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4 optics.org product focus Laser World of Photonics 2019 Edition
Semiconductor slump
‘worst in a decade’
World’s ten leading chip makers each report declining sales in key 35 per cent year-on-year, highlighting its
market for lasers and optical systems. exposure to the memory device sub-
sector.
Analyst firm IHS Markit has declared such decline since the second quarter of
the current slump in the global 2009, in the immediate aftermath of the “The other memory-oriented companies
semiconductor market as the worst global financial crisis. in the top-ten also were heavily impacted
for a decade, after all ten of the world’s by the downturn,” added Ellwanger. Third-
Memory failure ranked SK Hynix, another Korean chip
leading chip manufacturers reported
This time around it is a rise in excess maker, experienced a 26 per cent drop
declining revenues.
inventory and falling demand from key over the same period, while fourth-placed
The sector, a key one for vendors of laser end markets that is to blame, reports IHS’s Micron, US, posted a 23 per cent decline.
and optical systems used to pattern, Ron Ellwanger. “Memory chips were the
The slump was felt equally across both
mark, drill, trim, dice, and characterize primary culprit for the sales plunge,” states
main types of memory device, with
overall sales of both dynamic RAM and
NAND flash chips down by around a
quarter on last year.
Outlook slashed
Ellwanger’s industry report comes a
couple of weeks after IHS colleague
Myson Robles Bruce slashed his outlook
for the global chip market. Rather than
the prior expectation of a slight market
semiconductor chips and wafers, was the senior analyst, noting that Samsung expansion this year, he now predicts a 7.4
worth $101.2 billion in the opening suffered the largest drop in revenue amid per cent contraction as total sales slip to
quarter of 2019. plunging prices for memory chips. $446 billion in 2019.
That represents a 13 per cent drop on the The Korean electronics giant’s
opening quarter of last year, the worst semiconductor sales have plummeted continued on next page
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optics.org product focus Laser World of Photonics 2019 Edition 5
continued from previous page now is destined for its worst year in a that is largely a commentary on the
decade.” displays element of the business, where
Semiconductor slump While the current malaise will continue
Coherent is a key supplier of annealing
lasers.
‘worst in a decade’ through the middle of the year, the IHS
team does see something of a silver lining Ambroseo’s counterpart at MKS, Gerry
in the third quarter, as seasonal demand Colella, said around the same time that
If accurate, that would also represent for high-end smart phones helps to drive the recent slump in the semiconductor
the largest contraction since 2009, when demand for NAND flash memory. capital equipment sector did appear to
sales of semiconductor chips shrank 11 have stabilized – notwithstanding the
per cent. However, since then the chip Laser and photonics impact
ongoing trade tensions between the US
market has more than doubled in value, The precise impact on the photonics and China.
as consumer and professional products and laser sector is difficult to ascertain,
although the stock prices of key suppliers Colella also pointed out the historic cycles
incorporate ever greater semiconductor
to the chip production supply chain of the chip market, telling an investor
content.
such as Nasdaq-listed Coherent and MKS conference call: “There is always doom
“After the chip industry attained a heady and gloom of the semiconductor industry.
Instruments (the parent company of
revenue expansion of 15 per cent in Even if we stay flat this year in semi, it will
Spectra Physics) have slumped in value
2018, many semiconductor suppliers in be the third highest revenue year in the
over the past month as predictions for
early 2019 remained optimistic that they company’s history.”
2019 were updated.
could achieve modest growth this year,”
Since early May, Coherent has dropped by “If I was Nostradamus, I’d give you great
said Bruce, who heads up research of the
around 27 per cent, while MKS is down a predictions, but I feel that generally it
semiconductor value chain at the analyst
similar amount since late April. seems to be coming together,” added
firm.
the MKS CEO. “When I look internally of
“However, the chipmakers’ confidence When reporting the company’s latest the order rates, they appear to be pretty
quickly transformed into apprehension financial results on April 30, Coherent’s healthy at this point.”
as they witnessed the depth and ferocity CEO John Ambroseo told investors
of the current downturn. The latest data that the microelectronics sector was Mike Hatcher, Contributing Editor, optics.org
indicates the semiconductor business experiencing a “lull” in demand, although http://optics.org/news/10/5/42
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6 optics.org product focus Laser World of Photonics 2019 Edition
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8 optics.org product focus Laser World of Photonics 2019 Edition
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10 optics.org product focus Laser World of Photonics 2019 Edition
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12 optics.org product focus Laser World of Photonics 2019 Edition
Jenoptik cheered as
Sales growth was much stronger within
the “Light and Production” division, with
quarterly revenues up nearly 30 per cent
on the prior year’s figure. That increase was
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optics.org product focus Laser World of Photonics 2019 Edition 13
Gooch & Housego Visit us at Hall A2 Booth #310 Avantes BV Visit us at Hall A2 Booth #100
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14 optics.org product focus Laser World of Photonics 2019 Edition
macro worries
Laser Quantum’s sales have also been
impacted by the wider industrial market
slowdown, however, as have those of the
carbon dioxide laser specialist Synrad.
Overall sales up but photonics segment down amid weak
macroeconomic environment and microelectronics slowdown. Uncertainty spreads
Summarizing the current situation, Glastra
Nasdaq-listed Novanta has reported That appeared to play badly with the said that Novanta’s broad diversification
a year-on-year decline in sales for its financial markets, sending Novanta’s stock would position it well for the remainder
photonics business unit, as it deals down 9 per cent on a trading day that was of this year and beyond, with the current
with sluggish industrial markets and already marred by fears of an escalating industrial weakness continuing to be
a temporary slowdown in demand trade war between the US and China. balanced out by demand from the medical
for lasers used in DNA sequencing sector.
In a call with investors to discuss the latest
equipment. results, Glastra said that the microelectronics “We see a long-term need for our motion,
market was particularly weak, with vision and photonics capabilities in a large
The Bedford, Massachusetts, company,
Novanta’s sales into that sector down 20 per variety of applications on the back of macro
which owns beam-steering specialist
cent year-on-year. trends of Industry 4.0, precision medicine
Cambridge Technology and laser providers
and healthcare productivity,” he added.
Synrad and Laser Quantum, posted However, microelectronics represents
revenues of $157.2 million in its opening only around 10 per cent of the company’s At around one-tenth of sales, the company’s
quarter of 2019, up 7 per cent on last year. business, helping to mitigate that negative exposure to China is relatively modest,
momentum. While the medical sector but the CEO is still expecting to see some
But that total masked a decline within its
remains strong, and Novanta’s executive impact from the current trade uncertainty.
photonics unit, where sales slipped to $59.2
team remains excited about the potential Glastra said that although this uncertainty
million, down from $61.8 million a year ago.
in new areas like robotic surgery and DNA was now spreading to the rest of Asia and
Strong demand in the medical sector sequencing, demand for lasers used by the Europe, it was not evident across all sectors,
helped offset that decline, however, helping latter has slackened compared with the with “good market momentum” in laser
Novanta’s “vision” business record a 17 per same time last year. additive manufacturing.
cent boost in sales, to $65.9 million.
But Glastra said that was largely due to the • Despite slipping 9 per cent immediately
Microelectronics weakness particularly strong order flow experienced following the latest results announcement,
last year, telling investors that the current Novanta’s stock price has risen in value
Amid what he called an uncertain
“lumpiness” in demand reflected “temporary strongly since the start of the year. Trading
macroeconomic and capital spending
customer launch dynamics” rather than any at just over $85 on May 8, it remains close
environment, company CEO Matthijs Glastra
slowdown in the wider market. to long-term highs, and is up around 33 per
declared himself pleased with the overall
cent since January 2.
performance but forecast a slight sequential He added: “In fact, we couldn’t feel more
dip in sales during the current quarter. excited about the long-term growth Mike Hatcher, Contributing Editor, optics.org
prospects of this business as DNA http://optics.org/news/10/5/9
Image: nasdaq.com.
Novanta’s stock price has risen steadily over the past two years, and despite dropping in value by around 9% following the latest results it remains close to a 20-year high
on the Nasdaq.
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optics.org product focus Laser World of Photonics 2019 Edition 15
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optics.org product focus Laser World of Photonics 2019 Edition 17
continued from previous page expertise between the Newport and ESI delivered a net income of $12.5 million
businesses, Lee indicated that there was on the $464 million sales. This time last
MKS execs highlight scope for genuine synergy, telling the year it had posted net income of $105
call: million on quarterly sales of $554 million.
synergies with Electro
“I think the capability was a little Meanwhile, the firm’s balance sheet now
Scientific integration surprising to each side. Some of the shows cash and equivalents totaling
modeling capability and assistance $418 million, up against around $1
capability of ESI was unknown to the billion in long-term debt.
noting “significant orders” in Asia and light and motion [i.e. Newport] side,
A crucial goal for MKS now is to de-
Europe. and some of the laser and motion
leverage that balance sheet over time,
“The ESI acquisition further broadens capability was unappreciated, or under-
something that it had achieved over the
our ‘surround the workpiece’ offerings appreciated, by the ESI folks.”
past couple of years with the similar-
by adding advanced systems expertise Looking towards the second quarter sized Newport acquisition.
and deep technical understanding of of the year, which will be the first
• Investors appeared to react negatively
laser materials [processing] interactions,” to include a full contribution from
to the MKS outlook, with the company’s
Lee said. “We expect ESI leadership ESI, Colella and his team said that
Nasdaq-listed stock price falling in value
and complex PCB processing systems they expect to post a revenue figure
by around 10 per cent immediately
to provide MKS the opportunity somewhere between $460 million and
following the financial release.
to accelerate the roadmaps and $510 million – somewhat reflecting the
performance of our laser, motion, and historic volatility of the ESI business However, trading at around $91 the
photonics portfolios.” and the vagaries of the semiconductor stock has still made strong gains since
equipment cycle. late 2018, and currently MKS’ market
5G opportunities
valuation stands at around $5 billion.
Lee added that the roll-out of 5G wireless Balance sheet shows leverage
networks would prove to be a long-term The impact of both the ESI acquisition Mike Hatcher, Contributing Editor, optics.org
growth driver for all of MKS’ divisions. He – at a cost of around $1 billion in cash, http://optics.org/news/10/4/49
pointed to the need for new laser-based financed partly through a $650 million
processes to manufacture new antenna term loan – and the recent market lull
designs as one example of the likely was in evidence on the bottom line of
market pull. MKS’ latest results.
Responding to a question about the For the three months ending March 31,
potential cross-over of laser-related the Andover-headquartered company
Image: nasdaq.com.
Despite falling in value by close to 10% following the latest quarterly results announcement, MKS’ stock price has recovered strongly since late 2018. This image shows
how the company’s value has increased in value steadily over the period in which it has pivoted towards photonics. MKS acquired Newport Corporation in late 2016, and
recently completed the buyout of Electro Scientific Industries (ESI).
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18 optics.org product focus Laser World of Photonics 2019 Edition
Sales from Zeiss’ semiconductor manufacturing 2017/18 total of €642 million, which was itself up
technology (SMT) division rose at a slower rate, nearly 50 per cent in just two years.
up 5 per cent to €769 million, reflecting the Highlighting the impact of that investment, Zeiss
current sluggishness of the wider sector – EUV CFO Christian Müller said: “Today, we generate
lithography equipment aside. A year ago, the almost half of our revenue with products that are
Despite growing macroeconomic worries, Zeiss reported rate of growth stood at 35 per cent. less than three years old.”
CEO Michael Kaschke looks likely to oversee a tenth “Despite a generally more cautious and less
successive year of record sales at the Germany- consistent development in the semiconductor Mike Hatcher, Contributing Editor, optics.org
headquartered optics and optical systems giant. industry, the SMT segment achieved healthy http://optics.org/news/10/5/4
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EN E S T EDT. S E
optics.org product focus Laser World of Photonics 2019 Edition 19
Coherence Matters.
HIGH PERFORMANCE L ASERS
Visit us at B2:214
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20 optics.org product focus Laser World of Photonics 2019 Edition
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optics.org product focus Laser World of Photonics 2019 Edition 21
• GMittweida)
beam qualities, M2<1.1, and pulse energies
ermany (Lunovu and Hochschule 2.5µJ to 250µJ will be achieved. PULSE is completely funded by the EU.
• GResearch
“Using the state-of-the-art highly stable met. An extremely stable advanced all-fiber
reece (Nanotypos OE, Foundation for laser diodes as seed lasers allowing based configuration allow development of
and Technology HELLAS, and parameter flexibility by ultrafast electrical a compact ultrashort pulse laser system.”
Prime Laser Technology Iliaka Systimata control of pulse duration and repetition
Thermansi Anonimi Viomichaniki rate will a broad range of high-power laser Matthew Peach, Contributing Editor, optics.org
Emporiki Etaireia) processing application requirements to be http://optics.org/news/10/5/40
Senior
Development
Engineer
At Coherent Scotland Ltd, a subsidiary of Coherent Inc. our
products are deployed in a wide variety of markets including
industrial microelectronics, materials processing and scientific
research. We are expanding our purpose built laser design
and manufacturing facility within the West of Scotland Connecting people
Science Park in Glasgow.
optics.org/jobs
At this time of exciting growth for our business we are
recruiting for a Senior Development Engineer within our R&D optics.org
group. The successful candidate will perform laser system
modelling, design and testing and be a key team member
career center
in laser development projects from concept through the full The leading recruitment resource for
manufacturing release cycle. companies and professionals in the
optics and photonics community.
This role will give the opportunity to join a multidiscipline
engineering team and shape the next generation of cutting Post your jobs for free
edge laser products. You will work with other laser design at our booth #B2.120
engineers and liaise with other functional groups within the
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that will delight our customers. 23
For further details and to make an application, go to our
follow us on twitter @opticsorg
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optics.org product focus Laser World of Photonics 2019 Edition 23
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24 optics.org product focus Laser World of Photonics 2019 Edition
Laser processing to
turn moondust into The targeted melting of regolith into
predefined structures is to be monitored and
observeded using high-resolution cameras.
MOONRISE project to take 3D-printing to the moon to build The team comments that If the experiment
“village” and for space exlporation. succeeds on the moon, then the MOONRISE
process can be scaled up to produce larger
The moon is of great importance as a and convert them into versatile structures structures. Thus, in the long term, whole
research station and starting point for subsequently. infrastructures such as foundations, paths,
further space expeditions. However, The opportunity to fly their MOONRISE and landing surfaces could be built using the
the cost of flights and transports technology to the moon in 2021 with the MOONRISE manufacturing technology.
to the moon are enormous – a first moon mission of the Berlin-based Project MOONRISE has been running for
kilogram of loading capacity costs New-Space company PTScientists offers almost nine months. The team says results
approximately €700,000, says Laser the researchers from Lower Saxony the from early tests are promising: The laboratory
Zentrum Hannover, Germany, which is opportunity to test their pioneering setup is adapted; suitable, common laser
a partner in a lunar laser R&D program, technology under real conditions. hardware identified and tested, the optics
called MOONRISE. Stefan Linke from IRAS commented, “The designed and tested [specifics such as
planned direct proof, that we are able to brands, powers and wavelengths have not
Therefore, LZH contends, infrastructure,
process lunar regolith with already available yet been revealed].
components and devices would at best be
manufactured directly on the Earth’s satellite. hardware components is crucial for the Currently, the team is working on adapting
But using what materials? planning of future missions. Thus, larger and the laser to the load compartment of the
lunar vehicle, the so-called rover. The laser
is integrated into a tunnel at the bottom of
the rover. After the adjustments, the entire
system is tested for its space suitability:
because on the way to the moon, the laser
system must withstand shocks and massive
temperature differences.
Countdown to lift-off
The project has already scheduled a “big day”
in the calendar – in 2021: The MOONRISE
laser of LZH and IRAS will be part of the
moon mission of the PTScientists, to be
launched to Earth’s satellite, and integrated
into the “moon rover”. The ambitious and
future-oriented research project is funded by
the Volkswagen Foundation within the scope
Illustration: LZH.
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26 optics.org product focus Laser World of Photonics 2019 Edition
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optics.org product focus Laser World of Photonics 2019 Edition 27
FOR YOUR FIBER LASER In the “futureAM” joint project, the IWS
and five other Fraunhofer Institutes are
pooling this technology and further
expertise to push additive manufacturing
to a new level. By summer 2020, they
want to integrate all their expertise into
the additive manufacturing process
chain and demonstrate it on realistic
components.
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28 optics.org product focus Laser World of Photonics 2019 Edition
toolmaking productivity
the Lasertec 125 from DMG Mori. The
developers had two key goals: firstly, that
the machine should be easy to operate,
without requiring any specialist expertise
Fraunhofer ILT project eVerest develops laser machine that triple production in the technologies used, and, secondly,
that the number of processes should be
rate of tools for car parts. reduced to a minimum. The simplicity of
the processes represents one of the main
Car makers employ a variety of methods Enhanced laser power advantages over etching, which frequently
to emboss plastic panels for vehicle To optimize the processes, the engineers still relies on the instincts and dexterity of
interiors. But the manufacturing the tools examined the efficiency of all the the machine operator.
required for this purpose is typically an components. Significant progress was
extremely time-consuming process. made by reducing “dead times” in the scan The software plays a key role in making the
paths. To achieve this, the team tested new fully automatic eight-axis machine easy to
Now a new laser-based machine algorithms and worked with scientists at
triples the rate at which these tools are Münster University of Applied Sciences,
produced while enabling more complex who evaluated a range of concepts for
structures. The expertise required for the highly dynamic focusing using convex
their precision in the nanometer regime. structured surface against a realistic backdrop.
The eVerest team therefore decided to
incorporate a USP source in addition to the use. The team at RWTH Aachen University
standard nanosecond laser. developed special tools that enable users to
precisely simulate the desired structures on
USP lasers have been criticized for their
Volker Lannert.
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optics.org product focus Laser World of Photonics 2019 Edition 29
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30 optics.org product focus Laser World of Photonics 2019 Edition
Rapid-fire terawatt
science leaders like Vilnius University
professor Algis Piskarskas, Jasunias also
noted the unprecedented combination
at ELI-ALPS
“Pumped by dedicated all-solid-state
short-pulse (picosecond-scale) sources
and their (low-order) harmonics,
this approach will be competitive
Extreme Light Infrastructure (ELI) facility in Hungary switches on with conventional Ti:sapphire laser
‘Sylos 2A’ femtosecond source in ceremony with Gérard Mourou. femtosecond technology in terms of
pumping efficiency, and will dramatically
2018 Nobel prize winner Gérard beamlines at ELI-ALPS (ALPS is short for outperform previous technologies
Mourou has attended the ceremonial attosecond light pulses source), where in terms of average power, contrast,
inauguration of a state-of-the-art users will carry out fundamental research bandwidth, and - as a consequence
laser system at the Extreme Light across industrial, biological, and medical - degree of control of the generated
Infrastructure (ELI) facility in Hungary. applications. radiation.”
Overseeing “first pulse” of the “Sylos
2A” system, built and installed by the One intriguing possibility is that Sylos Currently offering the highest average
Lithuanian laser companies Ekspla and could be used, by driving a secondary power produced by any multi-terawatt,
Light Conversion, Mourou pushed an source, to reduce the radioactivity of few-cycle OPCPA system, Sylos combines
improvised black button to start the spent nuclear fuel, according to the a “Pharos” industrial-grade femtosecond
laser from Light Conversion with a
specially designed diode-pumped
Nd:YAG picosecond pump laser from
Ekspla.
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optics.org product focus Laser World of Photonics 2019 Edition 31
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