microelectronics packaging & assembly (mpa) roadmap preparing hong kong and pearl river...
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Microelectronics Packaging & Assembly
(MPA) Roadmap
Preparing Hong Kong and Pearl River Delta’s Electronics For the
New Millennium
Professor Rao R. TummalaEPA Study Chairman
EPA Roadmap Study
What is EPA?What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
Roadmap Study
• Information Technology is the future• MPA Integral building block of it•IT & MPA Create wealth•Internet best medium for MPA & IT•HK & PRC’s MPA & IT: US$ 50B (1998), potential to become US$100B by 2005•HK& PRD behind the industry leaders by 5 -10 years
• Need upstream (UGC & ID), Midstream (ASTRI) & downstream (Industry) investments• Need HK & PRD/PRC integration• Need overseas technology acquisition
MPA Summary
Action
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
• Review the Status of IT & MPA
• Assess MPA
• Make Recommendations
• Short term
• Long term
Goals of the MPA StudyEPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Study Team
• Industry
• Academia
• Industry Support Organizations
• Government
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Study Methodology
• Phase 1: Set up Teams & Topics
• Phase 2: Visit Industry, Academia & Government
• Phase 3: Report Plan & Preparation
• Phase 4: Public Release
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Seven Steps to MPA
• Vision & Strategy• Technology Infrastructure
• Technology Innovations• Intellectual Property• Human Resources
• Venture Capital & Entrepreneurs• Product Technology
Development• Manpower Training• Manufacturing Capital• Marketing & Sales
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
10 Study Committees1) Technology
• Wafer Fab• IC Packaging• Contract Manufacturing• PCB• Components, Materials & Equipment• Consumer Electronics
2) Manpower, Training & Education3) Research4) Venture Capital5) Industry Support Organizations
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
C o n s u m e r
C o m p u t e r
T e l e c o m
M e d i c a l
A e r o s p a c e
T r a n s p o r t a t i o n
US A
Sof
twar
e, A
ppli
cati
ons
M P A
MPA Is a Part of Every Product & Service
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Examples of EPA Inside aComputer & Cellular Phone
Apple® Computer
Nokia® Cellular Phone
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
Why is MPA Important to HK & PRD?
•IT:Future & Wealth
•MPA Fundamental Building Block of IT
•Largest Exporting Industry
•High Paying Jobs
•Utilizes HK & PRD Uniqueness
•Prepares HK & PRD for 3rd Millennium
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
Electronics is the Largest Industry
Electronics2,000
1,500
1,000
500
0
1990 1995 2000 2005
$B/Y
ear
Year
Automotive
Steel
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Worldwide MPA Markets
US World USWorld
GDP $7.5T $33T $12T$50T
Electronics $380B $993B $ 6T$10T
Semiconductors $73B $152B $180B$400B
Equipment $19B $38B $40B$100B
Packaging $9B $109B $20B$150B
Materials $2B $22B $5B $45B
Source: SEMATECH
1997 2005
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Electronic System Trends
Mainframe
PCInternet
MainframePC Internet
CellPhone
PortableInternet
Past
Present
Future
Server
Internet Software
Video
Router Switch
Broad Band
MPA
Wireless
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
The Cellular Phone IS the Network
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Paradigm Shift In Electronics&Profits
0 10 20 30 40 50 60
10
100
1,000
10,000
100,00
Sa
les
($M
illio
ns
)
Years in Business
CISCO(81%) SUN
(34%)
SGI(29%)
MICROSOFT
INTEL
ACUSON(60%)
HP(excluding computer
unit) (15%)
HP (all Units)(18%)
Special SC Mfg (PC)
Fabless Mfg
General M
fgInternet
NETSCAPE
SOURCE: Jim Gibbons, Stanford University
High Profit Low Profit
QUALCOMM
The New Structure of the Electronics Industry
End Users
System Integrators
Peripherals Products
Modules, Boards &Sub-systems
Components
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Contract Manufacturing Worldwide
1998 1999 2000 2001
$90B
$112B
$140B
$178B
Source: Technology Forecasters, Inc.
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
Today’s Hong Kong & PRD
• Second Most Productive Region in the World– Electronics the 2nd Largest– HK Manages, PRD Produces– Excellent Telecommunications– Plenty of Private and Public
Funds– Market Driven Economy– People’s Attitudes
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Status of MPA in HK & PRD
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
•Mature and Low Profit Margin MPA
•Minimum MPA Educational Programs
•Minimum R&D Focus
•Inadequate Venture Capital
•No Apparent Long Term Vision
•Synergy Between Hong Kong & PRD Not Fully Exploited
Status of MPA in HK & PRD
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
•Mature and Low Profit Margin MPA
•Minimum MPA Educational Programs
•Minimum R&D Focus
•Inadequate Venture Capital
•No Apparent Long Term Vision
•Synergy Between Hong Kong & PRD Not Fully Exploited
Information Technology
$1T (1998) $20T (2010)
$50B $500B (Hong Kong)
HARDWARE (MPA)
$250B (1998) $550B (2005)
HK$50B (1998) 100B (2005)
SOFTWARE
Upstream - Universities
Downstream – Industries (HK/PRC)
Midstream - ASTRI
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
Our Vision of HK & PRD’s MPA
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
CellPhone
PortableINTERNET
Server
InternetSoftware
Video
Router Switch
Broad Band
MPA
Wireless
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Example of Tomorrow’s Technology
Cellular Phone and Watch
EPA Roadmap Study
What is MPA?
Why is it Important to Hong Kong & PRD?
Global MPA Trends
Status of MPA in HK & PRD
Our Vision for Hong Kong & PRD’s MPA
Recommendations
RECOMMENDATION 1:
Declare Vision “IT 2020”
• MPA Fundamental Building Blocks Of this IT. Need Upstream, Midstream & Down stream MPA
• Internet as the Focus:– Portable, Wireless Hardware– Software with India– E-Commerce Services– Internet Businesses
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Evolution of Electronic Technology
100%
0%1965 1975 1985 1995 2005
Analog Hardware
Digital Hardware
Software
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 2:
Develop Synergistic Relationship with Mainland China
• PRD Critical for IT & MPA Vision
• Integrate PRD in Every Aspect:– Education, Business,
Multi-national involvement,R&D
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
In billions of U.S. Dollars
‘90 ‘97 ‘98 ‘99
$3.4B
$45.3B$45.6B
$18.6B(1/99through6/99)
Source: Ministry of Foreign Trade and Economic Cooperation
Hong Kong InvestingMore Than AnyoneIn China
Source: U.S. Department of Commerce
$20.6B Hong Kong
$4.3B Japan
$3.3B Taiwan
$3.2B U.S.$2.6B Singapore
$2.1B Korea
$1.9B Britain$1.0B Germany
•HK to Gain Most from WTO
RECOMMENDATION 3:
MPA Should be a Funded Focus of ASTRI
• Mid-stream MPA
• Involve Industry & Academia
• MPA Focus: Technology Development
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 4a:
Government Should Fund 4 Academic & Industry Centers in MPA
• IC and Package Design and Prototyping Research
• Contract Manufacturing Research
• PCB Design and Process Research
• Failure Analysis, Virtual Reliability & Engineering Research
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
• Each Center to Have a Focus:– Environment
– Leading-edge Applied Research in Partnership with Industry
– Produce Pool of Talents at BS, MS, and Ph.D. levels, transferring research into Education
– Form the Basis of Innovations Continually Feeding into ASTRI and Industry
– Means to Attract Best International Expertise
RECOMMENDATION 4b:
Government Should Fund 4 Academic &
Industry Centers in MPA
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 5:
Attract Wafer Fabs by Providing Infrastructure & Incentives
• Profitable & Niche ICs
• Scientific Knowledge
• Image of Technical Society
• Fab for Internet-based ICs
• Government Role not an Owner or Manager but Facilitator
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 6:
Invest Heavily in Education at All Levels
• Take Advantage of Web
• Company Training Schemes
• Vocational Training
• Interdisciplinary Education at BS, MS & PhD levels
• Entrepreneurial Education
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
• Host Visiting Professors• Encourage Sabbaticals
Overseas• Hire Consultants• Join Overseas Consortia• Partner with Global
Companies
RECOMMENDATION 7:
Acquire Knowledge & Skills from Overseas
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 8a:
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Setting up a Microelectronics and EPA Design and Technology Center as part of ASTRI in Science Park
• Developing Political & Economic Synergy Between Hong Kong and Mainland China– Front end of Design & Prototyping in HK– Back end for Low Cost Manufacturing in
PRD
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
• Attracting the Best of Breed Multi-national Companies
• Setting up World Class Educational Infrastructure at BS, MS & PhD levels– Microelectronics– EPA Technologies– Design– Software
RECOMMENDATION 8b:
Government Lead MPA Visionfor a Competitive Hong Kong by:
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 8c:
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Promoting MPA Technologies as part of Hong Kong’s Overall IT– as Strategy for Hong Kong’s
Future– to Attract Students to Academia– to Attract Start-up Investments
to Form the New Industry– to Attract Foreign Experts
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9a:
Industry Lead MPA for Competitive HK& PRD
• Develop a Detailed Emerging Product and MPA Strategy– Business– Financial– Human Resources– Overseas Technology
Acquisition
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9b:
Industry Lead MPA for Competitive HK & PRD
• Encourage Communication Between Corporations of Related Industries– Form an Association for
Microelectronic Packaging & Assembly
– Develop Pre-competitive R&D Strategies, Policies and Procedures
– Work Closely with Both ASTRI and the 4 Proposed Academic Centers
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9c:
Industry lead MPA for Competitive HK& PRD
• Work Closely with the Proposed 4 Academic &Industry Centers– As a Mentor on Research Projects– Advisor on Long term Research
Strategy– Champion for Prototype Demonstration
of New Technologies and Designs– Develop Extensive Plan of Involving
Students and Faculty, Summer Interns, Co-ops, Collaborative Research Projects and Faculty Sabbaticals
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9d:
Industry Lead MPA for Competitive HK& PRD
• Work Closely with Academic Institutions and Government Agencies– Keep Abreast of all EPA
Technology Developments Worldwide
– Maintain, Update, Use and Customize the New MPA Knowledge
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 10:
Academia Lead MPA for Competitive HK& PRD
• Set up research infrastructure at fundamental and applied level
• Explore the leading-edge EPA technologies with scholars from leading Overseas institutions and Hong Kong’s Industry
• Develop the skilled human resources by virtue of undergraduate and graduate curricula and leading-edge EPA research in the four EPA centers
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
Roadmap Study
• Information Technology is the future• MPA Integral building block of it•IT & MPA Create wealth•Internet best medium for MPA & IT•HK & PRC’s MPA & IT: US$ 50B (1998), potential to become US$100B by 2005•HK& PRD behind the industry leaders by 5 -10 years
• Need upstream (UGC & ID), Midstream (ASTRI) & downstream (Industry) investments• Need HK & PRD/PRC integration• Need overseas technology acquisition
MPA Summary
Action
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Consumers Electronics
Chairman: Dr. K. B. ChanManaging Director
Willas-Array (Holdings) Limited.Co-chairman: Mr. Horris Leung, SAE Magnetics
(H.K.) Ltd.Mr. James Wong, Truly International Holdings Ltd.
Mr. Alan Chu, Willas-Array (Holdings) Ltd.Mr. Lonely man, Willas-Array (Holdings) Ltd.Mr. Calvin Chui, Willas-Array (Holdings) Ltd.
Mr. Pak Ng, LSI Logic Hong Kong Ltd.Mr. Nelson Lui, Varitronix Ltd.
Mr. W.K. Lee, Polaroid Far East Ltd.Ms. Eve Lau, Golden Way Electronic (H.K.) Ltd.
Mr. M.K. Wong, Scom New Technology Ltd.Mr. Daniel Lau, IBM China/ HK Ltd.
Dr. James Fok, Group Sense HK Ltd.Mr. H.W.Wong, TCL Electronics (HK) Ltd.
HK CONSUMER ELECTRONICS INDUSTRY - Overview &
Characteristics Total export in 1998 > HK$200B. Represent over 90% of electronic
export. Majority of products are matured
medium to low end. All production in China - PRD. Dominated by SME - Small and
medium size enterprise Compete on low labour and land
cost
Major ProductsKey Segments World Ranking
Number One by Value
Audio RadiosComputer ---Toys & games ToysWatch & clocks WatchesTelecom products Phone setsHome appliance
HairdryersPersonal electronics Calculators
HK CONSUMER ELECTRONICS INDUSTRY -
Challenges Competition from mainland capital
companies Shortage of advanced skilled
resources Lack of investments Lack of brand Minimal R&D
HK CONSUMER ELECTRONICS INDUSTRY -
RoadmapEnhance and maintain leadership in
existing world class products by high added value and improved functions.
Telecom Mobile Phones
Personal electronics PDA, health care, digital camera
Toys & games Combine sound, motion,intelligence
Identify the up and coming products and focus efforts
Digital A/V Set top box, MP3 playerInternet enabling Products Internet phones, Web-box
Invest in the appropriate EPA technology for better And advanced products Flip chip bonding
• Keep abreast with mainstream product requirements
Environment friendly, product recycling, 6 sigma quality
• Expand and speed up product development
Invest in R & D, outsourcing designs, consortium approach
• Build up brand name
HK CONSUMER ELECTRONICS-Special
Recommendation
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyIC Packaging Roadmap
Chairman: Mr. Chee CheungCompass Technology Co. Ltd.
Co-chairman: Dr. Peter Liu, ASM Assembly Automation Ltd.
Mr. H.K. Li, Hua Ko Electronics Co. Ltd.Mr. Jack Cheung, Vitelic (H.K.) Ltd.
Mr. Wing On Lee, Philips Semiconductors -Electronic Devices Ltd.
Mr. O.L. Chau, Motorola Semiconductors HK Ltd.Mr. Hubert Meier, Hana Technologies Ltd.
Mr. Jerry A. Herrera, ASAT Ltd.Mr. Bernard Zau, Micro Electronics Ltd.
IC Packaging- Status• World Class Manufacturing by any standard
– Sub Contract Manufacturers• ASIC Fine Pitch Packages: QFP,PBGA, TBGA, CSP,
etc.• ASAT (12% World Market), Hana
– Vertical Integrated IC Packages Co.• Motorola, Philips,On Semi
– COB Companies• VTech, Varitronix
– Discrete, Opto and Display Manufacturers– Material Suppliers
• ASM, QPL, Mitsui High-tec, Compass Technology, Possehl, Astron, Via System, etc.
– Equipment Manufacturers• ASM (10% World Market), Pascon, Kras-Asia,
Possehl, etc.
IC Packages Proposed Roadmap
• Technology – QFP to CSP, Flip Chip, BGA, TAB with 55mm pitch.– COB with 65 mm pitch
• Automation– starts with die bonding and end with auto mold.– Auto die coating in PRC
• Bonding speed 12 wires per sec.
• Flip Chip and DCA– watch companies, hard disc drive head
• High density packages with micro vias and direct chip attached is only a few years away.
IC Packaging - Recommendations
• Public Awareness • Encourage In-House R & D• Partnering with other countries• Create an environment to attracts
qualified talents.• Government role
– central planning
– policy makers should make themselves abreast of the latest technology
– a more friendly training grant program
– IC design/ wafer fab should be a priority
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Wafer Fabrication
Chairman: Mr. Daniel LauChannel Sales Mgr., IBM Technology Group
IBM China/HK Ltd.Co-chairman: Dr. Johnny Sin, HKUST
Mr. Joseph Chen, Electronic Scientific Engineering Ltd
Committee Members: Mr. Thomas Wan, Valence Technology Inc.
Mr. Jose Lau, STMicroelectronics Ltd.Mr. Paul Lai, Score Concept Semiconductors Ltd.Mr. Jeffrey Leung, Motorola Semiconductors (HK)
Ltd. Mr. George Tam, Motorola Semiconductors (HK)
Ltd.Mr. Jack Cheung, Hong Kong Vitelic Ltd. Mr. C.K. Lee, RCL Semiconductor Ltd.
Mr. Stephen Wong, Hua Ko Electronic Co. Ltd.
Wafer Fab - Status in HK & PRD
• All Major Facilities are located in HK– Entry-level Fabs
• RCL, Hua Ko & Vitelic• 4” 1.5-2 um <200 people@
– IC Packaging: • Compass, Motorola HK, ASAT, Hana
– Research: • Micro Fabrication Facility of UST - 4” 0.1
um
– Few Fabless Design Houses• Masking & Fabrication need to be done
abroad
Wafer Fab - Proposed Roadmap
• Market Driver - Consumer Electronics
• Mainstream - 6” 0.5 um – Largest quantity. Supply is decreasing while
demand is increasing
• High-end - 8” 0.25 um– For China’s own Digital Standard & System-on-
Chip. No local competition within 3 years
• Niche Markets– GaAs, SiGe for Wireless & RF Applications.
Analog IC: treated as an art rather than science
• VCs & MNCs are essential to success
Wafer Fab - Recommendations• Form a “Fab & Fabless Committee”
– To plan long term strategy such as support infrastructure, human resource requirements and the overall technology management.
• Invest in Fabless IC Design, Development, Prototyping – In ASTRI and one of the 4 Industry Centers propos
ed to develop local customised IC‘s to “feed” the local Fabs.
• Attract Wafer Fabs to come to HK by– Developing adequate infrastructure with industri
es concerned and supported by the government with land and tax incentives etc.
• Work closely with Venture Capital as part of the infrastructrure development
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Contract Manufacturing
Chairman: Mr. Bernard LeungPresident
Ocean Manufacturing Ltd.Co-chairman: Mr. Zenda Tang, Smartech
Digital Manufacturing Holdings Ltd.Mr. Larry Tang, VTech Communications Ltd.
Dr. W.K. Lo, Artesyn Technologies Asia-Pacific Ltd.
Mr. Danny Li, Kaifa Technology (HK)Mr. K.K. Khor, Philips H.K. Ltd.
Mr. Steven Wong, Viasystems Asia Pacific Co. Ltd.
Mr. Francis Chan, VTech Communications Ltd.
High growth rate
Global consolidation
Require for total solution service
Regional manufacturing
CEM - Status
High growth rate
Global consolidation
Require for total solution service
Regional manufacturing
0
25
50
75
100
125
150
175
'94 '95 '96 '97 '98 '99 '00 '01
CM Revenue
US
D b
illi
on
s
Year
Year 1994 1995 1996 1997 1998 1999 2000 2001Revenue (USD billions)
35 48 59 73 90 115 140 170
Source: Electronic Business News
CEM - Proposed Roadmap
Develop global logistic service
virtual design center
global procurement
internet business transaction
global distribution & repair
fast-turn product introduction
CEM - Proposed Roadmap
Develop as manufacturing hub in PRC for MNCs
Government assist to negotiate w/China government to simplify import/export procedure
Set up distribution and repair service support centers in China
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Components, Materials and Equipment
SuppliersMr. Joseph Chen
Business Development Mgr.Electronic Scientific Engineering Ltd.
Chairman: Mr. Jan Wong, Schmidt Group of CompaniesCo-chairman: Mr. Daniel Lau, IBM China/HK Ltd.
Mr. Andy Yuen, Alpha Metals Ltd.Committee Members: Mr. Abby Tsoi, Kasion Automation Ltd.
Mr. Brian Wang, Philips HK Ltd.Mr. Charles Lau, AVX/ Kyocera Asia Ltd.
Mr. Dennis Yee, Shipley Asia Ltd.Mr. Miles Lau, WKK Electronic Equipment Ltd.
Mr. Sunny Chan, Fujitsu Microelectronics Pacific Asia Ltd.Mr. Steven Wong, Teltec Semiconductor Pacific Ltd.
Mr. W.S. Hui, Sylva Industries Ltd.
CME Suppliers - Status• HK + PRD
– A huge international manufacturing base • Current Status
– OEM oriented– Only a few successful CME manufacturers– Increasing demand for process knowledge
from customers
• Opportunity – New technology & process development– Integration, modification or tailor-made
Solution
CME Suppliers - Roadmap• Microscopic
– Create additional values to standard products• Reduce total cost or time-to-market
– Customize software & hardware in a real time manner
– Develop own-brand products– Establish self-improvement task forces
• Macroscopic– Promote CME co-operations / Win3
Partnership– Target for a regional procurement &
distribution center– Aim for a global EMS Hub
CME Suppliers - Recommendations
• Industry– Establish private & non-profit lab
facilities across the border– Accommodate CME suppliers in the
science park– Ally w/ successful players & VC firms
• Government– Extend current high-tech support to
medium-tech business– Support local CME suppliers via
government owned VC Fund
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Technology : Rigid and
Flexible PCB
Chairman: Mr. Chris KatzkoDirector of R & DMeadville Limited
Co-chairman: Mr. Ray Leung, Elec & Eltek Int‘l Ltd.Committee Members: Mr.Kingsley Chau, Elec & Eltek Int
‘l Ltd.Mr. K.S.Lam, Wong‘s Circuits (PTH) Ltd.Mr. Rainer E. Volk, Robert Bosch Co. Ltd.
Dr. Zaheed S. Karim, Shipley Asia Ltd.Ms. May Choi, Gold Peak Industries Ltd.
Industry Status• US$34 Billion World Market
US$2 Billion HK/PRC Production
• 3,200 Manufacturers World-Wide
400 Manufacturers HK/PRC
• Custom Manufacturing Service; Complex,
Capital Intensive, High Technology Process
• Standard PCBs - Over Capacity/Low Margin
HDI PCBs - Under Capacity/Profitable
• Market Drivers - Quality, Cost, Responsive Service, Continuous Investment in Technology
• R&D - Self-funded by Materials & PCB Mfrs.,
Materials Science in Universities
Roadmap Highlights• Fast-Track development of HDI Technology for
mobile products and chip-packaging• Develop “Green”products (Lead-free finishes
and Halogen-free epoxy materials)• Improve yield of High-Tech/ High Value
products to maintain profitability
• Improve responsiveness of front-end
engineering and QTA services• Systematically reduce Cost, Price, and
Manufacturing Lead-time• Enhance Hong Kong’s position as a
Business/Technology Gateway to PRC
– Position HK for technology development & QTA
– Closer cooperation to leverage strengths
Recommendations• Technology Transfer- define HK as a special
technology zone with “Local Content” status for high-tech products to attract OEMs and facilitate systematic technology transfer to PRD
• Strategic Research - establish consortiums to develop advanced HDI and SOS technology for next generation chip packaging
• Investment Tax Credits - for basic research and development of HDI technology
• HK-EPMSA established as a professional association to engender collaboration and promote the industry’s interests
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyVENTURE CAPITAL BUSINESS IN H. K.
Chairman: Kai C. NgDirector - Finance
Compass Technology Company LimitedCo-chairman: Mr. Tony Tsang, Transpac Capital Ltd.
Mr. Peter Fung, Yu Ming Investments Ltd.Committee Members
Mr. C.W. Cheung, Compass Technology Co. Ltd.Mr. Stanley Au, City University of Hong Kong
Mr. Andrew C.L. Tsang, Consultant
• Background– Invest in small & medium size
companies• high growth potential• unlisted• operations in China/Hong Kong
– Expected rate of return of 25%-40% – Exist strategies– Risk– C,C,C.– 120 HK based VCs
• Existing Situation– U. S. Economy– Dow Jones Average & NASDAQ– NASDAQ = Hi Tech– Recovery of H.K. Stock
Market/economy– Investment money coming back– Investors confidence– Liquidity
• The H.K. Stock Exchange/GEM• The Singapore Exchange/Sesdaq
• Outlook of Investment Environment– Well developed infrastructure– Mature financial & legal system– H. K. Government’s role
• Tax incentives• Training grants• Investment allowance scheme
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyElectronics Packaging Research in Hong Kong
Status and Recommendations
Chairman: Prof. Pin TONGHKUST
Co-chairman: Dr. Winco K.C. YungCommittee Members
Prof. Y.C. Chan, City University of Hong KongProf. S.P. Wong, The Chinese University of Hong Kong
Dr. Matthaw Yuen, HKUSTDr. David Lam, HKUST
Current Research Status
• Design and Prototyping– Production-based methodologies with
small base of design rules and data• Packaging Assembly and Manufacturing
– Developmental experience on assembly technology in conventional packages
• Printed Circuit Board– Good developmental effort on PCB
development and assembly• Failure Analysis
– Good singular effort on failure analysis
Research Roadmap
• Design and Prototyping– Advanced design methodologies, tools and
database for industrial use.• Packaging Assembly and Manufacturing
– Advanced interconnection, low cost fabrication and advanced testing methodologies
• Printed Circuit Board– Next generation of PCB to enable
development of electronics• Failure Analysis and Reliability
Engineering– Integrate efforts and broaden to include
reliability engineering
Recommendations for Research
• Designate EPACK a focus area of ASTRI• Industry pools resources in support of
research and development of pre-competitive technologies
• Formation of a Government-Industry-University Consortia to conduct recommended research outlined in report.
• Fund FOUR EPA Centers to support EPACK in Hong Kong– Design and Prototyping– Packaging Assembly and Manufacturing– Printed Circuit Board– Failure Analysis and Reliability
Engineering
Microelectronics Packaging & Assembly
(EPA) Roadmap StudyRoadmap for Manpower, Training
and EducationChairman: Dr. Lawrence Wu
The EPA CentreCity University of Hong Kong
Committee Member: Dr. K.Y. Sze, The University of Hong Kong
Mr. Michael Wong, Vocational Training Council
Prof. S.P.Wong, The Chinese University of Hong Kong
Dr. Frank H. Leung, The Hong Kong Polytechnic University
Dr. J.K. Kim, Hong Kong University of Science & Technology
Dr. Ricky Lee, Hong Kong University of Science & Technology,
Mr. W.K. Leung, Hong Kong Institute of Vocational Education
Status in HK & PRD HK needs manpower specially trained in
EPA. However, Courses cover more on traditional
science and engineering applications No EPA curriculum or programme, at
undergraduate or postgraduate level
Problems Graduates trained in EPA cannot find
jobs was a vicious circle: Not good infrastructure, growth limited, less jobs, mediocre image
Credit transfer between education institutions difficult
Proposed Roadmap Predict growth in EPA To match this, we need manpower
supply (growing at 20% per year) in EPA 300 Technicians per year 650 engineers/scientists,
managers
New Master’s programme in EPA Cross discipline Industrial participation Hands-on Business/management oriented
Recommendations Industry and universities to promote
image of EPA more Edu. & Training Activities:
Short courses and training - Us, VTC, HKPC
EPA courses + internship Integrated MSc in EPA MPhil & PhD in collaboration
with ASTRI Cultivate technical
entrepreneurs
Microelectronics Packaging & Assembly
(EPA) Roadmap Study
Roadmap for Industry Support Chairman: Prof. Raymund W.M. Kwok
Department of ChemistryThe Chinese University of Hong Kong
Committee Members: Dr. C.W. Cheng, Provisional Hong Kong Science Park Co. Ltd.Prof. Y.C. Chan, City University of Hong Kong
Mr. Fred Yung, Hong Kong Industrial Technology Centre Corporation
Dr. Catherine Wong, Hong Kong University of Hong Kong,
Dr. Steven Lee, Hong Kong University of Science & Technology
Mr. C.K. Ng, Hong Kong Productivity Council
IS: Status Industry Department, HKSAR Hong Kong Productivity Council Hong Kong Industrial Technology Centre Hong Kong Industrial Estates Hong Kong Science Park Centres/Facilities in the Universities Associations and Societies Applied Science and Technology Research
Institute
IS: Roadmap Industry Department
the Innovation and Technology Fund
Hong Kong Science Park cluster for portable devices
Applied Science and Technology Research Institute mid-steam research on EPA
IS: Recommendations Establish a tight linkage and encourage
collaboration among the organizations/centres.
Make EPA an important component in ASTRI.
Jointly establish a part-time MSc program that specialized in EPA by two or more universities.
The University Grant Council should put forward a clear policy to encourage the collaboration between universities and the industry, especially ASTRI.
Develop a system in the universities to recognize the achievements of their staff in projects directly related to the industry.
Microelectronics Packaging & Assembly
(EPA) RoadmapMPA Implementation Strategy and
Schedules
By Profs. R. Tummala and C.P. Wong
Georgia Institute of Technology, USA
RECOMMENDATION :
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Setting up a Microelectronics and MPA Design and Technology Center as part of ASTRI in Science Park
• Developing Political & Economic Synergy Between Hong Kong and Mainland China– Front end of Design & Prototyping in
HK– Back end for Low Cost Manufacturing
in PRC
RECOMMENDATION :
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Attracting the Best of Breed Multi-national Companies
• Setting up World Class Educational Infrastructure at BS, MS & PhD levels– Microelectronics– MPA Technologies– Design– Software
RECOMMENDATION :
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Promoting MPA Technologies as part of Hong Kong’s Overall IT– as Strategy for Hong Kong’s Future– to Attract Students to Academia– to Attract Start-up Investments to
Form the New Industry– to Attract Foreign Experts
RECOMMENDATION :
Industry Assume Active Role
• Develop a Detailed Emerging Product and MPA Strategy– Business– Financial– Human Resources– Overseas Technology
Acquisition
RECOMMENDATION :
Industry Assume Active Role
• Encourage Communication Between Corporations of Related Industries– Form an Association for
Microelectronic Packaging & Assembly
– Develop Pre-competitive R&D Strategies, Policies and Procedures
– Work Closely with Both ASTRI and the 4 Proposed Academic Centers
RECOMMENDATION :
Industry Assume Active Role
• Work Closely with the Proposed 4 Academic Institutions– As a Mentor on Research Projects– Advisor on Long term Research
Strategy– Champion for Prototype
Demonstration of New Technologies and Designs
– Develop Extensive Plan of Involving Students and Faculty, Summer Interns, Co-ops, Collaborative Research Projects and Faculty Sabbaticals
RECOMMENDATION :
Industry Assume Active Role
• Work Closely with Academic Institutions and Government Agencies– Keep Abreast of all MPA
Technology Developments Worldwide
– Maintain, Update, Use and Customize the New MPA Knowledge
RECOMMENDATION :
Academia Assume Active Role
• Set up research infrastructure at fundamental and applied level
• Explore the leading-edge MPA technologies with scholars from leading institutions and Hong Kong’s Industry
• Develop the skilled human resources by virtue of undergraduate and graduate curricula and leading-edge MPA research in the four MPA centers
ScheduleBegin in year 2000 and completed over 2-3 yrs
inFour Phases.
Phase 1 (First Year) Accept some of the MPA studyrecommendations Form a MPA joint Task Force to developoverall strategy & schedule “MPA
2020” Benchmark and validate its IT and MPA strategy.
MPA Implementation:
Phase 2 (Second Year)• Establish the Four academia-industry MPA Centers.• Incorporation MPA2020 into ASTRI.
Phase 3 (Second Year)• Implement the updated IT and MPA strategy.
Phase 4 (Third Year)• Revisit and updated the IT and MPA Roadmap Studies.
MPA Implementation:
RECOMMENDATION 8a:
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Setting up a Microelectronics and EPA Design and Technology Center as part of ASTRI in Science Park
• Developing Political & Economic Synergy Between Hong Kong and Mainland China– Front end of Design & Prototyping in
HK– Back end for Low Cost Manufacturing
in PRD
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
• Attracting the Best of Breed Multi-national Companies
• Setting up World Class Educational Infrastructure at BS, MS & PhD levels– Microelectronics– EPA Technologies– Design– Software
RECOMMENDATION 8b:
Government Lead MPA Visionfor a Competitive Hong Kong by:
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 8c:
Government Lead MPA Visionfor a Competitive Hong Kong by:
• Promoting MPA Technologies as part of Hong Kong’s Overall IT– as Strategy for Hong Kong’s
Future– to Attract Students to Academia– to Attract Start-up Investments
to Form the New Industry– to Attract Foreign Experts
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9a:
Industry Lead MPA for Competitive HK& PRD
• Develop a Detailed Emerging Product and MPA Strategy– Business– Financial– Human Resources– Overseas Technology
Acquisition
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9b:
Industry Lead MPA for Competitive HK & PRD
• Encourage Communication Between Corporations of Related Industries– Form an Association for
Microelectronic Packaging & Assembly
– Develop Pre-competitive R&D Strategies, Policies and Procedures
– Work Closely with Both ASTRI and the 4 Proposed Academic Centers
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9c:
Industry lead MPA for Competitive HK& PRD
• Work Closely with the Proposed 4 Academic &Industry Centers– As a Mentor on Research Projects– Advisor on Long term Research
Strategy– Champion for Prototype
Demonstration of New Technologies and Designs
– Develop Extensive Plan of Involving Students and Faculty, Summer Interns, Co-ops, Collaborative Research Projects and Faculty Sabbaticals
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 9d:
Industry Lead MPA for Competitive HK& PRD
• Work Closely with Academic Institutions and Government Agencies– Keep Abreast of all EPA
Technology Developments Worldwide
– Maintain, Update, Use and Customize the New MPA Knowledge
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations
RECOMMENDATION 10:
Academia Lead MPA for Competitive HK& PRD
• Set up research infrastructure at fundamental and applied level
• Explore the leading-edge EPA technologies with scholars from leading Overseas institutions and Hong Kong’s Industry
• Develop the skilled human resources by virtue of undergraduate and graduate curricula and leading-edge EPA research in the four EPA centers
EPA Study
What is MPA?
Why Important?
Global Trends
Status in HK/PRD
Vision for HK/PRD
Recommendations