Welcome to the SEMI Quarterly Report to Members

Stan Myers Dear SEMI Members,

Welcome to the first issue of the electronic Quarterly Report to Members. This new report summarizes the primary activities and accomplishments of your association for the quarter. SEMI is a global organization with a multitude of project, programs and other activities occurring on your behalf in every major manufacturing region in the world. We hope this new member communication will give you a quick summary of how your membership dues are helping SEMI advance the industries and markets you serve.

As many of you know, in August SEMI announced a reorganization into three dedicated business units for Semiconductor manufacturing, Photovoltaic (PV), and Emerging and Adjacent Markets. Under the review and guidance of the SEMI Board of Directors, these changes were intended to achieve better accountability and improved member service. This report complements those objectives and is organized by Business Unit to help you quickly scan recent (Q3) SEMI accomplishments.

The SEMI reorganization into business units is well underway, but the micro- and nano-electronics industry is undergoing rapid and constant change. The cyclical semiconductor and flat panel display industries, the rapidly scaling PV and LED sectors, and the many developing markets that depend on the products, services and technologies of SEMI member companies, all require an association that is focused, responsive and committed. We believe the new organization will deliver the benefits and results you expect--and the new Quarterly Report to Members will help document those activities.

If there is anything we can do to serve you better, please do not hesitate to contact me or one of our Business Unit leaders.

Stan Myers
President and CEO

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Reorganization of SEMI
SEMI completed its reorganization into three dedicated business units for semiconductor manufacturing, photovoltaic (PV), and Emerging and Adjacent Markets. The anticipated member impact will be more focused, efficient and accountable member service in the industries we serve.

SEMI Member Satisfaction Rises with the Market
Results from the annual SEMI Customer Satisfaction Survey show a dramatic increase in member satisfaction. Overall satisfaction with SEMI rose 22% in 2010, as measured by the percentage of members rating SEMI performance "Acceptable" and "Above Acceptable"-- rising from 69% in 2009 to 91% in 2010. Member satisfaction rose in all regions, among all industry segments, and among all sizes of member companies.

Wallace Named SEMI Chairman; Lee and Tsuneishi Elected to SEMI BOD
In July, SEMI announced the results of its annual elections. Richard P. (Rick) Wallace, president and CEO of KLA-Tencor Corporation was appointed chairman of the SEMI International Board of Directors. Tetsuo (Tom) Tsuneishi, vice chairman of the board, Tokyo Electron Ltd. (Tokyo) and Yong Han Lee, chairman of the Wonik Group (Seoul), were newly elected to the association board.

SEMI Foundation/High Tech U
The SEMI Foundation delivered the 106th SEMI High Tech U program to Albany, New York students in August. More than 3,000 students and 550 teachers worldwide have attended HTU. Sponsors/Donations: Ultratech (donated 2,000 shares of company stock), KLA-Tencor (hosting November 9-11 Silicon Valley program; donated $100,000); Lam Research ($100,000 commitment). Please get involved: host or fund an HTU, volunteer, or donate.

New SEMI Members in Q3 2010
Click here to see who joined SEMI in July, August, and September 2010.

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Jonathan Davis The Semiconductor Report (Q3)
By Jonathan Davis, president, Semiconductor Business Unit

This is shaping up to be remarkable year for SEMI members; one that is characterized by opportunity, action and change. As the industry realizes the significant recovery and transformation, SEMI is also changing with a renewed focus on the concerns of the microelectronics manufacturing value chain. Our semiconductor business unit remains committed to our core mission of providing access to the people, products and information that spur industry advancement and enhance member company profitability. Over the past quarter we've seen notable developments on key issues and activities that support member aims.

SEMI scored significant wins in the past quarter on several policy fronts. In the U.S., a sustained, positive and proactive dialogue with SEMI, member company representatives and several government agencies resulted in improvements to out-dated export control restrictions on etch and cluster tools that cost SEMI members time and lots of money. In Europe and through out the world, SEMI and a committed volunteer group of EHS professionals have made significant progress on critical restrictions related to proposed European Restrictions on Hazardous Substances (RoHS). The industry coalition looks to achieve constructive negotiations that support the important environmental benefits of the legislation, while averting costly penalties to the industry from inappropriate legislative provisions.

As the semiconductor industry continues to evolve, I am encouraged by the continued evolution of SEMICON expositions. This quarter we saw a healthy 17% rebound in total attendance at SEMICON West to over 29,000 and overall exhibitor and attendee satisfaction rose. More importantly, 80% of the visitors to SEMICON West have purchasing influence on equipment and materials, and 70% expect their attendance at the expo to affect their purchasing decisions. It's good to see SEMICON West rebound with the industry.

SEMICON Taiwan also enjoyed a robust growth over last year. Total verified attendance increased 22% to 24,365 and the total number of booths increased 13%. This year's event also continued the trend we are developing at all SEMICON events for increased focus on pavilions, dedicated forums and other "show-within-a-show" features. SEMICON Taiwan we featured eight separate theme pavilions focusing 3D IC, CMP, automated optical inspection, test, III-V materials and other segments. It was an exciting show, worthy of Taiwan's leading role in the industry.

Beyond expositions, we remain very active in helping the industry deal with critical industry issues in 450 mm, EHS and sustainability, government policy, IP and global trade. Some important milestones are summarized below. If you have any questions, comments or recommendations on how SEMI can better meet member needs in the semiconductor industry, please don't hesitate to contact me at jdavis@semi.org.

450 mm
SEMI obtained support from several SEMI members for the completion of a 450 mm economic impact model developed by MIT professor Charles Fine. SEMI also continued discussions and planning with ISMI on 450 mm wafer transition.

SEMICON West 2010
SEMICON West 2010 (July 13-15) welcomed over 29,400 total attendees (a 17% increase over 2009), and featured 629 exhibiting companies. This year's program agenda featured keynotes from Bernard Meyerson, IBM; Gregg Bartlett, GLOBALFOUNDRIES; Andy Bryant, Intel; and Paolo Gargini, Intel and the ITRS.

SEMICON Taiwan 2010
SEMICON Taiwan 2010 (Sept 9-11) welcomed more than 26,000 visitors and conference attendees, with 558 exhibiting companies occupying 1,142 booths. VP Vincent Siew attended the opening ceremony, while Den-Yih Wu, Premier of Executive Yuan, gathered with more than 400 industry leaders at the Leadership Gala Dinner. The show floor featured eight special technology pavilions focused on 3D IC, LED, MEMS, secondary equipment, automatic optical inspection (AOI), green manufacturing, CMP, and compound semiconductors.

European Union Committee of the Regions
SEMI Europe submitted feedback to the European Union Committee of the Regions (CoR) on the issue of simplifying the implementation of the EU Research Framework Programme (FP) for funding of nano-manufacturing research.

European Regulations on the Restriction of Hazardous Substances (RoHS)
SEMI EHS Working Groups continued to work with the EU Commission on the exclusion of semiconductor and photovoltaic manufacturing equipment (SPME) for the European regulations on Restriction of Hazardous Substances (RoHS).

SEMI Industry Research and Statistics
  • Book-to-Bill June 2010: $1.68 billion in orders; book-to-bill ratio of 1.19
  • Book-to-Bill July 2010: $1.83 billion in orders; book-to-bill ratio of 1.23
  • Book-to-Bill August 2010: $1.82 billion in orders; book-to-bill ratio of 1.17
  • Silicon Wafer Shipments: Total silicon wafer area shipments were 2,365 million square inches during Q2, a 7% increase from Q1
*Book-to-Bill: a ratio of 3-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers

SEMI International Standards
Eight new SEMI International Standards were released, including 450 mm-related standards on wafer carriers, development wafers, AMHS transport. Also, SEMI co-organized SEMATECH standards workshop on 3D Interconnect Challenges and standardization opportunities. In other standards milestones, the SEMI International Standards Committee authorized two new technical committees from Korea: the Information and Control (I&C) Committee and the Facilities Committee.

SEMI Hosts Export Control Seminar
As part of ongoing efforts to reform Export Control, SEMI (with SIA and TechAmerica) hosted a seminar with government officials in San Jose. Our advocacy work succeeded when the export control requirements for etch equipment and cluster tools were reduced. With the new regulations, the control for etch equipment will no longer apply to equipment above 65 nanometers. The control for cluster tools is narrowed to only apply when two or more functionally different semiconductor process tools are used.

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Bettina Weiss The Photovoltaics Report (Q3)
By Bettina Weiss, executive director, PV Group

Almost three years have passed since we formed PV Group, our global photovoltaic initiative. It has grown from a small Special Interest Group to a truly global SEMI segment, with close to 500 member companies worldwide. Q3 was particularly exciting on all fronts -- our global PV Standards efforts are making progress, our first-ever North American PV Fab Managers Forum took place during Intersolar North America 2010, and the European Crystalline Technology Manufacturing (CTM) Group has embarked on an ambitious roadmap activity.

SEMI PV Group is establishing strategic relationships and partnerships to bolster our portfolio of services to members. The National Renewable Energy Laboratory (NREL) is actively supporting us in Standards development and manufacturing supply chain coordination. CALSEIA has helped our members and our staff understand the complex California policy landscape. SolarTech introduced our members to downstream Standards needs, permitting and financing issues. PV Group also partners with the Taiwan External Trade Development Council (TAITRA) and the Japan Photovoltaic Energy Association (JPEA). PV Group's partnership with Intersolar in China, Europe, and North America is helping to create a global platform for leveraging people and information. And our market research partners (Greentech Media, EuPD Research, Lux Research, Linx Consulting) provide our members with regular, rich and insightful perspectives of global market and technology trends.

We are constantly on the lookout for new ways of serving the industry, and this quarter was encouraging. We look forward to continued dialogue with you about the most important mandates in PV: Driving down costs in the manufacturing process, supporting efforts to increasing cell efficiency, creating a stable policy environment in all markets and making sure we create robust and sustainable manufacturing supply chains everywhere PV is needed.

Much of what we have accomplished, we owe to you, our members. Not just the traditional segment of semiconductor equipment and materials suppliers, who have accompanied us into PV, but also our new members -- cell, module and component manufacturers, installers, educational institutions and R&D facilities. We thank you all for your confidence in us and invite you to continue the ride towards an exciting and sustainable future for solar energy on this planet!

SEMI International Standards
SEMI published eight new PV standards addressing material purity, specifications and test methods for bulk gases, liquid chemicals and silicon. In addition, the first thin-film standard for substrate sizes was published. SEMI also announced the formation of new PV Automation Standards Committees in Japan and Europe. The new PV Automation Committees will initially focus on efforts related to equipment-to-equipment communication, cell transport carriers, and single substrate tracking.

North American PV Fab Managers Forum
The inaugural North American PV Fab Managers Forum (July 12) was held at Intersolar North America where over 150 PV manufacturers and suppliers convened to discuss critical industry issues and collaboration opportunities. Additional session topics presented by PV Group at Intersolar North America included industry collaboration, public policy and EHS. At SEMICON West, a PV day in the SEMI Theater featured top market research analysts from Gartner, IMS Research, Linx Consulting, Sage Concepts and SEMI.

PVJapan 2010
PVJapan (June 30-July 2), held for the third consecutive year, hosted 44,290 visitors. The Executive Forum was the highlight of the conference where distinguished speakers from Sharp, Sanyo, LG Electronics and Toshiba discussed their business strategies and the future prospects of PV industry.

SOLARCON India 2010
Held just eight months after its inaugural event, SOLARCON India 2010 (July 28-30) attracted more than 4,200 attendees (+24% over 2009). Opening proceedings featured participation by the Honorable Dr. Farooq Abdullah, Union Minister of New and Renewable Energy; Mr. Jaipal Reddy, Union Minister for Urban Development; and Dr. Sri Konijeti Rosaiah, Chief Minister of Andhra Pradesh. For 2011, SOLARCON India will return to its regular fall dates, currently planned for November 9-11, at the Hyderabad International Conference Centre.

U.S. Department of Energy
SEMI developed programs and partnerships for participation in five separate U.S. Department of Energy funding proposals for industry development, standards and technology roadmaps. Proposed scope of work and project funding will be determined in 2011.

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Terry Tsao The Emerging Markets Report (Q3)
By Terry Tsao, president, SEMI Southeast Asia

Hello SEMI Members,

It is my pleasure to welcome you to this section of the Quarterly Report to Members on SEMI accomplishments in emerging and adjacent markets.

Significant progress has been made in developing programs and services for SEMI members serving the LED and HB-LED industry. The first LED Pavilion at SEMICON Taiwan was held from September 17-19 in Taipei to great success. As part of the LED program, SEMI hosted a Friendship Luncheon with the Taiwan Optical Semiconductor Industry Association (TOSIA) that was well attended by leading LED device makers and SEMI members. The successful Taiwan event further demonstrates the success of SEMICON expositions in attracting LED equipment and materials buyers.

In other important SEMI LED news, a North American HB LED Standards Committee has been formed to address standardization opportunities wafers, carriers, process automation and test. Parallel activities are anticipated in Europe, Taiwan, and Japan. Our Opto/LED Fab Watch has also received considerable attention from the industry by tracking capital investments throughout the high-growth LED industry.

In addition to LEDs, this Quarterly Report to Members includes other activities in MEMS and printed and flexible electronics. If you have any questions on the Taiwan market, please don't hesitate to contact me at ttsao@semi.org. For global information on SEMI activities in emerging and adjacent markets, please contact the Emerging Markets Business Unit head, Tom Morrow at tmorrow@semi.org.

LED Pavilion at SEMICON Taiwan 2010
SEMI completed the inaugural LED Pavilion at SEMICON Taiwan, co-organized by the Taiwan Optical Semiconductor Industry Association (TOSIA), comprised of 37 booths and presentations by leading suppliers to the Taiwan LED industry. In addition, SEMI managed a TOSIA friendship luncheon with leading LED manufacturers and SEMI members.

MEMS Forum at SEMICON Taiwan
A second MEMS Forum at SEMICON Taiwan (Sept 8-10) was a success, connecting SEMI members with leading manufacturers, developers and research institutions in Taiwan.

LED Pavilion at SEMICON Japan
The Japan LED Association has agreed to co-organize the LED Pavilion at SEMICON Japan, Dec. 1-3.

Opto/LED Fab Watch Database Updated in August
The Opto/LED database provides an overview of global LED and Optoelectronics fabs. The data includes fab location, theoretical capacity, wafer size, and equipment spending by region. As of August 2010, the report contains information about 200 Opto/LED fabs worldwide. For more information, visit www.semi.org/fabs.

Published New Flat Panel Display Standards
SEMI published new Flat Panel Display Standards on FPD Polarizing Film and Its Materials and 3D Display Terminology.

Petitioned the SEMI International Standards Committee
The SEMI International Standards Committee was petitioned for the establishment of a dedicated LED Standards Committee. Key LED standards committee participants from LED manufacturing, major equipment suppliers and materials companies will lead the standards effort.

SEMI LED Manufacturing Committee
New additions to the SEMI LED Manufacturing Committee include: EV Group, ARC Energy, Synopsys, and Intevac.

Extreme Electronics
The "Extreme Electronics" Pavilion at SEMICON West featuring LED, Printed Electronics, and MEMS achieved consistent "standing room only" crowds and high survey marks from attendees.

Rapid Growth in SEMI Extreme Electronics Online Communities
The three SemiNeedle online communities are growing. We're up to 300+ members on the LED site, 200+ members on the MEMS site, and 200+ members on the Printed Electronics site. Join an online community today:

U.S. Printed PV Manufacturing Center
SEMI has agreed to chair the Industrial Governing Board of the U.S. Printed PV Manufacturing Center, a proposed Department of Energy initiative.

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Upcoming SEMI Events
  • Oct 18-21: Europe Fall 2010 Standards Meetings (Dresden, Germany)
  • Oct 19-21: SEMICON Europa 2010 (Dresden, Germany)
  • Oct 26-28: PV Taiwan (Taipei, Taiwan)
  • Oct 27: SEMI Austin Golf Classic 2010 (Austin, Texas)
  • Oct 28-29: KGD Packaging & Test Workshop (Austin, Texas)
  • Nov 2: SEMI Austin Annual Industry Outlook Forum (Austin, Texas)
  • Nov 4-5: Beijing International Microelectronics Symposium (BIMS) (Beijing, China)
  • Nov 7-11: 2010 Lithography Workshop (Kauai, Hawaii)
  • Nov 8-10: International Trade Partners Conference 2010 (Hawaii)
  • Nov 8-11: North America Fall Standards Meetings (San Jose, California)
  • Nov 9-11: High Tech U: KLA-Tencor hosts HTU (Milpitas, California)
  • Nov 29-31: High Tech U: ATIC in Abu Dhabi UAE sponsors HTU (Singapore)
  • Dec 1-3: SEMICON Japan 2010 (Tokyo, Japan)
  • Dec 7: Japan PV Standards Committees (Tokyo, Japan)
  • Jan 9-12: Industry Strategy Symposium 2011 (Half Moon Bay, California)
  • Jan 12: Taiwan PV Standards Committee Meeting (Hsinchu, Taiwan)
  • Jan 12-14: Strategic Materials Conference 2011 (Half Moon Bay, California)
  • Jan 26-28: SEMICON Korea 2011 (Seoul, Korea)
  • Jan 26-28: LED Korea 2011(Seoul, Korea)
  • Mar 15-17: SEMICON China 2011 (Shanghai, China)
  • Mar 15-17: FPD China 2011 (Shanghai, China)
  • Mar 15-17: SOLARCON China 2011 (Shanghai, China)

For a full list of events, click here.

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