SEMI News

SEMI has urged government representatives around the U.S. and world to designate the semiconductor industry as an essential business so operations at companies across the chip supply chain can continue without interruption as the spread of COVID-19 continues. SEMI President and CEO Ajit Manocha assured the U.S. and global officials that SEMI members – the device makers and suppliers of chemicals, materials, components, design tools and equipment at the heart of chip manufacturing – “are employing all measures necessary to maintain the health and safety of their employees and local communities” to help contain the virus. Manocha last week sent letters to the governors of 16 states and the chairs of the National Governors Association, U.S. Conference of Mayors, National League of Cities, and National Association of Counties requesting consideration of the semiconductor industry as an essential business if shelter-in-place or similar orders are issued to curb the spread of COVID-19. More than half of U.S. states have imposed shelter-in-place or stay-at-home orders in the past month. The designation would allow SEMI members to maintain continuous operations to ensure that manufacturing of components for critical infrastructure equipment, the defense industrial base, and other vital technological products and services is not jeopardized. Semiconductors are the foundation of modern electronics and information technology and are critical in helping health workers effectively treat COVID-19 symptoms, Manocha told the officials. The devices also play a central role in containing its spread by enabling artificial intelligence (AI), data analytics, digital communications, telemedicine, robotics, remote health monitoring, telecommuting, online shopping and other digital services.Manocha urged state and local officials to follow guidelines issued on March 19 by the Department of Homeland Security (DHS) Cybersecurity Infrastructure Security Agency (CISA) identifying “manufacturers and supply chain vendors that provide hardware and software, and information technology equipment (to include microelectronics and semiconductors) for critical infrastructure as ‘essential critical infrastructure workers.’” Most states issuing shelter-in-place or stay-at-home orders have followed the DHS guidelines and/or separately designated the semiconductor industry an essential business. Likewise, other nations have recognized the power of technology in effectively containing COVID-19 and similarly designated the semiconductor industry an essential business.On March 27, SEMI, the Semiconductor Industry Associations in China, Europe, Japan, Korea, Singapore, Taiwan and the U.S., as well as several other trade associations in Asia issued a statement “calling on all governments to specify semiconductor industry operations as ‘essential infrastructure’ and/or ‘essential business’ to allow continuity in operations.” The global semiconductor supply chain forms a highly intricate network consisting of research, design and manufacturing operations. Operating restrictions in one region can compromise production in others, leading to inefficiencies and breakdowns that cascade across the supply chain.With semiconductors underpinning vital sectors of the global economy, the chip associations called on all global governments at all levels – central, states, provinces and localities – to help protect the uninterrupted operations of domestic semiconductor companies and their suppliers by applying the essential infrastructure or essential business designation.Joe Pasetti is Vice President of Global Public Policy and Advocacy at SEMI.

Hello SEMI members:First and foremost, I hope this finds you all healthy and safe. With new developments emerging every day on the COVID-19 coronavirus outbreak, we want to make sure you’re aware of the resources that SEMI is making available to your business, and many others in the electronics manufacturing and design supply chain, to help you navigate through these tumultuous times. Our SEMI Responds webpage lists best practices for company policies, communications and working from home, based on recent calls with members led by our Environmental Health and Safety (EHS) and Information Technology Leadership (ITL) groups. The EHS section provides tips on facilities and meetings, employee policies, business travel and communications, while the ITL section lists insights on computing hardware for staff, licensing, networks, security and employee policies. SEMI greatly appreciates the invaluable member input. Our goal is to help our member companies make informed business decisions during these highly challenging and uncertain conditions, and your contributions to this effort will benefit the industry as a whole. I am pleased to announce that SEMI has partnered with McKinsey Company to provide an additional source of information: a joint-webinar – COVID-19 Insights: Microelectronics Industry Impact and Best Practices – on Thursday, March 26 at 4pm PT. We will present insights gathered through SEMI member surveys and other industry outreach along with the latest expert data from McKinsey Company to help guide your business continuity plans. Click here to register.The SEMI Global Advocacy team has been evaluating how government responses to the outbreak will impact the industry. In the U.S., the team sent letters to 16 state governors last week to request the classification of the semiconductor industry as an “essential business” so that operations can continue if states institute “shelter-in-place” orders. The letters note that SEMI members are “employing all measures necessary to maintain the health and safety of their employees as they maintain continuous operations critical to the industry” based on the input of participating companies.As for SEMI events, I want to reassure you that SEMI continues to make the safety of our members, exhibitors, visitors and employees our top priority. We continue to track COVID-19 developments worldwide and advisories from the World Health Organization (WHO) and the U.S. Centers for Disease Control and Prevention (CDC). We are also working with our regional offices to engage with industry contacts for inputs, and SEMI has postponed or cancelled several of our major events including: Canceling SEMICON Korea 2020, which was scheduled for February 5-7 Postponing SEMICON China 2020 from March 18-20 to June 27-29 Postponing ISS Europe 2020 from April 1-3 to September 1-3 Postponing ASMC 2020 from May 4-7 to the week of August 23 (still finalizing) Postponing SEMICON Southeast Asia from May 12-14 to August 11-13 If plans for any other upcoming events change, SEMI will immediately notify event exhibitors, visitors and speakers. You can find the latest information on changes to our event schedule on our Coronavirus Status Updates webpage. SEMI is working to help our members continue to connect and do business in the interim. For example, our Standards team is hosting virtual meetings for task forces, and we are exploring other virtual events and ways to keep the lines of communication open. I have challenged the SEMI team to think outside the box and will keep you posted as we make new services available.In the meantime, SEMI continues preparations for later events with laser-sharp focus and determined intent to help spark the industry to reignite business growth and meet pent-up demand. The first major rescheduled event is our largest, SEMICON China in Shanghai. You have probably heard news on some of the positive signs coming out of China. You can read about some of these developments in this blog post from the SEMI China team, which has been in close contact with key exhibitors, domestic suppliers and large multi-national corporations that have confirmed that they will participate in SEMICON China based on the current outlook. We are determined to help the industry return to growth. For the first time we will feature an IC Design Pavilion at SEMICON China to help our traditional semiconductor manufacturing members form more connections across the microelectronics supply chain.In the U.S., this year is proving how quickly everything can change. While the immediate future is steeped in uncertainty, we are diligently assessing current conditions while planning for SEMICON West 2020 in San Francisco from July 20-23, though the event dates are subject to change. SEMI is monitoring the COVID-19 containment efforts closely, and we will keep you informed of any changes in plans.In closing, I want to provide a brief reminder that SEMI members should be proud of the roles your companies have played in enabling the technology that will beat the COVID-19 coronavirus. The most powerful supercomputers in the world are helping in the push to develop a vaccine, and these machines would not exist without countless innovations from SEMI members over our 50-year history. The team at SEMI is proud to serve you all and is absolutely committed to doing all that we can to help the industry rise to meet this newest challenge. Sincerely yours,Ajit ManochaPresident and CEO, SEMI

Skills are the key to the future. It is thanks to its skilled workforce that Europe will reap the benefits of the green and digital transitions and remain competitive. At the same time, upskilling and reskilling is a clear social policy because it ensures that workers can more easily navigate from one job to another.Microelectronics is at the crossroads of many sectors, such as the automotive industry, manufacturing, health, and energy. The European electronics industry is facing an acute shortage of skills in all tiers of its value chain, particularly in electronics design, both digital and analog, and in system and software engineering. A sustainable provision of qualified personnel is key to maintain competitiveness and innovation leadership. Yet, companies in this area suffer from a critical shortage of engineers with competence in microelectronics technology and design. The rapid evolution of the electronics industry calls for a continuous update of skills and knowhow.Vocational education and training has an important role to master these challenges. Modern, inclusive and dynamic vocational education and training programmes are a pre-requisite to remain competitive in the digital age. We must support agile partnerships to develop skills for smart industrial specialisation and the green and digital transitions. Everybody must be on board to shape the workforce transformation in Europe: industry, social partners, education and training organisations, as well as policymakers. The Blueprint for sectoral cooperation on skills launched in 2016 is an excellent model for strategic collaboration and will be extended.The Commission has recently proposed an update of our successful Skills Agenda for Europe. One key element is the new Pact for Skills, in order for all stakeholders to generate new concrete commitments to invest in upskilling and reskilling. It will help us to respond to the extent and speed of change in the economy and society. I warmly invite the microelectronics industry to participate in the Pact.I welcome the fact that SEMI and its 19 partners from 14 countries launched METIS – MicroElectronics Training, Industry and Skills Erasmus+ Project – in November 2019. METIS will receive 4 million EUR EU funding to implement a comprehensive strategy with a view to identify and fill skills shortages, to tackle skills mismatches, and to support upskilling and reskilling in order to address the challenges of the future of work and digitalisation.Nicolas Schmit is European Commissioner Jobs and Social Rights.

For the past several months, U.S. Department of Commerce officials have been developing proposals to amend the foreign direct product rule to require a license for the use of U.S.-origin semiconductor manufacturing equipment or technology in producing semiconductor devices for Huawei and its affiliates. Commerce has also advanced proposals to amend the de minimis rule to expand license requirements for shipments to Huawei and its affiliates of semiconductors produced outside the U.S. and incorporating minimal amounts of non-sensitive U.S. content.The expansion of both rules is among the many Huawei-related actions the administration is pursuing that include a government procurement ban, replacing Huawei equipment in rural U.S. networks, and prohibiting imports of technology and services from unspecified foreign adversary nations. The de minimis proposal was under final interagency review, and the direct product rule next in line for further action, when on February 18 President Trump issued a tweet saying that “The United States cannot, will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive.”Speaking to reporters later that day, the president, referring to chipmakers and Huawei, said “I think people were getting carried away with it… Things are put on my desk that have nothing to do with national security.”This week, SEMI President and CEO Ajit Manocha sent President Trump a thank-you letter for his comments and warned that the proposals could severely impact the U.S. and global semiconductor and electronics industries, create confusion and uncertainty in manufacturing supply chains, reduce investment in new capacity, and lead to the design-out of U.S. technology and U.S. components. SEMI also stressed that unilateral controls on U.S.-origin semiconductor devices, equipment, materials and technology could significantly and disproportionately harm U.S. companies, serve as a disincentive for further investments and innovation in the U.S., and impact non-U.S. companies as well. SEMI continues to work with policymakers to build awareness of the damaging and far-reaching effects of these proposals. The 2020 sales forecast for the global semiconductor manufacturing equipment market, excluding the U.S. (since the proposals only directly affect non-U.S. fabs), is approximately $53 billion. With U.S. producers accounting for roughly 40 percent market share, over $21 billion in U.S. equipment sales to non-U.S. fabs could be affected. Non-U.S. companies whose equipment incorporates U.S.-origin components and technology could also be impacted, and every fab worldwide using U.S.-origin manufacturing equipment or technology to produce items destined for Huawei would need to stop their use immediately and file for a license and/or remove U.S.-origin equipment and technology from production lines used for Huawei and its affiliates. The president’s remarks, along with the resignation of two key officials supporting the proposals, have created uncertainty around the next steps. SEMI is holding regular conference calls to keep members up to date and developing strong messages for members to use in their communications with government officials. SEMI Advocacy in Washington remains actively engaged with executive and congressional officials to ensure that U.S. export controls are narrowly tailored to specific national security concerns and applied at the multilateral level with major trading partners.Joe Pasetti is Vice President of Global Public Policy and Advocacy at SEMI.

The U.S. Toxic Substances Control Act (TSCA) requires the Environmental Protection Agency (EPA) to cost-share risk assessment fees for 20 chemicals designated as high priority across all U.S. manufacturers (including importers) that produce or import at least one of the chemicals including Formaldehyde, Di-ethylhexyl phthalate (DEHP) and Dibutyl phthalate (DBP). Providers of the substances must self-declare as manufacturers or importers under a 5-year look-back requirement.The SEMI EPA TSCA working group formed to assess the potential impact of the self-declaration requirement has uncovered two points of primary concern: 1. Of the 20 substances, about 10 are commonly found in electro-technical components such as capacitors, resistors, transformers and power supplies.2. Companies that import articles (e.g., components and parts) containing any level of these substances, even unintended residue from a production process upstream in their supply chain of imported articles, must self-identify. Manufacturers and importers that self-identify will be required to share the $1.4 million risk-assessment cost per substance. Small business concerns qualify for an 80 percent discount, with larger businesses covering the balance.The EPA has identified a preliminary list of companies that provide each chemical. The number of companies on the lists ranges from two to 525.On January 27, 2020, the EPA opened a 60-day period for organizations to submit comments to the EPA and self-identify as a manufacturer (or importer). SEMI plans to submit comments prior to the March 27 deadline, in part to request an extension.More information is available by visiting the Federal Register or contacting Olivier Corvez. This EPA webpage contains a February webinar transcript that is also a helpful resource.Olivier Corvez is senior manager of Environment, Health, Safety and Sustainability at SEMI.

The recent World Economic Forum event in Davos ranked the unfolding climate crisis among the top three risks companies and governments must address in order to prevent irreversible environmental damage. With the stakes that high, it is becoming critical for organizations of all sizes to take into account climate change risks and opportunities as they develop their strategic and business continuity plans.Two fundamentally different schools of thought have emerged on how to address climate change. On one side, NGOs and climate activists such as Greta Thunberg are pressuring governments to abruptly divert away from fossil fuels, a shift that experts say would exact a deep economic impact. On the other side is the camp that believes capitalism will run its course and ultimately guide public and private entities to find climate change solutions.For their part, organizations are responding to rising pressure from shareholders and stakeholders to disclose their emissions mitigation strategies. The accuracy and completeness of environmental disclosures ranges widely. Some businesses adopt a conservative approach and limit the volume of information made public, while others announce aggressive targets for reducing emissions from their operations and supply chains.Formed 18 years ago, the Carbon Disclosure Project (CDP) has motivated companies (and now cities) to disclose their greenhouse gas (GHG) emissions. In 2019, more than 525 institutional investors representing $96 trillion in assets backed the CDP, whose annual CDP questionnaire is often recognized as the most “comprehensive collection of self-reported environmental data in the world.”As the list of signatory investors supporting the CDP has grown over the years, so has the number of companies responding to the annual CDP questionnaire – from 228 companies in 2003 to over 8,400 in 2019. Company scores are based on 14 disclosure areas such as C-suite level sign-off on the questionnaire content, producing GHG emission data verified by a third party, or publicizing their completed questionnaire on the CDP website. Among all respondents, 179 companies (2%) scored the highest in leadership by demonstrating the strongest commitments to reducing greenhouse gases emissions from their operations and supply chain.Among these 179 companies – referred to as the A-list companies – 10 are SEMI members headquartered in Japan, Taiwan, Korea and France. SEMI applauds these members for ranking among the most progressive companies in disclosing greenhouse gas emissions, an achievement that requires considerable work but puts them in a position of strength in conveying to customers, investors and other stakeholders their commitment to climate resiliency.Olivier Corvez is senior manager of Environment, Health, Safety and Sustainability at SEMI.

The march of innovation in semiconductor microfabrication technology over the past 60 years has produced electronic devices and information systems that have transformed industries and lives around the world. And while advances in chip technology continue to make it possible to collect, transmit, store and process more data for a rapidly growing universe of applications, the pace of innovation is now facing strong headwinds. Powered by chip innovation, data centers have become massive centers of information processing but, on the downside, enormous consumers of electricity. Today, the power-hungry hubs account for five percent of the world's electricity usage, a proportion that is growing every year, raising important questions about sustainability. Compounding the challenge, the pace of Moore's Law, for decades the engine of electronic device and information system innovation, has slowed. While the research and development of state-of-the-art semiconductor fine processing technology remains robust, developing the advanced manufacturing technology for mass-producing more sophisticated electronics devices is becoming harder, as is ensuring business profitability."It has become difficult for semiconductor technology to continue to evolve as it has in the past," said Akira Minamikawa, Research Director of Technology Research at IHS Markit, who moderated the Semiconductor Executive Forum – View by Top Two in the Era of Digitalization on opening day of SEMICON Japan 2019 at Tokyo Big Sight. Held at the SuperTHEATER, the forum featured Terushi Shimizu, representative director and president at Sony Semiconductor Solutions, and Atsuyoshi Koike, president at Western Digital Japan, two industry powerhouses that could figure heavily in the future of digital technology. SuperTHEATER, the main stage at SEMICON Japan 2019 Image sensors evolve to become eyes of AIImage sensors are becoming eyes of artificial intelligence (AI) and intelligent systems that monitor people and events worldwide, collecting data that one day could help puzzle out growing social challenges such as energy conservation and traffic congestion. With 51 percent market share on the strength of its industry-leading technology, Sony Semiconductor Solutions dominates the image sensor market. Despite last year’s global semiconductor industry slump, the company’s “business continues to enjoy strong growth and we are very busy,” said Shimizu, who attributed the company’s robust performance to the rising importance of the social role of image sensors and the expanding number of applications they support.The success of the company’s image sensors can also be traced to its division of the image sensor market into two application categories: "Imaging" focuses on capturing beautiful image data, while "sensing" aims to collect data that accurately describes the state of a subject and its surroundings."In 2019, sales of imaging products for smartphones grew rapidly,” Shimizu said in his market overview. “This is due to the average annual 15 percent growth rate of multi-camera smartphones, with some phones today featuring seven cameras, and an average annual growth rate of 20 percent in sensor size to produce higher image quality."But Shimizu cautioned that Sony Semiconductor Solutions doesn’t expect the smartphone sensor market to maintain that fast growth rate."The imaging market is expected to grow until 2022, but after that, the sensing market will drive market growth,” he said, adding that the company’s “capital investment plan is based on this scenario."AI will be key in catalyzing growth of the sensor market as integrations of AI processing engines and sensing images grow in sophistication to capture images undetectable by the human eye, Shimizu said. AI will extract insight from captured image data. For its part, Sony will apply its layer stacking technology to sensing products."By stacking an AI processing engine, we want a significant portion of the recognition processing done within the sensor chip," Shimizu said.One sensor the company already offers collects in-depth information for indirect time-of-flight (ITOF) 3D ranging for new user interfaces relying on autonomous or gesture control for robotics. The sensor “was first used in smartphones in 2018 and saw widespread adoption in 2019," Shimizu said.Sony Semiconductor Solutions plans to focus on developing new sensors for integration with their ultrasonic cousins. Aided by optical deflection technology, the sensors will be used for product quality inspections during manufacturing.With the company’s growing strengths in sensor technology, it hopes “to increase sales of sensors from a few percent of the company’s total sales in 2018 to 30 percent in 2025,” Shimizu said, pointing to its goal "to capture 60 percent share of the image sensor market by 2025."Data as one way to spread happinessAt the heart of consumer devices such as smartphones and computers and also cloud servers, NAND flash has made it possible to process vast troves of data anytime, anywhere. In recent years, the technology has enjoyed stronger adoption for use as the storage medium of choice for edge computing, stationed between end devices and the cloud to help streamline data utilization. But the technology isn’t merely about making smarter use of bits and bytes."We would like to promote the technology development that can support the use of data to bring happiness to people around the world," Koike of Western Digital Japan said. The company calls data that contributes to individual happiness and helps solve social issues "data for good" and, like the Sony Semiconductor Solutions bifurcated classification of the image sensor market, categorizes information into “big data” and “fast data.”For example, big data can leverage AI to drive dramatic improvements in the interpretation of test data and, ultimately, the diagnostic accuracy of mammography for breast cancer screening, aiding in early detection to help save lives, Koike said. Fast data can be harnessed to analyze data collected from a manufacturing equipment line in real time to improve production efficiency. The company’s plant in Yokkaichi, Mie Prefecture, which the company operates in cooperation with Japanese memory manufacturer Kioxia, already uses fast data to bolster production.More NAND flash innovation and greater supply capacity are critical to developing "data for good," Koike said. "It is difficult to expand clean rooms at the same pace as data usage grows. In order to continue to advance technology and enhance supply capacity, we need to adopt new ideas for building production lines. We need a smaller equipment footprint, shorter cycle time and higher throughput."Semiconductor market shows signs of recoveryIn their discussion of the short-term outlook for the semiconductor market, Shimizu and Koike pointed to the importance of strengthening the talent pool of Japan’s semiconductor industry as global competition heats up with China’s pursuit of semiconductor independence and the industry pulls out of the 2019 slowdown fueled by weak memory prices. While Sony’s business has been buoyed by strong image sensor demand for smartphones, the devices “did very well, but other applications didn't," Shimizu said. Even the image sensor market stagnated.Despite the 2019 slump, market conditions and capital investments by semiconductor manufacturers have been on the upswing."In the second half of 2019, the Chinese market showed signs of recovery triggered by 5G,” Shimizu said. “In 2020, this movement is going to be in full swing around the world and we will be busier than last year."Koike agreed: "The semiconductor market for data centers will recover with 5G. The hard disk shortage is already an indication of a recovery, a turnaround that will undoubtedly extend to solid state drives (SSDs). In addition, advances in autonomous driving technology will ensure continued growth of the automotive semiconductor industry.”Japan should embrace international competition, not fear China's pursuit of chip independenceIt's no secret that China is investing heavily in its semiconductor development capabilities to move up the microprocessor value chain. Minamikawa posed the question: How should Japanese chip companies navigate the shifting regional balance of power? "It is natural for China to strive to establish domestic procurement of semiconductors that are fundamental technologies for various industries,” Koike said, “I think the efforts of Chinese companies are outstanding in that they are not pursuing short-term results, such as improving yields in the near future, but are making efforts with an eye to achieving results in 10 years. Japan has a variety of options including working with China to create joint ventures and competing head-on. Regardless of which choice we make, however, it is imperative for the survival of domestic companies that Japan maintains its technological competitiveness to remain ahead of China."Shimizu said that Sony’s “Chinese customers are quick to take action and study extremely hard. We often have opportunities to share our roadmap with them and explore innovation opportunities together. Before, they were passive and relied on us for insights into new technologies, but now they are more assertive and I sense that they will start to drive innovation.”Koike added that "although Japanese companies often talk about business globalization, neither Chinese nor American companies say much about it. While global expansion is a major requirement for business, I think Japanese companies need to focus more on the Japanese market overall, not just when they think about the growing competitiveness of Chinese companies." L-R: Akira Minamikawa, Research Director of Technology Research at IHS Markit; Atsuyoshi Koike, president at Western Digital Japan; Terushi Shimizu, representative director and president at Sony Semiconductor Solutions Talent key to bolstering competitiveness of Japan’s semiconductor industryMinamikawa of IHS Markit didn’t mince words in describing the talent shortage in the Japanese semiconductor industry as “grave,” saying that “the workforce challenge is not endemic to the electronics industry as evidence grows that the number of people obtaining doctorates in Japan is falling and the educational level of the Japanese population as a whole is in decline.”Three years ago, Shimizu interviewed professors on Kyushu island for insights into Japan’s talent shortfall. He came away feeling that “Japanese semiconductor companies were not sufficiently communicating the industry's talent and innovation needs to professors. To help professors and students better grasp the appeal and potential of the industry, we have started to send frontline engineers to universities to educate students and instructors about their work and careers. Expecting corporate HR departments to alone solve the talent shortage won’t work.”"In Japan, if you advance to a doctoral course, you will have a hard time getting a job, which is a strange situation,” Koike said. “Companies and universities need to work together more closely to better understand how to attract and hire doctoral graduates."Minamikawa said companies must have strong leaders with clear missions to attract the right talent, but Koike pointed to the drawbacks: "The image of a company with a strong leader seems to be cool, but it also has a downside because engineers stop thinking for themselves and wait for instructions from the top. I believe it is important for company leaders to have ongoing discussions at all organizational levels and lead the way in times of confusion."Shimizu agreed, citing his own company as an example."Thankfully, our company is very busy right now,” he said. “However, some employees are starting to request more time to think about how to improve the quality of their work. To maintain and strengthen our competitiveness and continue business growth, I believe it is important to cultivate an environment that encourages each employee to take more time to think for themselves."Motoaki Ito is the CEO of Enlight, Inc. and a reporter for SEMI. Mayumi Amagai is a marketing manager at SEMI Japan.

Augmented reality (AR) tyrannosauruses towered on-screen as I interacted with the creatures in a mix of prehistoric and cutting edge. Or, rather, my AR double was doing the playacting. Minutes later, virtual doppelgangers of a small lineup of chip industry executives cut the ceremonial ribbon. Seemingly sweeping away the winter chill, the opening of SEMICON Japan 2019 dazzled with smart technology and the promise of lives, cities and workplaces transformed, with uber-intelligent applications in full display at Tokyo Big Sight. But what resources does the industry need to harness to drive the next era of innovation? The semiconductor industry’s unwavering passion and young talent are key, said Hiroshi Imano, Chairperson of the SEMICON Japan Initiatives Committee, in his opening keynote. And hardly any region of the world is in a better position to help realize that future than Japan, Imano said. The region supplies one third of the equipment and more than half of all materials to the global semiconductor manufacturing industry.Talent was also top of mind for SEMICON Japan 2019 keynote speaker Makiko Eda, Japan's Chief Representative Officer at the World Economic Forum (WEF). Serving as a platform for public-private partnerships, the organization's mandate is to tackle global issues such as climate change and geopolitical strife in making world more resilient to risk and, by extension, more sustainable.Spanning ecology, economy, technology, society, geopolitics and industry, that mission includes reskilling and upskilling a billion people over the next decade, a high priority for WEF, which hosts a conference every January in Davos, Switzerland. The theme of this month's conference – Stakeholders for a Cohesive and Sustainable World – reflects the vital importance of building the international partnerships and global consensus necessary to achieving WEF's goals.One key to that sustainability will be technology and Arm, a global chip design company, will play a key role, with the company’s chips touching over 70 percent of the world’s population, Arm president Yuzuru Utsumi said in his keynote. Today, Arm is driving toward an ambitious goal: Ship 100 billion chips from 2017 to 2021 – the same number produced over the previous quarter century – by powering advances in mobile computing, server and networking infrastructures, and automotive applications.Arm’s innovation ecosystem of more than 1,000 partners will deliver these chips as they continue to work together to develop differentiated technology. Arm plans to increase investments not only in its primary processor business to accelerate market share gains but in the company’s new IoT business to create new revenue streams. The goal: Deliver long-term sustainable growth, Utsumi said. SEMICON Japan 2019 showcases SMART manufacturing and transportation Billed as a showcase of smart technologies, SEMICON Japan 2019 delivered with an array of eye-grabbing exhibitions in the popular SMART Applications Zone. In the SMART Transportation area, the automatic operation pavilion featured a car equipped with open-source software for autonomous driving. The exhibitor, Tier IV, aims to help lead the early commercialization of self-driving vehicles through the adoption of its software, Autoware, which makes it easier to develop self-driving vehicle prototypes using low-power platforms.Sony Semiconductor Solutions demonstrated a vision sensing processor designed to guide autonomous drones. Using two cameras, the processor measured the changing distance between visitors moving about the exhibit and stationary objects in real time, indicating proximity in hues of red (nearby) and blue (at a distance). Many visitors were wowed, describing the multichromatic display as futuristic.Others rode a simple wooden swing hanging by two ropes, but from dizzying heights thanks to Solidray’s Duo-Sight, a virtual reality (VR) system that projects 3D images stretching from wall to floor for immersive experiences. One visitor thrilled at how riding the swing, suspended only a few feet from the floor, felt like soaring on a flying trapeze. Target applications for the technology include virtual rides at amusement parks and presenting interior design options to homeowners.In the SMART Manufacturing area, one highlight was the demonstration by the National Institute of Advanced Industrial Science and Technology (AIST) of a remote-controlled Minimal Fab System designed for low-volume, high-mix chip production with little staffing. Designed to increase production efficiency, the system allows a circuit designer to manufacture a semiconductor by singlehandedly operating equipment up and down the production line. Controlling nearly 50 pieces of equipment, the Minimal Fab System on display manufactured chips that were verified for functional operation and exhibited afterwards.On the SMART Applications stage, exhibitors DENSO and Toyota Motor Corporation announced a new joint venture to conduct research and advanced development of the next-generation in-vehicle semiconductors critical to electric and autonomous vehicle innovation. The venture, operating as MIRISE Technologies, will combine Toyota’s mobility expertise with DENSO’s in-vehicle component prowess. The goal is to build a rapid, competitive development system by 2030, said Yoshifumi Kato, executive director of the DENSO Research and Development Center, and president and representative director of the venture. On track to begin work this year, MIRISE will span three fields of technology development: power electronics, sensing and SoC (System-on-a-Chip). The name MIRISE combines word the Japanese word "mirai" (future) with "rise."Business Continuity PlanningNatural disasters and other emergencies are an ongoing threat to uninterrupted business operations across the semiconductor manufacturing supply chain and particularly in earthquake-prone Japan. To better prepare for business disruptions and restore normal operations as soon as possible after disaster strikes, more companies are teaming on Business Continuity Planning (BCP).THK's Seismic Isolation Experience Car demonstrated one technology designed to help – a seismic isolation device. The car shakes like an earthquake to give people inside a taste of how a building heaves and sways during a quake with and without the device deployed. Visitors were struck by how much the isolator dampens tremors to prevent or minimize damage. In the BCP seminar, representatives from Sony Semiconductor Manufacturing, THK, DISCO and Team Engineering Consulting shared lessons learned from actual disasters and discussed the critical importance of daily disaster drills. Yukihide Keigo, Executive Engineer in charge of Products and Development at Sony Semiconductor Manufacturing, recounted how the company’s Kumamoto Prefecture plant struggled for 96 days to restore full operations after the facility sustained heavy damage in the 2016 earthquake. Keigo said the plant lacked the structural reinforcements necessary to withstand the impact and fell prey to poor planning and accountability. The Kumamoto plant has since implemented measures – structural and procedural improvements – that more accurately account for seismic risks to ensure full recovery within 56 days. The plant’s new procedures include emergency drills for staff including night-shift workers.Innovation abounds at six SuperTHEATER forumsSEMICON Japan 2019 was held in the West and South Halls of Tokyo Big Sight as organizers of the Tokyo Olympics occupied the East Hall, the exhibition's usual home at the venue, to prepare for the 2020 games. For the first time, the main stage, SuperTHEATER, was set up in the cavernous arena near the main entrance. The SuperTHEATER featured six forums over three days. Semiconductor Executive Forum – View by Top Two in the Era of Digitalization with thought leaders from IHS Markit and Sony Semiconductor Solutions SMART Connectivity Forum – Infinite World Brought by 5G Innovation with experts from Softbank and Nokia Solutions Networks SMART Transportation Forum I – Front-line of Automated Driving featuring speakers from Intel and DENSO SMART Transportation Forum II – Revolution of Sky Transportation, supported by the U.S. Commercial Service in Japan, with presenters from Ministry of Economy, Trade and Industry (METI), Subaru and Bell Helicopter Manufacturing Innovation Summit – Issues and Innovation: What will Drive Growth to 2030 featuring thought leaders from VLSI Research, Applied Materials, KLA, Nikon and Tokyo Electron Mirai Vision Forum – Future Relation of Technology and Body 2.0 with speakers from Leave a Nest, Ory Lab and Autonomous Control Systems Laboratory The Mirai Vision Forum highlighted advanced technologies that could lead to societal improvements. One presenter, Kentaro Yoshifuji, CEO at Ory Lab, recalled how, as a child, he once stayed home from school while recovering from an illness. His imagination in full flight, the youngster imagined having a clone that could attend school and be with his classmates. The experience eventually inspired him to develop OriHime, a robot that gives socially isolated people a way to communicate with friends or colleagues remotely. Originally developed for physically impaired people, OriHime today is used to help the able-bodied. The robot is situated with the companion and the user operates OriHime remotely. A camera and monitor in OriHime’s face provide the visual and audio connection and the user controls the device with a smartphone or tablet or, for those who are paralyzed, through eye movement. One potential application: With OriHime stationed at a business office, working mothers could use OriHime to telecommute to better balance their careers with their parenting responsibilities at home. The robot would be a mother’s go-between, enabling her to communicate directly with colleagues.The next generation of innovators also took the stage as five teams presented innovative business ideas in friendly competition. The top prize in The TECH CAMP Hackathon went to the group that hatched an ingenious plan to develop a jacket that trains users to move their bodies in preprogrammed ways. For example, legendary Japanese professional baseball player Shigeo Nagashima could wear the gear while batting to program the device, then give the jacket to someone who’s never swung a baseball bat. The jacket would help the user replicate Nagashima’s swing. Now comes the real work of any innovator – executing on the vision.And then came two soccer-playing artificial intelligence (AI) robots that squared off and ... Scored! The demonstration by the Toyota National College of Technology started as a research project by Toyota National College students in 2002. The young innovators designed and developed all the robotic hardware and software from scratch. Looking ahead to SEMICON Japan 2020!SEMICON Japan 2019 not only gathered leading Japanese semiconductor materials and manufacturing equipment providers to demonstrate their latest innovations. The premiere regional event also provided insights on key trends critical to the entire electronics manufacturing supply chain. This year’s event drew more than 51,000 visitors and 695 exhibitors from 15 regions filling more than 1,700 booths.SEMICON Japan 2020 returns to East Hall at Tokyo Big Sight in December 2020. I look forward to seeing you there!Jim Hamajima is president of SEMI Japan.

When we entered 2019, our priorities in SEMI Global Advocacy were crystal clear: Continue to advance our public policy priorities under the 4 T’s – Trade, Tax, Talent and Technology – and move toward a global reach. We raised SEMI’s profile on the world stage in representing arguably the most strategic industry sector today as we trained our sights on a number of issues across all four pillars, not the least of which was trade. Along the way, we educated key policymakers about the impact of their decisions on the global semiconductor supply chain, member companies and regional economies.While no one organization can resolve current global trade issues, SEMI did exert its influence effectively on behalf of its members. For example, when Japan’s Ministry of Economy, Trade and Industry (METI) announced its decision to tighten export controls with South Korea in July, SEMI immediately engaged METI and Korea’s Ministry of Trade, Industry and Economy (MOTIE) to make clear to METI the potential repercussions of its decision. In parallel, we worked to prevent a retaliatory escalation by MOTIE. Indeed, significant trade challenges remain as tariffs and export controls continue to take their toll on our industry’s globally integrated supply chain. We have much work ahead to ensure our members’ voices continue to be heard. Our well over 100 meetings with government officials this year is only the start of sustained outreach and engagement to better serve our members’ public policy interests. To that end, and based on member input, in 2019 SEMI Global Advocacy made it a priority to restructure to improve communications among our regions around the globe and strengthen member engagement. Each regional office responsible for government affairs is now staffed with a global advocacy liaison. In addition, we have increased staffing in the SEMI Europe office to better address the ever-changing regulatory environment and develop the European Union’s talent pipeline.In SEMI’s advocacy headquarters in Washington, DC, we have filled a new position – Vice President of Industry Advancement and Government Programs – to place greater focus on identifying opportunities to advance programs aligned with member, industry and government interests. We have also filled two additional positions in DC – a Vice President of Global Public Policy and Advocacy and a new Manager of Public Policy and Advocacy – dedicated to public policy work. Both are steeped in experience in trade, export controls and tax policy. In addition, our new Executive Director of the SEMI Foundation boasts expertise in developing and scaling workforce development programs.The end of 2019 culminates the first phase of strategic personnel and program adjustments we envisioned over a year ago and the beginning of more muscular, adaptive advocacy engagement communications. Today, we are in a much stronger position to support you, our members, and meet the public policy priorities established by the SEMI Board of Directors and Board of Industry Leaders. We’re immensely thankful for your continued engagement and look forward to working to advance your interests in 2020 – SEMI’s 50th anniversary!Mike Russo is Vice President of Industry Advancement and Government Programs at SEMI.

High-tech industry clusters in the bustling northern Taiwan port city of Hsinchu look set for an upgrade. Long a world-class hub of the semiconductor and optoelectronic technology industries, Hsinchu City is laying out plans to work with SEMI to attract more international companies, generate more jobs, promote Hsinchu’s development and help grow Taiwan’s microelectronics industry. High-tech heavyweights such as TSMC, UMC, MediaTek, Realtek, and AUO are all headquartered in The Windy City. The Industrial Technology Research Institute (ITRI), a leading Taiwan research center and incubator, also calls Hsinchu home, and the city boasts one of the highest concentrations of educational institutions in the region, a roster that includes National Chiao Tung and National Tsing Hua universities. Hsinchu’s thriving relations with these industry, academic and research partners have made it a hotbed of innovation, with numerous large Taiwanese and foreign companies having opened local offices. No less than these partners, the city – like SEMI – is committed to innovation.In a recent visit to the SEMI Taiwan office in Taipei, a Hsinchu City government team led by mayor Lin Chih-Chien, met with Terry Tsao, global SEMI chief marketing officer and president of SEMI Taiwan, to explore collaboration opportunities in areas such as technology subsidies, policy, education, and infrastructure. The meeting built on a relationship between the city and SEMI Taiwan that sprouted after SEMI executives and Hsinchu officials joined ITRI to host the Autonomous Driving System Platform in Open Fields kick-off ceremony – an initiative to accelerate Taiwan’s adoption of smart transportation technologies – at SEMICON Taiwan 2019.At the meeting, Mayor Lin highlighted that Hsinchu has long attracted high-tech companies by cultivating a business-friendly climate through incentives such as subsidies for infrastructure buildouts. He hopes to work with SEMI to promote to members the benefits of setting up local offices in Hsinchu City.With both Hsinchu’s high-tech clusters and SEMI’s global members deeply reliant on skilled workers for sustaining innovation and growth, Tsao and Mayor Lin agreed that inspiring students to pursue an education and careers in science, technology, engineering and mathematics (STEM) is vital to building a high-tech talent pool. One collaboration opportunity SEMI Taiwan is eyeing is to launch Taiwan’s first SEMI High Tech U (HTU) program in Hsinchu to spark the interest of school-age children through STEM educational activities at school camps or art and cultural centers. SEMI’s STEM discovery program offers hands-on activities and experiential learning led by industry volunteers. Since 2002, HTU has reached some 8,000 high-school students in 12 U.S. states and nine countries.Emmy Yi is a marketing specialist at SEMI Taiwan.