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Many interesting things have been shownat Photonics West 2006 and especially inMOEMS and MEMS. Of particular interestwas the plenary talk on optofluidics.Kicking off the session on Monday, GeorgeWhitesides of Harvard University's depart-ment of chemistry and chemical biology,discussed the use of fluids in optics. Hereit is no longer the integration of microoptics and micro fluidics for Life Sciencesapplication which has been discussed butthe realization of entirely new devices.Fluidic optics can be used for the realiza-tion of mirrors, waveguides, tuneable flui-dic lenses, switches, splitters … A secondinteresting point of the conference concer-ned the evolution of FPDs with MEMStechnology. DMD is still the largest part ofthe MEMS market today. TI is clearly themarket leader with a vigorous marketingcampaign but competitive MEMS-basedtechnologies are appearing. Some will tar-get specific market like SONY’s GLV butothers may directly enter the main streammarket although TI will still probably staythe leader for some time. In 2 to 3 years,laser-based display technology might enterthe market as well and at the same time,scanning 2D micro-mirror technology forRPTVs could also arrive on the market.This really shows that MEMS are movingfrom Optical Fiber Conferences toPhotonics events.

This month, we will release a new reporton MEMS for display applications. You arewelcome to contact us for more informa-tion.

Dr Eric MounierEditor-in-chief

MEMS

R&D cooperation agree-ment between CEA – CSEM –FhG dedicated to MEMS page 11

Microtechnologies for Life Sciences & Chemistry

thinXXS starts as a stockcompany entering 2006 page 23

IC Manufactur ing

China’s the new king of ICdemand page 25

Optics & Compound Semiconductors

HP joins rival camp,Pioneer launches Blu-ray drive

page 18

Nanotechnology

Indian “Kajal” is discoveredto be composed of carbonnanotubes page 15

Micronews is free of charge. Register online to have free accessto Micronews at www.yole.fr/micronews/micronews_form.html

MEMS aremoving fromOFC toPhotonics

February 2006 - n° 44

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The Yole Développement magazine

List of companies cited in “Micronews”

ContentsEditorial page 1

Yole Index page 3

Special Report pages 4 to 6

MEMS-based microdisplays market analysis

MEMS pages 6 to 13

TI sells sensors business for $3 billionIndian Institute of Sciences plans a mini-fab for MEMS activityNomination of Professor Kristofer S.J.Pister for the Alexander SchwarzkopfPrize for Technology Innovation

Nanotechnology pages 14 to 15

“Electronic nose”: NanoNord acquiringCantionNanophase : 44% Revenue and 77%Product Sales Increase Year-Over-Year$ 18.7 M in additional financing round forNanogram

Optics &Compound Semiconductors pages 16 to 20

European group studies device packaging ColorChip closes $9.5 million

Bookham secures $72m order and paysoff debtsFairchild announces the sale of its LEDand LED display product lines to Everlight

Microtechnologies for Life Sciences & Chemistry pages 21 to 23

Microneedle devices developer raising 1stroundSTMicro and Veredus develop Lab-on-Chip test for bird fluAgilent microarrays become more agile:new ink-jet manufacturing processGyroscopes that can detect cancer

IC Manufacturing pages 24 to 27

Intel demonstrates working 45nm chipsApplied Materials and IMEC team to deve-lop innovative 32nm, 22nm interconnectEquipment industry finishes 2005 with abook-to-bill of 1.01Infineon announces loss of 183 million forQ1 2006Steag HamaTech acquired by SingulusTechnologies

The Yole Développement magazine February 2006 - n° 44 2

Managing Editor: Jean-Christophe Eloy - Editor in chief: Dr. Eric Mounier - Editorial secretary: Dr. EricMounier Editors: Dr. Eric Mounier, Jerôme Mouly, David Jourdan, Barbara Pieters, Dr Clémence LabatCommunication & Business Relations Manager: David Jourdan - Production: Mathieu Quiblier -Proofreader: Nick Tasker - Micronews is done with ATIP, the Asia Technology Information Program (www.atip.org).Yole Développement: 45, rue Sainte Geneviève, F-69006 Lyon, France - TEL. (33) 472 83 01 80 - www.yole.fr

Yole Life page 28

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MEMS CEA Leti, CSEM, Eyelit, Fraunhofer, Fuel Cells Works, IMTEK, Indian Institute of Science, IVAM, MEMS Technology Bhd,Micralyne, MIMOS, Surface Technology Systems (STS), SUSS MicroTec, Texas Instruments NANO Applied MicroStructuresTechnology, Aspen Aerogels, Cantion, Innos, Lux Research, NanoGram, NanoHorizons, Nanomix, Nanonord, NanophaseTechnologies, Nanostart AG, Nanosys, Technology Partners, Tekes, Zyvex OPTICS & COMPOUND SEMICONDUCTORS Aduro,Audi, Avanex, Bookham, Carl Zeiss, Colorchip, Cree, DiCon Fiberoptics, Emcore, Encaps, Epistar, Everlight International Corporation,Fairchild Semiconductor, Firecomms, Force, Ford, Goodrich, HP, Jabil Circuit, K2, Kotura, Lumileds, Omron, ORC, Pioneer, Silicann,Silios, Swiss Federal Institute of Technology, UEC, University of Potsdam, Zuse Institute MICROTECHNOLOGIES FOR LIFE-SCIENCES & CHEMISTRY Affymetrix Inc., Agilent Technologies, Alpha Innotech, Applied Biosystems Group, GE Healthcare, KyivUniversity, NanoPass Technologies Ltd., Nano-to-Life, Newcastle University, QinetiQ, Stanford University, STMicroelectronics NV,thinxxs Microtechnology AG, UpChurch Scientific, Veredus Laboratories Pte. Ltd., Zi Medical IC MANUFACTURING Applied Materials,Fujitsu, Hitachi, IBM, IMEC, Infineon Technologies, Intel, Philips, Renesas Technology, SIA, Singulus Technologies, Sony, SteagHamaTech, STMicroelectronics, SUSS MicroTec, Toshiba, TSMC, Unaxis wafer processing, VLSI Research

Micronews’ Gold Partners

Editorial Staff

Yole Index (current stock price)

MaterialOkmetic (SF)Soitec (F)

EquipmentSüss Microtec (D)STS (UK)Ultratech (USA)

ComponentsMemscap (F)Affymetrix (USA)Cepheid (USA)Caliper (USA)Elmos (D)Dalsa (CA)Motorola (USA)Analog Devices (USA)STM (F)Melexis (B)

Symbol

OKM1.FSOIT

SMHSRTS.LUTEK

MEMSAFFXCPHDCALPELGDSAMOTADISTM

MELE

EurEur

EurGBP

$

Eur$$$

Eur$$$

EurEur

Total numberof shares(M)

16,956,2

15,231,423,7

108,060,341,728,619,316,4

2342,1373,8901,045,6

High/Low(52-wk range)

1,95/2,656,05/21,72

3,54/7,940,09/0,29

13,21/22,93

0,22/0,3934,45/59,735,83/11,455,40/8,13

8,68/15,5611,50/21,1014,48/24,9931,71/41,4013,96/19,909,10/12,00

Market cap(M)30-01-06

34,61179,8

112,58,8

460,8

61,92272,3400,8169,1197,8206,3

52954,514951,016723,3527,1

Price01-01-06

1,9514,48

4,780,1716,50

0,3047,488,865,979,0812,7922,8936,1318,3010,99

Price30-01-06

2,0521,00

7,420,2819,45

0,3437,699,625,9110,2512,5622,6140,0018,5611,56

Variationyear to date

5,1%45,2%

55,2%64,7%17,9%

13,3%-20,6%8,6%-1,0%12,9%-1,8%-1,2%10,7%1,4%5,2%

Characters & Story: Éric, Design: Bupla

The Yole Développement magazine February 2006 - n° 44 3

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Special Report

This article describes the new market trends for MEMS-based microdis-plays. TV and projections systems are the main market but other appli-cations are coming that will broaden the use of DMDs. Moreover, dis-plays based on MEMS technologies are becoming more and more impor-tant and if QUALCOMM MEMS Technologies is able to introduce a newdisplay on the market, we will certainly see a stronger growth after 2008.

MEMS-based microdisplaysmarket analysis

The different MOEMS marketsFor a long time, optical MEMS applications havebeen separated into two main fields: telecom appli-cations (this market has driven the optical MEMScommunity during the 90’s and optical switcheswere the main applications) and non telecom appli-cations (these applications were quite limited exceptin TV and projection systems with the success ofDLP™ Texas Instruments technology). However in2001 the sudden downturn of the Telecom businesschanged the optical MEMS landscape and manycompanies stopped their optical MEMS develop-ment. However, some companies succeeded inexploring new applications outside the telecom areabut using their telecom technological platform. DMDis the most popular MOEMS application today butseveral new niche applications are now appearingaside from TV and projections systems that willbroaden the use of optical MEMS-based micro mir-rors and micro scanners :• Barcode readers • Compact projectors• Head-Mounted Displays (HMDs)• Head-up displays (HUDs) • Adaptive front light systems (AFS)• Printers• Fingerprint sensors• Maskless lithography• Adaptive optics

We estimate that the optical MEMS market will growfrom US$1.8B in 2005 to more than US$4.5B in2010 including microbolometers (see figure 1). Forthe years to come, projection/display applicationswill represent more than 75% of the total MOEMSmarket. Figure 2 shows the different MOEMS pro-duct roadmap. Maskless lithography is an interes-ting technology which uses arrays of micro-mirrorsand it has a certain cost advantage for lower volumeproduction of prototypes and ASICs. Presenting aproof of concept is now the big issue: the MEMSmicromodulator array will be the key enabling com-ponent of all maskless lithography tools and the

objective is to produce a reliable array of manythousands to many millions of micro-modulators.However DARPA has announced it will stop its pro-gram on maskless lithography (at end 2005), andmain lithography players (ASML, Canon and Nikon)have also decided to stop their research programfollowing DARPA’s announcement. The future ofthis technology is today uncertain.

The Yole Développement magazine February 2006 - n° 44 4

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Figure 2: MOEMS applications development status in 2005

Figure 1: Optical MEMS 2004-2008 market in MUS$ (Yole source)

The DMD marketsDisplays with TI DLP™ technology represent theoldest optical MEMS product and the largest markettoo. Applications are numerous for TI DLP™ today.In the consumer area, TV and projection systems

represent the largest market. The first TV based onthe DLP™ hit the market in 2002. For DLP™devices (RPTV and front projection), TexasInstruments is market leader with sales > US$800 Min 2004. In 2010, the market will be US$3.5B. Forfront projection systems, the total market in 2004was 1.8 Munits worldwide. For TV application withsize > 40”, we estimate that TI has delivered 700kunits in 2004 (the DLP™ average price is US$380in 2005). There are more than 125 different TVmodels available in 2006 with DLP™. The Digitalcinema projector is another application and uses athree-chip solution. The total market in 2004 was 30kunits worldwide and TI has 100% market share(365 screens). In March 2005, Ireland was forgingahead to become the first country to convert all itsmovie theaters to digital projection. Under a dealannounced by the Irish Film Board, investors led byprivately held Avica Technology Corp. of SantaMonica, CA, will convert 500 Irish cinema screensto digital projection, at an estimated cost of $50 mil-lion. We estimate than in 2009/2010, the market forRPTV will be closed to the market for front projec-tion (see figure 3).

Besides projection applications, no-projector appli-cations have been also considered and productdevelopments have been undertaken with partners:• Digital photofinishing • Volumetric displays (holographic video)• Lithographic print-setting products • Patterning custom DNA chips • Digital laser beam modulators in holographic discdrives• Microscopy: spatial modulators for incident or col-lected light rays.

Future applicationsOptical MEMS for non-telecom applications is aheterogonous market with very different philoso-phies and issues concerning MEMS. DMD forProjection systems and TV is now a high volumemarket after more than 10 years of R&D develop-ment for TI. MEMS devices are the key componentsof the projection system. Several companies are

trying to develop a competitive MEMS componentas well as a whole system to gain a part of the TIcake. Price reduction is clearly the main driver toswitch to competitor products. TI is trying to reducethe cost of the device in order to offer a chip setbelow $ 300 or even $ 200 so that the marketshares of TV larger than 40’’ could be bigger. Butwho will be able to afford such a long developmentas TI did in the past? Texas Instruments is a strongleader and will remain ahead for at least 4 years asit is pursuing a vigorous campaign to make sure thatconsumers know the DLP™ brand. The makers ofLCD-microdisplay systems have responded bylaunching an industry-education effort, the 3LCDGroup. Formed by Epson, Fujitsu, Hitachi, Sanyo,Panasonic, and Sony, the group will be promotingthe approach and using its 3LCD logo in an effort toform technology brand awareness to counter TI'sDLP™.

Outside RPTVs and projection, promising applica-tions are emerging. The most interesting one couldbe micro-displays for portable applications (such asthe iMoD technology from QUALCOMM).

QUALCOMM MEMS Technologies (QMT) businessunit was formed about a year ago after it has pur-chased Iridigm Display Corporation in October2004. QUALCOMM was one of the investors inIridigm Display. QUALCOMM believes the compa-ny's iMoD (interferometer modulator) display tech-nology is far superior to the currently predominantLCD technology used in cell phones. According toQUALCOMM MEMS Technologies, the main advan-tage of iMOD is low power compared to LCD andthe ability to have high brightness displays. QUAL-COMM MEMS Technologies is in the middle of thetechnology development and does not see a pro-duct introduction before 2008. MEMS technologiesare always long to industrialize; reliability and yieldtake time to be established at satisfactory levels.

Anyhow, microdisplays based on MEMS technolo-gies are becoming more and more important and ifQUALCOMM MEMS Technologies is able to intro-duce a new display on the market, we will certainlysee a stronger growth after 2008.

The Yole Développement magazine February 2006 - n° 44 5

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Special Report

Figure 3: Market value for DMD RPTV and front projection

Yole will release the MEMS4Display:MEMS-based microdisplays market ana-lysis in February 2006.

If you are interested to know more aboutthis report, please contact DavidJourdan at jourdan@yole.fr

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mstnews is a bi-monthly magazine on world-wide developments in micro and nanotechnologies and its applications. The hardcopy version is distributed to 10,000 rea-ders in Europe. 5,000 on-line subscribers worldwide download the pdf-version fromour website. mstnews is published by VDI/VDE-IT, Germany, since 1991. Every issuehas a technical main topic, supplemented by short news and reports on events as wellas by regular newsletter pages from European networks (NEXUS, Europractice,Eurimus, DfMM, MINAEAST-NET…) and the German Microsystems FrameProgramme.Industrial managers, developers, researchers and students in Europe: Be invited to afree subscription of the hardcopy of mstnews! Non-Europeans, please subscribe thedownloadable pdf version free of charge!

April issue 2/06 on “Industrial Maturity of MST”:Key aspects of industrial maturity of microsystem technologies (technology, equipment, design methods andtools, roadmapping, standards, industrial networks, financing, education, …) and factors for a successful mar-ket penetration with MST-based products.Deadline for press releases and advertisements: March 15, 2006; date of issue: April 05, 2006.

Find all about mstnews, a subscription tool and MediaData’06 and other downloads atwww.mstnews.de

FORECAST

Issue 1/06 on “Integrated Microsystems for Biomedicine”:New applications for nano- and microsystem technologies and new system solutions in the application field ofmedical equipment working close to biological material and organisms.

Issued on February 07, 2006:

MEMS

Business News

Indian Institute of Sciencesplans a minifab for MEMSactivityThe Indian Institute of Science (IISc), Bangaloreannounced that it is planning to set up a MEMSproof-of-concept minifab at its campus. The UnionMinistry of Information and CommunicationTechnology has sanctioned Rs 50 crore grant forthe Rs 200-crore project. The government has alsogranted another Rs 50 crore for a similar project toIIT, Mumbai. IISc already has a Rs 5 crore designlab in the MEMS space. The new project will markthe institute’s entry into the next level of research inthis field. SID has received the first installment ofRs 13.77 crore of the grant. The minifab will need atotal investment of Rs 200-300 crore. The projectwill basically be through a consortium of IISc andcompanies which will give equipment and otherstrategic sector companies. http://www.iisc.ernet.in

SUSS MicroTec wins multipleorders for mask alignerMA200CompactSUSS MicroTec, supplier of full-field exposure sys-tems, announced that it has already received eightorders for a total of thirteen machines for its brand-new MA200Compact. Seven machines were installedlast year, the rest will be shipped in 2006. TheMA200Compact is a production full-field exposuresystem featuring a new concept, that enables the useof cost effective mask aligner technology in areaswhere 1x steppers used to dominate. According toSuss MicroTec, customers chose the MA200Compactover alternative systems due to its high precision, lowcost of ownership and flexibility for processing wafersof different sizes and photo resist thickness. Thickresist photolithography is an indispensable element ofMEMS processing, wafer bumping and advancedwafer-level packaging in general.http://www.suss.com

… the “Window“ to the EuropeanMST/MEMS Community

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“MEMSFoundries”: Analysis of the marketand business trends of MEMS foundriesand contract manufacturers

Market is expected to be multiplied by 3 in 6 years, representing more than 5% of total MEMS markets

Price: EURO 3,900 / US$ 4,700 for 150+ slides PowerPoint reportContact: David Jourdan, Tel: +33 472 83 01 90, Email: jourdan@yole.fr, website: www.yole.fr

Yole Développement has edited a brand new analysis of the markets,strategies and evolution of the MEMS contract manufacturers andMEMS foundries. For the first time, you can have access to unique features:

• Detailed analysis of MEMS foundries and contract manufacturers revenues evolution 2003-2010 (see figure 1)• Detailed analysis of the 20 most important MEMS foundries worldwide• Analysis per company of the possible exit strategies• Identification and analysis of emerging applications, including consumer, mobile phones, energy…• Analysis of today relationship between MEMS foundries and contract manufacturers and design houses/fabless companies• Scenario analysis of the evolution of the foundries and contract manufacturers business

Today, most of the contract manufacturers are full of work, both for development projects and production: weexpect that the MEMS foundry and contract manufacturer markets will reach total revenue of more than 500M$ in 2010 (a market multiplied by 3 in a 6 years period).

Eyelit's award winning integrated manufacturing executionsoftware suite selected by Micralyne to support surgingdemand at MEMS manufacturerEyelit, Inc., a manufacturing software provider for visibility, control and coordination of manufacturing opera-tions for the electronics, life sciences, and semiconductor industries announced that Micralyne, a developerand OEM manufacturer of MEMS components, purchased Eyelit's award winning Enterprise ManufacturingExecution suite to manage and control its production operations. Micralyne recently select Eyelit's Software,making it the standard in this fast growing industry.http://www.eyelit.comhttp://www.micralyne.com

MEMS

Business News

Techno NewsMIMOS Bhd unveils new solu-tions to cut cost for car manu-facturersMIMOS Bhd, Malaysia's leading R&D organisation spe-cialising in information communications technology (ICT)and microelectronics, announced that local automotiveplayers can now look forward to reducing manufacturingcost once the locally-made micro-electro-mechanical sys-tems (MEMS) solution is fully commercialized. He saidthat results from the prototype testing were good but theproduct was not yet ready for commercialisation due toshortage of raw materials. Ismahadi said that the solutioncould also be used in other sectors such as telecommu-nication and biotechnology. The solution is one of the twomajor projects being developed by MIMOS currently.http://www.mimos.my

Model Reduction forEfficient MEMS SimulationModel reduction is a new area of mathematicsfor automatically finding a compact representa-tion of a high dimensional model. Open sourcesoftware mor4ansys, which applies modernmodel reduction directly to ANSYS models hasbeen developed at Prof Korvink's chair atIMTEK, Freiburg, University, Germany. The soft-ware as well as related publications are avai-lable at http://www.imtek.uni-freiburg.de/simula-tion/mor4ansys/. Dr Rudnyi will give a half daytutorial on the application of model reduction forMEMS prior to Eurosime 2005 in Como, Italy, on23rd April.

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Advanced Microsystems for Automotive Applications

April 25-27, 2006, Berlin, GermanyHotel Steigenberger Berlin Los-Angeles-Platz 1

AMAA2006

A N N O U N C E M E N T

w w w . a m a a . d e

AMAA Conference Chair: Dr. Jürgen ValldorfPhone: +49 30 310078-183, Email: valldorf@amaa.de

Scope of the conference:Over the past years enormous progress has been made in the microsys-tems area in transforming research results into marketable products.Nearly all economic sectors did benefit from these developments.Automobiles today are inconceivable without microsystems. New andimproved functions related to safety, performance, comfort and emissionreduction are in the majority of cases based on microsystems. They con-stitute in many cases the unique selling proposition of a new automotiveproduct. ABS, break assistance, stability control and further safety fea-tures, applications in air-condition systems, powertrain and engine mana-gement are examples for the indispensable role of microsystems inmodern automobiles. Microsystems and their underlying technologies areoften the driving forces in order to satisfy new customers' requirements.

Demo Day, April 27, 2006This year AMAA will celebrate its 10th anniversary. Onthe 27th of April we therefore offer you the specialopportunity to participate in our demonstration day atthe ADAC training centre near Berlin.

You can see and test yourself cars equipped with advan-ced driver assistance systems under exceptional circum-stances. Don’t miss to experience the effects of microsys-tems in cars. The Demo Day will last from 9 am to 5 pm.The participation for conference members is free ofcharge. Transport to the training centre and back toBerlin is provided. Details will be available soon on theAMAA web page.

MEMS

Techno News

Sensors liste-ning for pollutionThe world’s first micro-sensorto measure air quality by ‘liste-ning’ to the acoustic frequencyof carbon dioxide has beendeveloped by a Scandinavianconsortium. The Mascot micro-machined sensor analyses thespecific resonance frequen-cies of gases, which changedepending on the molecularmass of the gas. It has beendesigned to provide an early-warning system and will alert aventilation system if oxygenlevels fall too low. The acousticresonator on the sensor’s chipcan detect the signature fre-quency of CO2 in a volume ofgas smaller than one micro-litre. The technology wasdeveloped by Norwegian andSwedish research institutesand SMEs, including Norway’sSensonor which co-ordinatedthe EU-funded project. PerGloersen, Sensonor’s R&D co-

ordinator, said that the Mascotsensor’s main benefits lay inits high-energy efficiency. Hesaid that conventional chemi-cal sensors are notorious fortheir poor long-term stability,particularly their sensitivitywhich, with prolonged exposu-re to the gas, can alter slightlyover time. According toGloersen, the Mascot sensorwill be far more stable.

SurfaceTechnologySystemsLaunches VPXIn-line TransportPlatformSurface Technology Systemsplc (STS), a leader in plasmaprocess technologies requiredin the manufacturing and pac-kaging of MEMS and advan-ced electronic devices,announced the launch of VPX,

a new platform that enables upto three process chambers toshare a low-cost, commonwafer-transport system.Designed to reduce the costfor pilot production of devicesused in developing end mar-kets such as fuel cells andMEMS automotive sensors,VPX complements the fullsuite of platforms that supportSTS’ range of advanced pro-cess modules. The introduc-tion of VPX continues STS’successful strategy of sup-plying a range of platforms thatcan be coupled to any of theiradvanced process modules tomeet varying customer busi-ness models and changes inwafer capacity. VPX is particu-larly well-suited to pilot produc-tion markets in fabs and foun-dries where manufacturers areintroducing new device tech-nology from their R&D labora-tories, said the company.http://www.stsystems.com

MEMS

Business News

The Yole Développement magazine for MEMS, Nanotechnology, Optics, Life Science Instrumentation and Semiconductors

January 2004 - n° 32 9

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MEMS4Display: Market analysis of MEMSbased microdisplays

Projection and RPTV applications are driving the microdisplays market but a severe competition is emerging

Price: EURO 2,900 / US$ 3,500 for 90 slides PowerPoint reportContact: David Jourdan, Tel: +33 472 83 01 90, Email: jourdan@yole.fr, website: www.yole.fr

The new report MEMS4Display is presenting market forecasts(volumes and prices), players involved in MEMS-based microdisplays,analysis of the competition, the different MOEMS applications with aspecific analysis on the MEMS-based microdisplays:

• Projection and RPTV market forecasts• Other DMD applications• MEMS-based microdisplay competition• The future of RPTV: LEDs and lasers• Analysis and short description of the different players• Analysis per micro-mirrors application : portable applications, future applications

MEMS4Display is featuring a unique analysis of the MEMS/MOEMS food chain, the trends and businessmodels in the MEMS/MOEMS fields, The reports also present longer term applications also include HUDs, HMDs, AFS…

Jenoptik acquired the US-based company MEMS OpticalThe Jenoptik Group is further expanding its micro-optics business with the acquisition of MEMS Optical(Huntsville, AL), specializes in the integrated development, fabrication, and distribution of of high-qualitymicro-optic components using grayscale lithography, which enables the manufacturing of any shape in minia-turized form with maximum precision. This follows the company's purchase of Liebmann Optical Companyin 1999 and Coastal Optical Systems in 2002.According to Jenoptik, the deal will enable its photonics division, Jenoptik Laser, Optik, Systeme GmbH, tobroaden its technical expertise in the development and manufacture of micro-optic components and micro-structures. It will also give Jenoptik international distribution channels in the United States and Japan. Themerger is expected to close during the first quarter.http://www.memsoptical.comhttp://www.jenoptik.com

MEMSCAP announced 78% growth for Q4 2005 and fiscalyear ended results

MEMSCAP, the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems)technology, announces its revenue and net result for the fourth quarter and fiscal year ending December 31,2005. Consolidated Q4 revenue amounts to 3.2 million euros (3.8 million US dollars), compared to 1.8 mil-lion euros (2.3 million US dollars) in Q4 2004, thus showing a 78% growth. This brings the Group consoli-dated revenue for fiscal year 2005 to 10.0 million euros (12.3 million US dollars).

In parallel to this growth, the consolidated operational result for Q4 is (0.7) million euros compared to (3.0)million euros for Q4 2004 and the consolidated net result, which has been continuously improving since thebeginning of the year, is (0.4) million euros, compared to (3.4) million euros in Q4 2004. After the successfulfinalisation, during first semester 2005, of the 6 inch upgrade of the North Carolina plant, the revenue of theAmerican subsidiary has been steadily growing all through fiscal year. During the fourth quarter, MEMSCAPhas finalised the sale of its Bernin site office building, and has signed with its banking and financial partnersa deal that significantly reduces the financial debts, made a capital increase for a total amount of 5.2 millioneuros and has signed commercial deals in the aerospace and medical business.

http://www.memscap.com

The Yole Développement magazine February 2006 - n° 44 10

Micro (MEMS-based) fuel cellsMicro fuel cell development is based on thin-filmand micro-patterning technologies. Wafer-leveland foil processes, so far used to produce highdensity interconnect electronic modules, havebeen adapted for the fabrication of micro fuel cells.Micro technology is the key to achieving the minia-turization and cost reduction required in portableelectronics. Applications such as hearing aids,chip cards and other small portable devices maybe equipped with micro fuel cells in the future, the-

reby replacing batteries like Li-polymer, buttoncells and zinc air batteries. The system consists ofjust three foils and is independent of the number ofindividual planar cells which are serially intercon-nected. Air is supplied to the cathode by means ofnatural convection. Wafer level technologies suchas reactive ion etching, electroplating and laserpatterning have been used to develop micro flowfields and current collectors. Lamination, adhesivetechnologies and screen printing are used forassembly and interconnection of the cells.http://www.fuelcellsworks.com

MEMS

Techno News

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DiCon Fiberoptics announces the world’s smallest MEMS1x36 optical switchDiCon Fiberoptics Inc. is announcing availability of the world’s smallest MEMS 1x36 Optical Switch Module.The new module will be shown at OFC/NFOEC 2006, at the Anaheim Convention Center, March 7-9, 2006.The 1x36 Switch is based on DiCon’s MEMS 1x8 Optical Switch component. Each MEMS chip consists ofa “3D” electrically movable mirror on a silicon support.http://www.diconfiber.com/

MEMUNITY announces the dates of its 2006 spring work-shop: next workshop about MEMS testing techniques totake place on March 1stMEMUNITY, the MEMS Test Community, has just announced the dates for its annual Spring Workshop. Theworkshop will take place in Halle, Germany on March 1, 2006 and be free of charge to all attendees. Severalindustry experts from companies such as SUSS MicroTec and Polytec as well as from institutes such asIMEC and the Fraunhofer Institute will give presentations and hold discussions at the workshop. The topicsdiscussed will all address MEMS testing, including dynamic motion analysis, reliable on-wafer test of pres-sure sensors and many others. Registration for the workshop and further information are online atwww.MEMUNITY.com.

Event

You can send us press releases to mouly@yole.fr

The Yole Développement magazine February 2006 - n° 44 11

MEMS

Alliances & Mergers

R&D coopera-tion agreementbetween CEA –CSEM – FhGdedicated toMEMSCEA (F) – CSEM (CH) –Fraunhofer (D) agreed to pro-pose unique services for R&Dconcerning heterogeneoustechnology integration dedi-cated to MEMS fabrication.On January 17th, the 3 insti-tutes signed a cooperationagreement to provide compe-tences and services to indus-trial companies working onsmall and medium volume.Function complexity, numberof technologies to use and therange of applications are thereason to this agreement.Fraunhofer (FhG-VµE) willprovide its know-how in thefield of assembly, 3D inter-connect and packaging. CEALeti will offer competences inmicro-and nanotechnologieson 200mm and 300mm Si-based wafers. CSEM willbring expertise on heteroge-neous technologies for plasticand polymer substrates.http://www-leti.cea.frhttp://www.csem.chhttp://www.fraunhofer.de

IVAM opens office in Brussels, BelgiumThe Microtechnology Network IVAM has achieved an important step towards internationalization with thefoundation of its first office abroad in Brussels, Belgium, on January 1. At present, the association, locatedin Dortmund, Germany, has 165 members from 12 countries worldwide. The bureau is a logical continuationof IVAM’s latest international activities such as the organization of workshops in Taiwan and Japan and therepresentation of members on international trade fairs. With the newly founded office in Brussels, IVAMwants to attract new partners and members from the Netherlands, Belgium, France, Spain and Portugal.http://www.ivam.de

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TI sells sensorsbusiness for $3billionTexas Instruments (TI) agreed tosell its sensors and controls busi-ness to Bain Capital for $3 billionin cash. The sensors and controlsgroup earns revenue of more than$1 billion annually and has 5,400workers in the Americas, Europe,and Asia. The organization sellssensors and controls to theappliance, climate control, indus-trial, automotive, lighting, and air-craft markets. TI's RFID (radio fre-quency identification) operation,which has been part of the sen-sors and controls group, willremain with TI and become part ofits semiconductor segment.Selling off sensors and controls isgood for the group and for TI, saidRon Slaymaker, vice presidentand manager of investor relationsat TI. “For TI to realize sensor andcontrols’ full potential, we wouldhave to increase investments,”said Slaymaker during a confe-rence call to discuss the sale.“Given the relative growth in ourDSP and analog business, weprefer to keep investments inthose core areas.” TI’s semicon-ductor group, which sells DSP(digital signal processing) andanalog chips among other pro-ducts, makes up the bulk of thecompany’s revenues.http://www.ti.com

MEMS Tech in jointventure talks withEuropean chipmakersMEMS Technology Bhd is in talkswith a large Europe-based semicon-ductor manufacturer for possiblejoint development of silicon micro-phones for the global market. Aninternational partner would benefitMEMS Tech as it sought to sellmore silicon microphones develo-ped by the company to globalmanufacturers, particularly mobilephone makers, according to directorOoi Boon Leong. It was unclear,however, whether MEMS Techwould offer a stake in the companyitself or set up a separate joint-ven-ture to focus on producing small-sized acoustic products. MEMSTech's share price fell 63% last year,largely on disappointment over lackof large contracts from major phonemanufacturers. This was despiteearly optimism after the companybecame one of the few in the worldto develop its own miniature acous-tic components on a commercialbasis. According to Ooi, the compa-ny had todate sold small quantitiesof the micro microphones to custo-mers in Japan and China, but it hadyet to secure large supply contractsfrom top manufacturers like Nokiaor Motorola.http://www.memstech.com

Have a Hot New Product?

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July 11–13, 2006

Life & Death

The Yole Développement magazine February 2006 - n° 44 12

Announcement

Nomination of ProfessorKristofer S.J. Pister for theAlexander SchwarzkopfPrize for TechnologyInnovationProf. K.S.J. Pister, co-Director of the BerkeleySensor & Actuator Center, has been nominatedfor the Alexander Schwarzkopf Prize for his suc-cessful pioneering achievements in developingand inspiring the commercialization of autono-mous self-discovering, self-configuring wirelesssensor networks (WSN) which he termed andpopularized as “Smart Dust”. Pr. Pister has been

nominated by The I/UCRC, an independent asso-ciation made up of 41 National ScienceFoundation-funded centers representing morethan 60 universities. Pister's work on miniaturizedsensors, or "motes," that communicate through aself-organized wireless network gained momen-tum in the late 1990s with support from theDefense Advanced Research Projects Agency.The technology has been used for monitoringbuildings to make them more energy efficient andfor studying wildlife habitats. The military is loo-king at smart dust as a surveillance technology. In2003, Pister took an industrial leave of absence tolaunch the company Dust Networks Inc., wherehe is chief technology officer.

MEMS

Life & Death

Cooperation is an important factor for innovations inmicrosystemsWith an expected annual growth rate of16% the worldwide microsystems marketof 11.5 billion dollars in 2004 will reach 24billion dollars in 2009. The key reason forthis growth is that more and more productinnovations incorporate advanced sensorsand actuators partially combined with high-ly sophisticated media handling.Examples include versatile inertial measu-rement units (IMU) for cars and aerialvehicles, high-precision flow-sensors foranalytics and diagnostics or advanced sys-tems for powering mobile devices throughmicro fuel cells and energy harvestingsolutions.Integration of these micro components into customer products demands for strong development partnershipsbetween developers and purchasers on the user side as well as developers and sales managers on the sup-plier side. The importance of this cooperation manifests in the huge 33.5 billion dollar market share of smallest com-mercialized units incorporating microsystems. Like for printers, the MEMS inkjet-head itself is commerciali-zed only together with ink, hull and assembly as fully integrated cartridges, this trend will continue for manydifferent branches. Therefore tracking down the correct partners for future developments is the key for suc-cess in the rapidly growing microsystems market.With this in mind experts and customers from the whole MEMS and MST business will meet March 7-8, 2006in Munich.Technical sessions of the congress “Trends in Microsystems” on the first day will disclose state-of-the-artmicrosystems technology and trend-setting concepts from industry and science in the areas of smart sen-sors, innovative actuators, and system solutions for analytics, diagnostics or mobile energy supply.The second day features the 4th International “One-on-One Cooperation Forum Microsystems” providingparticipants the possibility of target-oriented business meetings with suppliers and customers.This 2-day event represents an excellent opportunity to establish further contacts for future cooperations,heading for novel customer driven microsystems, thus leading to new innovative industrial and commercialproducts. Please contact: Dr. Rupert Tkotz at +49-911-20671-165

Micronews

The Yole Développement magazine February 2006 - n° 44 13

Benefits for MEMSentry readers:• Analysis of the last events, news and strategic movements in the MEMS field• Detailed analysis of a company: facts and figures, but also key trends, technologies and strategies• Analysis of the latest financial news• Key access to MEMS Yole Développement expertise with a Q&A session

Typical content of MEMSentry:• The Analysis of the last news: Highlight the key aspects of the latest news, with a particular focus on industrial strategies, new applications, industry changes…• What has happened and why? presentation of the evolution of the different industrial companies, last changes and Yole analysis on the impact on the industry• Last financial and investment rounds: presentation of the last investments in MEMS companies, M&A, exits, new venture rounds…• Analysis of one application: in each issue, we will analyze a specific application in order to providemarket data and present the strategy of the main players involved on this market• Analysis of one company: in each issue, we will analyze a specific company in term of technologies, products, future developments, but also finance

Coming issues:

• Starting date of the publication: December 2005• Content: Approximately 10 pages, depending on the news• Price: Euro 450 / $ 540 for an annual subscription (single user license)• Contact: David Jourdan, Tel: +33 (0)472 83 01 90, jourdan@yole.fr, www.yole.fr

what has happened what will happenYole Développement is now editing an exclusive bulletin analyzing

in the MEMS fields &

MEMS

Announcement

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MEMSentry

Company Analysis

Application Analysis

Issue #6

InvenSense

Optical Scanner

Issue #3

VTI Technologies

MEMS Foundries

Issue #4

Memscap

MEMS based oscillator

Issue #5

Matsushita ElectricWorksFrequency bulk acousticresonator

The Yole Développement magazine February 2006 - n° 44 14

NanotechnologyAlliances & Mergers

EventsCIMATS 2005: Current industrial applications of nanomate-rials and nanostructuresThe 8th Industrial Conference on Materials and Surface Treatments took place in Sévenans (France) onDecember 7 and 8, 2005.The schedule covered a broad range of topics to give a thorough overview of cur-rent industrial applications of nanomaterials and nanostructures.Indeed, about twenty conferences were held and aroused particular interest among visitors, 70 percent ofwhom came from industrial sectors.This audience was composed of a hundred visitors most of whom came from France but also fromSwitzerland, Belgium, Germany, Luxemburg and England. Proceedings are available on demand.

Please contact Astrid VERMASSEN at LERMPS, Surface engineering laboratory :astrid.vermassen@utbm.fr or tel + 33 (0)3 84 58 30 52

Business News

Nanostartinvests inNanosysGermany-based Nanostart AGannounced investment in UScompany Nanosys (Palo Alto,California). No financial detailswere disclosed. Founded in2001, Nanosys has a platformtechnology that allows devicesto be produced in nanometerdimensions for different appli-

cations and products. The cen-terpiece is based on patentednanostructure synthesis,assembly and interface pro-cesses. In a controlled envi-ronment, structures are produ-ced in nanometer dimensionsfrom inorganic materials suchas silicon, germanium or gal-lium to form functional devicesequivalent to devices such astransistors, light emitters, orsolar cells. Nanosys is develo-

ping, among other things, thinfilm electronics for displaysand phased array antennas,non-volatile memory for elec-tronic devices, chemical analy-sis chips for pharmaceuticaldrug discovery, performanceenhancers for solid state ligh-ting, and solar cells and fuelcells for portable electronics.www.nanosysinc.comwww.nanostart.de

“Electronic nose”:NanoNord acquiringCantionDanish NanoNord now owns all assets and mate-rial/non-material rights in Cantion, including anumber of Cantilever patents. With this purchase,NanoNord intends to strengthen its’ own positionin the nano technology field and improve its exis-

ting co-operation with the research and universitysectors even further. The Cantilever technology isbasically known as the ‘’electronic nose’’ of thefuture. The technology has many applicationareas, such as detection of bacteria, salmonella,bird flu, chemical weapons, explosives, as well asmore peaceful items such as aromatic sub-stances and pure water.www.nanonord.com

Lux Research: “Venturecapital pours intoNanotech, but exits areuncertain”Institutional venture capitalists put $480 m(EUR399 m) into nanotechnology start-ups in2005. That's according to the "Making sense ofnanotech venture capital" report from LuxResearch. "Venture capital investment for nano-technology rose strongly in 2005 due to large,late-stage funding rounds for firms like AspenAerogels, Nanomix and Nanosys," said MatthewNordan, vice president of research at LuxResearch. "But venture capital still remains a dropin the bucket of total nanotech investment, outs-tripped by corporate R&D spending and govern-

ment funding by a factor of 19 times." Nordanbelieves this is because the success of nanotechventure investing is still too early to call - only 9%of venture-backed nanotech start-ups to date haveachieved exits.www.luxresearch.net

Zyvex continues to exceedrevenue expectationsZyvex, US, has announced that it made total reve-nues of more than $10 m in 2005, 16% more thanin 2004. The company, which provides nanotech-nology tools, materials and software anticipatesthat it will achieve cash-flow break-even during2006.www.zyvex.com

The Yole Développement magazine February 2006 - n° 44 15

You can send us press releases to pieters@yole.fr

NanotechnologyBusiness News

Life & Death

Nanophase : 44% Revenue and 77% Product SalesIncrease Year-Over-YearNanophase Technologies, US, says it made revenue of approximately $1.43 m for the fourth quarter of2005, compared to $0.99 m for the fourth quarter of 2004. The total revenue for 2005 was around $6.8 m,compared to $5.2 m in 2004. Nanophase produces nanoparticles and nanoparticle dispersions for applica-tions including sunscreens, catalysts, antimicrobial products, scratch resistant coatings and polishing.www.nanophase.com

$ 18.7 M in additionalfinancing round forNanogramNanoGram, US, has risen $18.7 M in an additio-nal financing round. "NanoGram has developed aunique scalable nanoparticle production processthat simultaneously controls particle size, size dis-tribution, shape, elemental composition and mor-phology," said Ira Ehrenpreis of Technology

Partners, which led the funding round. NanoGramsays it will use the funding to build on its suc-cesses in optical nanocomposites and applica-tions of nanomaterials in energy products, and topursue innovations in electronic materials andcomposite structures for imaging. Existing inves-tors ATA Ventures, Nth Power Technologies, BayPartners, Harris & Harris, Rockport CapitalPartners, Institutional Venture Partners and SBVVenture Partners also took part in the funding.www.nanogram.com

FinNano: a EUR 70 mil-lion programme forFinnish nanotechPublic funding organisation for research anddevelopment in Finland Tekes has launchedthe FinNano technology programme. Totalcosts of this five-year program (2005–2009) isapproximately EUR 70 million, including EUR25 million in research funding, and EUR 20 mil-lion in corporate financing. The focus areas ofthe programme are: Innovative nanostructurematerials; Nanosensors and actuators; Newnanoelectronics solutions.www.tekes.fi

AMST’s MVD™ Technologynamed by Nanotech Briefs asa Nano 50™ Award Winner Applied MicroStructures Technology, Inc. (AMST), provi-der of tools, technologies and expertise that enable thevapor deposition of molecular-level films for nanotechno-logy applications, has been named a winner by NanotechBriefs in its first annual Nano 50 Awards for technologyand innovation. The company has established a strongintellectual property portfolio in the field of MolecularVapor Deposition (MVD) technology and offers a range ofproducts to meet established needs in an array of mar-kets such as MEMS, micro-fluidics and nano-imprinting.www.appliedmst.com

Techno NewsIndian “Kajal” is discovered to be composed of carbonnanotubesThe Indian Institute of Technology in Kanpur (ITT Kanpur) has discovered that the Indian eye makeupknown as kajal is composed of carbon nanotubes (CNT). Kajal is made in millions of homes throughoutIndia by burning oil in an ordinary lamp and catching the soot on a plate.www.iitk.ac.in

Accurate nanopatterning paves way to ''black silicon''Innos, the UK nanoscale technology R&D company, and the Nanoscale Systems Integration Group (NSI,based in the School of Electronics and Computer Science at the University of Southampton), have revealedhow it is possible to accurately pattern silicon wafers using e-beam direct write, with accuracies of a few tensof nanometres. The project development work for biomimetic optical nanostructures attempts to mimic thenanostructured arrays seen on the cornea of certain night-flying moths. By using this type of nanostructure,researchers hope to create silicon surfaces that do not reflect light which would be important for applicationssuch as solar cells, said the scientists.www.innos.co.uk

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The Yole Développement magazine February 2006 - n° 44 16

Optics & Compound SemiconductorsTechno News

European groupfocuses onVECSELsA group of European researchinstitutions and companies haslaunched Nano-PhotonicsMaterials and Technologies forMulticolor High-PowerSources, a common initiative todevelop semiconductor thin-disk layers. The aim of the pro-ject is to foster material andsystems research on optically-pumped semiconductor verticalexternal cavity surface-emittinglasers using advances in semi-conductor material, micro-optics, and miniaturized systemdesign and packaging. Thethree-year project is supportedby the European Commission

and coordinated by theOptoelectronics ResearchCentre. Its $4.6 million budgetwill support field trials, demons-trations and R&D.http://www.orc.tut.fi/natal.html

White LEDsused for daytimerunning lights onAudi S6Audi's press release for its newS6 and S6 Avant, which go onsale in the spring of 2006, des-cribes "a refined flow of powerin conjunction with superlativecomfort and an elegantlyunderstated appearance."More importantly for the LEDindustry, the new model is thesecond by Audi to feature day-

time running lights (DRLs) thatuse white LEDs as the lightsource. Two years ago, Audiunveiled its Audi A8 6.0, whichhas DRLs comprising 5 whiteLEDs in a cloverleaf pattern.The DRLs are incorporatedinto the main headlight.

True color sen-sor from SilicannSilicann has released a colorsensor (PCS-II) that will beshown at the embedded world2006 in Nuremberg (Germany)from February, 14. - 16. Thecolor sensor PCS-II fromSilicann realizes true-to-per-ception industrial color reco-gnition for up to 255 colors. http://www.silicann.com

European group studies device packagingA European research-and-development initiative, Encaps (enabling chip and package level photonics solu-tions) has been formed to develop cost-effective packaging methods for next-generation optoelectronic pro-ducts. The consortium consists of 22 partners representing industries, universities, reliability laboratoriesand research centers engaged in photonics research. The project will explore materials such as silicone,getters, liquid crystal polymers and encapsulants for optical chip-scale packages, combined with collectivechip and optics assembly and sealing processes at wafer and package levels.

New look for optical micro-scopyScientists have known for many years that the elec-tronic structure of an atom can be modified by placingit close to a boundary. Now, Vahid Sandoghdar andcolleagues at the Swiss Federal Institute ofTechnology (ETH) in Zurich, the Zuse Institute inBerlin, and the University of Potsdam, also inGermany, have exploited this phenomenon to performhigh-resolution microscopy. The new technique relieson measuring how the intrinsic properties of the goldnanoantenna - such as its resonance frequency andline width - change when it is placed close to asample.http://www.zib.de/http://www.uni-potsdam.de/http://www.ethz.ch/index.en

Army hands GoodrichInGaAs developmentcontractGoodrich Corporation’s optical and space systemsteam, formerly known as Sensors Unlimited (SUI),has won a $0.75 million development contractfrom the US Army to improve InGaAs devicemanufacturing. The Army wants the Princeton, NJ,firm to deliver a detector array for night vision thatcan record high-definition images in the infraredrange while simultaneously capturing visible-range imagery. The proposed 1920 x 1080 pixelcameras should also show an improvement insensitivity, and detect light in an unspecified “new”wavelength band.http://www.goodrich.com/Main

New products from SiliosSilios Technologies, specialist in optical microtech-nology, supplements its range of products withstandards for the calibration of vertical dimensionson a nanometric scale (lower than 20 nm). Thesestandards find their application in the field ofmetrology and particularly microscopes AFM andSPM.http://www.silios.com

LED lighting used by FordFord Motor Company is unveiling its new adaptive for-ward lighting technologies using LEDs at motorshows in the US in January. The adaptive front ligh-ting system, which is being showcased on a Lincolnconcept car, combines two independent light sources:a high-output halogen projector for the main beamand a secondary row of LEDs that stretch around thesides of the vehicle.

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The Yole Développement magazine February 2006 - n° 44 17

Emcore acquires Forceand K2Emcore Corp. announced that it has acquired pri-vately-held Force, Inc. of Christiansburg, VA,including its fiber-optic transport and video broad-cast products, technologies, and intellectual pro-perty. Financial terms of the acquisition were not

disclosed. Emcore management anticipates thatthis transaction will provide approximately $6 mil-lion of revenue for calendar year 2006, and uponintegration will be operationally profitable.Continuing its expansion across the supply chain,Emcore buys out the fabless InP laser designer K2Optronics in a deal valued at $4.8 million.http://www.emcore.com

Fairchild Semiconductor announces the sale of its LEDand LED display product lines to Everlight InternationalCorporationFairchild Semiconductor announced the sale of its LED and LED display product lines to EverlightInternational Corporation, a US subsidiary of Everlight Electronics Company, Ltd. of Taiwan. Fairchild willretain its optocoupler and infrared product lines, intending to grow those businesses through focusedresearch and development. http://www.fairchildsemi.com/

Jabil Circuit and Carl Zeisslaunch a joint-venture foroptical modulesJabil Circuit and Carl Zeiss have launched a joint-ven-ture company, mostly owned by Jabil, for the deve-loppent and production of optical modules. Carl Zeisswill bring its know-how in the field of DLP (Digital LightProcessing). Jabil will realize the high volume pro-duction of these modules for consumer applications.http://www.zeiss.de/http://www.jabil.com/

Omron acquires opticalsubassembly vendor AduroOmron has announced its acquisition of Aduro, aUS vendor of precision high-speed optical subas-semblies. The Japanese manufacturer'sElectronic Components Business Unit (ECB)assumed Aduro's assets on 30 December 2005,and has established a new subsidiary calledOmron Network Products (ONP), which includesthe entire Aduro team.http://www.eu.omron.com/

Alliances & Mergers

Optics & Compound SemiconductorsTechno NewsFirecomms unveils transceiver for in-car networksFirecomms, an Ireland-based developer of high-speed semiconductor light sources, says that it has unvei-led the world’s first media orientated system transport (MOST) fiber optic transceiver based on a high-speedresonant cavity LED. Firecomms’ transmitter uses a resonant cavity LED (RCLED), which is a device that issimilar to a VCSEL and contains two distributed Bragg mirrors. http://www.firecomms.com/

Osram ups Ostar LED out-put by 30%Germany-based LED manufacturer Osram hasincreased the output of its Ostar Lighting LED inthe standard lens version by 30 % in terms of lumi-nous efficacy. The LED is equipped with four or sixseries-connected chips and now has a hexagonalshape that allows for high packing densities. At420 lumen from an operating current of 700 mA,the six-chip version with a lens is brighter than a20 W low-voltage halogen lamp. LEDs are there-fore now suitable for use in more and more gene-ral lighting applications, claims Osram. Forexample, they can provide enough light now for adesk lamp. This white high-output light source willbe available with either four or six chips. According

to the company, its hexagonal shape enablesmore LEDs to be linked together into space-savinghigh-intensity packages. A specially developedhemispherical lens is part of the standard equip-ment, which improves the efficiency with whichlight is emitted without affecting the beam charac-teristics. Basic versions without lenses are avai-lable for customer-specific optics. The six-chipversions of these high-output LEDs produce 420lumen with a lens and 300 lumen without a lens, ineach case at an operating current of 700 mA andan output of 15 W. The four-chip version produces280 lumen with the lens and 200 lumen withoutthe lens, in each case at an operating current of700 mA and an output of 10 W.www.osram.com

The Yole Développement magazine February 2006 - n° 44 18

Optics & Compound SemiconductorsBusiness News

HP joins rival camp,Pioneer launches Blu-raydriveTechnology giant HP has decided to support thehigh-definition (HD) DVD group. Previously, HPhad exclusively backed the rival Blu-ray Disctechnology promoted by Sony, and the SiliconValley company is also a key member of the Blu-ray Disc Association (BDA). Talks between thetwo industry camps to unify the disc format brokedown last year and the BDA and HD DVD groups

are now battling for supremacy in the emergingmarket. After HP requested that the BDA adopttwo different types of user software, known as iHDand Mandatory Managed Copy (MMC), the Sony-led consortium only adopted MMC. In contrast,the HD DVD disc format already uses both typesof software. As a result, HP decided to join its for-mer rival, while continuing with its role in the BDA.Meanwhile, the Japanese electronics firm Pioneersays that it will begin shipping Blu-ray drives forpersonal computers in the current quarter. http://www.blu-ray.com/http://www.hddvd.org/hddvd/

Firecomms opens officesin the US and JapanFirecomms, an Ireland-based developer of high-speed semiconductor light sources, has openedregional offices in the US and Japan. The officesin Houston, and Yokohama, Japan, will providesales and application support to customers intheir respective regions.http://www.firecomms.com/

Cree subsidiary opens inHong KongCree Inc. of Durham, N.C., is opening Cree Asia-Pacific Ltd. at the Hong Kong Science TechnologyPark. A wholly owned subsidiary of Cree, the businesswill serve as a center of product innovation in Asia andprovide customer and technical support, particularly inthe area of packaged LED lighting components.http://www.cree.com

Kotura moves packaging assembly to ChinaA provider of silicon photonic components, Kotura Inc. of Monterey Park, Calif., has transferred its packagingassembly to Asia through a contract manufacturing agreement with Broadex Technologies of Shanghai,China. The move is part of the company’s strategy to focus internal resources on product design. Broadexprovides design, testing and manufacturing services for planar lightwave circuit products and supplies split-ters and optical components for the fiber-to-the-home market.http://www.kotura.com/

UK funds InP photonics consortiumThe UK Department of Trade and Industry has awarded £1.7M (US $3M) funding to a collaborative projectto develop advanced InP-based photonic materials and devices as part of its Technology Program.Organizations involved in the consortium project include the Centre for Integrated Photonics (CIP),Bookham, Epichem, Loughborough Surface Analysis (LSA), the University of Sheffield, and the University ofSurrey (UniS). According to the consortium, the 2.5 year project, called ETOE (Extended TemperatureOptoelectronics), has two main thrusts. The first is the development of active devices containing aluminium,in order to enable the high temperature operation of a range of advanced devices, including fixed frequen-cy and widely tuneable lasers, semiconductor optical amplifiers (SOAs), superluminescent diodes (SLDs),and avalanche photo diodes (APDs). The second is the development of improved processes for the MOVPEgrowth of semi-insulating current blocking layers using ruthenium doping, to enable higher speed modula-tion of devices.Results from the project are expected to lead to uncooled operation of high speed, high power lasers andSOAs which the consortium says will enable drastic reductions in power consumption and allow closer stac-king of optical interfaces.The consortium says the project partners' roles cover all aspects necessary to develop new MOVPE pro-cesses, from precursor technologies (Epichem), layer growth (Bookham and CIP), structural design andmodelling (Bookham, CIP, Sheffield, and Surrey) to device fabrication (Bookham and CIP), with compre-hensive characterization at all stages to assess progress (LSA, Sheffield, Surrey). "This project brings toge-ther a number of key players in the optoelectronics industry and academia to work collaboratively on funda-mental technology solutions," comments Ian Lealman of CIP, project manager for ETOE. "This will enablethe development of processes and materials that will help drive increases in speed, temperature perfor-mance and tunability."

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The Yole Développement magazine February 2006 - n° 44 19

You can send us press releases to mounier@yole.fr

Optics & Compound SemiconductorsBusiness News

Lumileds asserts AlGaInPpatents against UEC andEpistarUS-based LED maker Lumileds Lighting has ini-tiated litigation for patent infringement against tworival Taiwanese LED manufacturers, EpistarCorporation and United Epitaxy Co., Ltd (UEC).Epistar and UEC are in the process of merging.Lumileds has filed a complaint against both com-panies at the US International Trade Commission

(ITC), alleging that the companies' wafer bondedAlGaInP LED products infringe certain patentsowned by Lumileds. Specifically, Lumiledsaccuses Epistar's omnidirectional mirror adhesion(OMA) AlGaInP LED products and UEC's metalbond (MB) and glue bond (GB) AlGaInP LED pro-ducts of infringing one or more of Lumileds' USpatents: no. 5,008,718; no. 5,376,580; and no.5,502,316. http://www.epistar.com.tw/about-e.htmhttp://www.uec.com.tw/http://www.lumileds.com/

Bookham secures $72m order and pays off debtsOptical component and module vendor Bookham has secured a new supply agreement with NortelNetworks that will guarantee it at least $72 million in sales this year.http://www.bookham.com

ColorChip closes $9.5 mil-lion financing round ColorChip, a leading manufacturer of glass-basedPlaner Lightwave Circuit (PLC) chips andmodules for the Fiber To The Home (FTTH) net-

works, today announced that it has closed a$9.5M financing round led by Bessemer VenturePartners and joined by Motorola Ventures, theventure capital arm of Motorola Inc. andEuropean Venture Partners. Also participatingwere existing investors Eurofund, Polytechnos.http://www.color-chip.com

Avanex drops revenue bomb, operations chief exitsAvanex has revealed that it faces a substantial shortfall in revenue for its latest financial quarter ended onDecember 31, 2005, because of a contract manufacturing problem that has delayed product shipments.Revenue for the period is now estimated at $35 million-$37 million, way below the $41 million-$45 millionfigure that was originally forecast. Paul Negus, the company's VP of operations, resigned last week, addedAvanex in a filing to the Securities and Exchange Commission.http://www.avanex.com

LED2Light: HB-LEDS for GeneralIllumination and Automotive Lighting

In 2007, the number of 2” equivalent GaN based wafers to process could reach 3,3 millions!

Price: EURO 3,900 / US$ 4,700

Yole Développement has edited a new report describing the marketand technology trends for HB LEDs in general illumination and auto-motive lighting.In 2007, GaN-based LEDs will reach a higher luminous efficiencythan fluorescents. The ramping-up of solid-state lighting businesswill really start at that time. Companies like Lumileds, Osram, Nichiaor Cree are now marketing high brightness white LEDs with morethan 40 lumen/watt efficiency) and an ASP less than 5$/part.Yole Développement forecasts that the annual demand for LEDs forgeneral illumination should reach about 3.6 billions units in 2010 andbetween 4 to 7 billions units after 2020. 2007 is the turning point where general illumination business will start.Depending of the lm/lamp and $/lm couples, illumination market could reach about $3billion by 2010.The report contains 130 slides of PowerPoint presentation plus 50 pages of the main manufacturer’s profiles.

Contact: David Jourdan, Tel: +33 472 83 01 90, Email: jourdan@yole.fr, website: www.yole.fr

2006 INTERNATIONAL CONFERENCE ON COMPOUND SEMICONDUCTOR

MANUFACTURING TECHNOLOGY April 24-27, 2006

Fairmont Hotel Vancouver -- Vancouver, BC, CAN www.csmantech.org

� Technical Sessions covering topics such

as Substrates and Epitaxy, Processing, Manufacturing Practices, CS Devices, Wide Bandgap, and Opto technologies.

� Intensive multi-topic Workshop the day

before the conference opens. �

Invited Papers that cover a range of topics from current and emerging technologies to “killer” applications.

� Exhibits, presenting everything from

substrates to systems, provides a forum to meet directly with vendors.

Fairmont Hotel Vancouver

We will meet in the beautiful city of Vancouver, BC, well known for its international flair and vitality.

www.tourismvancouver.com �

Exhibitors' Forum, special lunch-time parallel sessions where vendors inform about their latest and greatest products.

� The Interactive Forum, unique to CS

MANTECH, where conference attendees can engage in discussions with Technical Session authors and with each other.

� Receptions, such as Exhibits Reception

and the International Reception provide opportunities for attendees to develop business contacts and network with colleagues in the industry.

�

Join us at the 21st Edition of the Premier Conference for Compound Semiconductor Manufacturing

For more details see the Advance Program at www.csmantech.org or email at info@csmantech.org

The Yole Développement magazine February 2006 - n° 44 21

Microtechnologies for Life Sciences & ChemistryTechno News

Agilent microar-rays becomemore agile: newink-jet manufac-turing processAgilent Technologies (Palo Alto,CA, USA) has unveiled its next-generation DNA microarraymanufacturing process that willincrease feature density of itsink-jet-based microarrays bymore than four times in 2006and perhaps tenfold or more in2007. One of the strengths ofink-jet based microarrays is thatthey offer more flexibility thanphotolithographics techniquessuch as those employed byAffymetrix, which are well-sui-

ted for catalog arrays and longproduction runs, notes ScottCole, marketing director ofAgilent’s genomics business.Agilent's current single-arraymicroarrays have 44,000 fea-tures. The new microarray prin-ting technology, a higher-perfor-mance version of Agilent's pro-prietary ink-jet-based in situfabrication method, is currentlyproducing single-array microar-rays with 95,000 and 185,000features on standard 1-inch by3-inch glass slides. Agilent isalso using the new process toprint microarrays containingeight arrays per slide. The newmicroarrays, whether in single-or multiple-array slide formats,

are expected to be available inthe second quarter of 2006. Inaddition to increased featuredensity, the enhanced ink-jetprinting provides improved spotplacement accuracy and furtheroptimized synthesis uniformity.According to Agilent, thisenables features to be synthesi-zed closer together than on theprevious generations ofmicroarrays with minimalimpact on feature size. As such,the 95,000 and 185,000 featuremicroarrays are reportedlycompatible with existing experi-mental protocols without endusers needing to invest in newscanners.www.chem.agilent.com

Capillary Luer Adapter introduces no dead volume to flowUpChurch Scientific (Oak Harbor, WA, USA) has introduced its Luer-to-MicroTight® Adapter. Suited for infu-sing samples into lab-on-a-chip devices, it can be used to connect a luer-tip syringe or other standard maleluer to 360 µm OD capillary tubing without tubing sleeves. The adapter assembly includes adapter body, fema-le nut, and ferrule, all made of biocompatible PEEK™.www.upchurch.com

Lab-on-a-chip applicationsUtilizing microfluidics technology, scientists are in aposition to essentially recreate a molecular dia-gnostics laboratory on a silicon chip. The nano-components, microchannels and microvalves requi-red for such a structure are complex in their fabri-cation. An Israeli-based SME has developed aninnovative micro-pump component, suitable for useon these labs-on-a-chips. This pump technologycan be used in a variety of testing settings, allowingpumping of minute quantities of fluids from sam-

pling ports. One of the advantages is that the micro-pump is fully integrated on the chip and is suitablefor use with silicon or polymer substrates. The SMEis in a position to demonstrate the operation of thismicropump and possesses the secret know-howbehind its production. It is interested to enter into avariety of collaborative deals, including joint ventu-re agreements and out-licensing agreements. Thistechnology could appeal to a number of industrialplayers such as medical equipment companies aswell as environmental protection firms.www.irc.org.il

Gyroscopes thatcan detect cancerThe European Commission hasawarded EUR12 million to aninternational consortium led byNewcastle University (UK) todevelop a biosensor technologybased on micro-gyroscopes, upto the clinical trials stage. Theteam plans to produce hand-held devices to test blood,smear and biopsy samples forsigns of cancer of the breast,cervix, colon or rectum, andimmediately relay the results toa doctor. The device wouldidentify cancer-specific markers

which vary according to thetype of cancer and are distinctfrom proteins produced by heal-thy cells. They hope to be readyfor clinical trials in four years.The team also believes the sen-sor could eventually spot infec-tions such as tuberculosis andMRSA. Calum McNeil and hiscolleagues at the University ofNewcastle in the UK have crea-ted a silicon gyroscopic discless than 0.1 millimetresacross, coated with special pat-terns of DNA or proteins. Thedisc is electronically made tovibrate both up and down andside to side, like a ship rocking

about on the sea. Initially itvibrates with the same frequen-cy in both directions. But whena protein in a fluid sample bindsto the DNA, it knocks it offbalance, causing it to vibrate ata slightly different frequency ineach direction. By measuringthis change, and knowing thatthe particle must lie somewhereon the cross, the device canwork out the mass of the pro-tein, which will vary betweendifferent types of cancer andproteins produced by healthycells.www.ncl.ac.uk

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“Microfluidic”chips may acce-lerate biomedicalresearchSilicon microelectronics havemade computation ever faster,cheaper, more accessible andmore powerful. Microfluidicchips, feats of miniscule plum-bing where more than a hun-dred cell cultures or other expe-riments can take place in a rub-bery silicone integrated circuitthe size of a quarter, could bringa similar revolution of automa-tion to biological and medicalresearch, says Stanford bioen-gineering Professor StephenQuake. To put the university on

the leading edge of that move-ment, Quake opened theStanford Microfluidics Foundryto manufacture custom "labs ona chip" for academic resear-chers. The expense, inefficien-cy and high maintenance andspace requirements of roboticautomation systems presentbarriers to performing experi-ments. By contrast, microfluidicchips are inexpensive andrequire little maintenance orspace. They also need verysmall amounts of samples andchemical inputs to make experi-ments work, making them moreefficient and potentially cheaperto use. The foundry, headed byQuake and directed by resear-ch associate Jessica Melin, will

be a resource on campus andbeyond for making custommicrofluidic chips for academicresearchers who commissionthem, and for teaching resear-chers and students how tomake their own, if they desire.The foundry employs four tech-nicians and was funded by theschools of Medicine andEngineering and the university. Quake helped found a Bay Areacompany called Fluidigm thatserves commercial clients. Incontrast, the Stanford foundrywill help fulfil small orders ofchips to his academic col-leagues for specialized resear-ch applications.http://thebigone.stanford.edu/foundry

The Yole Développement magazine February 2006 - n° 44 22

Microtechnologies for Life Sciences & ChemistryTechno News

Alliance & Mergers

You can send us press releases to labat@yole.fr

QinetiQ signs GBP3.6m deal to develop 'world first' healthtechnologiesQinetiQ (Farnborough, UK) announced a GBP3.6m partnership with Zi Medical (St Asaph, UK), a medicaltechnology company, to exclusively commercialise two revolutionary technologies developed by QinetiQ forthe healthcare market, Pathscore and DrugPrint. This agreement marks the first stage in QinetiQ's relation-ship with Zi Medical. The two companies are already discussing the development of some of QinetiQ's othercancer related technologies.www.qinetiq.com

STMicro andVeredus developLab-on-Chip testfor bird fluSTMicroelectronics NV(Geneva, Switzerland) is wor-king with a Singaporean medi-cal diagnostics company,Veredus Laboratories Pte. Ltd.,to develop a fast, point-of-needdiagnostic capability that willenable health practitioners todetect strains of Avian Flu andother influenza viruses withinone hour. Veredus is develo-ping an application to specifical-ly identify whether a patient is

infected with the Avian Flu(H5N1) or a subtype ofInfluenza A or B in a single test,instead of requiring many tests,as needed currently. To be avai-lable in time for the next flu sea-son, the single-test applicationwill be a substantial break-through in enabling rapid identi-fication of the infectious agentto limit the spread of the disea-se and speed patients’ treat-ment. The diagnostic effort isbeing built onSTMicroelectronics’ In-Checkplatform, a complete laboratoryon a chip. The platform allowsusers to accurately and reliably

perform the complex proces-sing and analysis of a minutesample on a single disposablechip, dramatically reducing thetime and complexity of the ins-trumentation needed. In addi-tion, this self-contained lab-on-chip approach reduces the riskof cross-contamination inherentin conventional analysismethods. Results are detectedby a dedicated portable readerusing optical signal acquisitionand processed by ST’s speciali-zed bioinformatics software,which can be installed on anyPC.www.st.com

The Yole Développement magazine February 2006 - n° 44 23

Microneedle devices deve-loper raising 1st roundNanoPass Technologies Ltd. (Haifa, Israel), a deve-loper of micropyramid devices for transdermal drug

and vaccine delivery is raising a $6 million first roundof financing. The round is open to new investors andis anticipated to close by June 30, 2006.www.nanopass.com

thinXXS starts asa stock companyentering 2006thinXXS GmbH (Zweibrücken,Germany) announced a changeof name and legal status as ofDecember 19, 2005. The for-mer limited liability companyhas now become a stock com-pany as thinXXSMicrotechnology AG. With thisconversion the market leader inplastic microfluidic and micro-optic components and systems

continues to pursue its growthstrategy. The increase in flexibi-lity for obtaining fresh capital islikely to prove especially advan-tageous for large investmentssuch as needed for the expan-sion of worldwide sales activi-ties or the extension of produc-tion capacity. Lutz Weber andHans-Joachim Hartmann, thecompany founders and pre-vious General Managers, wereappointed as Members of theExecutive Board. Ownershipremains unchanged as well:

besides the two founders, thestock holders of thinXXSMicrotechnology AG are PRI-CAP Venture Partners AG,Hamburg, GAM GmbHManagement Consulting,Unterhaching, as well as FIBFonds für Innovation undBeschäftigung Rheinland-PfalzUnternehmensbeteiligungsgesellschaft mbH andWagnisfinanzierungsgesellschaft für Technologieförderung inRheinland-Pfalz mbH, bothlocated in Mainz.www.thinxxs.com

Diagnosis insidecells will happenby 2010Conducted as part of theForesight activity within the EUnetwork of excellence Nano-to-Life (N2L), a worldwide expertsurvey on 20 future develop-ments in Nanobiotechnology(NBT) has been completed.According to the study, practicaland commercial applications ofNBT developments under consi-deration will be realized mainlyin the area of medicine andhealth. In other areas practicaluse and commercialization arequestionable or uncertain.Authors have found five topicsof high priority: Labs on chip;Self-assembly for materials anddevices; Bio-engineered mate-rials based on bio-i n s p i r a t i o n / b i o - m i m i c r y ;Biosensors for detection ofsingle molecules based on nanoarrays; Biodetection with smart

nano-surfaces. They have alsogrouped the 20 statements bytheir likely timeframes of realisa-tion: Before 2010 (biodetection,analysis and diagnosis insidecells); 2001-2015 (targeted drugdelivery, labs on chip, biosen-sors…); 2016-2020 (construc-tion in vitro of artificial humanorgans, protein chips for perso-nal use…). The results provideinput to the strategy of N2L andthe envisioned EuropeanInstitute of Nanobiotechnology,they added. 139 experts from30 countries participated in thestudy. For each developmentthey assessed the likely year ofrealization, impact on scienceand technology, environment,quality of life and the labor mar-ket, and commercializationprospects in medicine, security,environment, agro-food andconsumer products. Limits tocommercialization and actionsneeded to foster the realizationwere assessed as well.www.nano2life.org

Affymetrix andAppliedBiosystems enterinto licensingagreementAffymetrix, Inc. (Santa Clara,CA, USA) and AppliedBiosystems Group (Foster City,CA, USA), an AppleraCorporation business, announ-ced that Applera has taken anon-exclusive, worldwide licen-se to a number of Affymetrixpatents related to the manufac-ture, sale, and use of microar-rays for gene expression analy-sis. The license will be applied tothe continued expansion of theApplied Biosystems ExpressionArray System for high densitymicroarray analysis and willenable customers to use thesystem for gene expression andR&D purposes. Details of thelicense were not disclosed.www.affymetrix.comwww.appliedbiosystems.com

Agreement between Alpha Innotech and GE HealthcareInstrumentation provider Alpha Innotech (San Leandro, CA, USA) entered into a non-exclusive supply and dis-tribution agreement with GE Healthcare (Chalfont St. Giles, UK). The agreement will see Alpha Innotech bund-le GE Healthcare’s ArrayVision microarray software with Alpha Innotech’s NovaRay laser scanning system, itsmultiplex array detection system.www.alphainnotech.com www.gehealthcare.com

Business News

Microtechnologies for Life Sciences & ChemistryAlliance & Mergers

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The Yole Développement magazine February 2006 - n° 44 24

IC Manufactur ing Business News

Equipment industry finishes 2005 with a book-to-bill of 1.01

November 2005*

December 2005**

January 2006***

WorldwideBookingss

4.737

4.907

4.527

WorldwideBillings

4.368

4.847

4.272

B:B Ratio

1.08

1.01

1.06* Revised, ** Preliminary, *** Forecast

Source: VLSI Research, January 2006

The industry finished 2005 in a favorablestate with a B:B ratio of 1.01, according toVLSI Research Inc. Worldwide equipmentbookings amounted to $4.9B while billingsreached $4.8B in December 2005.Considering that December is typically a slowmonth for equipment buying, the recent datareflect an improving bookings environmentfor the industry. Front-end utilization peakedin November at 96%. It softened somewhat inDecember, but remained at an unusually high

Semiconductor Equipment Bookings and Billings (billions of U.S. dollars)

level of 90%. It was higher at the back-end, where the average utilization rates for Test and Assembly hit95%. The scramble for capacity has resulted in a flurry of order activity, which is expected to continuethrough the first quarter of 2006.http://www.vlsiresearch.com

Infineonannounces lossof 183 million forQ1 2006For the first quarter of the 2006financial year, InfineonTechnologies reported adecrease in revenues to Euro1.67 billion, down 3 percentsequentially, reflecting decrea-sed revenues in the MemoryProducts segment, primarily dri-ven by a strong decrease inaverage selling prices of DDR2memories in the MemoryProducts segment. Revenues inthe Automotive, Industrial andMultimarket segment as well asin the Communication segmentincreased sequentially. Firstquarter EBIT loss increased toEuro 122 million from an EBITloss of Euro 43 million in theprior quarter. Net loss in the firstquarter was Euro 183 millioncompared to a net loss of Euro100 million in the prior quarter.In the second quarter of the2006 financial year, Infineonexpects combined revenues inthe logic segments to remainbroadly stable and EBIT todecline compared to the firstquarter. In its Memory Productssegment, the company expects

to increase its device productionby more than 20 percent basedon additional capacities.http://www.infineon.com

SUSS MicroTecwins internationalaward for its NC-1 non-contactsystemSUSS MicroTec AG hasannounced that the non-contactprobe system NC-1, has beenhonored with the "Best in Test"award from the leading industryjournal Test & MeasurementWorld. As one of twelve pro-ducts selected by the editors, itis the only probe system to bepresented with the award, whichrecognizes particularly innovati-ve and useful test products. TheNC-1 Non-Contact System usesa patented technique to acquiresignals from very small featureswithout loading the circuit undertest or relying on optical emis-sions. The NC-1 supplies bothvoltage and timing information,and the integrated atomic forceprobe enables deep sub-micronscanning and positioning. Toextract measurements from thedevice, the tip of the probe is sti-

mulated with electrical pulsesafter being placed above thearea of interest.http://www.suss.com

Fujitsu plans $1billion300mm/65nm fabexpansionFujitsu Ltd. said it will spend120-130 billion yen (US $1.05-$1.15 billion) to build a newsemiconductor plant in MiePrefecture, expanding its300mm facilities there. The newFab 2 site will supply 90nm and65nm CMOS logic, and featurea 24,000 sq. ft dual-level clean-room structure, double the sizeof the current Fab 1 plant.Construction will begin in earlyfiscal 2006 with operationsbeginning by April 2007. Volumeproduction of 10,000wafers/month is slated for July2007, with potential ramp to amaximum capacity of 25,000wafers/month depending ondemand. Fujitsu's existing Fab 1300mm/90nm plant was openedin April 2005, and is expected toreach production capacity of15,000 wafers/month this year.http://www.fujitsu.com

The Yole Développement magazine February 2006 - n° 44 25

Techno News

IC Manufactur ing Business News

ST announces resultsincreasing 1.4% year overyear for 2005STMicroelectronics reported financial results for thefourth quarter and fiscal year ended December 31,2005. Net revenues for the fourth quarter were$2,389 million, up 6.3% sequentially from the$2,247 million reported in the prior quarter, and

2.6% above the $2,328 million reported in lastyear’s fourth quarter. Net revenues for the yearended December 31, 2005 were $8,882 million, anincrease of 1.4% over the $8,760 million recordedin 2004. Year over year sales growth was driven bywireless and data storage applications, which bothgrew at double digit rates. Automotive applicationsalso grew at a much faster rate than that of theCompany year over year.http://ww.st.com

China’s the new king of ICdemandThanks to 33% compound annual growth since2000 vs. 8% growth rate for the overall industry,and an 8% decline in the Americas region, China isnow the world's largest IC market, at $40.8 billion,a 32% increase from 2004, according to IC InsightsInc. China represented 21% of the world'sconsumption of ICs in 2005 ($192.4 billion), up fromjust 6% in 2000, when it was just one-fifth the size

of the Americas market. However, the Scottsdale,AZ-based analyst firm cautions that explodingdemand for semiconductors in China won't be sup-ported by similar expansion in the domestic IC pro-duction base. China-based IC production was onlyabout 6% of its demand in 2005 ($2.6 billion), anddespite 36% CAGR it'll only achieve 10% of domes-tic IC consumption in 2010 ($12.1 billion), whichwould be just 4% of the total forecasted $319 billionworldwide IC production.

IBM, Sony,Toshiba pushpartnership to32nmCell processor partners IBM,Sony and Toshiba have agreedto take their technology R&Dalliance into the 32nm era. Thetrio first announced its plan tocooperate on the developmentof Cell and its underlying 90nmand 65nm fabrication technologyback in 2001. Back then, theydescribed the project as a five-year programme costing $400m.The trio ushered in a second,five-year phase, this time exten-ding the chip fabrication side ofthe alliance to the 32nm nodeand beyond. What's missingfrom the announcement is dis-cussion of the firm's plans for45nm fabrication implying 32nm

is next-generation and 45nmisn't. Sony and Toshiba alreadyhave a separate 45nm jointdevelopment programme inplace. The absence of IBM fromthe 45nm announcement mayexplain why all the 32nm R&Dappears to be going to happenat IBM.http://www.toshiba.comhttp://www.sony.comhttp://www.ibm.com

Applied Materialsand IMEC teamto develop inno-vative 32nm,22nm intercon-nectApplied Materials and IMEC,Europe's leading independentnanoelectronics and nanotech-nology research center,

announced a significant jointeffort to develop 32nm and22nm-node copper/low k inter-connect processing technolo-gies using a suite of AppliedMaterials' most advanced sys-tems. The goal of the joint pro-gram is to address criticalmanufacturing challenges thatchipmakers may face as theytransition to future device gene-rations, helping them to bringnew products to market morerapidly while minimizing risk.Applied's work with IMEC is partof IMEC's nanoelectronicsresearch platform, whichincludes leading chipmakerpartners Infineon, Intel,Panasonic/Matsushita, PhilipsSemiconductors, Samsung,STMicroelectronics, TexasInstruments and TSMC.http://www.imec.behttp://www.appliedmaterials.com

You can download an issue at: www.memsinfo.jp/yd_micro_news.shtml

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Key Data

The Yole Développement magazine February 2006 - n° 44 26

IC Manufactur ing Techno News

Consumer products continue to drive sales, SIA recordsglobal chip sales of $20.4 billion in November

Month-to-Month SalesMarketAmericasEuropeJapanAsia PacificTOTALYear-to-Year SalesMarketAmericasEuropeJapanAsia PacificTOTAL

Last Month3.603.423.739.3120.05

Last Year3.453.603.948.0419.03

Current Month3.733.533.769.3820.40

Current Month3.733.533.769.3820.40

% Change3.7%3.2%0.9%0.8%1.7%

% Change8.0%-2.0%-4.6%16.7%7.2%

November 2005 ($ Billions)

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According to the SemiconductorIndustry Association (SIA), worldwidesales of semiconductors continued at arecord pace, reaching $20.4 billion inNovember. Worldwide semiconductorsales increased by 7.2 percent from the$19.0 billion reported for November2004. Sales were up 1.7 percentsequentially from the $20.1 billionreported for October. “Strong holidayseason sales of consumer productssuch as cell phones, digital cameras,and MP3 players drove record sales ofsemiconductors in November,” saidSIA President George Scalise. “Sales of flash memory devices – a key component in many hand-heldconsumer products -- were up by 33 percent from November 2004. Sales of application-specific standardcircuits, another proxy for consumer products, were up by nearly 34 percent year-on-year.http://www.sia-online.org

TSMC starts production with 80nm processTaiwan Semiconductor Manufacturing Company has entered full production of its 80 nanometer (nm) “half-node” process technology for high-performance designs. With this process, designers can improve perfor-mance and reduce the overall size of their designs by up to 19 percent, resulting in more die per wafer andmore than 20 percent cost-per-die reduction. The 80nm process is a lithographic shrink of the 90nm processtechnology. As a consequence, this node supports most of 90nm TSMC and third-party libraries and IP requi-ring only simple re-characterization using 80nm models. Design rules are also a linear shrink from 90nm. Theresult is a significantly reduced re-design time to port the chip to the new process.http://www.tsmc.com

Power 06’ Advanced Technologies and Markets for Power Devices

Price: EURO 3,900 / US$ 4,700 for 120 slides (PowerPoint report) plus 67 profiles (Excel table format)Contact: David Jourdan, Tel: +33 472 83 01 90, Email: jourdan@yole.fr, website: www.yole.fr

In microelectronics world, the power devices industry is very specific asthere are few standards and represents a few % of the mainstream semi-conductor business (about 10%). However, this industry is also charac-terized by a high level of innovation: deep etching, the use of SOI or thinwafers to answer power devices technical challenges. This report givesa complete analysis of the markets and new technical trends for thepower devices industry today. It is also presenting the current and thefuture technical solutions to improve power devices. The key challenges are:• Lower Rdson – the global switch resistance in the on state - (to have low heating, low losses)• Lower cell size: shrinking the chip area reduces the chip cost but power dissipation per unit area becomesan issue• Add protecting features: high operating temperature, latch up free, very high voltage applications,ElectroStatic Discharge (ESD) protection are requested for automotive applications• Built robust devices

In 2007, IPM will account for more than 45% of total Power Devices market

The Yole Développement magazine February 2006 - n° 44 27

IC Manufactur ing Alliances & Mergers

Steag HamaTechacquired bySingulusTechnologiesSINGULUS TECHNOLOGIESAG (SINGULUS) acquires66.28 % of the STEAGHamaTech AG shares fromSES/RAG as planned. Thus,SINGULUS currently owns78.73 % of the shares in total.The integration of the two com-panies is being advanced asquickly as possible and imple-mented immediately within thescope of the legal framework.With the optimum adjustmentsat both companies, savings andsynergies in the amount ofabout EUR 20 million are targe-ted. The Management Board ofSTEAG HamaTech has decidedto cease commercialisation ofequipment from the Pre-recor-ded Media Equipment businessunit. In 2005, STEAGHamaTech successfully achie-ved a market share of 15% inthe Pre-recorded segment.However, the company does notexpect to be in a position todefend or improve its marketposition in the current businessyear and thereby increase ear-nings in order to break even. Itwill continue to provide serviceand spare parts to existing cus-tomers.Early in January, Dr Stefan

Reineck, Chief ExecutiveOfficer of STEAG HamaTechAG, declined from renewing hiscontract, expiring on 31 March2006. Dr Reineck’s resignationhas been mutually agreed withthe Supervisory Board.http://www.steag-hamatech.comhttp://www.singulus.com

Hitachi, Toshibaand RenesasestablishSemiconductorFoundry PlanningHitachi Ltd, Toshiba Corp. andRenesas Technology Corp.have agreed to jointly set upadvanced processSemiconductor FoundryPlanning Co Ltd. The companywas established in January2006. Due to the steady minia-turization of semiconductorfabrication processes, enor-mous investment is now requi-red to construct plants that pro-duce system LSIs, which usecutting-edge processes.The new company is being esta-blished to study the feasibility ofan independent semiconductorfoundry business to which thepartners could effectively out-source fabrication of advancedsystem LSI products based on65 nm or finer process technolo-gies.

Hitachi will have a 50.1% stakein the new company, whileToshiba will hold 33.4% andRenesas 16.5%. The three part-ners will invest 100 million yenin the new establishment, withplans to increase capital by afurther 100 million yen in March2006. After establishment, thecompany will plan and evaluatethe feasibility of the foundrybusiness over a period ofapproximately six months.http://www.hitachi.comhttp://www.renesas.comhttp://www.toshiba.com

ASM and OxfordInstruments signagreement forALD technologyASM International and OxfordInstruments announced thatthey have signed an agreementgranting Oxford Instruments alicense on ASM's patent portfo-lio relating to Atomic LayerDeposition (ALD) technology.The license includes over 280issued and published patentsand allows Oxford InstrumentsPlasma Technology to developnew products and processesexploiting ALD technologyunder ASM's patents. Terms ofthe licensing agreement werenot disclosed.http://www.asm.comhttp://www.oxinst.co.uk

Unaxis Wafer Processingappoints Peter Podesser ashead of the divisionUnaxis Wafer Processing announced that Dr. PeterPodesser has been appointed Division Head ofUnaxis Wafer Processing succeeding Bob Kase,who was retiring at the end of last year. Dr.Podesser joins Unaxis from the Austrian EV Group,where as Chief Executive Officer for the past five

years, he successfully transformed a mid-sizedcompany into a globally active system supplier forthe semiconductor industry. Before that, he had afast-moving career at Austrian technology companyRHI AG, where he held various management postsin Europe and Asia over a ten-year period. PeterPodesser is an Austrian citizen who studied busi-ness science at Vienna University of Economicsand Business Administration, and earned a docto-rate in social and economics science.http://semiconductors.unaxis.com

Life & Death

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You can send us press releases to mouly@yole.fr

Mems4Mobile 06: analysis of the applications and markets of MEMS in mobile phonesEvaluation of the business potential and reality of MEMS applications in mobile phones marketDescription of the different applications and linked world markets main players, expected product launch,complete and in-depth technology, specifications and marketing challenges and the different strategies of themobile phone manufacturers. Available since February 2006.Price: Euro 3,900 / US$ 4,700

Power Devices: Advanced technologies for power devicesA complete analysis of the markets and new technical trends & challenges for the power devices industry. Thereport provides a complete and in-depth analysis of these emerging technologies, forecasting their impacts onthe related material and equipment market. Available since January 2006.Price: Euro 3,900 / US$ 4,700

MEMS4Display is presenting market forecasts (volumes and prices), players involved in MEMS-basedmicrodisplays, analysis of the competition, the different MOEMS applications with a specific analysis on theMEMS-based microdisplays. Available since February 2006.Price: Euro 3,300 / US$ 3,950

Yole Life

About Yole Développement

To meet us at exhibitions

Our reports

Yole Développement is a market research and strategy consulting company, specialised in:- MEMS & Nanotechnology- Compound semiconductors & optics- IC manufacturing- Micro and nano technology for Life Sciences and chemistry

Yole Développement offers various kinds of services:- Custom market research and technology/strategy analysis- Marketing and communication services through micronews- Editions of market reports and publications (micronews & MEMSentry)

Founded in 1998, Yole Développement is now the world leader in the analysis of the microtechnologies andcompound semiconductors markets. Each day, Yole Développement’s team of 18 consultants is in contactwith worldwide key industrial companies, R&D institutes and investors in order to help them to understandthe markets and technology trends. In its analysis, Yole Développement takes into account the completevalue chain including materials and equipment suppliers, device & system manufacturers and devices users.

MEMS4Display: analysis of the MEMS-based microdisplays markets

Jean Christophe Eloy is thefounder and Managing Director

of Yole Développement.

www.infoshop-japan.com/publisher/YD.shtml

MEMSFoundries: Market analysis of MEMS foundries and contract manufacturersMarket is expected to be multiplied by 3 in 6 years, representing more than 5% of total MEMS marketsA complete analysis of the markets, strategies and evolution of the MEMS contract manufacturers and MEMSfoundries with analysis of their revenues evolution 2003-2010, of the 20 most important foundries and of thepossible exit strategies per company Available since February 2006.Price: Euro 3,900 / US$ 4,700

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And still: World Inertial Sensor Market, Status of the MEMS industry, SiC 2005…

CONTACTfor further information on Yole Développement’s activities, David Jourdan,Tel: +33 472 83 01 90, Email: jourdan@yole.fr and website: www.yole.fr

• 3GSM, Barcelona, Spain, 13-16 February, please contact Jean-Christophe Eloy at eloy@yole.fr• Strategies in Light 2006, San Francisco, USA, 15-17 February 2006, please contact PhilippeRoussel at roussel@yole.fr• Congress on Microsystem, Munich, Germany, 7 - 8 March 2006, please contact David Jourdan atjourdan@yole.fr• OFC, Anaheim, CA, USA, 5-10 March, please contact Jean-Christophe Eloy at eloy@yole.fr