & Drones for industrial applications

► Consumer: IoT, Wireless Charging, Virtual & Augmented Reality (VR/AR), Artificial Intelligence (AI), Drones & Robotics,



Mega Trends and Key Market Drivers7

4G / 5G Communications

AR / VR / Facial RecognitionInternet-of-Things

Adv. Automotive

Smartphone


3,000

4,000

5,000

6,000

180

190

200

210

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

(k wspm)Fab Count

Source: Global 200mm Fab Outlook, June 2018, SEMI

200mm Fab Count and Capacity

Capacity Count


(600,000 wspm Incr. Through 2022) CAGR ~ 2.35%(2015-2022)

188k

194k

195k200k

204k203k

203k

Years


Global MTM Fab Capacity Forecast

1,319 1,307 1,298 1,117 1,127 1,130

4,171 4,415 4,530 4,633 4,724 4,805

629731 802 852 896 915

6,683 6,907

2021

6,654

2020

57

2019

6,1716,505

20182017

52

2016

5752 52 52

6,804+736 Kwspm

*Not Including Wafer makers and Packaging house

300mm 200mm 150mm <150mm

MTM capacity projected to grow by ~740Kwspm between 2016 and 2021

(Kwspm)

Source: EPG Marketing, 2017


Average 200mm Utilization% by Device FY16 - FY18

86%86%85%86%85%87%87%85%83%83%80%81%

Q1’16 Q2’16 Q3’16 Q1’17Q4’16 Q4’17Q2’17 Q4’18Q3’17 Q1’18 Q2’18 Q3’18

+6%

69%69%69%69%69%65%65%

58%58%58%58%58%

Q3’16Q1’16 Q4’17Q2’16 Q4’16 Q2’17Q1’17 Q3’17 Q4’18Q1’18 Q2’18 Q3’18

+19%87%86%85%84%82%80%80%82%80%

76%75%72%

Q4’17Q1’16 Q2’17Q2’16 Q3’16 Q4’16 Q1’17 Q3’17 Q1’18 Q2’18 Q3’18 Q4’18

+15%

86%86%86%86%85%85%85%85%82%82%84%83%

Q1’17Q2’16 Q4’16 Q1’18Q1’16 Q3’16 Q4’17Q2’17 Q3’17 Q2’18 Q3’18 Q4’18

+4% 93%93%93%92%90%87%

85%84%83%81%81%80%

Q3’16Q1’16 Q1’17Q2’16 Q4’16 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18

+15%

92%92%92%91%90%88%87%88%88%86%86%84%

Q2’17Q1’17Q1’16 Q2’16 Q4’17Q3’16 Q4’16 Q3’17 Q1’18 Q2’18 Q3’18 Q4’18

+8%

Foundry MEMS Power

Analog CIS CMOS

Source: EPG Marketing, 2018


Enabling MtM Technologies▪ Smartphone / Tablet, Automotive and Wearable will drive new technology requirement for the

next 5+ years – with a number of select devices migrating to 300mm

Automotive

(Body, Engine, Infotainment, ADAS)

Wearables

(Fitness, Garments)Smartphones & Tablets

End Use Application(s) Segments with >70% 200mm

Content

Key inflections in high growth application segments drive requirements for new materials, packaging and CMOS integration

Adv. CMOS Compatible Films(PECVD SiGe for MEMS)

Ultra Uniform AlN Films(MEMS RF Filters)

Adv. Epi Technologies(Power Switching)

Adv. Etch Solutions(Packaging, Power)

Adv. Metal Deposition(Power Technologies)

Endura Centura / Producer CVD

Centura Epi Centura DPS DTM Endura


Broad Range of MTM Materials & Process Technologies

Key inflections in high growth application segments on ≤200mm wafer sizes drive requirements for new Materials, Process, Packaging technologies

Adv. CMOS Compatible Films(PECVD SiGe for MEMS)

AlN / ScAlN Films(Multiple MEMS Applications)

Adv. Epi Technologies(Power Switching)

Adv. Etch Solutions(Packaging, Power)

Thick Aluminum Deposition(Power Technologies)

Thick / Neutral Stress / Low Temp / Conformal Dielectrics(Multiple Applications)

Electrodeposition Technologies(Multiple Applications)

Complete TSV Processing (Broad Range of ARs)


≤200mm Product Demo & DevelopmentXi’an, China based Customer Demo and Product Development Facility

c-Si/TF Solar

Labs

AGS Semi Lab

12 KW TF Solar

Array

B1

B2

AGS Training

Center

56KW c-Si Solar

Array

LED LabScreen Printer

Mfg

Located in Xi’an China

▪ Complimenting 200mm tools in California, Xi’an is the main 200mm development and demo facility


≤200mm Equipment Portfolio

ImplantE220/500

VIISion 80/200

ViiSta

Proton

MEHD2

ThermalCentura®

RTP

Epi RP+

Pronto HGR Epi

LPCVD

Gate

Inspection &

MetrologySEMVision

Complus

VeritySEM

PVDEndura®

HDR Al

Soliton

Al (Slab/Fill)

Liner/Barrier

iLB

CuBS

ALPS Al / Co

CleanW™

SIP TTN

CVDCentura

Producer

DxZ Silane

DxZ TEOS

DxZ SACVD

Gigafill SACVD

Ultima+ HDP

WxZ and WEB

EtchCentura

MxP®

Super-E

Metal/Poly DPS+

ASP+

eMAX

DTM

Altum

CMPMirra®

Mirra Mesa

Oxide

Tungsten

STI / Poly

Copper

PlatingRaider®

Nokota®

Blazer

Bump/Pillar/RDL

TSV

Interconnect ECD

Cleans

Supporting the MTM evolution with innovative platform & process technologies


Ch

amb

er

Tech

no

logy

Key Market Opportunities based on Technology InflectionsD

evic

e

Ap

plic

atio

nO

n W

afe

r Te

chn

olo

gy

Soliton™ Pronto™ HDR Al™ Etch NG

Fingerprint Sensor RF Filter

Next Gen Microphone IGBT / SJMPower Device

EPI WafersPower / MEMS

Film Opportunities (AlN / ScAlN / PZT)

Film Opportunities (RP Fill / ATM Blanket)

Film Opportunities (≤12µm AlCu / AlSi)

Process Opportunities (Critical Etch For MEMS)

High Power MOSFETsNext Generation

MEMS Gyroscopes


200mm / 300mm Transition Technologies

▪ The 200mm/300mm transition will occur in MTM on an opportunistic basis, likely under the

following considerations:

➢ Volume / ASP Pressure ➢ Available BW On Depreciated 300mm Line

➢ More Sophisticated ASIC ➢ Opportunity For Disruption (ASP/ Technology)

➢ WLCSP Required ➢ Technology Existing Or Easily Ported To 300mm

▪ Examples from the MEMS segment may include:

Gyro – ASIC / WLCSP AlN / ScAlN Based Devices Disruptive Technologies


`

Enabling Green Compliance with Fab Environmental Solutions

iSystem™

▪ Subfab resources conservation

▪ Automated safety management

▪ Central monitoring and reporting platform

Aeris™-G

▪ Highest DRE in the industry

▪ Zero footprint for easy retrofits

▪ Low power and zero fossil fuel consumption

Aeris™-S

Intelligent software to optimize subfab resource management

GHG zero footprint plasma abatement system

Process effluents safety and solid waste plasma treatment

▪ Designed to treat dirtiest applications

▪ Extend chamber exhaust and component MTBF

▪ Improve worker safety

New! Aeris™-Si

Clean Gas injection for foreline safety and solids management

▪ Proven particle management for High Flow TEOS applications

▪ Extend pump life and time between foreline PMs


Obsolescence - Extending 200mm Equipment Life

Producer®Mirra®

/ Mirra Mesa®

ComPLUS™ Endura®Centura®

Faster processing80X

Greater data rate1000X

More data storage100X

More computational bandwidth100X

Available for all platforms shown

Applied Vita Controller

for 200mm

Systems

TM

Full backward compatibility with existing software versions and customer recipes


7 EPG Manufacturing Locations

Austin:

≤200mm (New & Refurb)

- CMP

- CVD

- Etch

- PVD

- FEP

FES/SubFab (New)Israel:

200mm - Legacy PDC (Refurb)

Gloucester:

200mm- Varian Implant (Refurb)

Oregon:

Mask – Alta (New)

Japan, Kawasaki:

Mask – Sigmameltec (New)

Japan, Saitama:

Mask – Holon (New)

Korea

Vericell (New)


EPG MtM System Manufacturing – Austin, TX

• Dedicated team >250 employees (average experience >17 years)

• New and Used system manufacturing >80,000 sq ft. of manufacturing and warehouse

20Test Bays (full final test)

New System builds

Refurbishment, customer core refurbishment & trade in

In-house chamber and module builds

Capacity greater than 40 tools / quarter

• Manufacturing services for all Applied Materials product lines Endura (PVD)

Centura (Thermal, Etch, CVD)

Producer (CVD)

Mirra Mesa (CMP)

• Supply chain and direct materials management

• Obsolescence Protection

• Field startup and on-site support expertise

20

Build Material

New – Used – Core Material pull

to the Mfg. floor via Discrete Jobs

Common Module Build

Overview of AMAT 200mm

Manufacturing Refurbish Process

Gasline Weld Shop

Module Test

System Integration

All modules integrated to

mainframe

Process starts with Core

Project Review in Core Room

Core Disassemble

Used System is torn down to

module level

Gas Panel Build

Module BreAK DownAll chambers/modules broken down to piece

part level and sent for cleaning and restored

to like new condition

Mainframe Build

Chamber Build

Full Integrated Final Test

Customer Prep

Tool is prep for

shipment

Applied

Materials

System

is crated

and

shipped Module Build

Cycle

(All modules are

bay built in

parallel)

Remote Build

1

2

3


Improved ManufacturingFlexible Manufacturing Initiatives

▪ Streamlining manufacturing processes

►Pre-staging common modules to shorten manufacturing cycle time

► Increasing in-coming functional test of cores to reduce module build times

► Internal subassembly test capability for key OEM components

▪ Maintaining significant core inventory via continuous market tracking

►Purchasing high quality cores to reduce rework requirements

►Targeting high demand configurations for improved lead-time

▪ Moving from “build to order” to “forecast” model on long lead items

►Performing full tool audits and system configurator updates

►Enhancing forecast quality to reduce procurement lead time

Enabling shorter lead time, better quality and more flexibility


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

5

10

15

20

25

30

35

40

45

50

# o

f Sy

ste

ms

Revenue Quarter

Core Refurb vs. New Mainframe Builds

NewMainframeBuilds

Core Refurb

% of NewMainframeBuilds

Austin Tool Build ActivityQ

1'1

2

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Q1

'17

Pro

j

Nu

mb

er

of

Ite

ms

Quarter

200mm Core Quarterly ActivityCores OUT

Cores IN

Net OpenMarket Items

$k

De

lta

fro

m Q

1'1

4

Quarter

150/200mm Core Market Price Increase

Mirra Stand Alone

Producer Split

Centura DxZ

CII DPS+ Metal Etch

CII Oxide Etch

TPCC Xe+ (3 CH)

Endura iLB

Endura PVD / Al

2012 2013 2014 2015 2016 2017 2018 2019

Nu

mb

er

of

Co

res

Annual Core ActivityCores OUT

Cores IN

Net OpenMarketItems

AverageCore Cost

Source: Applied ≤200mm Manufacturing Ops, 2017


Lead Time Performance Summary

Rela

tive

Sys

tem

s S

hip

pe

d

Le

ad

Tim

e

Sustained lead time performance through production ramp with manufacturing efficiency

improvements, supply chain and manufacturing investments. Lead time challenges

expected to continue in FY18 under a constrained core market.

Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

System Lead Time

Source: Applied ≤200mm Manufacturing Ops, 2017


Conclusion

Applied Materials Supports MtM Device Technologies by:

▪ Continued R&D on ≤200mm MEMS, Power, Analog, CIS, Packaging & CMOS

technologies and their translation to 300mm capable platform and chamber products;

▪ Working with leading R&D organizations to ensure our film and process

technologies are demonstrated at the device level

▪ Constantly looking for new ways to grow our portfolio of advanced tools, materials,

and processes—we're eager to collaborate with you!

Applied Materials—Your OEM Partner in Continuous ≤200mm and 300mm Technology Development

25


Documents

Technology Drivers and Challenges in a Growing More-than ... · Global MTM Fab Capacity Forecast 1,319 1,307 1,298 1,117 1,127 1,130 4,171 4,415 4,530 4,633 4,724 4,805 629 731 802