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CMP market slowdown seen

The effects of the Asian financial crisis will put the brakes on 1998 sales of CMP tools, one of the world's fastest-growing semiconductor equipment segments, predicts a market research firm. Worldwide sales of chemical mechanical planarization equipment will drop 2.7% in 1998, according to the Information Network of Newtripoli, PA. Sales in 1998 are forecast to reach $347.6 million, down from $357.1 million in 1997, says Robert Castellano, president. CMP tool sales grew 40% in 1997 and 56% in 1996.

The root cause of the decrease is the economic plight of Asian countries such as South Korea, where chipmakers have invested heavily in DRAM manufacturing. "It's very difficult to [sustain] that amount of growth unless you're picking up new markets," Castellano explains. "And the one market that's essentially virgin territory is the DRAM business. Most of the fabs worldwide, and primarily in Japan and Southeast Asia, bought evaluation tools to determine whether CMP is required in the DRAM business. They would buy just one tool." Several key factors inhibit memory chipmakers' ability to make further purchases, says Castellano. DRAM manufacturers expect "continual output from their existing fabs" by focusing on "die shrinks" rather than next-generation chips. They further are sticking with 200-mm tools rather than switching to 300-mm models, for example. "Coupled with fab closures, there's no real market there for CMP tools that would have sustained that long-term growth." An estimated two dozen device manufacturers in South Korea and Japan are foregoing CMP tool purchases, according to Castellano.

A recent quarterly report by CMP tool supplier SpeedFam International would seem to confirm the forecast. The Chandler, AZ—based vendor reported a "slowdown in sales of CMP systems to the semiconductor device market worldwide." The company reported earnings growth of 4.8% to $5.1 million in the third quarter ended February 28. Earnings for the same period in the previous year were $4.9 million. Sales of CMP tools represented nearly 58% of the company's total revenues for the period.

Castellano sees a return to growth of approximately 20% in the CMP segment in 1999, spurred by an overall increase in all equipment sales of approximately 10%. "That's assuming the crisis is going to subside," he cautions. Information: 610/285-4548.

Irish Cleanroom Society debuts

The Irish Cleanroom Society made its debut April 8 with a seminar and meeting at University College Dublin. Participants discussed issues such as cleanroom classifications, contamination control, and training. They also elected officers and committee members. The group's organizers note that "Ireland is the only European country with a substantial number of cleanrooms and controlled environments that does not have a forum to deal with issues facing the industry." The society's goals are to provide a forum for the exchange of ideas and working practices and offer a support network for companies involved in cleanroom technology. The society will be affiliated with the International Confederation of Contamination Control Societies (ICCCS), and it plans to publish an annual register of members. The organization welcomes users of cleanrooms and controlled environments, employees of design and construction companies, consultants, and vendors of cleanroom products and services. Information: +353 1 8300825; fax, +353 1 8300827.

Sputtering advance claimed

Two researchers at the University of Michigan have built an instrument that allows engineers to observe the sputtering process in action for the first time. The tool bounces noninteractive high-intensity x-rays off the atoms being deposited. This method permits observers to watch the atom layers in real time as they arrange themselves on a surface. John Bilello and Steven Yalisove, researchers in the university's department of materials science and engineering, say their breakthrough could enable scientists to adjust sputtering processes as they happen in order to maximize the properties of the thin films they are using. Bilello and Yalisove designed their instrument for use with sputter plasmas. They foresee the in situ x-ray technique becoming widely available as x-ray sources shrink and detectors become more efficient. The project was funded by the U.S. Army Research Office and DARPA.

SIA report expands coverage

SIA's 1998 Annual Report & Directory features expanded editorial coverage of major issues affecting the semiconductor industry. The 91-page report covers technology developments, foreign trade, ES&H, and economic trends. An additional highlight is a two-page time line of technological milestones since the invention of the transistor at Bell Labs in 1947. Maps show the locations of member company fabs in North America, Europe, and Asia. The directory pages feature comprehensive membership lists. Information: 408/436-6600; fax, 408/436-6646; +81 3 3237 7683; fax, +81 3 3237
1237 (Japan).

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