Omron Develops Tiny MEMS Relay
Shinetsu Chemical to Produce Semiconductor Encapsulant in China
Citizen Considers Establishing Backlight Plant in Shanghai
Japanese Materials Suppliers to Set up Semiconductor Material Consortium
Sharp to Establish LCD R&D Base in Mie Plant
Ube to Increase Output of PCB Material

Omron Corporation of Japan, a major player in sensors and factory automation, announced on August 6, 2002 that it has developed the world’s smallest relay. Called the Micro-Machined Relay (MMR), the device is fabricated with MEMS (Micro Electromechanical System) technology and measures 1.8 mm x 1.8 mm x 1mm, about 1/100th the size of Omron’s current-generation relays. The MMR functions at speeds up to 20GHz, and is targeted at wireless data applications in cellular phones and other handheld wireless products. Insertion loss is less than 1.3 dB and isolation is over 20 dB.

Omron hopes to commercialize the MMR before April 2005. In addition to employing MEMS fabrication technologies, Omron applied a proprietary technology to fabricate pads for assembly perpendicularly within a substrate, using Chip Scale Package (CSP) methods with a wafer-level process. For this reason, the new relay does not have an interposer made of ceramic or plastic. Up to this point, high frequency semiconductor switches have been used in cellular phones, but analysts in Japan point to the MMR as a potentially competing technology. [M. Robertson, Portelligent]

In a response to the trend among device manufacturers to place fabrication facilities in China, Shinetsu Chemical of Japan has announced that it will begin producing semiconductor encapsulation materials in China, in order to have a factory located near its customers. The firm will undertake construction of a plant in China during fiscal 2003 (April 2003 to March 2004). Shinetsu’s new Chinese plant is going to be located near either Shanghai or Beijing.

Shinetsu Chemical is currently producing semiconductor encapsulants in Gumma Prefecture, Japan, and at its Malaysia Plant. The company’s total capacity is 1200 to 1300 tons a month, making Shinetsu the third or fourth leading encapsulant supplier in the world. With the establishment of a plant in China, the company may transfer the operations in Malaysia to China, either wholly or in part.

Semiconductor encapsulants, which provide protection against shock and contamination, are used with ICs in products such as personal computers and cellular phones. A primary material in encapsulants is epoxy resin. According to the Japanese market research firm, Fuji Chimera, the global demand for semiconductor encapsulants during 2001 was 120 billion yen ($1 billion @ yen 120/$US 1). However, Fuji Chimera forecasts the demand for semiconductor encapsulants in 2002 will drop by 22.8 percent to 104.6 billion yen ($871.67 million), as ICs are growing smaller in size. [M. Robertson, Portelligent]

Citizen Electronics of Japan is considering establishing an LCD backlight factory in Shanghai, China, according to August 2002 reports in the Nikkan Kogyo Shimbun. While color LCD screens have already become nearly universal in cellular phones sold in Japan, the adoption of color screens in cellular phones sold outside of Japan is anticipated to grow rapidly over the next several years. In response to this trend, Citizen began the manufacture of backlight modules for color LCDs at the facility of a Chinese sub-contractor in March 2002. By July 2002, the firm was producing 400,000 to 500,000 units per month. Citizen plans to push monthly capacity at the sub-contractor’s facility to 3 million units per month by the end of 2002, which, when combined with production capacity in Japan, will give Citizen a company-wide monthly capacity of 4.5 million units.

The planned factory in Shanghai will add another 4.5 million units to monthly capacity. According to Citizen, manufacturing backlight units in China is about 30 percent cheaper than manufacturing them in Japan. By establishing a large backlight supply capability in China quickly, the firm hopes to dominate the global market. Citizen is investigating the possibility of using a Chinese sub-contractor for the plant in Shanghai. However, according to the Nikkan Kogyo reports, the more likely scenario is that the Shanghai operation will be structured as a wholly owned manufacturing subsidiary of Citizen’s Hong Kong branch. [M. Robertson, Portelligent]

Hitachi Chemical, Sumitomo Bakelite, and JSR, all of Japan, have decided to establish a Semiconductor Material Consortium, which will conduct development of enabling and evaluation technologies for next-generation semiconductor materials. In addition to these three firms, Tokyo Ohka Kogyo, Asahi Kasei, and Toray are also contemplating participation. The companies, all of which are materials providers to the semiconductor industry, all plan to invite participation by semiconductor equipment manufacturers and are hoping to have over 10 participants.

A planning committee will focus initially on defining a research agenda for the development of evaluation technologies for packaging materials such as photo resist, insulation materials, and encapsulants for next-generation semiconductor devices. The initial R&D program conducted by the consortium will run for three years beginning in April 2003. The R&D budget is estimated at 20 billion yen ($166.67 million @ yen 120/$US 1), with the majority of this total subsidized by the Japanese government.

In a development somewhat reminiscent of the forces that led to the foundation of Sematech and MCC in the United States during the 1980s, Hitachi Chemical, Sumitomo Bakelite, and JSR believe it is important for Japanese semiconductor material providers and semiconductor manufacturers to collaborate in order to counter the threat presented by Taiwanese and Korean rivals in next-generation semiconductor technology. [M. Robertson, Portelligent]

Japan’s market leader in LCD displays, Sharp Corporation, has announced that it will set up a research center at its LCD manufacturing plant, in Mie Prefecture, Japan. Sharp is currently constructing a system LCD line within the Mie Plant, which is scheduled to come online in fall 2003. To be called the Technology Center, the R&D facility will open at the same time Sharp kicks off production on its new line. To staff the facility, Sharp will relocate about 200 engineers from the Mobile LCD Division at its Tenri Plant in Nara Prefecture. The system LCD plant will begin operations with approximately 550 employees.

The new Technology Center will concentrate on development of system LCDs for mobile devices. System LCDs can support multiple semiconductor devices on the panel itself, thus enabling the design of smaller, thinner displays, as well as power conservation. At the current technology level, 7-8-inch displays represent the limit for the application of system LCD technology. However, Sharp will focus on R&D to achieve a 12-inch format in around 2004. Such a display module could enable development, for example, of a "sheet computer."

In the future, Sharp hopes to incorporate system LCDs into its own products, such as notebook PCs and PDAs, to differentiate itself from rivals. This differentiation strategy is captured in Sharp’s current corporate slogan - the "Only One". [M. Robertson, Portelligent]

According to reports in Japan, Ube Industries plans to increase its output of polyimide, a raw material for PCBs. The company will install a new production line at its Ube Plant in Yamaguchi Prefecture, Japan, which will begin production in spring 2004. Ube plans to invest about 4 billion yen ($33.33 million @ yen 120/$US 1) and to boost its annual production capacity by 27 percent to 700 tons. Polymide is a highly functional light-weight resin, which is very flexible. It is used in PCBs for application in cellular phones and notebook PCs. Although demand for polymide was dampened due to the IT recession in 2001, the demand is recovering as inventory has been cleared. Ube has six manufacturing lines in its Ube plant, with the new line to be the seventh. Its rival and the leading supplier of polyimide, Toray/Dupont, is also reported to be planning a 50-percent increase in capacity. [M. Robertson, Portelligent]