Aixtron complete sale of ALD/CVD memory product line to Eugene Technology

AIXTRON SE (FSE: AIXA), one of the world’s leading providers of deposition equipment to the semiconductor industry, announced today that the sale of AIXTRON’s ALD and CVD memory product line to Eugene Technology Inc., a wholly owned U.S. subsidiary of Eugene Technology Co., Ltd, South Korea was completed as of November 15, 2017. 

The QXP-8300 Atomic Layer Deposition (ALD) mini-batch system suitable for e.g. high-k oxide films in advanced memory applications including 3D structure devices (aixtron.com)

AIXTRON will receive c. USD 60 million for the assets being transferred and c. USD 11 million for open supplier orders for which it retains the liability to pay.

AIXTRON, Inc., the U.S. subsidiary of AIXTRON SE situated in Santa Clara, California, will continue to provide sales and support for its continuing businesses.

Aixtron's sale of ALD/CVD Product Line to Eugene Technology in South Korea gets US approval

Aixtron SE (AIXG), announced Tuesday that the Committee on Foreign Investment in the United States or CFIUS has approved the sale of ALD and CVD memory product line. 

Eugene Technology CEO Eom Pyeong-yong (left) and Aixtron CEO Kim Schindelhauer pose for a photo holding their contract. (Picture credit: Pulse by Maeil Business Newspaper & mk.co.kr LINK)

The company noted that the investigation by the CFIUS of the sale of AIXTRON's ALD and CVD memory product line to Eugene Technology in South Korea resulted in a determination that there are no unresolved U.S. national security concerns from CFIUS' perspective.

Full report: LINK

Flexible AMOLED capacity to almost double each year until 2020

OLED-Info reports that estimates by IHS that flexible AMOLED production capacity is set to increase from 1.5 million square meters to 20.1 million square meters between 2016 and 2020, which would correspond to a compound annual growth rate of 91%.

Source: OLED-Info (LINK)

The Korean CVD & ALD OEMs stocks are travelling upwards since April 2017 (see below). Surely based on investments by Samsung and SK Hynix for Foundry, DRAM and 3D-NAND but this must also reflect order intake from Korean and Chinese AMOLED 6 Gen lines to some extent.

Recent announcments for Semi orders:

Tes signed 16.75 billion won contract with Samsung Electronics Co Ltd, to provide semiconductor manufacturing system (LINK) 

Eugene Technology signed a 7.36 billion won contract with SK hynix to provide semiconductor manufacturing equipments (LINK)

Tes signed a 2.8 billion won contract with SK hynix Inc to provide semiconductor manufacturing equipment . (LINK)

Aixtron to sell its ALD/CVD business to Eugene Technology

Aixtron will sell the ALD and CVD memory product line, at Aixtron, Inc. based in Sunnyvale, California to Eugene Technology Inc., a wholly owned U.S. subsidiary of Eugene Technology Co., Ltd, South Korea.

Source: Evertiq

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Aixtron completed take over of American ALD/CVD rival Genus, Inc. in March 2005 for about USD 140 million. This deal is reported to be in the order of USD 45 million and 55 million, which is considerably less.

Reportedly, the main customer today for Aixtron ALD is Samsung and the Aixtron ALD/CVD semiconductor business unit has had an annual revenue at about USD 20 to 40 million the last years years.

Rumor: Apple 2017 iPhone may have Samsung's new Flexible OLED made by ALD

Here are some unconfirmed information that ALD will be used in the next generation Apple iPhone as of 2017.In addition, Korea IT News is claiming that both Samsung and LG have finalized the R&D phase of introducing ALD barrier technology for OLED and are now working closely with Korean ALD OEMs to go to production. Companies mentioned are Jusung Engineering, WONIK IPS, AP System, and TES.

With Apple reportedly shifting to iPhones with OLED displays starting in 2017, it will be interesting to see if Apple will be using Samsung's latest OLED technology that may be ready for the 2017 anniversary iPhone. According to a new OLED report, Samsung Display and LG Display are working to introduce ALD (Atomic Layer Deposition) technology to flexible OLED thin-film encapsulation process. They both have worked closely with their equipment partners to get them up to speed. ALD technology will add an important component to OLED displays for smartphones that add protecting organic materials from oxygen and water that will increase the overall life of a display. Samsung in particular is reported to be "working fast to introduce ALD technology." 

LINK: http://www.patentlyapple.com/patently-apple/2016/09/apples-2017-iphone-may-use-samsungs-new-flexible-oled-atomic-layer-deposition-technology.html

Checking the Korean ALD companies on the stockmarket give no hint or reaction that any of them are about to sign big deals.

Last 6 months performance for an index based on Korean companies with ALD Technology that may be used for OLED Encapsulation. Tes Co Ltd, Jusung Engineering Co., Ltd., EugeneTechnology Co Ltd and Wonik IPS Co Ltd. (Plotted using Google Finance)

Eugene Tech expects upward momentum from 3-D NAND memory

Here is a very informative article in The Korea Herald on Eugene Technology, a 1.1 billion won ($978,000) Korean wafer process tool provider. Amongst many technologies Eugene supplies Phoenix plasma enhanced atomic layer deposition system to SK Hynix and Samsung and is competing with the usual suspects ASM International, Lam Research and Applied Materials in this market. I do not know but judging by the target applications (see below) I would not be surprised if they have a share of multiple patterning as well as 3DNAND ALD layers at the memory fabs in Korea and I must say that it has been a wise choice to target oxide and nitride ALD applications rather than Metal and High-k since the huge growth in this market for multiple patterning and spacers across DRAM, NAND, 3DNAND and Logic.

Established in 2000, Eugene Tech supplies chip-producing equipment and tools to the world’s leading semiconductor producers, including Samsung Electronics. Last year, it raised 94.7 billion won in total sales. Samsung and SK Hynix were the two largest customers.

Please check out the complete article : LINK

Eugene Technology PEALD Target applications

Listed target applications of the Phoenix PEALD Tool (Phoenix PEALD)

You may also find this article in Seeking Alpha interesting: Korea's Capex Holds The Key To Strong Semiconductor Equipment Sales