Since 1994, Abrel have been at the forefront of semiconductor reliability testing, specialising in High Temperature Operating Life (HTOL), Highly Accelerated Stress Test (HAST), and Power Temperature Cycling (PTC) boards. Our unique position in the industry allows us to offer a technical perspective on the current state of the semiconductor sector and the implications of recent global initiatives.
Current Industry Dynamics
The semiconductor industry’s recovery in 2024 is marked by specific technical trends that are reshaping the landscape.
Memory Market Rebound
The global memory chip market, which experienced a 31% decline (approximately $40 billion) in 2023 from its 2022 levels of $130 billion, is poised for a significant recovery. This resurgence is particularly notable in DRAM and NAND flash technologies. Our HTOL boards, designed for extended high-temperature testing of these memory components, are seeing increased demand as manufacturers ramp up production and focus on reliability for next-generation chips.
Advanced Node Manufacturing
The industry is pushing towards more advanced nodes, with 3nm and 2nm processes gaining traction. This shift presents unique challenges in reliability testing, particularly in areas of electromigration and time-dependent dielectric breakdown (TDDB).
Fab Utilisation and Capacity
Fab utilisation rates have fallen from the mid-90% range to below 70% in Q4 2023. Simultaneously, fab capacity grew by 1.3% in Q4 2023, with a similar projection for Q1 2024. This dichotomy between capacity and utilisation presents unique challenges in maintaining consistent quality across varying production volumes.
It’s worth noting that inventory levels remain particularly high, standing at over $60 billion as of Autumn 2023. This substantial inventory overhang could act as a significant headwind for sales in the first half of 2024, potentially impacting the timing and scale of new investments in the sector.
AI and High-Performance Computing
The surge in AI applications is driving demand for high-performance computing chips. These chips often operate at higher temperatures and power densities, necessitating more rigorous reliability testing. Our Endzone burn-in system is being utilised to stress-test these components under extreme conditions, ensuring reliability in AI-focused data centres.
EU Chips Act: Technical Implications
The EU Chips Act’s focus on advanced manufacturing presents specific technical challenges and opportunities:
Open EU Foundries (OEFs) and Integrated Production Facilities (IPFs)
These “first of a kind” facilities in Europe will require advanced testing methodologies. Our Reliability boards are being tailored to meet the unique requirements of these facilities, particularly for testing chips designed for automotive and space applications, which demand higher reliability standards.
Design Capabilities
The initiative to strengthen Europe’s chip design capabilities will likely lead to more complex, custom designs.
A key component of the EU Chips Act is the new “Chips Fund”, designed to facilitate access to finance for start-ups and SMEs in the semiconductor sector. With a projected overall value of €2 billion, this fund could significantly boost innovation and competitiveness in the European semiconductor ecosystem. We’re keenly watching how this might influence the emergence of new players and technologies in our field.
The Act also establishes a European Semiconductor Board (ESB) as an overarching advisory body. This board will facilitate coordination between the Commission, Member States, and industry stakeholders.
US CHIPS and Science Act
A critical motivator for the US CHIPS Act is the current lack of domestic manufacturing capability for the most advanced logic and memory chips at a commercial scale. This gap in the US semiconductor ecosystem has significant implications for national security and economic competitiveness, driving the urgency of the Act’s implementation.
The US initiative also brings specific technical focus areas –
Advanced Packaging
With $39 billion allocated for manufacturing incentives, we anticipate a surge in advanced packaging technologies like 2.5D and 3D IC integration.
Research and Development
The $11 billion investment in R&D is likely to accelerate innovations in materials and device architectures. It is expected that this funding will be spread across large and small companies, as well as startups, with the goal of promoting and fostering innovation and collaboration.
Moving Forward
Both the EU and US initiatives emphasise the importance of international partnerships and cooperation in the semiconductor sector. This global perspective aligns well with Abrel’s position as a company serving a worldwide network of customers. We anticipate that these collaborative efforts could lead to new opportunities for cross-border projects and knowledge sharing.
Interestingly, the EU Chips Act specifically mentions research into PFAS (Per- and polyfluoroalkyl substances) alternatives as an area of interest. A workshop on this topic between the EU and Japan is planned for January 2024. At Abrel, we’re closely monitoring developments in this area, as changes in chip manufacturing materials could have significant implications for our testing methodologies and equipment.
The semiconductor industry is at a technological inflection point, driven by advanced node manufacturing, emerging materials, and new application domains. At Abrel, we’re not just observing these trends but actively adapting our testing solutions to meet the evolving challenges – our focus remains on providing cutting-edge reliability testing that ensures the quality and longevity of semiconductors in this new era of innovation and global investment.
Our commitment to staying at the forefront of the semiconductor industry is evident through our multifaceted approach to growth and innovation. We have implemented strategic initiatives to secure top-tier talent, recognising that a skilled workforce is crucial for maintaining a competitive edge. Through partnerships with academic institutions like the University of Limerick and the Technological University of Shannon, Abrel has established a robust talent pipeline. The Co-Operative Student Placement programme and the GradStart Programme, supported by Enterprise Ireland, provide invaluable opportunities for students and recent graduates to gain hands-on experience in project-based engineering roles.
To complement its focus on human capital, Abrel has made substantial investments in cutting-edge equipment. We’ve recently acquired state-of-the-art machinery, including a Fuzion1-11 pick and place machine from Universal and an EKRA automatic screen printer. These additions significantly enhance Abrel’s production capabilities, allowing for increased capacity, improved accuracy, and the ability to handle more complex board assemblies. The new equipment not only streamlines existing operations but also positions Abrel to accommodate future technological advancements in the industry.
Abrel’s presence at industry events, such as the 18th Philippine Semiconductor & Electronics Convention and Exhibition (PSECE), demonstrates its commitment to global engagement and market expansion. By showcasing pur diverse product portfolio and newly developed brand identity at these events, Abrel reinforces its position as a trusted burn-in partner and fosters relationships with existing and potential customers worldwide.
Furthermore, Abrel’s pursuit of certifications, such as the recently acquired ISO 14001 for Environmental Management Systems, underscores our dedication to sustainable and responsible business practices. This certification enhances our appeal to environmentally conscious clients and stakeholders. The company’s focus on sustainability, as evidenced by its investment in energy-efficient systems and waste management, aligns with the industry’s growing emphasis on eco-friendly practices.
By continually investing in talent, technology, market presence, and certification, our adaptability and forward-thinking approach is clear to see. These strategic initiatives ensure that Abrel remains well-equipped to meet the evolving demands of the semiconductor industry, solidifying our position as a leader in reliability testing and burn-in solutions.
