Microelectronics Packaging

1
Microelectronics Packaging Assembly (MPA)
Roadmap
Preparing Hong Kong and Pearl River Deltas
Electronics For the New Millennium
Professor Rao R. Tummala EPA Study Chairman
2

• 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 PRDs MPA
• Recommendations

3

• Roadmap Study
• Information Technology is the future
• MPA Integral building block of it
• IT MPA Create wealth
• Internet best medium for MPA IT
• HK PRCs MPA IT US 50B (1998), potential to
  become US100B 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
4
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 PRDs MPA Recommendations
5
Goals of the MPA Study
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Review the Status of IT MPA
• Assess MPA
• Make Recommendations
• Short term
• Long term

6
Study Team
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Industry
• Academia
• Industry Support Organizations
• Government

7
Study Methodology
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Phase 1 Set up Teams Topics
• Phase 2 Visit Industry, Academia Government
• Phase 3 Report Plan Preparation
• Phase 4 Public Release

8
Seven Steps to MPA
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Vision Strategy
• Technology Infrastructure
• Technology Innovations
• Intellectual Property
• Human Resources
• Venture Capital Entrepreneurs
• Product Technology Development
• Manpower Training
• Manufacturing Capital
• Marketing Sales

9
10 Study Committees
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 1) Technology
• Wafer Fab
• IC Packaging
• Contract Manufacturing
• PCB
• Components, Materials Equipment
• Consumer Electronics
• 2) Manpower, Training Education
• 3) Research
• 4) Venture Capital
• 5) Industry Support Organizations

10
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 PRDs MPA Recommendations
11
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
12
Examples of EPA Inside aComputer Cellular Phone
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
Apple Computer
13
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 PRDs MPA Recommendations
14
Why is MPA Important to HK PRD?
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• ITFuture Wealth
• MPA Fundamental Building Block of IT
• Largest Exporting Industry
• High Paying Jobs
• Utilizes HK PRD Uniqueness
• Prepares HK PRD for 3rd Millennium

15
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 PRDs MPA Recommendations
16
Electronics is the Largest Industry
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
17
Worldwide MPA Markets
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
1997
2005
US World US World 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
18
Electronic System Trends
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
Future
Internet Software
Present
Server
Wireless
Router Switch
Mainframe
Internet
PC
Internet
Broad
Portable
Band
Video
MPA
Cell
Phone
Mainframe
PC
Internet
Past
19
The Cellular Phone IS the Network
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
20
Paradigm Shift In ElectronicsProfits
High Profit
Low Profit
HP (all Units) (18)
100,00
Internet
HP (excluding computer unit) (15)
Fabless Mfg
INTEL
CISCO (81)
SUN (34)
10,000
Special SC Mfg (PC)
MICROSOFT
QUALCOMM
SGI (29)
Sales (Millions)
1,000
General Mfg
ACUSON (60)
100
NETSCAPE
10
0
10
20
30
40
50
60
Years in Business
SOURCE Jim Gibbons, Stanford University
21
The New Structure of the Electronics Industry
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
22
Contract Manufacturing Worldwide
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
178B
140B
112B
90B
1998
1999
2000
2001
Source Technology Forecasters, Inc.
23
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 PRDs MPA Recommendations
24
Todays Hong Kong PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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
• Peoples Attitudes

25
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 RD Focus
• Inadequate Venture Capital
• No Apparent Long Term Vision
• Synergy Between Hong Kong PRD Not Fully
  Exploited

26
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 RD Focus
• Inadequate Venture Capital
• No Apparent Long Term Vision
• Synergy Between Hong Kong PRD Not Fully
  Exploited

27
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 PRDs MPA Recommendations
28
Our Vision of HK PRDs MPA
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
29
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
Example of Tomorrows Technology
Cellular Phone and Watch
30
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 PRDs MPA Recommendations
31
RECOMMENDATION 1Declare Vision IT 2020
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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

32
Evolution of Electronic Technology
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations
33
RECOMMENDATION 2Develop Synergistic
Relationship with Mainland China
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• PRD Critical for IT MPA Vision
• Integrate PRD in Every Aspect
• Education, Business, Multi-national
  involvement,RD

34
45.6B
Hong Kong Investing More Than Anyone In China

• HK to Gain
• Most from WTO

45.3B
20.6B Hong Kong
4.3B Japan
In billions of U.S. Dollars
3.3B Taiwan
18.6B
3.2B U.S.
(1/99 through 6/99)
2.6B Singapore
2.1B Korea
1.9B Britain
1.0B Germany
3.4B
90
97
98
99
Source Ministry of Foreign Trade and Economic
Cooperation
Source U.S. Department of Commerce
35
RECOMMENDATION 3MPA Should be a Funded Focus
of ASTRI
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Mid-stream MPA
• Involve Industry Academia
• MPA Focus Technology Development

36
RECOMMENDATION 4aGovernment 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

• IC and Package Design and Prototyping Research
• Contract Manufacturing Research
• PCB Design and Process Research
• Failure Analysis, Virtual Reliability
  Engineering Research

37
RECOMMENDATION 4bGovernment 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

• 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

38
RECOMMENDATION 5Attract Wafer Fabs by
Providing Infrastructure Incentives
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Profitable Niche ICs
• Scientific Knowledge
• Image of Technical Society
• Fab for Internet-based ICs
• Government Role not an Owner or Manager but
  Facilitator

39
RECOMMENDATION 6Invest Heavily in Education at
All Levels
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Take Advantage of Web
• Company Training Schemes
• Vocational Training
• Interdisciplinary Education at BS, MS PhD
  levels
• Entrepreneurial Education

40
RECOMMENDATION 7Acquire Knowledge Skills
from Overseas
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

41
RECOMMENDATION 8aGovernment 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

• 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

42
RECOMMENDATION 8bGovernment 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

• Attracting the Best of Breed Multi-national
  Companies
• Setting up World Class Educational Infrastructure
  at BS, MS PhD levels
• Microelectronics
• EPA Technologies
• Design
• Software

43
RECOMMENDATION 8cGovernment 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

• Promoting MPA Technologies as part of Hong Kongs
  Overall IT
• as Strategy for Hong Kongs Future
• to Attract Students to Academia
• to Attract Start-up Investments to Form the New
  Industry
• to Attract Foreign Experts

44
RECOMMENDATION 9aIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Develop a Detailed Emerging Product and MPA
  Strategy
• Business
• Financial
• Human Resources
• Overseas Technology Acquisition

45
RECOMMENDATION 9bIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Encourage Communication Between Corporations of
  Related Industries
• Form an Association for Microelectronic Packaging
  Assembly
• Develop Pre-competitive RD Strategies, Policies
  and Procedures
• Work Closely with Both ASTRI and the 4 Proposed
  Academic Centers

46
RECOMMENDATION 9cIndustry lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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

47
RECOMMENDATION 9dIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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

48
RECOMMENDATION 10Academia Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Set up research infrastructure at fundamental and
  applied level
• Explore the leading-edge EPA technologies with
  scholars from leading Overseas institutions and
  Hong Kongs Industry
• Develop the skilled human resources by virtue of
  undergraduate and graduate curricula and
  leading-edge EPA research in the four EPA centers

49

• Roadmap Study
• Information Technology is the future
• MPA Integral building block of it
• IT MPA Create wealth
• Internet best medium for MPA IT
• HK PRCs MPA IT US 50B (1998), potential to
  become US100B 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
50
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Consumers Electronics
Chairman Dr. K. B. Chan Managing
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.
51
HK CONSUMER ELECTRONICS INDUSTRY - Overview
Characteristics

• Total export in 1998 gt HK200B.
• 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

52
Major Products

• Key Segments World Ranking
• Number One by Value
• Audio Radios
• Computer ---
• Toys games Toys
• Watch clocks Watches
• Telecom products Phone sets
• Home appliance Hairdryers
• Personal electronics Calculators

53
HK CONSUMER ELECTRONICS INDUSTRY -Challenges

• Competition from mainland capital companies
• Shortage of advanced skilled resources
• Lack of investments
• Lack of brand
• Minimal RD

54
HK CONSUMER ELECTRONICS INDUSTRY - Roadmap

• Enhance 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 player
• Internet enabling Products Internet phones,
  Web-box
• Invest in the appropriate EPA technology for
  better
• And advanced products
• Flip chip bonding

55
HK CONSUMER ELECTRONICS-Special Recommendation

• 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

56
Microelectronics Packaging Assembly (EPA)
Roadmap Study
IC Packaging Roadmap
Chairman Mr. Chee Cheung Compass 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.

57
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.

58
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.

59
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

60
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Wafer Fabrication
Chairman Mr. Daniel Lau Channel 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.
61
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 lt200 people_at_
• 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

62
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 Chinas 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

63
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
  proposed to develop local customised ICs to
  feed the local Fabs.
• Attract Wafer Fabs to come to HK by
• Developing adequate infrastructure with
  industries concerned and supported by the
  government with land and tax incentives etc.
• Work closely with Venture Capital as part of the
  infrastructrure development

64
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Contract Manufacturing
Chairman Mr. Bernard Leung President 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.
65
CEM - Status

• High growth rate
• Global consolidation
• Require for total solution service
• Regional manufacturing

• High growth rate
• Global consolidation
• Require for total solution service
• Regional manufacturing

Year 1994 1995 1996 1997 1998 1999 2000 2001 Reven
ue (USD billions) 35 48 59 73 90 115 140 170
Source Electronic Business News
66
CEM - Proposed Roadmap

• Develop global logistic service
• virtual design center
• global procurement
• internet business transaction
• global distribution repair
• fast-turn product introduction

67
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

68
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Components, Materials and Equipment
Suppliers
Mr. Joseph Chen Business Development
Mgr. Electronic Scientific Engineering
Ltd. Chairman Mr. Jan Wong, Schmidt Group of
Companies Co-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.
69
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

70
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

71
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

72
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Technology Rigid and Flexible PCB
Chairman Mr. Chris Katzko Director of R
D Meadville Limited Co-chairman Mr. Ray Leung,
Elec Eltek Intl Ltd. Committee Members
Mr.Kingsley Chau, Elec Eltek Intl Ltd. Mr.
K.S.Lam, Wongs 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.
73
Industry Status

• US34 Billion World Market
• US2 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
• RD - Self-funded by Materials PCB Mfrs.,
• Materials Science in Universities

74
Roadmap Highlights

• Fast-Track development of HDI Technology for
  mobile products and chip-packaging
• Develop Greenproducts (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 Kongs position as a
  Business/Technology Gateway to PRC
• Position HK for technology development QTA
• Closer cooperation to leverage strengths

75
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 industrys interests

76
Microelectronics Packaging Assembly (EPA)
Roadmap Study
VENTURE CAPITAL BUSINESS IN H. K.
Chairman Kai C. Ng Director - Finance Compass
Technology Company Limited Co-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
77

• 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

78

• 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

79

• Outlook of Investment Environment
• Well developed infrastructure
• Mature financial legal system
• H. K. Governments role
• Tax incentives
• Training grants
• Investment allowance scheme

80
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Electronics Packaging Research in Hong
KongStatus and Recommendations
Chairman Prof. Pin TONG HKUST Co-chairman Dr.
Winco K.C. Yung Committee Members Prof. Y.C.
Chan, City University of Hong Kong Prof. S.P.
Wong, The Chinese University of Hong Kong Dr.
Matthaw Yuen, HKUST Dr. David Lam, HKUST
81
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

82
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

83
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

84
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Manpower, Trainingand Education
Chairman Dr. Lawrence Wu The EPA Centre City
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
85
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

86
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 Masters programme in EPA
• Cross discipline
• Industrial participation
• Hands-on
• Business/management oriented

87
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

88
Microelectronics Packaging Assembly (EPA)
Roadmap Study
Roadmap for Industry Support
Chairman Prof. Raymund W.M. Kwok Department of
Chemistry The 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
89
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

90
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

91
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.

92
Microelectronics Packaging Assembly (EPA)
Roadmap
MPA Implementation Strategy and SchedulesBy
Profs. R. Tummala and C.P. Wong Georgia
Institute of Technology, USA
93
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

94
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

95
RECOMMENDATION Government Lead MPA Visionfor
a Competitive Hong Kong by

• Promoting MPA Technologies as part of Hong Kongs
  Overall IT
• as Strategy for Hong Kongs Future
• to Attract Students to Academia
• to Attract Start-up Investments to Form the New
  Industry
• to Attract Foreign Experts

96
RECOMMENDATION Industry Assume Active Role

• Develop a Detailed Emerging Product and MPA
  Strategy
• Business
• Financial
• Human Resources
• Overseas Technology Acquisition

97
RECOMMENDATION Industry Assume Active Role

• Encourage Communication Between Corporations of
  Related Industries
• Form an Association for Microelectronic Packaging
  Assembly
• Develop Pre-competitive RD Strategies, Policies
  and Procedures
• Work Closely with Both ASTRI and the 4 Proposed
  Academic Centers

98
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

99
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

100
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
  Kongs Industry
• Develop the skilled human resources by virtue of
  undergraduate and graduate curricula and
  leading-edge MPA research in the four MPA centers

101
MPA Implementation

• Schedule
• Begin in year 2000 and completed over 2-3 yrs in
• Four Phases.
• Phase 1 (First Year)
• Accept some of the MPA study
• recommendations
• Form a MPA joint Task Force to develop
• overall strategy schedule? MPA 2020
• Benchmark and validate its IT and
• MPA strategy.

102
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.

103
RECOMMENDATION 8aGovernment 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

• 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

104
RECOMMENDATION 8bGovernment 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

• Attracting the Best of Breed Multi-national
  Companies
• Setting up World Class Educational Infrastructure
  at BS, MS PhD levels
• Microelectronics
• EPA Technologies
• Design
• Software

105
RECOMMENDATION 8cGovernment 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

• Promoting MPA Technologies as part of Hong Kongs
  Overall IT
• as Strategy for Hong Kongs Future
• to Attract Students to Academia
• to Attract Start-up Investments to Form the New
  Industry
• to Attract Foreign Experts

106
RECOMMENDATION 9aIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Develop a Detailed Emerging Product and MPA
  Strategy
• Business
• Financial
• Human Resources
• Overseas Technology Acquisition

107
RECOMMENDATION 9bIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Encourage Communication Between Corporations of
  Related Industries
• Form an Association for Microelectronic Packaging
  Assembly
• Develop Pre-competitive RD Strategies, Policies
  and Procedures
• Work Closely with Both ASTRI and the 4 Proposed
  Academic Centers

108
RECOMMENDATION 9cIndustry lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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

109
RECOMMENDATION 9dIndustry Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• 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

110
RECOMMENDATION 10Academia Lead MPA for
Competitive HK PRD
EPA Study What is MPA? Why Important? Global
Trends Status in HK/PRD Vision for
HK/PRD Recommendations

• Set up research infrastructure at fundamental and
  applied level
• Explore the leading-edge EPA technologies with
  scholars from leading Overseas institutions and
  Hong Kongs Industry
• Develop the skilled human resources by virtue of
  undergraduate and graduate curricula and
  leading-edge EPA research in the four EPA centers