Circuits Assembly Online Magazine - Market News

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Austin, TX, Dec. 3 -- A new study by TechSearch International projects a compound growth rate of over 28% in the flip chip and wafer level packaging market between 2004 and 2009. With a forecasted demand of 22 million 8-in. equivalent wafers (FC and WLP) in 2007, TechSearch projects a need for capacity expansion to meet the requirements.

According to the study, the drivers for flip chip continue to be performance, on-chip power distribution, pad limited designs and form factor requirements. High-performance logic suppliers such as ASIC, FPGA, DSPs, chipset, graphics and microprocessor makers are expanding their use of flip chip in package (FCIP). Applications such as watch modules and automotive electronics are included as flip chip on board (FCOB) packaging solutions. An increasing number of devices, from diodes to DRAMs, are packaged at the wafer level.

WLPs are also growing in volume for a variety of low lead count (¾100 I/O) applications-including analog devices such as power amplifiers, battery management devices, controllers, memory and integrated passives. Most of these devices are relatively small in size, and thousands can be fabricated on a single wafer. While the shift to flip chip and WLP did not materalize in high volume for DDR2 DRAM, performance requirements will necessitate a shift in interconnect methods from wire bond to bumps (flip chip or wafer-level package) for DDR3. Gold bump demand continues to be dominated by LCD driver ICs, but an increasing number of gold stud bumped devices are also shipping.

The expansion of flip chip technology continues to spark innovation and new developments. New bumping technologies continue to be introduced for the flip chip market. The assembly of bumped silicon fabricated with low-k dielectric materials resulted in a host of issues requiring changes to the materials and the assembly process.

Legislation in Europe banning lead and other materials deemed harmful to the environment by 2006 currently provides an exemption for high-lead flip chip bumps, however a number of companies are moving to adopt lead-free bump compositions. Demand for 300 mm bumping is expected to expand with increased production of devices on 300 mm wafers. Solder bumping prices continue to decline and are no longer a factor in the adoption of flip chip. However, high substrate prices continue to be a barrier to widespread migration from wirebond to flip chip attachment.

CHANDLER, AZ, Dec. 2, 2004 - Isola Group has completed a major portion of its European restructuring plan, including the relocation of full-scale production from the UK to its German and Italian operations. The Cumbernauld, UK, operation will maintain partial production capabilities to support quick turns and special products.

The company also relocated a sizeable portion of the basic research and development center to Chandler, AZ, and built a new customer service facility in Duren.

President and CEO Raymond Sharpe said Europe's operating performance continues to strengthen as a result of commitments to Lean and Six Sigma manufacturing techniques. "We have appointed both regional and individual site leaders to drive the program. During December, these European leaders will join a global Isola operations team in Japan for an intensive nine-day boot camp focused on achieving world class performance."

The group also reported that sales increased by 19% over last year for the three-month period ending Sept. 30.

Sales of high performance products grew significantly from the prior year and are expected to grow 50% annually over the next two years.

Sharpe commented, "Our cash flow from operations has improved substantially since the company was acquired by TPG and Redfern Partners in June. This has enabled us to improve our balance sheet and fund restructuring operations and strategic investments we believe will return value to our shareholders and customers."

Isola has plans to continue expanding in the rapidly growing Asia market and in high performance niche markets.

SINGAPORE, Dec. 2, 2004 - Speedline Technologies Inc. has launched a Chinese language version of their website (speedlinetech.com) as part of their expanding service to distributors, customers and manufacturers throughout Asia.

The new website provides information regarding products, services and software, along with technical processes and applications information and news. It also provides opportunities for partners and customers to conduct business online. Asia-specific customer support and contact information are highlighted.

To view the Chinese language version, visit the site and click on the Chinese flag.

Norcross, GA, Dec. 1, 2004 ¾ The Electronics Assembly Systems division of Siemens Logistics and Assembly Systems Inc. is providing a Lean Manufacturing course for the Americas. The first two-day course is scheduled for Jan. 26-27, 2005, in partnership with the Center for Electronics Manufacturing & Assembly (CEMA) at the Rochester Institute of Technology (RIT).

The course will take place at RIT's Rochester, NY, CEMA facility. The following Lean tools will be discussed: Value Stream Mapping (VSM); 5-S; Visual Controls; Standard Work; Takt; Kanban, Pull Systems and Supermarkets; Line and Cell Design; Setup Reduction, Total Productive Maintenance (TPM); Kaizen Event Training; Impact and Culture Change; and Assessment Tools.

The course is being offered as a result of the Siemens EA Consortium for the Advancement of Electronics Manufacturing Education (CAEME).

BANNOCKBURN, IL, Dec. 1, 2004- The North American book-to-bill ratio for rigid and flexible boards dipped slightly to 1.05 in October, according to IPC. It had been 1.08 in September. Shipments and bookings both dropped notably from the previous month.

The ratio is based on data collected from rigid PCB and flexible circuit producers that participate in IPC's statistical program. The ratio is calculated by dividing the value of orders booked over the past three months by the value of sales billed. A ratio over 1.0 is considered an indicator of rising demand.

Separately, the ratios were 0.94 for rigid PCBs and 1.48 for flexible circuits.

In October, combined shipments increased 15.3% year-on-year, with bookings up 2.7%.

PCB shipments are up 31.5% year-to-date, and bookings are up 31.4%.

However, shipments and bookings are both down from September, falling 15.5% and 16.8%, respectively.

Year-on-year, rigid PCB shipments are up 3.3% and bookings are down 20.0%. Shipments and bookings are both up year-to-date, increasing by 21.2% and 12.6%, but are both down sequentially, decreasing 18.7% and 16.7%, respectively.

Flexible circuit shipments are up 48.6% and bookings are up 81.5% year-on-year. Year-to-date, flexible shipments and bookings have grown 74.4% and 103.1%. Sequentially, flex shipments decreased 1.9% and bookings are down 17.2%.

Flexible circuit sales, which include some value-added services in addition to the bare flex circuits, represent about 17% of total PCB sales in IPC's survey sample.

In a press release, IPC cautioned that month-to-month comparisons should be made with caution as they may reflect cyclical effects.

Carlsbad, CA — Asymtek is holding a conformal coating and dispensing workshop on Wednesday, Dec. 8, at the Center for Board Assembly Research, Manufacturing Research Center (MARC) of the Georgia Institute of Technology in Atlanta. The hands-on workshop will feature demonstrations from Asymtek and presentations from Dow Corning, Georgia Tech, Emerson and Cuming, Henkel Technologies, Humiseal, Heraeus and Nordson.

Speakers will review the best practices for coating, jetting and other electronics assembly dispensing from both material and equipment perspectives.

For more information on the free event, visit: www.asymtek.com/news/seminars/southeast_2004 or call 1-800-ASYMTEK, ext. 8496.