SEMI News

As a top semiconductor manufacturing hub, Korea is poised to lead the world in fab construction spending in 2019 and 2020, accounting for 27 percent of the total market. Little wonder that Korea’s prowess in the semiconductor industry has meant steady membership growth for SEMI Korea, with HD Cho, president of SEMI Korea, putting the average annual jump at about 7 percent.But HD Cho’s focus as he returned to COEX in Seoul, home to SEMICON Korea, in late August was not on membership growth over the years but the future. Cho hosted about 400 SEMI members gathered at SEMI Korea Members Day for insights into the state of the world economy, semiconductor industry outlooks, and perspectives on how South Korean and European microelectronics companies can form stronger ties. Setting the stage with look at macroeconomics, Byung-yeon Kim, team manager of NH Investment and Securities, predicted that, as the global economy continues to falter, 25 of the 58 major countries this year will cut interest rates in a bid to boost prospects for growth. Historically, the global composite leading indicator (CLI), a bellwether for turning points in the economy, has rebounded after 20 months of decline, he said. While the CLI downtrend is now past the 20-month mark, Kim struck a bullish note, predicting that the global economy will bounce back before long.Soo-kyoum Kim, vice president at IDC, referring to the semiconductor industry’s own soft patch, said that total revenue is expected to drop from $475 billion in 2018 to $440 billion this year but should rebound to a new high of $500 billion in 2023. The memory market will be especially hard-hit, dropping more than 29 percent in 2019 and another 14 percent next year before bottoming and then staging a recovery in the second half of 2020. The strength of the rebound will hinge on server market demand, he added.Next year will also see rebounds in semiconductor equipment and materials revenue, with growth of 12 percent and 3 percent, respectively, said Clark Tseng, director of Industry Research and Statistics at SEMI. The increases will follow a 2019 equipment market drop of 18 percent to $53 billion from the previous year while materials this year is expected to remain flat at $52 billion. The semiconductor industry will expand at a modest 2.4 percent this year, jumping to 7.6 percent in 2020, Tseng reported, citing the average growth rate based on data from Gartner, WSTC, IC Insights, VLSI Research and other industry analyst firms. Despite current weak market demand and the ongoing trade war, the long-term outlook for the semiconductor industry remains upbeat, he added.In Europe, semiconductor industry growth continues on the strength of the region’s high strategic importance in the global electronics supply chain, said Laith Altimime, president of SEMI Europe. Fab construction spending in Europe continued to grow in 2018, reaching $300 million, and is expected to hit $1.2 billion in 2019 and $1.6 billion in 2020, with equipment, parts and components driving the surges.To help build stronger ties between European and Korean chip industries, Altimime introduced the SEMI Korea members to SEMI Europe business platforms including SEMICON Europe, the 3D System Summit, ISS Europe, and the MEMS Imaging Sensor Summit. He also encouraged the formation of more business partnerships between companies in the two regions by familiarizing SEMI Korea members with European players in areas such as foundry, MEMS, sensors and wafer manufacturing.And it will be MEMS and sensors that help drive the 4th Industrial Revolution, said Sung-hyuk Kim, a team leader at LG Electronics' Sensor Solution Research Institute. In his presentation Architecting Sensor Solutions for the Next Revolution, he noted that sensors are finding their way into devices where they have never been used before. In household refrigerators, gas sensors help deodorize the inside while distance sensors detect the approach of people. Air conditioners equipped with a camera sensor can pinpoint the location of humans and steer the airflow in their direction. Of course, all these smarts will come in form of data-devouring artificial intelligence (AI), and that data will be generated in massive amounts by MEMS and sensors – placing them at the epicenter of the 4th Industrial Revolution.Jaegwan Shim is a marketing specialist at SEMI Korea.

The future of the semiconductor industry began to blossom recently in Seoul, South Korea as young, innovative minds teased out secrets to electronics manufacturing and their path to enter the industry one day. Twenty-seven middle schoolers gathered in early August at Yonsei University for SEMI High Tech U (HTU), the worldwide SEMI program that introduces students to science, engineering, technology and math (STEM) careers over three days of hands-on activities and experiential learning. Since 2001, HTU has reached some 8,000 students in nine countries.Semiconductor giants including Applied Materials, KLA, Lam Research and Dongjin Semichem were key teachers as representatives from the companies gave theoretical and practical lectures to pique the students’ interest in STEM educations and careers. The speakers, all experts in microelectronics, surveyed microchips and solar cells, mathematical and scientific experimentation, engineering design and the inner workings of semiconductor manufacturing before the students broke off into teams for lessons largely of their own making. Fine-tuning a wooden contraption – a Statapult – to hurl a ball as far as possible might not sound like the stuff of microelectronics, but it drew on the type of problem-solving skills and creativity the students will need to thrive in the semiconductor industry. Student teams made adjustments to the levers of miniature catapults, then tested the throwing power of the devices. After the ball tosses, they reconvened as a class to share lessons in how they calibrated their catapults for a longer tossing distance and ways they could improve the devices’ performance. Students also took tours of two very different semiconductor manufacturing settings – one virtual and the other real. The young learners donned virtual reality headsets for a simulated walk-through of Applied Materials (the tour was sponsored by the company), then slipped on bunny suits for a tour of Yonsei University's BIT micro fab and a close-up look of how semiconductors are made.But it was the ever-popular Human Calculator game that inspired the greatest thrill as students dove deep into technology. During the exercise, they converted numbers into binary and then traced the digits through a series of gates in an electronic circuit, an exercise requiring careful team communication and concentration to generate the right outputs. The students surprised SEMI Korea employees and instructors, and themselves, by completing the exercise with record speed. Their time: less than two seconds.Human resources managers from sponsor companies were on hand to give the middle school students a head start in their careers with lessons in resume writing and career management. In mock interviews, the students honed their interviewing skills. And in meetings with SEMI High Tech U alumni they learned how their predecessors worked their way into semiconductor industry and their focus of study in college.To be sure, the day was rich in details about working in the microelectronics industry. But did it meet the students’ expectations? In a survey before the event, the more than two dozen students, on average, rated their knowledge of microelectronics at 4.5 on a scale of 1 to 10, a score that jumped to 7.7 after completing HTU. Their favorite module? No surprise: Engineering Design. In this exercise, the students designed a carrier for six 12-ounce beverage cans using only decidedly low-tech materials such as strings, rubber bands and wooden boards. Their innovations were studies in high creativity and ingenuity – just the type of imaginations the semiconductor industry needs. SEMI Korea has offered SEMI HTU since 2011. This year, various other career development programs such as semiconductor manufacturing tutorials and mentoring are planned as SEMI Korea continues to sow the seeds of the next generation of industry workers. Jaegwan Shim is a marketing specialist at SEMI Korea.

In the long unfolding arc of technology innovation, artificial intelligence (AI) looms immense. In its quest to mimic human behavior, the technology touches energy, agriculture, manufacturing, logistics, healthcare, construction, transportation and nearly every other imaginable industry – a defining role that promises to fast track the fourth Industrial Revolution. And if the industry oracles have it right, AI growth will be nothing shy of explosive.“The gains these days are not incremental,” said Ajit Manocha, SEMI president and CEO, said to a gathering in July of the Chinese American Semiconductor Professional Association (CASPA) for its Summer Symposium at SEMI’s headquarters in Milpitas. “They are hockey stick – exponential – with AI semiconductors growing in market size from $4 billion this year to $70 billion in 2025.”Manocha left little doubt that AI is remaking the semiconductor industry and, in the process, the world at large. Internet of Things (IoT) and 4G/5G, both key AI enablers, will account for more than 75 percent of device connections by 2025.“Today, 30 billion devices worldwide are connected,” Manocha said, citing an Applied Materials prediction that the number of connected devices globally will grow to between 500 billion and 1 trillion by 2030. Those devices will generate stunning amounts of data collected, interpreted and used to reason, solve problems, learn and plan, leading to the holy grail of autonomous machine behavior.To process this colossal amount of data central to the promise of AI, the industry must break through the limits of a key technology: memory. Memory a Critical AI BottleneckThe challenge for memory starts with performance. Historically, every decade gains in compute performance have outpaced improvements in memory speed by 100 times, and over the past 20 years that gap has grown, said Steven Woo, a fellow and distinguished inventor at Rambus, presenting at the symposium. The upshot is that memory has bottlenecked compute and, in turn, AI performance. The industry has responded with new ways to implement memory systems on AI chips. Each is suited to unique performance requirements and, of course, comes with trade-offs. Among the frontrunners: On-chip memory delivers the highest bandwidth and power efficiency but is limited in capacity. HBM (High Bandwidth Memory) offers both very high memory bandwidth and density. GDDR balances trade-offs among bandwidth, power efficiency, cost and reliability. Since 2012, AI training capability has grown 300,000 times, besting Moore’s law by 25,000 times in doubling every 3.5 months, a blistering pace compared to the 18-month doubling cycle of Moore’s law, Woo said. The staggering improvements have been driven by parallel computing capacity and new application-specific silicon like Google’s Tensor Processing Unit (TPU).These specialized silicon architectures and parallel engines are key to sustaining future gains in compute performance and combatting the slowing of Moore’s Law and the end of power scaling, Woo said. By rethinking the way processors are architected for certain markets, chipmakers can develop dedicated hardware capable of operating with 100 to 1,000 times greater energy efficiency than general purpose processors to overcome another big limiter to scaling compute performance – power.For its part, the memory industry can improve performance by signaling at higher data rates and using stacked architectures like HBM for greater power efficiency and performance, and by bringing compute closer to the data.Memory scaling for AIA key challenge is scaling memory for AI. Demand for better voice, gesture and facial recognition experiences and more immersive virtual reality and augmented reality interactions is tremendous, said Bill En, senior director at AMD, speaking at the symposium. These capabilities require more processing power across both high-performance computing (HPC) for big data analytics and machine learning as it relies on AI and machine intelligence to generate meaningful insights. Emerging machine learning applications include classification and security, medicine, advanced driver assistance, human-aided design, real-time analytics and industrial automation. And with 75 billion IoT-connected devices – all generating data – expected by 2025, there will be no shortage of data to analyze, En said. The wings alone of a new Airbus A380-1000 feature some 10,000 sensors.Mountains of this data are stored in massive data centers on magnetic hard drives, then transferred to DRAM before moving to SRAM within the CPU for the handoff to the compute hardware for analysis.With data growing at an exponential clip, the question is how to make sure all other memory systems can handle the flood of data. AMD’s answer is a chiplet architecture featuring eight smaller chips around the edge that drive the compute and a large chip in the center that doubles the IO interface and memory capability to in turn double chip bandwidth.AMD has also moved from a legacy GDDR5 memory chip configuration to HBM to bring memory bandwidth closer to the GPU for more efficient processing of AI applications. The HBM provides much higher bandwidth while reducing power consumption. Compared to DRAM, AMD’s HBM delivers a much faster data rate and far greater memory density, En said.Over the next decade, look for more performance improvements from multi-chip architectures, innovations in memory technology and integration, aggressive 3D stacking and streamlined system-level interconnects, he said. The industry will also continue to drive performance gains in devices, compute density and power through technology scaling.Michael Hall is a global marketing communications manager at SEMI.

Like all other SEMICON expositions, SEMICON West last month gathered thousands of people to make business connections and learn about the industry and its opportunities. But the events are also great venues for SEMI’s Global Industry Advocacy team to meet with industry leaders from around the world as well as regional SEMI presidents to discuss policy issues we face in each region and best practices for how to address them. The time was also ripe for us to meet with various advisory groups and advocacy committees to examine current issues.Top on our list at SEMICON West was a discussion with SEMI’s International Board of Directors about the then newly announced actions by Japan’s Ministry of Economy, Trade and Industry (METI) to tighten export controls in trade with Korea. SEMI depends heavily on and is grateful for insights from its International Board, Board of Industry Leaders and various Regional Advisory Boards. They are crucial to our ability to develop and execute industry advocacy strategies that take into account regional idiosyncrasies, geopolitical sensitivities and global supply chain complexities. SEMI is unique in its ability to bring a global perspective to engaging governments around the world in real time. In the case of the trade dispute between Japan and South Korea, we engaged SEMI members in Japan and Korea as we developed our strategy.On the SEMI America’s front, the North American Advisory Board and its Public Policy Committee met at SEMICON West for a spirited discussion on how to best manage our lobbying activities and how regional and U.S. companies should be involved. The committee’s perspectives and guidance will be invaluable as we chart a path forward in these challenging times in global trade.Our Global Industry Advocacy team also continues to build out SEMI Works, SEMI’s comprehensive initiative to develop a talent pipeline and overcome the industry’s longstanding shortage of skilled workers. SEMI Works focuses on stimulating greater interest in STEM careers, aligning STEM course curriculum and industry needs, and connecting students with relevant courses and careers. We are in the process of launching three regional pilot programs that will enable us to develop the SEMI Works business model that we’ll use to scale the program and ensure the initiative is robust and sustainable. At SEMICON West the Global Advocacy team convened regional stakeholders involved in these pilots to share information on opportunities and challenges and to discuss various implementation strategies.At SEMICON West we also facilitated meetings with U.S. government representatives aimed at improving cybersecurity in manufacturing and developing a commercial security model that will strengthen security throughout the supply chain in areas vital to industry growth such as traceability.After nearly 50 years, SEMI still excels in enabling the industry collaborations key to growth and innovation. Collaboration is also a driving force within SEMI Global Industry Advocacy as we continue to work with SEMI members, our various boards and governments around the world to advance the interests of the semiconductor industry.Mike Russo is vice president of Global Industry Advocacy at SEMI.

The U.S. on September 1 will levy a 10 percent tariff on $300 billion (List 4) worth of Chinese goods that until now were exempt from duties, President Trump said today. The trade action makes good on the U.S. president’s commitment to impose the new round tariffs in response to China’s failure to deliver on promises to buy more U.S. farm goods and to stop the flow of the painkiller fentanyl into the U.S. The 25 percent tariffs already in effect on $250 billion in goods will remain in place.The new list includes items used in the electronics industry but also encompasses retail products spanning the U.S. economy including clothing, toys and cell phones, exacting a more direct hit to U.S. consumers. A meeting between China and U.S. trade officials in Shanghai this week apparently did little to ease trade tensions. Both sides plan to meet again in September, though expectations for meaningful progress toward resolving their trade differences then are low.The U.S. believes China backtracked from commitments to changing its practices related to forced technology transfer and intellectual property theft. China denies making the pledges and insists on the removal of all tariffs as part of a settlement.The U.S. actions risk backlash from China including non-tariff barriers to trade such as licensing delays, more stringent business-related inspections, and an accelerated rollout of its unreliable entities list, China’s response to the U.S. decision to blacklist telecommunications giant Huawei. The list includes foreign companies, other organizations and individuals that China sees as national security threats or risks to China’s economy.SEMI will continue to urge both nations to reach an agreement consistent with its 10 Principles for the Global Semiconductor Supply Chain in Modern Trade Agreements. The principles encourage free and fair trade, open markets, and respect of IP among all players in the global electronics manufacturing supply chain.SEMI member companies impacted by the new U.S. tariffs or facing any new non-tariff barriers in China should contact Jay Chittooran, public policy manager in SEMI’s Global Advocacy Office, at [email protected] Russo is vice president of Global Industry Advocacy at SEMI.

On July 1st, Japan’s Ministry of Economy, Trade and Industry (METI) announced updated licensing policies and procedures on the export and transfer of controlled items and their relevant technologies to the Republic of Korea (ROK). METI’s stated purpose for the actions were “in order to ensure appropriate implementation of export control.”In particular, METI will tighten controls on certain items and their relevant technologies as follows: Remove the ROK from its “white list” of trusted partners, limiting the ROK’s preferential treatment for exports Mandate individual licenses for exports of certain chemicals including fluorinated polyimide, photoresist, and hydrogen fluoride – all used in semiconductor and electronics manufacturing – and technology transferred with exports of manufacturing equipment to the ROK. Bulk licenses for the chemicals will no longer be available. METI has indicated that its actions were not intended as punitive, but rather as necessary to ensure proper management of the export control system and the effective tracking of chemicals, materials and technologies that could be used to develop weapons of mass destruction (WMDs). Nevertheless, the trade actions are cause for concern as they could have a negative impact on our members operating in Korea and Japan and the global supply chain in general.After the METI announcement, SEMI immediately consulted its International Board of Directors and assembled a global advocacy response team comprised of SEMI member companies and SEMI regional presidents in both Japan and Korea to assess risks to SEMI members operating in both regions and to the industry’s global supply chain. Additionally, SEMI conveyed its concerns to Japan and ROK trade officials, stressing that the semiconductor industry will bear the brunt of the new measures if the trade dispute escalates.SEMI president and CEO Ajit Manocha said: “We informed both governments of potential impacts of an escalation to SEMI members, their economies and the global supply chain and are encouraging them to resolve their differences. SEMI’s focus is to ensure the global microelectronics supply chain remains strong and intact.”SEMI member companies have stated that METI and the Japan government have provided assurances that trade with the ROK will not be encumbered and that semiconductor companies will see minimal impact regarding export license approvals. To this end, SEMI will continue to engage our members in Korea and Japan, monitor the dispute as it continues to unfold, and facilitate regular meetings between industry and the involved governments to ensure that industry impacts are identified and risks are mitigated. In the event the dispute escalates, SEMI is prepared to take action in accordance with its Global Trade Principles.SEMI released its Global Trade Principles last year to provide guidance to governments around the world in developing policies that benefit both regional economies and the industry. These trade principles are based on SEMI’s four trade pillars of free and fair trade, open markets, supply chain growth, and respect for IP and national security.Member companies negatively impacted by any changes in Japan’s regulatory policies or with any questions should contact their regional SEMI office or Jay Chittooran, Public Policy Manager, SEMI Global Advocacy, at [email protected] Russo is Vice President of Global Industry Advocacy at SEMI.

Wedged among four major tectonic plates, Japan is at the mercy of their abrupt herculean shifts and the earthquakes and tsunamis they can trigger. The fallout can be devastating. The magnitude 9 Great East Japan (Tohoku) temblor in 2011 and ensuing tsunami took nearly 20,000 lives, destroyed 138,000 buildings and cost $360 billion in economic damage.Factories including silicon wafer production facilities owned by Shin-Etsu Chemical and MEMC Electronic Materials – together accounting for 25 percent of the global silicon wafer production – sustained heavy damage. Operations were suspended. The Kumamoto earthquake in 2016 also caused significant damage. The economic cost: as much as $7.5 billion.With disaster risk rising on a global scale, these calamities offer valuable lessons in disaster preparedness and how companies can draw from their experiences to strengthen business continuity planning (BCP).Earthquake experiences and lessons in BCP were the focus of the recent SEMI Japan Members Day as speakers from five semiconductor device and equipment manufacturers offered their BCP strategies to about 150 SEMI members. Following are key takeaways from their presentations. Renesas: Create a robust production plant that is hard to break and easy to fixRenesas Semiconductor Manufacturing’s Naka plant took about 80 days to resume production while its ability to deliver semiconductors was delayed even longer as it recovered from damage caused by the Tohoku earthquake, said Yoshiyuki Miyamoto, Representative Director and President at Renesas. Operations at the company’s Kawajiri plant were disrupted by the Kumamoto earthquake.A key lesson from both earthquakes: The company needed to promote risk visualization from top-to-bottom in the supply chain. With the goal of making its plants easy to repair but hard to break down, Renesas implemented a risk management plan for earthquake preparedness plan to ensure stronger production line resistance and a stable supply to customers. The company ran simulations of multiple earthquake scenarios including aftershocks, enabling it to develop new BCP training and preparedness measures. Sony: Staying transparent about the disaster, sharing and interacting with related companiesYukihide Keigo, a representative from the Sony Semiconductor Manufacturing, showed footage taken the day the Kumamoto earthquake damaged a production line at its Kumamoto Technology Center. Sony is the top manufacturer of imaging sensors worldwide, and the Kumamoto plant is the backbone of that production. The magnitude of the foreshock fell within levels Sony had accounted for in its BCP at that time, and the line was expected to return to full production within a week. However, the magnitude of the earthquake that followed outstripped expectations, and the company’s BCP didn’t hold up. Three and a half months later, the plant had finally fully recovered. The protracted recovery prompted Sony to develop an earthquake preparedness plan using a model that assumed double the magnitude of expectations. For full restoration, the company identified challenges to returning to full operation at each stage of the production line. Then it went even further, developing in-house diagnostics, implementing critical path methods and strengthening earthquake resistance of equipment that manages bottlenecks for the restart of the plant. The revision of its BCP plan led to the establishment of a system to shorten the resumption of production after a major earthquake to just two months.Sony shared the contents of its BCP review with other companies to solicit help identifying any gaps and highlighted its partnership with Renesas in the Semiconductor Industry Association in Japan (JSIA), a committee of the Japan Electronics and Information Technology Industries Association (JEITA), to share materials procurement resources for the purposes of disaster preparedness and business continuity. HORIBA STEC: Steady daily practices protect hundreds of millions of yen worth of products HORIBA STEC’s Aso plant, near the epicenter of the Kumamoto earthquake, suffered heavy damage that cut off electricity and the water supply, yet production in its clean room resumed in just 10 days, said Hiroyuki Koyama, a factory manager at the plant. The plant’s quick recovery stemmed from daily preventive measures implemented before the quake such as connecting freestanding shelves for greater stability, applying thick rubber bands as rails to prevent manufactured goods from falling to the floor, and placing equipment on rolling carriages instead of fixed shelves.The practices saved the Aso plant hundreds of millions of yen in products and materials that otherwise could have been lost in the earthquake. Koyama also offered the reminder that, with regulations governing factory layout and construction differing widely depending on factors such as a building’s age, companies need to tailor their BCPs to the unique characteristics of each building. THK: The key point of dampening earthquakesTHK’s ACE Division develops earthquake dampening and vibration control devices designed to absorb the vibrational energy of an earthquake, though the devices must also be designed for precise analysis of that energy, said Hidemi Murao. Murao provided an overview of the latest technologies and products for dampening earthquake vibrations and shared test results from experimental devices.Murao described how THK’s recently introduced Linear Motion (LM) Guide, an earthquake vibration dampening technology, can significantly reduce building vibrations during a temblor. In a video Murao showed to demonstrate how the guide works, a shelf loaded with equipment rests on a platform equipped with THK’s LM Guide equipment. Simulating an earthquake, the platform shakes vigorously in every direction but the shelf remains steady as the LM Guide dampens the vibrations. The platforms can be installed on floors or underground in buildings or factories to prevent shelves from toppling. Tokyo Electron: The ideal BCP management systemOne risk associated with BCP training is that it can become overly routine, dulling the response of employees in actual disasters, said Tokyo Electron Vice President Tatsuya Aso. To help keep its workers’ skills sharp, TEL held surprise drills with employees assigned to particular BCP roles to test their ability to adapt quickly to when disaster strikes. In addition, TEL has launched surveys in more than 70 overseas locations to optimize safety in these high-hazard facilities.The SEMI Japan Members Day presentations made clear that the issue of BCP transcends boundaries between individuals, manufacturers, regions, and sectors within the global electronics supply chain. Disaster preparedness requires problem-solving across the entire supply chain, with companies sharing technical knowledge, offering mutual aid, and striving for continual improvement. Collaborative is essential. At SEMICON Japan 2019, SEMI will continue to bring companies together to address BCP initiatives and share their technical knowledge with members. Jim Hamajima is president of SEMI Japan.

In testimony today before a U.S. government interagency panel considering tariffs on $300 billion worth of Chinese goods, SEMI called for the removal of about 30 tariff lines, which cover items central to the semiconductor manufacturing process.Mike Russo, vice president of global industry advocacy at SEMI, explained in his testimony that while SEMI strongly supports efforts to better protect valuable intellectual property (IP), tariffs will not help address Chinese trade practices, and will ultimately have significant and unintended consequences.SEMI asserts that these tariffs will harm not only companies operating in the U.S., but other companies as well in the semiconductor supply chain by increasing costs, introducing uncertainty, and most problematically, stifling innovation. Collectively, SEMI estimates that this round of tariffs will cost its 430 U.S. members millions annually in additional duties. All told, SEMI estimates that all U.S. and Chinese retaliatory tariffs will cost members nearly $800 million in annual duties.SEMI’s full written comments note that these tariffs, on top of those already in force and the retaliatory tariffs, will hamstring the industry. The tariffs seem to target firms for simply operating in China. Given that tools, materials, and related products are extremely complex, precise, and difficult to manufacture, it is unreasonable to believe that a constituent component can simply be replaced with a part or tool from another source. Further, this U.S. government approach does not take into account that many items subject to these tariffs are not available, at sufficient quality and cost, from domestic sources, or even non-Chinese sources.Over the past year, SEMI has submitted written comments and offered testimony on the three previous rounds of tariffs, which covered about $250 billion worth of Chinese goods, or about half of all imports from China. The tariffs hit various components in the electronics manufacturing supply chain critical to the semiconductor industry, including materials and equipment used to manufacture wafers, boules, and chips as well as test, inspection and sensing equipment. We urge SEMI members to review the $300 billion U.S. tariff list to determine the level, if any, of impact. We also strongly encourage members to review Chinese retaliatory lists as well. Any SEMI members with questions should contact Jay Chittooran, Global Public Policy Manager at SEMI, at [email protected].

The world of work is transforming. I believe digitalization can be a force for better quality work, unleashing higher productivity and opening up new opportunities to work in different ways. For this to happen, we must set the right framework. We must set the right conditions to enable everyone to reap the benefits from the digital era.One crucial condition is that people have the right skills. That's why the European Commission launched a "Skills Agenda for Europe" in 2016. It sets out 10 actions to make the most of Europe’s human capital, which is crucial to keep Europe on a competitive edge and growing. One of its focus areas for example is better skills intelligence – understanding skills bottlenecks and anticipating needs, including through stronger business-education partnerships. Education needs to be more responsive to labour market needs.The microelectronics industry is one such area in Europe that faces an acute talent shortage. But this technology is crucial for Europe’s competitiveness. Microelectronics enable many of the key technologies and innovations required for advancing a secure, sustainable and digital economy. Data centers, online platforms, autonomous spacecrafts, blockchain algorithms and 5G infrastructure may serve different purposes but share one vital element: microelectronics. The deepening penetration of electronics in the digital economy and new applications is giving rise to industry requirements for a workforce pool with soft skills and expertise in production technologies, software and data science.This is why the European Commission encourages new collaboration models between the worlds of education and industry across all business sectors, including in microelectronics. I welcome the fact that SEMI, the industry association representing the electronics manufacturing supply chain, is fully committed to building and maintaining the needed talent pipeline in Europe. I wish you best of luck in your endeavors. Marianne Thyssen is European Commissioner for Employment, Social Affairs, Skills and Labour Mobility.

SEMI, with 660 other companies and associations, urged the Trump Administration in a letter today not to escalate its trade dispute with China by imposing new tariffs and to negotiate a resolution. The letter comes as the Office of the United States Trade Representative prepares for hearings next week in considering 25 percent tariffs on $300 billion worth of Chinese goods, including a number of products used in semiconductor manufacturing.With intellectual property (IP) the crown jewel of the semiconductor industry, SEMI vigorously supports the stronger IP protections direly needed in international trade. However, we worry that the proposed and recently implemented tariffs will hurt companies in the semiconductor supply chain by introducing significant uncertainty, increasing costs and subjecting companies to retaliatory tariffs while ultimately doing nothing to address our concerns regarding China’s trade practices. We strongly encourage the administration to return to the negotiating table while working with our allies to develop global, enforceable trade solutions. There are no winners in a trade war. Senior industry executives and SEMI staff raised this and other issues with policymakers last month as part of SEMI’s Spring Washington Forum. SEMI will continue to engage the Trump Administration as trade tensions continue.Jay Chittooran is public policy manager at SEMI. He can by reached at [email protected].