Apple's A6X Processor 32nm Process Advantages

Apple's latest iPad 4 processor comes with its latest processor: an A6X, which Apple says delivers twice the CPU and graphics performance as the A5X. See below some details about Apple's A6X processor.

"Apple moved from a 45nm process to a more power-efficient 32nm process. Instead of keeping performance the same and decreasing the iPad's thickness and weight, Apple instead chose to double its performance without sacrificing all-day battery life."

More about Apple's optimizing process and design at iPhone A6 Teardown Update

Ron
http://www.maltiel-consulting.com/






Deducing details about Apple's A6X processor


Apple promises double the CPU and graphics performance over the A5X, but how?

by Chris Foresman - Oct 23 2012, 3:25pm PDT


As usual, Apple didn't share many specifics about its new A6 "Extreme" (A6X) processor, which powers the fourth-generation iPad. However, by looking at Apple's claims that it's "twice as fast" as the A5X-powered third-gen iPad, it may be possible to deduce what's inside.

According to Apple, the A6X processor "delivers up to twice the CPU and graphics performance of the A5X chip." In other words, the dual-core CPU can process data twice as fast as the dual-core 1GHz, Cortex A9-based A5X. It can also churn through OpenGL triangles and textures at twice the rate of the PowerVR SGX543MP4 in the A5X. So how did Apple do that?

Looking at CPU power for the moment, we already know that Apple designed a custom ARM-based core for the A6. Running at 1.2GHz in the iPhone 5, two A6 cores run twice as fast as two 800MHz A5 cores in an iPhone 4S.

However, the A5X in the third-gen iPad was clocked at 1GHz. That means Apple is clocking the A6X higher yet. Given that architectural improvements account for some of the speed increase, Apple only had to clock the iPhone 5 at 150 percent to achieve double the compute performance of the iPhone 4S. With this in mind, we believe Apple is clocking the A6X's CPU cores at 1.5GHz.

Examining the GPU is slightly different. Apple already jammed four SGX543 GPU cores into the A5X in order to achieve performance parity with the two SGX543 GPU cores in the A5 chip that powers the iPad 2. The extra GPUs were needed just to keep up with the 2048×1532 pixel Retina display, so these did not offer any graphics performance improvement. However, Apple says that the A6X pumps pixels twice as fast.

Apple could be using a newer-generation PowerVR core, but that appears to be very unlikely. Only one announced processor is known to use a PowerVR Series6 design, and it won't even begin sampling until 2013. Given that Apple just released the A6 a month ago, we're confident Apple is still using the same SGX543 core.

Here's what we know about the PowerVR SGX543 core's performance: it scales almost linearly with the number of cores and clock speed. So to double the performance, Apple would either have to double the number of cores to eight or double the clock speed of each of the four cores. Apple says that the A6X has "quad-core graphics"—the same as the A5X—so Apple clearly boosted the clock speed. Since the GPUs in the A5X were clocked at 250MHz, we believe that Apple has clocked the SGX543 cores at 500MHz.

Given the significant boosts in clock frequency—150 percent for the CPU cores, and 200 percent for the GPU cores—you may be wondering how Apple can still promise a 10-hour battery life. After all, the iPad still has the exact same 42.5Whr battery, but the processor is twice as powerful. The power savings come from the same place as we saw in the iPhone—Apple moved from a 45nm process to a more power-efficient 32nm process. Instead of keeping performance the same and decreasing the iPad's thickness and weight, Apple instead chose to double its performance without sacrificing all-day battery life.

Of course, we won't know how accurate our educated guesses are until one of the new iPads can be thoroughly benched, and the A6X's architecture is analyzed by the likes of Chipworks. However, we feel confident suggesting Apple has mated two A6 ARM cores running at 1.5GHz with four PowerVR SGX543 cores running at 500MHz. Given the performance results we saw with the iPhone 5, we expect the updated iPad will remain at the top of the tablet performance heap for some time.

Microsoft Surface TearDown

"Prominent ICs chips on the Surface motherboard: 

• Purplish-Blue (R26, G48, B231; #1a30e7): Marvell 88W8797-BMP2 wireless MIMO SoC

• Greenish-Yellow (R228, G230, B74; #e4e64a): Micron 2RE22 D9QBJ 2 GB DDR3 SDRAM

• Greyish-Red (R163, G50, B25; #a33219): Nvidia quad-core 1.4GHz Tegra 3 ARM-based microprocessor

• Bluish-Green (R97, G171, B162; #61aba2): Texas Instruments TPS659110 power management IC

• Brownish-Orange (R198, G112, B36; #c67024): Samsung KLMBG4GE4A eMMC 32GB NAND Flash

• Pale Violet with a Trace of Mauve (R181, G92, B227; #b55ce3): Wolfson 8962E ultra low power stereo audio codec

• Cypress Semiconductor CY8C20466A capacitive touchscreen controller
• Atmel MXT1386 touchscreen controller
• M430 G2402
• 1600P E284A " (from iFixIt's and theregistry.co.uk)

 more at Latest Microsoft Surface TearDown




Ron Maltiel

http://www.maltiel-consulting.com/

  

 

 

Microsoft Surface Teardown

We got our hands on Microsoft's new Surface, and to its credit, it lasted a good twenty minutes before we decided to tear it open.

 

Step 1 — Microsoft Surface Teardown 

Is that the display assembly from a PC laptop? Nope, it's the new Microsoft Surface with Windows RT.

Notable tech specs:

•  0.6" ClearType HD Display (resolution of 1366x768 pixels)
• Quad-core NVIDIA Tegra 3 processor
• 2 GB RAM
• 32 or 64 GB flash storage
• Wi-Fi (802.11a/b/g/n) + Bluetooth 4.0
• 720p HD Front and Rear facing LifeCams

 

 

To give the Surface laptop-like connectivity, nearly every edge includes ports and buttons. They are (from left to right):

 

Magnetic charging, USB 2.0, and Micro-HDMI out on the right side

 Magnetic connection for the Touch Cover or Type Cover on the bottom

 Headphone jack and volume rocker on the left side 

Mobile DRAM Takes Over

"mobile DRAM commanded more than 26 percent of all DRAM revenue during the second quarter—a significant improvement from 19 percent the same time a year ago, and from 11 percent two years ago in 2010.
This is attributed to 2 reasons:
1. Share of mobile DRAM bit shipments is now at 17.8 percent, up from 7.9 percent in the first quarter.
2. The price of mobile DRAM has fallen less than that of its commodity cousin and its pricing is overall less vulnerable given the segments it plays in."(from Mobile DRAM Market Grows, Samsung Domination Continues)

Ron
www.maltiel-consulting.com



Mobile DRAM revenues up in 2nd Quarter

Thursday, October 18, 2012


Mobile DRAM revenues rose to the highest level yet in the second quarter of 2012 Revenues amounted to US$1.85 billion in the second quarter, up from US$1.83 billion in the first.

Two reasons account for mobile DRAM's rising market clout. First, mobile DRAM's share of total DRAM bit shipments is now at 17.8%, up from 7.9% in the first quarter.

Second, the price of mobile DRAM has fallen less than that of itsd cousin, commodity DRAM, IHS noted. While commodity DRAM historically has been subject to great swings in pricing—with the product losing as much as half of its value from the second to the fourth quarter last year alone—mobile DRAM pricing is less vulnerable, falling 10% per quarter on average.

Mobile DRAM also tends to be priced according to manufacturing cost, not based on the general balance between supply and demand. As a result, DRAM companies are able to earn a more reasonable margin for their mobile memory products—unlike in commodity DRAM, where negative margins are frequently the rule.

Samsung Electronics continued its unshakable hold at the top of the mobile DRAM market in the second quarter of 2012, with sales of US$1.1 billion, or a remarkable 61% of the global mobile DRAM market.

With the success of smartphones such as the Galaxy S3, the South Korean electronics titan also is now one of the world's largest consumers of mobile DRAM. Samsung enjoyed a 3% improvement in sales during the quarter, and its year-to-year growth was even more impressive at 35%.

SK Hynix was No. 2 behind Samsung with sales of US$362 million, down from US$366 million in the first quarter and from US$377 million the same time a year ago.

Elpida Memory snagged a 13% share based on mobile DRAM revenues of US$245 million in the second quarter of 2012, while Micron Technology saw its share amount to 4% in light of US$79 million in revenues.
By: DocMemory

DOJ investigating Samsung's patent licensing strategies

Wilmer Exposes DOJ Probe Into Samsung Patent Licensing

The Litigation Daily

Jan Wolfe 10-25-2012

The epic patent fight between Apple Inc. and Samsung Electronics Co. Ltd. took another unusual turn on Tuesday, when Apple's lawyers at Wilmer Cutler Pickering Hale and Dorr broke the apparent news that the U.S. Department of Justice is investigating Samsung's patent licensing strategies.

Apple wrote in a motion filed at the U.S. International Trade Commission that the DOJ is investigating whether Samsung is using "standards-essential" patents anticompetitively. (The probe hasn't been verified, but Apple is unlikely to be making it up.) The motion concerns whether an import ban on certain Apple devices, including the iPhone and iPad, would be in the public interest. Apple's lawyers at Wilmer argue that Samsung can't ask for an import ban because it broke a promise to license patents on fair, reasonable, and nondiscriminatory (FRAND) terms. [Hat tip: FOSS Patents blogger Florian Muller.]

Samsung sued Apple at the ITC in June 2011, alleging infringement of five FRAND patents. Before filing suit, Samsung had offered to license some of the FRAND patents to Apple in exchange for 2.4 percent of Apple's sales--a steep royalty. Apple argued in its defense that the patents are unenforceable because Samsung's licensing demands were abusive and anticompetitive.

Samsung voluntarily dropped its claims over one of the patents, and then on Sept. 14 an ITC administrative law judge ruled that Apple didn't infringe the four that remained. The ruling was somewhat of a blow to Apple, however, in that the ALJ declined to find that the patents were unenforceable due to FRAND violations. "The evidence does not support Apple's allegation that Samsung failed to offer Apple licenses to Samsung's declared-essential patents on FRAND terms," the judge wrote. "Negotiations often involve a process of offer and counteroffer before the parties arrive at an agreed price, but Apple's evidence does not demonstrate that Apple put forth a sincere, bona fide effort to bargain with Samsung."

Under ITC rules, that initial determination has been automatically appealed to larger panel of ITC judges, who are expected to rule in the next four months. Apple and Samsung were both asked to advise the ITC on whether an import ban against Apple would be in the public interest.

In Apple's brief, Wilmer reiterates its earlier arguments, writing that "allowing Samsung to renege on its FRAND commitments through the issuance of an exclusion order would have consequences extending beyond this case, and the harm to be the public interest would be severe." To bolster that claim, Apple states quite matter-of-factly that Samsung's FRAND activities are being investigated by the DOJ and by European regulators.

We knew about the European investigation months ago, but the DOJ investigation is news. The DOJ had never announced an antitrust investigation against Samsung, although an anonymous source tipped Bloomberg in June that "the Justice Department will scrutinize Samsung Electronics Co.'s handling of industry-standard patent claims."

Samsung isn't the only smartphone-maker to come under scrutiny for alleged abuse of standards-essential patents. Google Inc.'s Motorola Mobility unit is facing an Federal Trade Commission investigation. And in June, influential Seventh Circuit judge Richard Posner, sitting by designation in U.S. district court in Chicago, dismissed patent claims Motorola brought an against Apple, ruling that Motorola is "going for broke" by demanding a 2.25 percent royalty on FRAND patents.

Apple is represented by a Wilmer team including William Lee. Samsung is represented by lawyers at Quinn Emanuel Urquhart & Sullivan led by Charles Verhoeven.

Toshiba Next NAND- 3D with 15 Layers

The winner for the next flash memory approach is still not clear. A strong candidate is stacking memory NAND dies one on top of another. The dies are connected using Through Silicon Vias (TSV). Toshiba has a different approach to 3D " not stacking NAND chips one atop the other but rather stacking layers of NAND in a single chip" See more details below.

The key concern for next NAND generations is the 5 years lead time to build a new $5 billion fab, which could be designed for the wrong process technology.

It does not help that "the number of electrons in a gate decreases as the process geometry size is reduced....below 10nm the number of critical electrons in a gate can be as few as 10 – and that losing 10 electrons could seriously affect the gate's functioning. He says there are a variety of issues with such very small cells, such as bit-line loading, interference and leakage, leading to signal retention and reliability issues, for which, currently, there are no solutions.

These problems may make 10nm NAND technology impractical and sub-10nm impossible. Park suggests that 3D stacking, putting dies on on top of another, could be away out of this trap. He charts various approaches and identifies issues with each one, mentioning yield and retention as overall issues" (see more at Flashboys: HEELLLP, we're trapped in a process size shrink crunch)

Ron
www.maltiel-consulting.com



The 3D die stack tack: Toshiba builds towering column of flash


Resistance is futile
By Chris Mellor, 15th October 2012 09:28 GMT


Toshiba is building high rise flash and ReRAM chips, with prototypes coming next year and volume shipping in 2015.

The idea of high-rise or 3D chips is that we can sidestep limitations on increasing the storage density of flash or memory chips by stacking them one on top of the other, increasing the storage density on a Mbits/in 2 basis by building upwards, in the same way as high-rise housing increases the number of people living in the ground footprint of a block of flats.

Hot on the heels of our story about the NAND scaling trap [1], with 3D NAND and ReRAM suggested as two of the potential escape routes, we learn from Nikkei Electronics [2] that Toshiba is building 3D dies using a type of NAND, its p-BiCS (pipe-shaped Bit Cost Scalable) [3] technology, and also a coming replacement technology for NAND, ReRAM (Resistive RAM) which combines attributes of RAM and NAND to provide byte addressability, DRAM-class speed and NAND non-volatility.

As the slide below shows, 3D flash involves layers of NAND dies with communicating holes - TSVs or Through Silicon Vias - linking them to a stack controller at the base of the stack. It is not stacking NAND chips one atop the other but rather stacking layers of NAND in a single chip.

Toshiba p-BiCS technology [4]

Toshiba's p-BiCS NAND has a 50nm-size hole and 16 layers. Toshiba's chief engineer, Masaki Momodomi, at its Semiconductor & Storage Products Co., says that p-BiCS becomes cheaper than ordinary NAND when more than 15 layers are used, presumably comparing similar capacity levels. The company aims to deliver 128Gbit and 256Gbit prototype samples next year, engineering samples in 2014, with volume shipments in 2015; we are more than two years away from seeing product hit the streets.

The ReRAM [5] technology has a similar timescale though at lower capacities. It has much faster write times than NAND and Toshiba sees it fulfilling a different role from p-BiCS, being used closer to CPUs than p-BiCS, with STT-RAM being used for cache memories in, for example, SSDs. This is a similar hierarchy to the one proposed by Hynix in our NAND Scaling Trap story today. Jim Handy of Objective Analysis said; "It makes sense that ReRAM … would be used in performance applications, though. They are far faster at writes than NAND is, they are random access devices which NAND is not, and they don't need ECC. All this lends itself to faster performance."

Toshiba's ReRAM technology will appear in the same sequence of prototype samples, engineering samples and volume production as p-BiCS with the same general timing. A picture of a 64Gbit ReRAM device was shown at the Toshiba briefing attended by Nikkei Electronic but Toshiba intends to deliver generally equivalent p-BiCS and ReRAM capacities.

It is set of reducing the size of its current 1Xnm (19nm) NAND cells, and will target 1Ynm (18-14nm we understand) products this year and 1Znm (10-13nm) products next year.

Handy said: "All those new technologies (MRAM, ReRAM, FRAM...) perform better than NAND (BiCS is a kind of NAND) but are more costly. In memory cost is everything so these alternatives don't do well. The promise of these technologies is that they will move right past NAND's scaling limit. If they do that they will eventually become cheaper than NAND, but not until NAND has stopped scaling for 2 process generations.

"Toshiba talks about 1y and 1z, their processes after 19nm. I suspect that NAND will stop scaling at around 10nm, but BiCS will cause NAND pricing to continue to decline after that. Of course, those geniuses who have been coaxing NAND as far as 19nm could very well keep pulling rabbits out of their hats and push it well beyond 10nm - time will tell."

Will we see continued NAND process size decreases or 3D as the chosen way to get more capacity from a NAND die's footprint? Handy said: "The most recent ITRS [International Technology Roadmap for Semiconductors] [6] roadmap plots out two different directions for NAND - vertical (BiCS) and conventional. The industry really doesn't know where it's going to go, but it has plans in place for either eventuality."

Next iPhone A7 Made by TSMC not Samsung

Considering Samsung's market share in smart phones and the legal patent fights with Apple, it would make sense that Apple would want to reduce their reliance on Samsung.

The article in Korea Times (see below) discusses the change.  It take years to shift from one foundry vendor to another. Designing the A6x or A7 new processor and the details and design rules of the manufacturing process is  slow and complicated.

I already discussed Apple Cutting Out Samsung Chips?
("Teardown of iPhone 5 reveals that none of the DRAM, and NAND memory and other chips on the iPhone were not made by Samsung. Already in the iPad (See March iPad teardown) Samsung had fewer parts than in the prior Apple products. Samsung is still making the A6 processor for Apple.")


Ron

http://www.maltiel-consulting.com/



Apple gets serious about Reducing reliance on Samsung smartphone chips


By Kim Yoo-chul By Kim Yoo-chul


Samsung Electronics and Apple have been technology's oddest bedfellows: bitter foes in finished products but indispensible as friends in parts like chips and screens. Samsung Electronics and Apple have been technology's oddest bedfellows: bitter foes in finished products but indispensible as friends in parts like chips and screens.

But with Apple moving quickly to reduce its reliance on Samsung's semiconductor capability amid an intensifying intellectual property dispute between the companies in smartphones and tablets, the relationship is now about to become one-dimensional. But with Apple moving quickly to reduce its reliance on Samsung's semiconductor capability amid an intensifying intellectual property disputes between the companies in smartphones and tablets, the relationship is now about to become one-dimensional.

According to industry sources, Apple has not collaborated with Samsung in the process to develop its A6 microprocessor used in its latest iPhone 5. According to industry sources, Apple has not collaborated with Samsung in the process to develop its A6 microprocessor used in its latest iPhone 5. Samsung has handled the manufacturing of the processors used in previous iPhones and believed to have contributed in their design to some degree. Samsung has handled the manufacturing of the processors used in previous iPhones and believed to have Contributed to Their design to some degree.

Apple is still relying on the Korean firm to manufacture its chips but has made it clear it will no longer use its rival's technology, according to a senior Samsung official. Apple is still relying on the Korean firm to manufacture its chips but has made it clear it will no longer use its rival's technology, According to a senior Samsung official.

``Samsung's agreement with Apple is limited to manufacturing the A6 processors. `` Samsung's agreement with Apple is limited to the manufacturing A6 processors. Apple did all the design and we are just producing the chips on a foundry basis,'' he said on the sidelines of a technology fair at KINTEX in Goyang, Gyeonggi Province. Apple did all the design and we are just producing the chips on a foundry basis,'' he said on the sidelines of a technology fair at KINTEX in Goyang, Gyeonggi Province.

This confirms that the wedge between the technology giants has been driven deeper than it looked from the outside. This Confirms That the wedge between the technology giants has been driven deeper than it looked from the outside. Both companies have been bringing lawsuits against each other around the globe since the American firm accused its Korean competitor of copying the look and feel of its iPhones and iPads early last year when launching its own smartphones and touch-screen tablets. Both companies have been Bringing lawsuits against each other around the globe since the American firm accused its Korean competitor of copying the look and feel of its iPhones and iPads early last year When launching its own smartphones and touch-screen tablets.

Park Hyun, a senior analyst at Tongyang Securities, believes Samsung's souring relationship with Apple could have a significant business effect. Park Hyun, a senior analyst at Tongyang Securities, Samsung Believes's souring relationship with Apple could have a significant business effect.

``It appears that Samsung is losing its multibillion dollar partnership as Apple has been its biggest parts client,'' Park said. `` It appears that Samsung is losing its multibillion dollar partnership as Apple has been its biggest client parts,'' Park said.

Since the early 2000s, Samsung has been involved in designing of Apple's A-range of chips as the main manufacturer. Since the early 2000s, Samsung has been Involved in designing of Apple's A-range of chips as the main manufacturer. Samsung technologies contributed in the development of the A6 predecessors A5 and A5X, thanks to a broad agreement between the two companies. Samsung Contributed technologies in the development of the A5 and A6 Predecessors A5X, thanks to a broad agreement between the two companies. It now appears that the structure of the deal has been dramatically adjusted. It now appears that the structure of the deal has been dramatically adjusted.

``There are three kinds of chip clients. `` There are three kinds of chip clients. Some want us to handle everything from chip design, architecture and manufacturing. Some want us to handle everything from chip design, architecture and manufacturing. Some want us to just design and manufacture. Some just want us to design and manufacture. Some want us to just make the chips. Some just want us to make the chips. Apple is now the third type,'' said the Samsung source. Apple is now the third type,'' said the Samsung source.

A hint of the rift between the firms over chips came last week when one of Samsung's top semiconductor designers, Jim Mergard, moved to Apple. A hint of the rift between the firms over chips came last week When one of Samsung's top semiconductor designers, Jim Mergard, moved to Apple. Mergard is known for his skills and experience in advanced application processors and low-power chips for mobile devices. Mergard is known for his skills and experience in advanced application processors and low-power chips for mobile devices.

``The high-profile hiring of someone like Mergard directly from a big rival no doubt increases mutual tension. `` The high-profile hiring of someone like Mergard Directly from a big rival no doubt Increases mutual tension. Apple wants to internalize its management, even for application processors, and to lower its dependency on Samsung for those logic chips,'' said the source. Apple wants to internalize its management, even for application processors, and to lower its dependency on Samsung For Those logic chips,'' said the source.

Samsung did manage to earn a larger paycheck from Apple for manufacturing the A6 than the previous processors. Samsung did manage to earn a larger paycheck from Apple for manufacturing the A6 than the previous processors. After all, it is probably the only semiconductor in the world that can do the heavy work for Apple in terms of making a large volume of high quality chips over a short period of time. After all, it is probably the only semiconductor in the world That can do the heavy work for Apple in terms of making a large volume of high quality chips over a short period of time.

Apple's last big investment in chips was in early 2010 with the acquisition of Texas-based Intrinsity. Apple's last big investment in chips was in early 2010 with the acquisition of Texas-based Intrinsity. Before that it was the 2008 purchase of chip design firm PA Semi. That it was before the 2008 purchase of chip design firm PA Semi.

Apple recently signed a deal with Taiwan Semiconductor Manufacturing (TSMC) for the production of quad-core processors for future devices and it remains to be seen whether the Taiwanese chipmaker will eventually fill Samsung's shoes. Apple recently signed a deal with Taiwan Semiconductor Manufacturing (TSMC) for the production of quad-core processors for future devices and it remains to be seen Whether the Taiwanese chipmaker will eventually fill Samsung's shoes.

A report from Barclays claimed TSMC will start producing Apple's A7 processors from the first quarter of 2014 and stressed hundreds of TSMC researchers and chip developers are currently set to produce processors that are free from Samsung patents. A report from Barclays Claimed TSMC will start producing Apple's A7 processors from the first quarter of 2014 and stressed Hundreds of TSMC chip Researchers and developers are currently in September to produce processors That Are free from Samsung patents.

``Samsung has already acknowledged that Apple has an appetite to carry out its own central processing unit (CPU) design,'' said another Samsung official familiar with the matter. `` That Samsung has acknowledged Already Apple has an appetite to carry out its own central processing unit (CPU) design,'' said another official familiar with the matter Samsung.

``Apple is threatened by Samsung's rapid rise. `` Threatened by Apple is Samsung's rapid rise. Apple is excluding it from major projects. Apple is EXCLUDING it from major projects. However, it can't completely wipe Samsung from its business partner list,'' he said, adding the US firm is asking Samsung to provide more flash-type memory chips. However, it can not completely wipe Samsung from its business partner list,'' he said, adding the U.S. firm is asking Samsung to Provide more December-type flash memory chips.

As the patent war deepens, the two companies have seen a faster deterioration of their business partnership. As the patent war deepens, the two companies have seen a faster deterioration of their business partnership. Apple has already reduced its memory chip orders from Samsung for the iPhone 5 as it intends to widen its supply chain. Already Apple has reduced its memory chip orders from Samsung for the iPhone 5 as it intends to widen its supply chain.

Unlike memory chips, which just read and write data, application processors control an entire computing system, therefore processor chips are more profitable. Unlike memory chips, Which just read and write data, application processors control an entire computing system, Therefore processor chips are more December profitable.

Samsung has been providing logic chips to Qualcomm, Nvidia and Texas Instruments. Samsung has been providing logic chips to Qualcomm, Nvidia and Texas Instruments. While the wafer allocation to those companies is increasing, Samsung is being asked to increase its foundry volumes and to build additional logic chip lines to better prepare for Apple's departure. While the wafer is Increasing allocation to Those companies, Samsung is being asked to INCREASE its foundry volumes and to build additional logic chip lines to better prepare for Apple's departure.

``Although Apple has excluded Samsung from key projects, we're not too worried as Samsung is selling more custom chips to other major companies such as Qualcomm and Nvidia,'' said the official. `` Although Apple has Samsung excluded from key projects, we're not too worried as Samsung is selling more December custom chips to other major companies Such as Qualcomm and Nvidia,'' said the official.

Samsung spokesman Ken Noh and Apple spokesman Steve Park refused to provide any comments for this story. Samsung spokesman Ken Noh and Apple spokesman Steve Park refused to Provide any comments for this story.

Japan Fading in Semiconductor Fabrication?

The article below discusses the fab materials market in Japan and states that Japan is maintaining its global position. I don't believe that Japan will be able to maintain its share.

The cause is the rising cost of new process technology. One of the casualties of the $10 Billion cost of developing new semiconductor technologies is Japan's semiconductor industry as is detailed in the March 2012 comment Are Japan's Fabs stuck above 28nm Process Technology?







Ron
http://www.maltiel-consulting.com/




Japan's semiconductor industry: Fabs, equipment, and materials


by Dan Tracy, senior director, SEMI Industry Research and Statistics

October 3, 2012 - Semiconductor manufacturers in Japan are either consolidating or closing fabs, and, in several cases, transitioning to a "fab-lite" strategy, all in a restructuring effort to meet the market challenges ahead. While device manufacturers are consolidating manufacturing operations and plan to outsource more wafer fabrication and package assembly to foundries and packaging subcontractors, a large installed fab capacity remains in Japan. Recent data for the year shows overall wafer area shipments into Japan's fabs being the same as shipments into Taiwan.

By 2014, the total installed fab capacity Japan should increase slightly from about 4.5 million to 4.6 million 200mm equivalent wafers per month. Installed 300mm fab capacity is expected to increase from about 760,000 to 840,000 300mm wafers per month -- representing, by region, the third largest 300mm fab manufacturing capacity base globally. Over the next several years, fab spending in the Japan market will be directed towards the production of NAND flash memory, power semiconductors, high-brightness LEDs, and CMOS image sensors.

Regional share forecasted for 2013 fab materials market. Total market size: $25.7 billion.

Overall equipment spending in Japan will likely range on the order of $4 billion per year. Expected NAND flash investments in 2013 could approach up to $2.5 billion. LED fab equipment spending is estimated to be $340 million next year. Finally, Sony is expected to invest about US$ 1 billion or more in its CMOS image sensor production.

Japanese equipment and material suppliers are leading players on the global semiconductor industry stage. It is estimated that Japan-headquartered equipment companies collectively capture about 35% share of the global semiconductor industry spending per annum. Like their North American and European counterparts, customers in the rest of the Asia Pacific region are the largest base for new equipment sales.

Chemical and other material suppliers in Japan are market leaders in the manufacturing of silicon wafers, III-V wafers, advanced chemicals, packaging resins, and packaging substrates. It is estimated that the Japanese material suppliers sales represent about 70% of the global semiconductor materials market, both fab and packaging.

Japanese suppliers showcase the latest products at SEMICON Japan 2012

Leading Japanese equipment and materials suppliers will exhibit at SEMICON Japan 2012 on December 5- 7, along with global key players, at the Makuhari Messe, Japan. Find the latest products and innovations this companies offer to customers globally that enable key technologies for the future including 450mm, EUV, TSV, power devices, and HB-LEDs to name a few. Also, the show will co-locate with a major photovoltaic show, PVJapan 2012 so you can connect to two major microelectronics industries in a single visit.

Android vs iPad Sales 48% to 52%

Similar to the history of  android phones vs. iPhone sales growth, Android tablets sales are approaching iPad sales. Android tablet sales are likely to surpass iPad sales this year.

A key reason for android tablet's strength is the multitude of products made by many vendors using the Android platform. The introduction of a new kindle fire by Amazon and other vendors updating their offering will propel this trend.

It is very tough for a single company to control the market with just one dedicated product line.

The article below discusses that the Android tablet is growing faster than iPad " In the year of 2012, Android holds a whopping 48% of all U.S. tablet sales, bringing Apple’s iPad into reach at just 52%"


Ron
http://www.maltiel-consulting.com/



Pew Research: Android Up to 48% of U.S. Tablet Sales, iPad Drops to Low of 52%
by: Tim-o-tato 10.02.12

A new study from the Pew Research Center has pegged Android at a spot in the tablet market that we didn’t think would come this early in the game. In the year of 2012, Android holds a whopping 48% of all U.S. tablet sales, bringing Apple’s iPad into reach at just 52%. Although, Amazon’s Kindle Fire accounts for a hefty 21% of Android’s tablet market success. And do keep in mind, these numbers do not reflect Nexus 7 or Kindle Fire HD sales yet.

The study also shows the world sales data, which differs quite a bit. According to the report, Apple still holds a commanding 61% of the world’s tablet market with Android coming in at a much lower 31%. But hey, things are looking up for Google’s Android. Once numbers are published reflecting the seemingly popular Nexus 7 and Kindle Fire HD tabs, these numbers are sure to change a wee bit.




14 Reasons for the Google Nexus 7 vs Nine Reasons for the Apple iPad 3 64GB
A detailed table is in the article.

An opposing view is at-
An iPad Lover’s Take On The Nexus 7
Mg Siegler Sunday, July 15th, 2012144

MG Siegler is a general partner at CrunchFund and a columnist for TechCrunch, where he has been writing since 2009. His focus is on Apple. Prior to TechCrunch, MG covered various technology beats for VentureBeat. Originally from Ohio, MG attended the University of Michigan in Ann Arbor, MI. He’s previously lived in Los Angeles where he worked in Hollywood and in... → Learn More

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Semiconductor Foundries:Strong Q2, but Slowdown..

The article below discusses foundries' strong Q2  results, while predicting a slower Q3.

"Pure-play foundry semiconductor manufacturers enjoyed a robust second quarter thanks to enthusiastic consumer purchasing of wireless products like mobile handsets and tablets, but the industry is slowing down in the second half of 2012 as economic tremors roil the supply chain"

However, I wonder about the impact of the slow ramp-up of manufacturing wafers using the 28nm manufacturing process in Q2 and Q3. There is pent up demand for wafers built using the 28nm process which could impact Q4 (see April 2012 comments Qualcomm and Nvidia 28 nm Wafers? Shortage... and March 2012 comments Nvidia: TSMC 20nm Essentially Worthless). The lack of 28nm wafers negatively impacted Qulacomm, Nvidia and other companies.

Another potential upside for the second half of 2012 is the introduction of window 8 and its impact on demand for tablet computers.

Ron
http://www.maltiel-consulting.com/





Semiconductor Foundries Enjoyed Strong Q2, but Slowdown Looms


Global economic uncertainties and a wary buying public will dampen prospects until mid-next year

Len Jelinek October 2, 2012
Pure-play foundry semiconductor manufacturers enjoyed a robust second quarter thanks to enthusiastic consumer purchasing of wireless products like mobile handsets and tablets, but the industry is slowing down in the second half of 2012 as economic tremors roil the supply chain, according to an IHS iSuppli Semiconductor Manufacturing & Supply market tracker report from information and analytics provider IHS.

Revenue for pure-play foundry suppliers—companies whose entire business involves producing semiconductors for other firms—reached $7.8 billion in the second quarter, up 16 percent from $6.7 billion in the first quarter.

The second-quarter expansion will prove to be the strongest this year, as forecasts show a slowdown occurring during the next two quarters. Revenue of $8.3 billion is projected for the third quarter, equivalent to a weaker sequential growth of 8 percent. A seasonal decline of 5 percent in the fourth quarter then will follow, dropping revenue for the period to $7.9 billion.

The strong showing of the second quarter this year is atypical. Even though the third quarter is the largest revenue period for the foundry sector, a new pattern of manufacturing has emerged, with initial product shipments from foundry suppliers for new design wins now moving from the third quarter to the second. This shift is related to end suppliers introducing next-generation wireless products, like cellphones and tablets, earlier in the year in order to capitalize on sales during a longer period—one lasting three quarters, instead of the usual two quarter time frame that traditionally starts at the beginning of the second half.

As a result of the shift, foundry suppliers must start to adjust technology development and factory expansion plans to mirror these changes. Shipments in the third quarter are now also a direct reflection of second-quarter performance.


Impending Q3 concerns on the horizon

The third quarter this year, however, is when manufacturers can begin to anticipate a reduction in orders, IHS iSuppli predicts. While demand for advanced technology will continue to drive overall revenue growth within the industry, the effects of external influences—such as a deteriorating global economy—will start being felt. The financial issues in Europe, for instance, will leave their mark in Asia as well as North America, and shaky consumer confidence throughout the world will result in an uncertain outlook for holiday spending. The end result would be a greater amount of inventory left throughout the industry.

Questions also abound on whether consumers will be willing during the next few months to pay for the latest technology rollouts. Unlike last year when holiday shoppers were enticed to purchase lower-cost electronics resulting from excess inventory, this year will be different, with consumers seeing a complete set of new electronics offerings focused on mobile communications, including next-generation tablets, feature-rich smartphones and Ultrabooks with the soon-to-be-launched Windows 8 operating system.

And while the potential exists for increased sales in the second half, any projected upticks are likely to be insufficient to drive major revenue increases for foundry players. This is because any innovative products introduced at this time will be too late to have any tangible effect on revenue for the remainder of the year.

At the current production pace, foundry manufacturing run rates will be negatively affected through the first quarter next year lasting until the first half of the second quarter, IHS iSuppli believes. The industry will begin to recover after that, with the third quarter next year anticipated to grow by a sequential 10 percent.

Lenovo Prove: Outsourcing is Not the Only Way (Updated)

The article below discusses Lenovo, the world's No. 2 personal-computer maker's entry into PC manufacturing in North Carolina next year.

Lenovo is not outsourcing its manufacturing as is done by other vendors (see July article Lenovo Prove: Outsourcing is Not the Only Way)




The July article discusses how Lenovo has been successful manufacturing in house. It is a good way to avoid the commodity PC price squeeze.

Lenovo Chief Technology Officer says the strategy is playing a key role in the development of new products. "If you look at the industry trends, most innovations for" PCs, smartphones, tablets and smart TVs are "related to innovation of key components—display, battery and storage," he said. "Differentiation of key parts is so important. So we started investing more…and working very closely with key parts suppliers" for things like bigger and thinner touch screens."


Ron

http://www.maltiel-consulting.com/









Lenovo to Set Up PC Plant in U.S.
By JURO OSAWA   October 2, 2012, 12:57 a.m. ET

Chinese computer-maker Lenovo Group Ltd. will start manufacturing PCs in North Carolina next year. Company executives said the effort, starting with only a few million dollars and just over 100 workers, will be the beginning of something bigger, rather than a one-time made-in-America publicity effort.

The world's No. 2 personal-computer maker says the PC production line now being built at a facility in Whitsett, N.C., will allow the company to become more responsive to U.S. corporate clients' demand for flexible supplies and product customization. Although the cost of U.S. production will be higher compared with overseas production, an added benefit will be to raise Lenovo's profile in the U.S., where it ranks fourth in market share by shipment.

"Us having a [production] facility here in a home country is a differentiator that people will value," said Lenovo North America President David Schmoock. He said the incentive for the move is similar to companies taking steps to become more environmentally sustainable. "Being green is not necessarily the lowest-cost option for a lot of companies, but you do it because your customers and partners value you being green."

While the investment is tiny for Lenovo, whose revenue was nearly $30 billion in the most recent fiscal year, it is a symbolic move for the company that rose to international prominence when it bought the PC business of International Business Machines Corp. in 2005. And with its new production line in North Carolina, Lenovo will stand apart from its U.S. rivals—No. 1 PC maker Hewlett-Packard Co., HPQ -3.09%Dell Inc. DELL +0.58%and Apple Inc. AAPL +0.32%—which no longer make personal computers in the U.S.

Lenovo executives said the new production line isn't a temporary publicity stunt. "I believe this is the first of many steps to increase our production capability," Mr. Schmoock said. "I'm very, very bullish about what I can get out of this facility."

Gerry Smith, Lenovo's head of global supply chain, said the decision to set up a production site in the U.S. is in line with the company's broader strategy of localizing its production in major markets as much as possible.

"Now we are big enough in the U.S. to justify this move," he said.

The move also comes as political rhetoric against Chinese companies heats up in the U.S. Last week, President Barack Obama prevented a company owned by two Chinese nationals from acquiring four wind-farm projects in Oregon, saying that those sites are all within or near restricted airspace. Mitt Romney, Mr. Obama's Republican rival in November's presidential election, also has taken a harsh tone against China.

Critics of China have focused on national security, industrial spying and job losses. Chinese telecommunications suppliers Huawei Technologies Co. and ZTE Corp. 000063.SZ +5.48%are being investigated by the U.S. House of Representatives Intelligence Committee over whether their gear could be used to spy on the U.S.

Mr. Schmoock said the decision to introduce a production line in the U.S. isn't a response to the political climate. Lenovo's customers already know that Lenovo is a "truly global" company, he said. "I don't think there's any negative perception we have to overcome."

Lenovo manufactures close to half of the computers it sells, far more than its U.S. rivals. Currently, the PCs that Lenovo sells in the U.S. are produced at the company's Mexican or Chinese factories.

Despite owning the well-regarded ThinkPad brand and having a solid presence in the U.S. market for PCs used in offices and schools, Lenovo has yet to become a major brand for general consumers in the U.S. Its global market share in PCs is about 15% but its U.S. market share is 8%, running fourth behind Hewlett-Packard, Dell and Apple, according to research firm IDC.

The new production line will be located near the company's U.S. headquarters outside of Raleigh, N.C. Unemployment in the area has remained stubbornly high, with the jobless rate in the county at 10% compared with the national rate of 8.1%. The factory isn't far from the site of the last Dell PC factory in the U.S., which closed in 2010.
—Ben Worthen contributed to this article.

DRAM Market Plateau/ Flash NAND Growing

While the PC market is slowing as the article below discusses, the Tablet and iPad are new markets that should offer growth opportunities for both Flash NAND and DRAM.

The key reason that DRAM is slowing while NAND (and NOR) are growing faster is due to the inherent advantages of Flash vs. DRAM.






We can already see that Flash Memory Sales Surpass DRAM  additional reasons were mentioned in the March 2012 article When will Flash Memory Market be 2x of DRAMs


Ron
http://www.maltiel-consulting.com/







DRAM Makers Continue to Suffer as DRAM Price Falls

http://www.xbitlabs.com/news/memory/display/20121032152632_DRAM_Makers_Continue_to_Suffer_as_DRAM_Price_Falls.html
4GB DDR3 DRAM Module's Price Drops to $16.25

by Anton Shilov 10/01/2012 

Dynamic random access memory (DRAM) market monitoring company DRAMeXchange claims that as notebook shipments show signs of weakening and Windows 8 looks unlikely to stimulate PC shipments, second-half September contract price continues on a downtrend.

Average transaction price per 4GB DDR module fell from $17.25 to 16.25, with a low of $16, close to the lowest price reached during the second half of 2011. Average 2GB module price, on the other hand, has dropped to $9.25, a 5.13% decrease compared to the first half of the month. As 4GB modules have replaced 2GB modules as the market mainstream, 4GB price drops have become more apparent.

At press time, one untested [eTT] 2Gb DDR3 chip price cost $0.683 on average in Taiwan's spot market, 2Gb DDR3 1333MHz/1600MHz chip's price was approximately $0.844, whereas 4Gb DDR3 1600MHz memory IC was priced at $2.545 on average on the spot market.

From the market perspective, DRAM average selling price has been plummeting at an increasing rate since July, reflecting not only weaker-than-expected seasonal demand, but also the fact that supply-side adjustments were not as effective as hoped. Using 4GB module price as the basis of calculation, 2Gb chip price has plunged to a low of $0.84, arriving at spot price levels. Looking at the spot market, as purchasing is weak, module makers are less eager to restock inventory. Both contract and spot prices reflect price negotiation difficulties, and transaction volume has been much lower than last quarter, clear indication that both module makers and PC OEMs have high stock levels; thus, buying momentum is not likely to pick up in the short term. In the absence of large-scale production cuts, TrendForce expects contract price will remain on a downtrend.

As the PC market has matured in recent years, in addition to the fact that the global economy is expected to worsen in the second half of this year, TrendForce forecasts PC shipments will see -3.9% growth for 2012. Furthermore, as consumers’ limited budgets and changing preferences steer them towards other mobile devices, smartphones and tablets are experiencing high growth while the PC market suffers. It is clear that PC demand is not as it was; the category is no longer the market mainstream, as shown by the fact that the 2012 PC DRAM shipment ratio has fallen below 50% for the first time.

On side, although makers are beginning to favor non-commodity DRAM production, PC DRAM supply is still in excess, which indicates restoring the supply-demand balance can no longer be achieved via production adjustments. A portion of commodity DRAM capacity must be permanently reduced if industry supply levels are to be lowered. According to TrendForce data, 2HSept. 4GB module price is approaching last year’s low, and is already below every DRAM maker’s total cost (based on mainstream 30nm process). Losses from commodity DRAM are not decreasing, and price is expected to continue falling in the short term unless large-scale capacity cuts are initiated.

Apple Cutting Out Samsung Chips?

Teardown of iPhone 5 reveals that none of  the DRAM, and NAND memory and other chips on the iPhone were made by Samsung. Already in the iPad (See March iPad teardown) Samsung had fewer parts than in previous Apple products. Samsung is still making the A6 processor for Apple.

The article below discusses the likelihood of Apple moving its processor away from Samsung. It is not likely to happen very soon.

The turn around of design and qualification of a new microprocessor design in a new fab vendor takes many months. Only very few companies have the processing and fab capacity capabilities to manufacture and design a new microprocessor (i.e. Intel and TSMC)  This is a result of the continuing consolidation of the semiconductor industry (see March comments Moore's Law End?).

Ron

http://www.maltiel-consulting.com/




Apple Just Took Its War With Samsung One Step Further


September 24, 2012 Stephen Rosenman

 The iPhone 5 tear down divulges lots of goodies: Triquint (TQNT) amp, STMicro (STM) accelerometer, Elpida DRAM, Hynix flash NAND, Qualcomm (QCOM) RF power chips, Skyworks (SWKS) amplifier module, Broadcom (BRCM) touch screen controller and Murata 339S0171 Wi-Fi module to name a few. Apple (AAPL) has blessed these vendors with an iPhone windfall.
Missing in action - Samsung (SSNLF.PK).
No Samsung components. Wow!

That Samsung battery present in the 4S. Gone. Looks like Sony got that! No more Samsung DRAM or Flash! Their high-resolution screen? That too has been replaced by Sharp, LG, and Japan Display.

Estimates were going as high as $11 billion of Samsung in Apple's line-up for 2012. Considering that Apple's COGS is $83 billion for trailing 12 months, Samsung was raking it in from its chief competitor. This marks a sea change.

Tim Cook definitely has taken this nuclear war to Samsung. First in the courtroom. And now in its choice of supplier.

In one fell swoop, Apple removed essentially all Samsung components from the 5.

Still, this is only one phone that's been taken apart. Perhaps, Samsung will show up in another iPhone 5. Apple does use multiple vendors for some of its components. We'll see if Samsung has been left out in the next tear down.

The only vestige of Samsung remaining: Fab for Apple's A6 chip. IHS estimates the per-ship cost of the A6 to be $17.50. At that price, Samsung will be seeing a ton of money coming their way. Just nowhere near $11 billion. From our first look within the iPhone 5, Samsung lost a lot of real estate. We're getting closer to a Samsung-free product. Good going, Apple.

Just one last step. My little suggestion: Move those A6s over to Intel (INTC). A long shot for sure but wars can create wild opportunities. Stranger things have happened.

Disclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)