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Dow Chemical’s (DOW - Analyst Report) joint venture Dow Corning has identified the route for recovery in the semiconductor industry and sees collaborative advances in materials and processing technologies as critical to the industry’s recovery. Dow Corning is a joint venture between Dow Chemical and Corning Inc. (GLW - Analyst Report).

According to World Semiconductor Trade Statistics’ Spring 2013 global sales projection, semiconductor sales may witness a 5.1% increase through 2014, primarily banking on a rebound in end-market demand. Thus, it is prudent for the related companies to identify ways for their growth. Dow Corning, a prominent leader in silicones, silicon-based technology and innovation, sees opportunity to start the collaborative advances as the mode to sustain in this industry’s recovery.

The semiconductor processing and packaging value chain never offered extensive innovations so far and the industry also has not reported any invincible challenges faced to advance promising technologies such as 3D IC integration. However, trends are changing now and various critical requirements are coming up among semiconductor customers. Semiconductor customers are demanding high-performance silicone solutions that will help collaborators along the value chain to manage the impact of heat and stress and at the same time cut overall systems expenses.

Dow Corning has come forward to address the industry-wide challenges, which include improved heat management, enhanced stress passivation and lower system costs so as to meet the increasing demand for innovative new silicone solutions.

The next-generation semiconductor industry is looking for advanced silicone technologies that effectively dissipate heat and deliver greater device reliability and longer life under the improved thermal management. The industry also demands new explorations in photopatternable silicone solutions that will help to reduce thermo-mechanical stress during processing, and deliver higher thermal stability and low temperature cure. The industry prefers those semiconductor manufacturing applications that minimize total cost of ownership.

Dow Chemical currently holds a Zacks Rank #3 (Hold).

Other companies in the chemical industry having favorable Zacks Rank are Northern Technologies International Corp. and Cytec Industries Inc. (CYT - Snapshot Report). Both carry a Zacks Rank #1 (Strong Buy).
 

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