Sputtering Targets and Sputtered Films: Technology and Markets

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1 A BCC Research Semiconductor Manufacturing Report and Sputtered Films: SMC037E Use this report to: Understand the most important advances in sputtering technology and target fabrication Identify the current market trend with an objective to analyze the prospects for future growth Determine trends in related U.S. and worldwide patents Identify important technology and market trends within each market segment Learn about the latest methods for fabricating sputtering targets. T: , F:

2 Introduction The global market for sputtering targets is estimated to reach $3.3 billion in and further to reach $5.9 billion by 2016 with a CAGR of 12.3% over the five year period. Sputtering targets are critical components of the sputtering process, with many of the properties of sputtered films dependent on a target s characteristics. They are fabricated in a variety of shapes, sizes, and materials to obtain thin films used for manufacturing a broad range of advanced devices. Sputtering is a type of physical vapor deposition (PVD). Over the years, sputtering has become the most common PVD method. In fact, the term PVD is often used to indicate the sputtering process. BCC has identified six industrial sectors in which sputtering finds current and potential applications: Electronics Mechanical/chemical Energy Optical coatings Life sciences Nanotechnology Sputtering is used in the medical, dental, and biological industries for deposition of biocompatible coatings on artificial hips, pacemakers, stents, surgical instruments, MRI-compatible implants, dental implants, and dental instruments. Sputtering allows for modification of the surface properties of these devices without affecting the characteristics of the underlying materials. Sputtering allows fabrication of various types of films (metals, alloys, oxides, and many compounds) that find application in the fabrication process of numerous devices within several industrial sectors. These applications include electronics, mechanical/chemical, energy, optical coatings, life science, and food packaging. Quality of sputtered films not only depends on process and equipment parameters, such as vacuum conditions, temperature, or equipment design, but also on the configuration and characteristics of the targets and the critical raw materials used for sputtering. BCC Research report provides a current assessment of the sputtering target industry from both a technological and a market point of view. This report also outlines the future trends and key developments. It also provides technical insights into sputtering target manufacturing by supplying a review of target types, their application and production methods. This report is useful to all companies that manufacture, sell, and distribute sputtering targets. The study is mainly directed toward executives, directors, operations managers, sales and marketing managers, and strategic planners working within industries like microelectronics, advanced displays, data storage media, mechanical/chemical, energy supply/management, optical coatings, and the general coating sector. The information for this report has been collected through both primary and secondary research methodologies. Global market data were obtained by thoroughly analyzing Security and Exchange Commission (SEC) filings, Internet websites, annual reports, industry directories, industry magazines and catalogs, government sources, and other public sources. Primary sources include interviews with company executives, managers, engineers, and other technical personnel representing manufacturers, developers, and users of sputtering targets and related materials and process equipment.

3 BCC projects that worldwide production of sputtered films will increase at a compound annual growth rate (CAGR) of 8.6% from to 2016, leading to the production in 2016 of approximately 1.8 billion square meters of films. $ Millions 6,000 4,000 2,000 0 SUMMARY FIGURE GLOBAL MARKET FOR SPUTTERED FILMS AND SPUTTERING TARGETS, AND 2016 ($ MILLIONS) Source: BCC Research 2016 Scope of Study The scope of this report is broad and includes: An updated review of sputtering technology and a description of various types of sputtering targets, their properties and fabrication methods, and identifies current and potential applications for these products Analysis of the current market status of sputtering targets, defines trends, and presents forecasts of growth over the next 5 years An overview of the latest technological developments related to sputtering technology and a detailed description of current and emerging applications of sputtering Detailed list of the leading manufacturers of sputtering targets and sputtered films together with a description of their products A review of global research and development activities and an outline of the most critical factors contributing to industry competitiveness. Table of Contents Chapter One: Introduction Study Goals and Objectives Reasons for Doing This Study Intended Audience Scope of Report Methodology and Information Sources Related BCC Research Studies Analyst Credentials BCC Online Services Disclaimer Chapter Two: Executive Summary Executive Summary Summary Table Global Market for Sputtered Films and, Through 2016 Summary Figure Global Market for Sputtered Films and, and Chapter Three: Overview Introduction Table 1 Thin Film Technologies, Figure 1 Thin Film Methods (Equipment, Materials, Services): Global Market Share By Group of Technologies, 2010 (%) Milestones in The History of The Sputtering Process and Recent Events Table 2 Sputtering Technological Milestones Figure 2 Sputtering Worldwide Patent Applications and Patents Latest Developments in The Sputtering Process Table 3 Sputtering Technologies, Low-temperature High-power Impulse Magnetron Sputtering High-power Impulse Ionized Pvd Reactive High-power Impulse Magnetron Sputtering Capacitive-coupled Magnetic Neutral Loop Plasma Sputtering System Microwave-assisted Rotatable Pvd Current and Emerging Applications for Sputtering Electronics Microelectronics Sensors and Instrumentation Table 4 Sputtering Applications in Microelectronics, Data Storage Devices

4 In terms of unit volume, the worldwide market for sputtering targets is expected to reach approximately 1.7 million units in 2016, corresponding to an 8.4% CAGR. Table of Contents, continued Table 5 Sputtering Applications for Data Storage Devices, Advanced Displays Table 6 Sputtering Applications for Advanced Displays, Mechanical/chemical Table 7 Sputtering Applications in The Mechanical/ chemical Sector, Energy Table 8 Sputtering Applications in The Energy Sector, Optical Coatings Table 9 Sputtering Applications in The Optical Coatings Sector, Life Sciences Table 10 Sputtering Applications in The Life Sciences Sector, Nanotechnology Table 11 Sputtering Applications in Nanotechnology, Other Sectors Table 12 Sputtering Applications in Other Sectors, Chapter Four: and Sputtered Films Introduction Sputtering Target Types Target Shapes Table 13 Target Configurations, Table 14 Typical Target Shapes, (%) Target Sizes Latest Technological Developments, 2008 To Present Rotatable Target with Diagonal Grooves Round Target with Expansion Grooves Target Materials and Applications Table 15 Target Materials and Applications, Latest Technological Developments, 2008 To Present Copper and Copper Alloy Targets Target Materials for Transparent Conductive Films Zinc-based Targets for Semiconducting Layers Targets Containing Carbon Nanotubes Production Methods Table 16 : Traditional Process Technologies, Latest Technological Developments, 2008 To Present Diffusion Bonding for Producing Large Targets High-density By Microwave Sintering Target with Nondendritic Microstructure Summary Low-cost Targets and High-quality Films Large Area Targets Conducting Films Chapter Five: Global Market and Sputtered Films Markets Analysis Outline Global Market Summary Total World Markets Table 17 Global Consumption of Sputtered Films and, Through 2016 Figure 3 Global Consumption of Sputtered Films and, and Table 18 Average Sputtering Target Weight and Price, Through 2016 Market Segmentation By Application Table 19 : Global Revenues By Application, Figure 4 : Global Revenues By Application, (%) Market Segmentation By Material Type Table 20 : Global Revenues By Material Type, Through 2016 ($millions) Figure 5 : Revenues By Material Type, Worldwide, (%) Market Segmentation By Region Table 21 :, Figure 6 :, (%) Electronics Microelectronics Table 22 Target Materials for Microelectronics, Microelectronics: Current Market Status Table 23 for Microelectronics: Global Market, Through Table 24 Silicon Wafer Consumption, Through Table 25 Sputtered Films and for Microelectronics: Key Assumptions for Market Table 26 Global Consumption of Sputtered Films and for Microelectronic Applications, Table 27 for Microelectronics: Global, ($ Millions/%) Figure 7 for Microelectronics: Market Share By Material Type, (%) Table 28 for Microelectronics:, Through Figure 8 for Microelectronics: Market By Region, (%) Semiconductor Industry Growth Table 29 Semiconductors:, Through 2016 ($ Billions) Sputtering Technology Microelectronics Projected Sputtering Target Market Table 30 Sputtered Films and for Microelectronics: Key Assumptions for 2016 Market Table 31 : Global Consumption of Sputtered Films and for Microelectronics, Through 2016 Figure 9 : Global Consumption of Sputtered Films and for Microelectronics, and Table 32 for Microelectronics: Global, Figure 10 for Microelectronics: Market Share By Material Type, 2016 (%) Table 33 for Microelectronics:, Through 2016 Figure 11 for Microelectronics: Market Share By Region, 2016 (%) Data Storage Devices

5 Table of Contents, continued Target Materials Table 34 Target Materials for Data Storage Device Fabrication, Data Storage Devices Current Market Status Table 35 for Data Storage Devices: Global Market, Through Hard Disks Table 36 Hard Disk Drives: Global Production By Type, Through (Million Units) Figure 12 Hard Disk Drives: Production Share By Type, (%) Table 37 Sputtered Films and for Hard Disks: Key Assumptions for Market Table 38 Global Consumption of Sputtered Films and for Hard Disks, Recording Heads Table 39 Sputtered Films and for Recording Heads: Key Assumptions for Market Table 40 Global Consumption of Sputtered Films and for Recording Heads, Optical Storage Media Table 41 Optical Storage Media: Global Production By Type, Through (Million Units) Table 42 Sputtered Films and for Optical Storage Media: Key Assumptions for Market Table 43 Global Consumption of Sputtered Films and for Optical Storage Media, Table 44 for Data Storage Devices: Global, ($ Millions/%) Figure 13 for Data Storage Devices: Market Share By Device Type, (%) Table 45 for Data Storage Devices: Global, Figure 14 for Data Storage Devices: Market Share By Material Type, (%) Table 46 for Data Storage Devices:, Through Figure 15 for Data Storage Devices: Market Share By Region, (%) Industry Trends Solid State Drives World Wide Web Downloading and Cloud Computing Hard Disk Drive Market Growth Table 47 Hard Disk Drives: Global Production By Type, Through 2016 (Million Units) Figure 16 Hard Disk Drives: Production Share By Type, 2016 (% Units) Optical Storage Media Market Growth Table 48 Optical Storage Media: Global Production By Type, Through 2016 (Million Units) Figure 17 Optical Storage Media: Production Share By Type, 2016 (% Units) Sputtering and Other Technological Trends Data Storage Devices Projected Sputtering Target Market Hard Disks Table 49 Sputtered Films and for Hard Disks: Key Assumptions for 2016 Market Table 50 Global Consumption of Sputtered Films and for Hard Disks, Through 2016 Recording Heads Table 51 Sputtered Films and for Recording Heads: Key Assumptions for 2016 Market Table 52 Global Consumption of Sputtered Films and for Recording Heads, Through 2016 Optical Storage Media Table 53 Sputtered Films and for Optical Storage Media: Key Assumptions for 2016 Market Table 54 : Global Consumption of Sputtered Films and for Optical Storage Media, Through 2016 Summary Table 55 : Global Consumption of Sputtered Films and for Data Storage Devices, Through 2016 Figure 18 Global Consumption of Sputtered Films and for Data Storage Devices, and Table 56 for Data Storage Devices: Global, Figure 19 for Data Storage Devices: Market Share By Device Type, 2016 (%) Table 57 for Data Storage Devices: Global, Table 58 for Data Storage Devices: Global, Figure 20 for Data Storage Devices: Market Share By Material Type, 2016 (%) Table 59 for Data Storage Devices: Global, Through Figure 21 for Data Storage Devices: Market Share By Region, 2016 (%) Advanced Displays Target Materials Table 60 Target Materials for Advanced Display Fabrication, Advanced Displays: Current Market Status Table 61 for Advanced Displays: Global Market, Through Table 62 Advanced Displays: Global Revenues By Type, Through ($ Billions) Table 63 Advanced Displays: Coated Area By Type, Through (Million M2) Figure 22 Advanced Displays: Coated Area Share By Type, (%) Table 64 Sputtered Films and for Displays: Key Assumptions for Market Table 65 Global Consumption of Sputtered Films and for Displays, Table 66 for Advanced Displays: Global, ($ Millions/%) Figure 23 for Advanced Displays: Market Share By Device Type, (%)

6 Table of Contents, continued Table 67 for Advanced Displays: Global, ($ Millions/%) Figure 24 for Advanced Displays: Market Share By Material Type, (%) Table 68 for Advanced Displays:, Through Figure 25 for Advanced Displays: Market Share By Region, (%) Display Industry Growth Table 69 Advanced Displays: Global Revenues By Type, Through 2016 ($ Billions) Table 70 Advanced Displays: Coated Area By Type, Through 2016 (Million M2) Figure 26 Advanced Displays: Coated Area Share By Type, 2016 (%) Other Technological Trends Advanced Displays Projected Sputtering Target Market Table 71 Sputtered Films and for Advanced Displays: Key Assumptions for 2016 Market Table 72 Global Consumption of Sputtered Films and for Advanced Displays, Through 2016 Figure 27 Global Consumption of Sputtered Films and for Advanced Displays, and Table 73 for Advanced Displays: Global, Through Figure 28 for Advanced Displays: Market Share By Device Type, 2016 (%) Table 74 for Advanced Displays: Global, Through Figure 29 for Advanced Displays: Market Share By Material Type, 2016 (%) Table 75 for Advanced Displays:, Through 2016 ($ Millions) Figure 30 for Advanced Displays: Market Share By Region, 2016 (%) Mechanical/chemical Table 76 Target Materials for The Mechanical/ chemical Sector, Mechanical/chemical Sector: Current Market Status Table 77 for The Mechanical/ chemical Sector: Global Market, Through ($ Millions) Table 78 Wear- and Corrosion-resistant Components: Global Revenues By Type, Through ($ Billions) Table 79 Wear- and Corrosion-resistant Components: Key Assumptions for Coated Area Table 80 Sputtered Films and for The Mechanical/chemical Sector: Key Assumptions for Market Table 81 Global Consumption of Sputtered Films and for The Mechanical/chemical Sector, Revenues By Coating Type Table 82 for The Mechanical/ chemical Sector: Global Revenues By Coating Type, ($ Millions/%) Figure 31 for The Mechanical/ chemical Sector: Market Share By Coating Type, (%) Table 83 for The Mechanical/ chemical Sector: Global, ($millions/%) Figure 32 for The Mechanical/ chemical Sector: Market Share By Material Type, (%) Table 84 for The Mechanical/ chemical Sector:, Through Figure 33 for The Mechanical/ chemical Sector: Market Share By Region, (%) Industry Growth Table 85 Applications Within The Mechanical/chemical Sector: Global Revenues, Through 2016 ($ Billions) Table 86 Catalysts and Photocatalysts: Global Revenues, Sputtering and Other Technological Trends Table 87 Wear- and Corrosion-resistant Components: Key Assumptions for 2016 Coated Area Mechanical/chemical Devices Projected Sputtering Target Market Table 88 Sputtered Films and for The Mechanical/chemical Sector: Key Assumptions for 2016 Market Table 89 Global Consumption of Sputtered Films and for The Mechanical/ chemical Sector, Through 2016 Figure 34 Global Consumption of Sputtered Films and for The Mechanical/chemical Sector, and 2016 Revenues By Coating Type Table 90 for The Mechanical/chemical Sector: Global Revenues By Coating Type, Figure 35 for The Mechanical/chemical Sector: Market Share By Coating Type, 2016 (%) Table 91 for The Mechanical/chemical Sector: Global Revenues By Material Type, Figure 36 for The Mechanical/chemical Sector: Market Share By Material Type, 2016 (%) Table 92 for The Mechanical/chemical Sector:, Figure 37 for The Mechanical/chemical Sector: Market Share By Region, 2016 (%) Energy Table 93 Target Materials for The Energy Sector, Energy Devices: Current Market Status Table 94 for The Energy Sector: Global Market, Through Table 95 Photovoltaic Modules: Global Production By Type, Through (Mw)

7 Table of Contents, continued Figure 38 Photovoltaic Modules: Production Share By Type, (%) Table 96 Sputtered Films and for The Energy Sector: Key Assumptions for Market Table 97 Global Consumption of Sputtered Films and for The Energy Sector, Table 98 for The Energy Sector: Global, ($ Millions/%) Figure 39 for The Energy Sector: Market Share By Device Type, (%) Table 99 for The Energy Sector: Global, Figure 40 for The Energy Sector: Market Share By Material Type, (%) Table 100 for The Energy Sector:, Through Figure 41 for The Energy Sector: Market Share By Region, (%) Industry Growth Photovoltaic Cells and Modules Table 101 Photovoltaic Modules: Global Production By Type, Through 2016 (Mw) Figure 42 Photovoltaic Modules: Production Share By Type, 2016 (%) Other Energy Devices Table 102 Fuel Cells, Lithium Batteries, High-temperature Superconductors, Thin Film Heaters: Global Revenues By Type, Through 2016 ($ Millions) Sputtering Technology and Other Technological Trends Energy Devices - Projected Sputtering Target Market Table 103 Sputtered Films and for The Energy Sector: Key Assumptions for 2016 Market Table 104 Global Consumption of Sputtered Films and for The Energy Sector, Through 2016 Figure 43 Global Consumption of Sputtered Films and for The Energy Sector, Table 105 for The Energy Sector: Global, Figure 44 for The Energy Sector: Market Share By Device Type, 2016 (%) Table 106 for The Energy Sector: Global, Figure 45 for The Energy Sector Market Share By Material Type, 2016 (%) Table 107 for The Energy Sector:, Through 2016 Figure 46 for The Energy Sector: Market Share By Region, 2016 (%) Optical Coatings Table 108 Target Materials for Optical Coatings, Optical Coatings: Current Market Status Table 109 for Optical Coatings: Global Market, Through Table 110 Optical Coatings: Global Sputtered Coated Area By Application, (Million M2/%) Table 111 Sputtered Films and for Optical Coatings: Key Assumptions for Market Table 112 Global Consumption of Sputtered Films and for Optical Coatings, Revenues By Application Table 113 for Optical Coatings: Global Revenues By Application, Figure 47 for Optical Coatings: Market Share By Application, (%) Table 114 for Optical Coatings: Global, (%) Figure 48 for Optical Coatings: Market Share By Material Type, (%) Table 115 for Optical Coatings:, Through Figure 49 for Optical Coatings: Market Share By Region, (%) Industry Growth Table 116 Applications of Optical Coatings: Global Revenues By Application, Through 2016 ($ Billions) Other Industry Trends Technological and Environmental Trends in The Construction Sector Technological Trends in Transportation Sputtering Technology and Other Technological Trends Table 117 Optical Coatings: Global Sputtered Coated Area By Application, Through 2016 (Million M2) Optical Coatings - Projected Sputtering Target Market Table 118 Sputtered Films and for Optical Coatings: Key Assumptions for 2016 Market Table 119 Global Consumption of Sputtered Films and for Optical Coatings, Through 2016 Figure 50 Global Consumption of Sputtered Films and for Optical Coatings, and Revenues By Application Table 120 for Optical Coatings: Global Revenues By Application, Through Figure 51 for Optical Coatings: Market Share By Application, (%) Table 121 for Optical Coatings: Global, Through Figure 52 for Optical Coatings: Market Share By Material Type, 2016 (%) Table 122 for Optical Coatings:, Through 2016 Figure 53 for Optical Coatings: Market Share By Region, 2016 (%) Other Sectors

8 Table of Contents, continued Table 123 Target Materials for The Other Sectors, Table 124 for Other Applications: Global Market, Through Table 125 Other Applications: Global Sputter Coated Area By Type, (Million M2 /%) Table 126 Sputtered Films and for Other Applications: Key Assumptions for Market Table 127 Global Consumption of Sputtered Films and for Other Applications, Revenues By Application Table 128 for Other Applications: Global Revenues By Application, ($ Millions/%) Table 129 for Other Applications: Global, ($ Millions/%) Figure 54 for Other Applications: Market Share By Material Type, (%) Table 130 for Other Applications:, Through Figure 55 for Other Application: Market Share By Region, (%) Industry Growth Table 131 Applications of Other Coatings: Global Revenues By Type, Sputtering Technology and Other Technological Trends Table 132 Other Applications: Global Sputter Coated Area By Type, Through 2016 (Million M2) Other Applications Projected Sputtering Target Market Table 133 Sputtered Films and for Other Applications: Key Assumptions for 2016 Market Table 134 Global Consumption of Sputtered Films and for Other Applications, Through 2016 Figure 56 Global Consumption of Sputtered Films and for Other Applications, and Revenues By Application Table 135 for Other Applications: Global Revenues By Application, Figure 57 for Other Applications: Market Share By Application, (%) Table 136 for Other Applications: Global, Figure 58 for Other Applications: Market Share By Material Type, 2016 (%) Table 137 for Other Applications:, Through 2016 Figure 59 for Other Applications: Market Share By Region, 2016 (%) Chapter Six: Global Industry Structure Global Industry Structure Manufacturers of Table 138 Manufacturers of, Figure 60 Sputtering Target Manufacturers: Distribution By Size, Worldwide, (%) Table 139 Notable Industry Changes Since Prior Report Published Sputtering Target Production By Region Table 140 : Manufacturing Share of Sales By Region, Through 2016 (%) Sputtering Target Consumption By Region Table 141 : Consumption By Region, (%) Company Profiles Ametek Specialty Metal Products Bekaert Daido Steel Furuya Metal H. C. Starck Hitachi Metals Honeywell Electronic Materials Jx Nippon Mining & Metals Kobe Steel Materion Table 142 Materion Technologies, Matsuda Sangyo Mitsubishi Materials Corp. Mitsui Mining & Smelting Plansee Praxair Samsung Corning Precision Materials Singulus Technologies Sumitomo Chemical Sumitomo Metal Mining Tanaka Kikinzoku Toshiba Materials Tosoh Ulvac Materials Table 143 Ulvac Materials Targets, Umicore Table 144 Umicore Targets, W.c. Heraeus Table 145 W.c. Heraeus Targets, Chapter Seven: Industry Competitiveness Sputtering Industry Development Activities Table 146 Research Organizations Involved in Sputtering Technologies and Materials, Worldwide Summary of Global R&d Activities Figure 61 Current Global Research and Development By Application (%) Other Considerations Key Growth Markets Table 147 Global Growth for Key Sputtering Applications, Through 2016 Electronics Mechanical/chemical Energy Optics Others Driving Forces and Their Impact On Market Growth Table 148 Percentage Impact of Major Competitive Factors On Growth of The Sputtering Industry, Through 2016 (%) Chapter Eight: U.S. Patent Analysis Introduction Summary of Patents Awarded During The Period 2007 Through Table 149 U.S. Patents, Table 150 U.S. Patents, 2010 Table 151 U.S. Patents, 2009 Table 152 U.S. Patents, 2008 General Trends Table 153 Sputtering Target Technology: U.S. Patent Trends, 2008-

9 Table of Contents, continued Figure 62 Sputtering Target Technology: U.S. Patent Trends, (Number of Patents) Trends By Country and Region Figure 63 Shares of U.S. Patents Related To Sputtering Targets By Region, (%) Figure 64 : Patents By Country, (%) Trends By Assignee Table 154 Assignees of U.S. Patents Related To, Trends By Material Type Figure 65 : Shares of U.S. Patents By Materialtype, (%) 281 pages 154 tables Related Reports Paper-Thin Displays: Technologies and Global Markets ID: SMC070A Published: 02/11 Photovoltaics: Global Market and Technologies ID: EGY014G Published: 01/11 Building-Integrated Photovoltaics (BIPV): Technologies and Global Markets ID: EGY072A Published: 01/11 About BCC Research BCC Research is a leading publisher of high-quality, technology market research reports and technical publications. BCC Research reports provide quantified measurements of the market and all major industry segments, as well as in-depth analysis of key market drivers and trends. BCC Subscriptions Access hundreds of published reports and automatically receive newly published research with a BCC Report Subscription. We can tailor a complete package of material that meets your needs and budget. BCC Custom Research Improve your strategic planning efforts with a BCC custom research study. We will work with you to determine what information is needed and deliver specific qualitative and quantitative analysis that supports your business objectives. Call or (intl), or sales@bccresearch.com for more information about any of BCC Research s products and services.

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