Industry News, Trends and Technology, and Standards Updates

News You Can Use in SEMI Command and Control Standards, Part 2

Posted by Brian Rubow and Alan Weber on May 31, 2016 1:00:00 PM

 172SEMI.pngIn a previous blog we mentioned that two new SEMI standards, E172 and E173, demonstrated that the GEM standard was alive and well and even gaining new momentum by evolving to adopt new technology. The earlier blog focused on E172 with its SEDD files that use an XML schema to describe what is in a GEM interface. Today’s blog is about the E173 Specification for XML SECS-II Message Notation: a new way to log and document GEM/SECS messages, again using an XML schema.

A few years ago Cimetrix was involved in a project prototyping Wait Time Waste concepts and implementation alternatives. This work required Cimetrix engineers to review and extract data from many different SECS-II message log files from a variety of sources, and in the process, exposed a serious weakness in the industry. Because there was no standardized notation for logging SECS-II messages, everyone represented them differently, using different nuances and variations in their notation based loosely on SML (SECS Message Language, which is mentioned in the GEM standard). Additionally, SML itself was designed primarily for human readability, and certainly not for consumption by software programs; moreover, you can’t analyze a long message log without software to do the parsing for you. As a consequence, writing software to review the log files and to extract meaningful data from the log files was far more difficult than it should have been – SML and SML-like notations are simply not suitable for today’s needs. But now there is a suitable, industry-standard alternative. 

At Cimetrix we have utilized various notations for logging SECS-II messages for many years. In order for any notation to be useful it must meet certain criteria. First of all, it has to be easy for software to write (serialize). Secondly, it also needs to be easy for software to read (deserialize). And finally, it should be easy for humans to read and understand.

The original technique we used many years ago was based on the scripting language Tcl (pronounced “tickle”), which uses curly braces as structural delimiters. When programming within the Tcl language, this works very well. In other programming languages, however, it is easy to serialize, but not so easy to deserialize. Another technique Cimetrix had used for a few years was based on XML, which is well supported by all modern programming languages and an integral part of most internet activity. It is very easy to serialize and deserialize. And when formatted with carriage returns and indentation, it is quite easy to read for most humans (at least the ones who are software programmers or web page gurus).

Here is a subjective comparison between the notation alternatives using a scale of 1 to 5 where 5 is excellent and 1 is very poor or difficult.

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At Cimetrix we decided to leverage our experience with XML, SECS/GEM standards and the SEMI Standards organization and related communities to develop a notation that everyone in the industry could benefit from. The result was this new standard: SMN. It is comprised of two parts: an XML schema defined specifically for GEM/SECS messaging; and a specification document describing how to use it (although many details of the specification are embedded as annotations within the XML schema file itself). It looks like this:

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The schema is found on the SEMI website: http://dom.semi.org/web/wstandards.nsf/complementaryfiles

SMN brings the representation of SECS messages into the Internet era by defining an open, standard, XML-based notation for these messages. So what can you do with this? Here are some ideas:

  • Document individual SECS/GEM messages (the SEMI E172 SEDD file uses SMN for this). You can also document entire message scenarios.

  • Log individual SECS/GEM messages or scenarios in XML format. These can include only the messages, or might also include protocol messages (like the HSMS separate message).

  • Share message logs with others. If their software supports SMN, they can immediately make use of it. This should increase collaboration in the manufacturing community, particularly between equipment suppliers and their customers.

  • Embellish log files with comments and meaningful metadata, like data item names, variable names, collection event names, etc.

  • Analyze and extract information from log files offline for projects like Wait Time Waste, where you don’t need to process a live data stream.

  • Log messages in a raw binary format to save disk space, yet encapsulated in XML for convenience.

  • Many of the numerous XML tools in the software development community can now be used by SECS/GEM software developers. This opens up a world of opportunities.

  • Products like our CIMConnect and CIM300 can make use of SMN to make it easier to implement GEM and GEM300 interfaces on the equipment by using the SECSData element from SMN to pass data from the equipment supplier’s software into our product.

It is exciting to see the GEM standard evolve and embrace new technologies like XML to make integrating manufacturing equipment into the factories easier and easier.

For more information about these latest standards, and how you can incorporate them into your interface implementation, please contact us.

Topics: Industry Highlights, SECS/GEM, Semiconductor Industry

News You Can Use in SEMI Command and Control Standards

Posted by Brian Rubow and Alan Weber on May 24, 2016 1:00:00 PM

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As the SEMI GEM standard celebrates its 25th birthday, you may have thought its evolution had just about run its course — but you’d be wrong. Last year, the Information and Control Committee of SEMI Standards passed two new standards that enhance the usability of the entire SECS/GEM suite of standards for equipment suppliers and semiconductor manufacturers alike: E172 SEDD and E173 SMN.

Let us talk about the first of these, the E172 Specification for the SECS Equipment Data Dictionary (SEDD) and postpone E173 Specification for XML SECS-II Message Notation (SMN) discussion for another blog. SEDD standardizes the approach for documenting an equipment’s GEM interface in a way that is both human- and computer-readable. All factories in every industry that use GEM require their equipment suppliers to provide GEM interface documentation in some electronic form for each type of equipment. This is because the GEM interface on every equipment type is unique, supporting unique features and publishing a unique set of data. Of course, the GEM standard itself requires documentation and what has to be in the documentation but does not specify how this is to be accomplished. Until now there has been no common approach or format. This has always left the equipment suppliers to come up with their own format. At best this might be in a multiple-tabbed Excel spreadsheet or a PDF file; and at worst a text document that might or might not have been accurate or even complete. And every equipment supplier completes the documentation in a different structure and style so that no two GEM documents look the same. In summary, everyone is trying to complete this GEM and factory requirement by providing documentation, but in the end what factories are receiving has to be consumed and digested differently based on the equipment supplier, and sometimes even based on the specific equipment type from the same equipment supplier. It is a lot of work for the factory just to understand exactly what is in each GEM interface.

SEDD was created to solve this problem by defining a standard XML schema for documenting a GEM interface. Equipment suppliers create an XML file that complies with the SEDD XML schema to document the GEM interface and then deliver this XML file (called an SEDD file) to the factory.

Why XML? Because XML is the perfect technology for organizing data into a uniform structure that is well supported by modern programming languages. This means that equipment suppliers can use a software program to generate the SEDD file. It also means that factories can write software to read and view the SEDD file. Moreover, they can create intelligent host applications that automatically configure themselves and adapt to a specific GEM interface.

So what’s in an SEDD file? Below is a visual representation of the SEDD file schema, identifying the major elements of the SEDD file.

172Picture1.pngSo essentially the SEDD file includes a list of the data available for collection by a host, some general information about the equipment (in the header), and the format of the data variables, status variables and equipment constants. As an example of what details are included, here are the details for collection events.

As an example, for a collection event, the SEDD file includes a list of all collection events available, and the ID, name, description, related SEMI standard, and the list of related data variables and other variables for that collection event. This is everything you need to use a collection event.

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So far this is a summary of what is available today in a SEDD file. Cimetrix is leading the GEM300 task to extend the SEDD file to include additional information. This work is in SEMI ballot 5872 that proposes to extend the SEDD file to also include:

  • A list of supported SECS-II messages and the acceptable format for each message (using E172 SMN)

  • A list of support remote commands and available parameters for each remote command

  • A list compliance tables for supported SEMI standards

  • The list of predefined event reports

This is all work that was postponed from the original SEDD standard development. Hopefully ballot 5872 will pass and make SEDD files even more useful. With this additional information an SEDD file would empower GEM host software to configure itself to fully communicate with a GEM interface and make all of the features in the GEM interface available.

This is one example of how GEM technology just keeps getting better. It is not surprising that GEM is getting used in more and more industries.

For more information about this latest standard, and how you can incorporate it into your interface implementation, please contact us.

Topics: Industry Highlights, SECS/GEM, Semiconductor Industry

Realizing Industry 4.0 with SEMI Standards: Right Here and Now

Posted by Alan Weber: Vice President, New Product Innovations on May 6, 2016 1:00:00 PM

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Since the concept was first articulated in 2011 by a German government-supported program promoting deeper integration of manufacturing software and hardware across the production value chain, the term “Industry 4.0” has gained recognition and momentum as the rallying cry for the 4th industrial revolution (see left Image by Christoph Roser at AllAboutLean.com). Wikipedia  summarizes it like this: “Industry 4.0 facilitates the vision and execution of a ‘Smart Factory.’ Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world, and make decentralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real-time…” 

This definition may lead you to ask “What aspects of Industry 4.0 are truly revolutionary, and what technologies and tools are available today that would enable me to start building “Smart[er] Factories?” In this blog, I offer some potential answers to these questions that put the vision of Industry 4.0 within reach for automation practitioners familiar with the latest generation of SEMI Standards.  

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Semiconductor manufacturers have been collecting and using data from the equipment in their factories for decades. Throughout this period, device sizes and process windows have shrunk continuously according to Moore’s Law, and the SEMI Standards have evolved by necessity to support the insatiable demand for data exhibited by the process analysis and control applications that keep a modern fab running profitably (see left). The newest of these standards, the Equipment Data Acquisition suite (EDA, also known as “Interface A”), provides the power and flexibility to support a wide range of critical manufacturing applications and human users with ever-changing requirements; moreover, these standards can be deployed in a variety of system architectures without disturbing the “command and control” capabilities of existing factory systems.

“What does all this have to do with Industry 4.0?” To understand this, let’s look at the foundation of a “Smart Factory,” the collection of the many thousands of devices that might need to communicate over the so-called “Internet of Things.” 

We already see evidence that the availability of low-cost, low-power, networkable computing hardware will likely result in an explosion of “smart sensors” and other intelligent devices on the factory floor. However, as social scientists have observed over the millennia, groups of smart individuals don’t necessarily exhibit smart behavior in the aggregate, so what additional attributes must these devices possess to be good citizens of a collaborative, Industry 4.0 environment? How will these devices communicate effectively with one another? And what oversight will be required to ensure this communication achieves the ultimate manufacturing objectives?

As a starting point, I propose that each device, or manufacturing “thing,” at a minimum should be discoverable, autonomous, model-based, self-aware, communicative, and well-behaved. Depending on the role the device must play, it might also be self-monitoring, capable of defending itself (secure), and a consumer of data from other devices/systems as well as a provider. So defined, these devices would need a minimum of external monitoring and supervision (read “management overhead”) to perform their basic functions, but would rely on higher-level systems to provide specific objectives, instructions, and constraints (read “configuration, recipes, and limits”) for their operation in a given context and timeframe.

I realize that’s a lot to absorb at once, but now imagine that each of these devices could implement a subset of the services called for in the EDA standards, especially those defined in E120/E125/E164 (equipment modeling and standard metadata modeling), E132 (session management), and E134 (data collection management). Consider the collaboration among independent devices and systems this would enable…and ask yourself, how much closer to the vision of Industry 4.0 can you possibly get?

I hope the ideas above were useful…or at least thought-provoking. We’ll be developing this theme further in the coming months, but I wanted to use this blog as a conversation starter. We’d love to hear your feedback, so give us a call, or feel free to reach out to us.

Topics: Industry Highlights, Semiconductor Industry, EDA/Interface A, Smart Manufacturing/Industry 4.0

SEMICON China 2016 was the Largest Semiconductor Trade Show of the Last Five Years

SEMICON China SEMICON China

SEMICON China

SEMICON China

On March 15-17 in Shanghai, SEMI hosted its annual SEMICON China and PFD China, which was the world’s largest semiconductor trade show of the past five years. With an increase of 20% over last year, the show had more than 2,600 booths from companies based all over the world. Many theme pavilions at the exposition demonstrated the strength of the industry. In addition, the series of concurrent conferences and programs brought the global industry knowledge sharing to exhibitors and attendees alike.

Starting Tuesday morning, the Grand Opening Keynote was delivered by world-class industry leaders including Dr. Zhou Zixue—the Chairman of SMIC, Ding Wenwu—the President of China National IC Fund, along with the CEOs from TSMC, Applied Materials, Amkor Technology, TEL, STATS ChipPAC, and Lam Research. The presentation explored global business and technology trends, market opportunities, and shared the panel’s ideas supporting the development of China’s semiconductor industry.

The rapid rise of China’s semiconductor industry has been driven mainly by an increasing market and investments. Chinese companies and funds have been active in the recent cross-border merger and acquisition deals. On Wednesday at the “Tech Investment Forum – China 2016,” leaders of China’s IC Investment Fund and leading global investment institutions discussed investment hot-topics within the Chinese semiconductor industry.

Also on Wednesday, SEMICON hosted a “Build China IC Manufacturing Ecosystem” forum that discussed establishing a full integrated circuit (IC) manufacturing supply-chain and building manufacturing core competencies that are vital for China’s semiconductor industry. The forum included speakers from China and leading global companies from the IC design, manufacturing, equipment, and materials fields. A wide range of topics was  covered including innovation and cooperation in leading-edge frontend processes, advanced packaging technologies, eight-inch production line, and more.

Other concurrent technology sessions included “China Memory Strategic Forum,” “Technology Shape the Future – Senor Hub Solution for Wearable and IoT,” “LED China Conference 2016,” “Power Semiconductor Forum 2016,” “SEMI-JEDEC Mobile and IoT Technology Forum,” and “China Display Conference/ASID 2016.” These sessions illustrate how the Chinese semiconductor market is interested in exploring industrial developments, share its visions for the future, and to work cohesively to grow the industry within China.

This was the first year Cimetrix exhibited at SEMICON China. We were able to make some valuable connections, visit with existing customers, and establish that Chinese companies have a definite interest in our product lines as well as how we can help them find greater success. We featured our complete SECS/GEM and EDA product lines with in-booth demonstrations and presentations.

We have already made plans to attend next year’s show to further explore how we can fit into the expanding Chinese market. We are hopeful that China will open new possibilities for the continued growth of Cimetrix.

Topics: Semiconductor Industry, Doing Business with Cimetrix, Events

Equipment Data-Driven Continuous Improvement for 200mm Fabs

Posted by Alan Weber: Vice President, New Product Innovations on Feb 23, 2016 1:03:00 PM

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The focus of the most recent SYSTEMA Expert Day, held during a snowy week in Dresden in late January 2016 in conjunction with the 13th annual innovationsforum, was “200mm Fab Enhancement” and featured a number of presentations from Systema GmbH customers and partner companies.

By way of background, there are a number of reasons for the emphasis on 200mm fab enhancement, most notably that many of these factories are enjoying a renaissance of business to meet the growing demands for IoT (Internet of Things) devices. Moreover, since the drivers for this market segment include cost, variety, and volume, the automation and operations people in these factories are faced with a new combination of challenges not seen in earlier markets.

Cimetrix’ contribution to the event was a presentation titled “Equipment Data-Driven Continuous Improvement for 200mm Fabs,” which outlined a model-based, ROI-driven approach for adding equipment data collection capabilities to existing factories. Our basic premise is that such an approach helps meet some of the automation challenges in an incremental, cost-effective way without requiring major redesign of the factory or equipment control systems.

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Since the term “model” is used in many different contexts, we first clarified what this term means in the context of SEMI equipment communications standards, and how this evolved over the past three decades. This was accomplished using a natural language analogy, which is shown in the figure below. Note that the culmination of this process to date is the EDA (Equipment Data Acquisition) metadata model called for in the latest generation of standards, which is very prescriptive in terms of structure, content, and naming conventions for the elements of a semiconductor manufacturing equipment. And even thought the specifics of this model were designed with 300mm wafer fab equipment in mind, the principles well apply to all substrate sizes, and even to the types of material, processes, and equipment found in back end assembly and test factories.

After establishing the value of explicit models for representing equipment, sensors, and other key items in a manufacturing environment, we next introduced concept of an ROI-driven strategy for evaluating the relative benefit of various data collection projects. This strategy first identifies and ranks the key manufacturing objectives that must be addressed, then poses the questions that must be answered to meet those objectives. It then identifies the data sources for the information required to answer those questions, and the data collection techniques (including software) applicable to those sources. Finally, since the original objectives can change with time and additional knowledge, they should be re-examined periodically, giving the strategy an iterative aspect as well.

In order provide specific examples for the uses of equipment data in a continuous improvement program, the presentation listed a number of application use cases that have been successfully deployed in 200mm facilities. These included (in general increasing order of complexity) substrate tracking, process execution tracking, product time measurement (aka wait time waste analysis), external sensor integration, component fingerprinting, and product traceability.

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A couple of these were then explained in more detail, showing how a basic tracking application could start by using a small subset of the equipment data, and then evolve over time to provide more advanced functions (and benefit!) as more detailed information was made available.

For those who want to understand this process in more depth, you are welcome to download the entire presentation using the link below, or call us to discuss how we can apply these ideas to your company!


“Equipment Data-Driven Continuous Improvement for 200mm Fabs"

Watch the Video

Topics: Semiconductor Industry, EDA/Interface A, Data Collection/Management

Software Interfaces and API Method Signatures Should Remain Consistent During a Product's Lifecycle

Posted by Derek Lindsey: Product Manager on Jan 28, 2016 1:07:00 PM

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I recently read The Martian by Andy Weir. Since this information comes out on the first page of the book, I don’t think I’m spoiling too much to say that it is the story of an astronaut, Mark Watney, who is lost in a space storm on a mission to Mars. He is presumed dead by his crewmates and abandoned on the planet. Of course he is not dead and he has to use training, skill, ingenuity, and luck to survive long enough to be rescued. Several times throughout the adventure, he has to connect life supporting utilities, tanks, airlocks, and vehicles together using the connecting valves supplied on each component. Watney says, “I’ve said this many times before, but: Hurray for standardized valve systems!” This is obviously a work of fiction, but what would have happened if he had tried to attach a holding tank to the ascent vehicle but the valves had changed between versions?

Software customers should be able to have the same expectation as Mark Watney that the valves don’t change during the mission. In the case of software, we aren’t talking about physical valves. Rather we are talking about software interfaces and API method signatures. In a real sense, the consistency of these software signatures are as mission critical as the standardized valve connections were for the astronaut in The Martian. Changing the method signatures, at the very least, requires that the users of the software have to rebuild their applications. Often times such changes require software users to have to requalify their entire tool. This places undue burden on the users of the software. Software users should be able to reasonably expect that the interfaces and API remain constant through the life of the mission (i.e. within the version of the software including minor releases and patches). A side note on this topic: If Cimetrix product management determines that a piece of software has a bug or does not conform to the SEMI standards on which our products are based, changes will be made to correct the problem. Similarly, if NASA determined that one of their connectors did not conform to the spec, they would immediately resolve the issue for the item that was out of spec.

The Cimetrix release versioning process (see our January 14, 2016 blog) allows Cimetrix personnel and Cimetrix software users to be aware of what backward compatibility guarantees are made for a specific version of Cimetrix software.

We would like our software users to be able to say, “Hurray for compatible software versions!”

Topics: Semiconductor Industry, Doing Business with Cimetrix, Cimetrix Products

Cimetrix Partners with Linkgenesis That Will Serve as the Distributor for Its CIMPortal Plus Products in Korea

Posted by Erick Ko: Linkgenesis on Jan 19, 2016 1:12:00 PM

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Last November Linkgenesis Corporation, based in Seoul, became the official Korean distributor of Cimetrix’ EDA/Interface A solution CIMPortal Plus.

This partnership was a perfect fit as we at Linkgenesis have been providing software products and development services in manufacturing information automation systems and the software testing area since 2001. In November of 2014, Linkgenesis merged with IT-Innovation, a communication software solution provider for semiconductor and LCD factories.

In cooperation with Cimetrix, Linkgenesis will be delivering the globally-proven EDA solution to Korean customers, and will also provide enhanced XGem/XGem300 GEM Driver harnessed with CIMPortal Plus so that customers using XGem/XGem300 can easily adapt their equipment to provide EDA capabilities. XGem/XGem300 GEM Driver is a Linkgenesis’ software driver supporting SEMI 300mm standards and is based on XCom SECS Driver that has been proven reliable for more than 200 customers. Linkgenesis’ software testing tool, MAT (Machine Auto Tester), has also been largely used by Korean mobile companies and automotive companies such as Samsung Electronics, LG Electronics, and Hyundai automotive groups.

SEMI EDA/Interface A standards were originally established in 2006 with Freeze-I and then updated with Freeze-II in 2010, but Korean chipmakers have not actively adopted Interface A standards in their production processes. However this is beginning to change as Samsung Electronics released its plan to introduce Interface A on its pilot line last August and SK hynix also started discussion of introducing Interface A.

In addition, Samsung Electronics plans to build a new line at its Pyeongtaek, South Korea and SK hynix’ plants to increase its production line at Cheongju and Yicheon, South Korea. However, according to Gartner’s forecast, semiconductor equipment spending by Samsung Electronics and SK hynix are going to slightly decrease this year. Samsung Electronics will invest $11.4 billion, which is a 13.5% decrease from 2014, and SK hynix will invest $4.8 billion this year, which is a 10.6% decrease from 2014.

We believe this new partnership between Linkgenesis and Cimetrix will provide a great deal of advantages to Korean customers in this emerging market, and will promote the increased interest in EDA/Interface A technology for chip manufactures.

Korea_2016_Banner_416x61.gifLinkgenesis will be exhibiting at SEMICON Korea 2016, which will be held in Seoul on January 27-29. Please stop by our booth in Hall C #1739 to see our product line as well as Cimetrix’ CIMPortal Plus, and discover how our software brings the latest innovations to the semiconductor manufacturing industry.

Topics: Semiconductor Industry, EDA/Interface A, Partners, Doing Business with Cimetrix, Cimetrix Products

Software Versioning Help Sets Users' Expectations

Posted by David Francis: Director of Product Management on Jan 14, 2016 1:02:00 PM

There are times in life when a surprise is a good thing. Like when you get a box of chocolates. We all remember the line from the movie Forrest Gump, “Life is like a box of chocolates, you never know what you’re gonna get.” When you install a new version of software however, surprises aren’t as enjoyable. With a new software release, customers need to be able to assess the effort and impact the new release will have on their current systems and procedures. Then they can evaluate whether the new features and functionality will be worth the effort to deploy the new software release. One way software companies can help communicate the impact a new software release may have on customers is by using a clearly defined release versioning procedure.

Change is good and software products that grow and mature over time, adding new features and eliminating unwanted behaviors, can remain healthy and viable over a long period of time. However, consistency and predictability are also important characteristics of good software products. So how do software companies balance these two seemingly competitive objectives?

Itunes.pngsemantic-versioning.pngMany software companies can do this is through the way they use software versioning. It is common for software companies to use a major.minor.patch.build software versioning scheme, for example iTunes 12.3.1. This type of software versioning allows the software company to communicate the scale and impact of the changes in the release to their customers. A change in the “major” release number indicates to customers that there are some significant changes in this release that may impact the way it interacts with the product. The customer will likely need to make code changes or procedural changes when upgrading to such a release. A change to the “minor” release number denotes that there are multiple changes in the release, but customers should see only minor, or possibly no changes, in the way they use the product. A minor release may include some small new features that could potentially require code changes if the customers wants/needs those new features. A “patch” release is generally used to address a specific issue and should not change the customer experience with the software. The build number is most often provided to help the software company when researching a question or customer reported defect.

Software versioning provides a way to set expectations with the customer about what is in the release and how it might affect the way they use the product. It can help take the surprise out of the process of installing a new software release. Life may be “like a box of chocolates,” but software releases shouldn’t be.

If you would like to learn more about the semiconductor industry, software best practices, and other topics related to new technologies, please subscribe to our email updates using the form in the upper right corner of this page.

Topics: Semiconductor Industry, EDA/Interface A, Doing Business with Cimetrix, Cimetrix Products

Rorze Corporation Celebrates 30 Years with Flair

Rorze1png.pngRorze2.pngRorze3.pngRorze4.pngLast fall I was invited to attend the 30th Anniversary Celebration for Rorze Corporation and their partner company ADTEC Plasma Technology. The event took place at the Fukuyama New Castle Hotel in Fukuyama, Japan on December 14, 2015. As you may know, Rorze is an official distributor of Cimetrix products in Japan so we have a long-standing relationship including Rorze handling Cimetrix products as well as being an investor in Cimetrix Incorporated itself.

Rorze was established in 1985 by Fumio Sakiya with an ambitious slogan and aim: Never follow the competition. We shall only develop and market products which we believe are superior to those already on the market, that is, products that will become global news. Originally starting with only six engineers, Rorze is now a global player in the semiconductor industry specializing in automation systems for transferring semiconductor wafers and liquid crystal displays.

On December 14 we gathered in Fukuyama for the celebration. With 28 tables and 250 guests attending, we celebrated with speeches from Rorze and ADTEC management and local dignitaries, and enjoyed a first-class Japanese meal complete with sake. There was plenty of time to meet new people, congratulate the two 30-year-old company members, and relax in traditional Japanese fashion.

The following day Rorze hosted a visit to the Itsukushima Shrine in Miyajima that is a UNESCO World Heritage Site. This is a Shinto shrine famous for its floating Torii gate and wild deer. After taking a short ferry ride to the island, we enjoyed a day of sightseeing and a traditional Japanese lunch near the shrine. The original shrine was built in the 6th century, so there is plenty of history surrounding this world-class cultural site.

It was an honor to attend a proud moment in the history for our partner Rorze, and we wish them many years of success as the leadership transitions from Sakiya san to our good friend Fujishiro san. Cheers and congratulations.

Topics: Semiconductor Industry, Doing Business with Cimetrix

To the Cimetrix Community of Clients, Partners, Shareholders, and Employees

I believe that 2015 will be viewed as a significant turning point in the history of Cimetrix. When I accepted the role and responsibility of president and CEO of Cimetrix in 2001, Cimetrix was a publicly traded company. In addition to the normal challenges of running a business, Cimetrix was required to comply with all SEC reporting obligations. When the Sarbanes-Oxley Act (SOX) imposed additional financial reporting obligations with increased internal controls, Cimetrix was required to spend even more time and money. I’ve always believed if you are going to do something, you should do it to the best of your abilities. Consequently, Cimetrix dutifully fulfilled its quarterly SEC reporting and SOX compliance obligations. Every year independent SOX auditors performed the required annual audit and their reports always concluded that there were no material weaknesses in our financial reporting or internal controls.

IMG_5110-1For a small company like Cimetrix, we can be proud of these accomplishments. We are very thankful to have had Jodi Juretich as CFO for these past eight years. Jodi managed the company’s financials and was responsible for preparing all of our SEC filings. For those of you not aware, the SOX laws include significant personal liability for the CEO and CFO in the event of any material errors or misstatements. As a result, while we had no idea how many people might read our SEC filings (other than the fact that we know our competitors all meticulously read each and every one), each filing had to be reviewed not only internally, but also by SOX compliance consultants, auditors, lawyers, and the board of directors. Significant management time and precious time with our board of directors was spent reviewing and approving SEC filings. As I hope everyone can appreciate, this represented a huge burden for a small company like Cimetrix. In addition to the hard costs that we estimated at approximately $250,000 per year, it is difficult to overstate the amount of energy in terms of management time and attention that went into reviewing and approving not only the financial statements, but the mandatory narratives for these quarterly SEC filings.

Since the introduction of SOX, many public companies have made the decision to go private, and we received a lot of advice over the years that Cimetrix would likewise be much better off as a private company. As you can imagine, however, there are many factors that go into such a decision. We always considered what is best for our shareholders, clients, and employees. Accordingly we were careful and patient in waiting for the right opportunity. From our perspective, that opportunity arose last year, which allowed us to go private without the need for external capital or any dilution to our shareholders. We believe it was an excellent use of the company’s cash to remove the ongoing “tax” of being a public company, which we accomplished in late 2014.

As I reflect back on our first year as a private company, there were a number of highlights in 2015.

  • The change in management focus has been remarkable. From the board-level to the daily and weekly operational meetings, the focus is now centered on clients, products, and strategy. How can we better serve our clients? How can we operate more effectively and efficiently?

  • Maybe the timing was coincidental, but Cimetrix also completed a major corporate organizational restructuring in early 2015. We involved ten of our key employees in an off-site workshop to map out the type of company we wanted to be going forward. Using an experienced coach and facilitator, we spent time reviewing and reaching agreement on “core” items including our shared vision and values, identification of our core customers, what is our promise to our clients, what is our long term “big hairy audacious goal,” and, equally important, what are the things we should stop doing. We identified the key functions of the company and the people with the best skills and experience to lead those functional areas. The result was a much flatter organization with opportunities for some of our most experienced engineers to assume more management responsibility. It was a very energizing and invigorating process that aligned the entire company on the path forward.

  • We also made the commitment to go through our product lines and address all outstanding issues. Over time, the number of product issues that were not urgent or high priority had been slowly building. We made the decision that in order to position the company for faster long-term growth, as well as to reflect our values and brand promise to our clients, we should refresh our current product lines and drive the number of outstanding issues down to zero. This strategy will greatly reduce the long-term costs of maintaining our product lines going forward, as well as further improve the quality and performance of our industry leading product lines. It was wonderful to see the cooperation of our different departments work through the full database of all reported issues and reach resolution. During 2015 we completed new Service Releases for our GEM and GEM300 product lines, which included SECSConnect, CIMConnect, and CIM300, that resolved all reported issues and significantly increased the test coverage for each product. Our Product Management group coordinated the effort to resolve all issues with appropriate stakeholders. Once the backlog of work was clearly identified, our Software Engineering group accepted the challenge and took great pride in doing the work they had wanted to do, but never had had the time, to improve our products and significantly increase the level of automated tests.

  • As part of the strategy to improve our customers’ experience using Cimetrix products, we expanded our customer support group into a “Client Training & Support” group with an enhanced staff of senior engineers. Their responsibility is to demonstrate Cimetrix products during the sales cycle, train new clients, and serve as proactive technical liaisons as our clients progress through the critical development cycle. Initial feedback from clients has been outstanding. In particular, I had one new client tell me that in his experience, it is natural for the level of support to fall off a bit after they place an order for a product. However, in the case of Cimetrix, we provided a very high level of attention and support during the sales cycle, and once they placed the PO, they were pleasantly surprised to see that the level of attention and support from Cimetrix actually increased. While they have had problems with other suppliers “over-promising and under-delivering,” their experience with Cimetrix has been overwhelmingly positive, as our software does what we say it will do, and we provide very responsive and passionate support with senior engineering staff.

  • We have been at the forefront of the new industry standards for “Interface A,” or its alias “Equipment Data Acquisition (EDA),” for over ten years. When these standards were initially conceived and driven by representatives from Intel and AMD, we thought these new standards made logical sense and would ultimately be adopted by the industry, but we had no idea how long it might take for these standards to be adopted. A large semiconductor foundry in the industry has become the leading user of EDA. Our strategy has been to work closely with this company and the large number of equipment makers that selected Cimetrix’ CIMPortal Plus product to meet the company’s requirements for EDA. While Cimetrix did this facilitation work on our own dime, we believe this investment has paid off handsomely as we’ve helped many of our clients achieve good success in this company's factories, and, as a result, we now have very appreciative clients all over the world that serve as solid references for Cimetrix and our EDA products. In parallel, our Sales and Account Management team has been evangelizing the benefits of EDA to other semiconductor manufacturers. The list of companies now implementing some aspect of EDA has grown to include industry leaders such as Globalfoundaries, Infineon, Inotera, Samsung, Toshiba, and TSMC. The biggest news was Samsung announcing plans for an EDA pilot project in 2016. In a recent briefing to local Korea-based equipment makers, it was reported that some large equipment makers such as Applied Materials and Tokyo Electron developed their EDA solutions in-house, but “most of the rest use Cimetrix products.” To respond to these opportunities, the Cimetrix Sales and Account Management group worked quickly to establish relationships, distribution channels, and local sales and support for Cimetrix products in Taiwan and Korea. While Cimetrix has great partners in Japan, we have learned that each country is different and customers prefer to receive support from companies within their own country, in their native language. Dave Faulkner and Alan Weber logged many miles this year explaining the best practices for EDA and establishing these very important relationships for Cimetrix, which we believe position Cimetrix to sell and support our products more effectively within these markets. In 2016 Cimetrix is scheduled to exhibit in industry trade shows in Korea, China, Taiwan, and Japan that we believe will lead to new clients in these growing markets.

  • Lastly, even though we are no longer required to publish SEC filings, we maintain the same high level of internal controls and fiscal discipline. The only difference is we don’t go through the seemingly endless quarterly reviews and narratives. The semiconductor capital equipment market is widely reported to have declined during 2015 and is expected to be flat for 2016. Cimetrix has noticed similar trends among our client base. During 2014, Cimetrix was profitable every quarter with total revenue in the $6 to 7M range with over $500,000 of adjusted EBITDA. For 2015, we continue to operate profitably on a quarterly basis and expect to have similar full-year financial results as 2014. We expect to end the year with close to $2M of cash and, of course, no debt.

Going Forward

Going forward, industry analysts predict a decrease in semiconductor capital equipment spending for 2016. Cimetrix has a number of irons in the fire that we hope will counteract the overall industry trends and enable us to grow next year. We have some major clients in adjacent markets that have the potential to contribute increased revenue. We also hope to get some traction from our efforts to add new clients and grow revenue in the Taiwanese, Korean, and Chinese markets. However, as we have learned over the years, it takes time to develop such new markets, so we are not planning to see large increases in revenue in the immediate future.

Japan show

By working closely with our clients in semiconductor and adjacent markets, we have identified a number of opportunities for new products. We plan to continue to invest in our current product lines for GEM, EDA, and Equipment Control, as well as look for opportunities to develop new products in conjunction with industry leaders.

If I sound excited about the future for Cimetrix, it is because I am. We have a great team here at Cimetrix and we added a number of solid new team members during 2015. While we have made great progress, we are never satisfied, and will strive for continual improvement as we pursue closer relationships with our clients, improvements in our efficiency and effectiveness, and above all, building great products that help our clients be successful and perform well for those they care about.

I want to thank our clients for the faith and confidence they have placed in Cimetrix’ products and team members, our employees for their passion, dedication and commitment, and our shareholders for their patience that we believe will ultimately be rewarded.

Topics: Semiconductor Industry, EDA/Interface A, Customer Support, Doing Business with Cimetrix, Cimetrix Company Culture, Investor News