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Welcome to the SEMI Quarterly Report to Members

Stan Myers Dear SEMI Members,

Welcome to this issue of the Quarterly Report to Members, concluding the year 2010.

This quarter and throughout 2010 was highlighted by our continued efforts in implementing our new strategy based on business unit organization and cost reduction. Based upon these efforts, SEMI year-end financial performance will be dramatically improved over 2009 with an expected return to positive net income next year. Last July, we informed the SEMI Board of Directors of a series of cost containment measures to address our unfavorable financial situation. Since then, we have implemented difficult but necessary cost reductions throughout our global operations totaling approximately $4 million. At the same time, we reorganized into three business units (Semiconductor, PV, and Emerging and Adjacent Markets) to better address the diverse interests of SEMI members. To enable these changes, we have implemented new processes and systems that support the reorganization and financial structure, including new goals systems, budgeting systems, and reporting and accounting methodologies.

We are confident that in 2011 SEMI will reach its financial forecast and member satisfaction goals. SEMI will be above-plan at SEMICON expositions in Korea (Jan 24-26) and China (March 15-17) and on-plan for SEMI events throughout the first half of the year. With exploding demand in emerging markets, booming sales for tablets, smart phones and LEDs, and capital spending forecasts up nearly 10 percent over 2010, we anticipate a healthy supply chain and a return to stable revenues from SEMI programs and expositions.

For additional information on SEMI activities and accomplishments for Q4 of 2010, please see the three SEMI business unit sections below.

Stan Myers
President and CEO

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SEMI Foundation/High Tech U
The SEMI Foundation delivered a total of 18 programs in 2010 reaching over six hundred students and teachers. Programs were held in Austria, France, Japan, Singapore and the U.S. An overall total of students reached first-hand now exceeds 4000. In the fourth quarter, we were proud to welcome three new sponsors, ATIC (Abu Dhabi, UAE), Novellus (San Jose, Calif.) and KLA-Tencor (Milpitas, Calif.). We anticipate rolling out at least 18-20 programs per year for the next three years.

New SEMI Members in Q4 2010
Click here to see who joined SEMI in October, November, and December 2010.

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Jonathan Davis The Semiconductor Report (Q4)
By Jonathan Davis, president, Semiconductor Business Unit

2010 was a year of recovery for our industry and a time for both organizational changes and progress for SEMI.

A major transition occurring in the industry is the development of 3D-IC technology. SEMI has programs and events around the world to educate and collaborate on the important trends. In addition to programs and seminars at regional events, a major milestone was accomplished on December 7 when SEMI formed a 3D-IC Standards Committee. The group will strive to promote mutual understanding and improved communication between users and suppliers; enhance the manufacturing efficiency, capability and shorten 3D-IC time-to-market; and reduce manufacturing costs.

Participation and attendance at SEMI events and expositions improved in this recovery year. SEMICON Japan 2010 grew 21 percent with more than 39,300 verified visitors and 900+ exhibitors. SEMICON Europa 2010 increased attendance by 7 percent, with 350 exhibitors. It was the first time that the Plastic Electronics Conference and Exhibition was co-located with the event. In November, the International Trade Partners Conference (ITPC) held its 25th conference since 1984. ITPC brings together industry leaders to learn, network, and collaborate on compelling issues that face the industry. This year's focus was on "Transforming the Industry through Innovative Solutions and Collaboration," and featured as the special conference keynoter Mr. Yoon-Woo Lee, vice chairman and chairman of the Board of Directors of Samsung Electronics Company.

SEMI continues to work to advance our members' interests before governments and regulatory authorities around the world. In the U.S., SEMI scored public policy wins on longstanding priority issues for our members. In December, President Obama signed off on the $859 billion Tax Compromise Bill. SEMI worked diligently to extend the R&D tax credit so we are thrilled that the bill contains a two-year extension of the R&D tax credit, one of our top policy priorities. The credit is retroactive to January 1, 2010 and will run through December 31, 2011.

If you have questions or comments on how SEMI can better meet your needs, please don't hesitate to contact me at

SEMI International Standards Forms 3D-IC Standards Committee
SEMI worked with SEMATECH to gather industry input and identify standardization issues for the new 3DS-IC Standards Committee. The committee will create consensus-based specifications and guidelines that will promote improved communication, enhance the manufacturing efficiency and shorten 3DS-IC time-to-market, and reduce manufacturing cost. The 3DS-IC Standards Committee will initially consist of three Task Forces: Bonded Wafer Pair, Inspection and Metrology, and Thin Wafer Carrier.

SEMI Advances Russia-European Cooperation on Microelectronics
In December 2010, SEMI Europe coordinated and hosted a delegation of Russian semiconductor leaders in Brussels to discuss greater European Union (EU) cooperation in the development of Russian microelectronics industry. The delegation received press coverage in Russia and Europe and emphasized the critical role that semiconductor manufacturing plays in economic development. SEMI is working with Mikron and other Russian companies to overcome barriers. EU support, research initiatives, and local and national support from Russian governments and institutions are all being addressed.

International Trade Partners Conference 2010
At the 25th International Trade Partners Conference (ITPC) 2010 (November 8-10), industry leaders from all over the globe convened in Hawaii to discuss and collaborate on global manufacturing, technology and trade issues for the semiconductor and adjacent industries. The program featured keynote speaker Yoon-Woo Lee, vice chairman and chairman of the Board of Directors at Samsung Electronics, and three executive panels: Pan-Asian Economics, Adjacent Markets, and Semiconductor Technology.

SEMICON Japan 2010
SEMICON Japan 2010 was held December 1-2 in Tokyo. Attendance was up 21 percent with over 39,300 verified visitors and 900+ exhibitors. The event featured four keynote speeches by executives from METI, NTT DOCOMO, Toshiba, and Toyota. Also new for 2010: a Secondary Equipment and Services Pavilion and co-location with Automotive Telecommunications Technology Tokyo.

SEMICON Europa 2010
SEMICON Europa 2010 (October 19-21) increased attendance from 7,000 to 7,500 attendees, with 350 exhibitors in 2010. The conference was praised for the high quality of the speakers. This year's event also inaugurated the first co-location with the Global Plastic Electronics Conference and Exhibition. The importance of the event was recognized with the presence of Saxony's Minister President Stanislaw Tillich.

Teradyne Gives SEMI License to STDF to Develop Industry-wide Datalog Standards
Teradyne granted SEMI a worldwide royalty-free license for Standard Test Data Format (STDF) along with any intellectual property rights. SEMI can use, distribute, modify and support STDF. Under the supervision of SEMI International Standards, the license of STDF will ensure standards development and new products using STDF and future extensions will be unencumbered by IP ownership conflicts.

KGD Packaging & Test Workshop 2010
The 17th Annual International KGD (Known Good Die) Packaging and Test Workshop 2010 (October 28-29) focused on semiconductor die products test, assembly, manufacturing, and business issues in the microelectronics industry. Co-organized by SEMI and TechSearch International, the theme was "Challenging Issues for KGD as the Industry Moves to Finer Geometries." The keynote presenter was Dr. Bill Bottoms, chairman and CEO of Third Millennium Test Solutions and chairman of the ITRS Roadmap Committee.

SEMI Coorganizes the Beijing International Microelectronics Symposium
With the Beijing Semiconductor Industry Association and CASPA, SEMI coorganized the Beijing International Microelectronics Symposium (BIMS) conference which took place on November 4-5, 2010.

U.S. Public Policy Update
In December, President Obama signed off on the $859 billion Obama Tax Compromise Bill, which contains a two-year extension of the R&D tax credit, one of SEMI's top policy priorities. Regarding the move to ban Conflict Minerals, SEMI submitted comments to the U.S. SEC about our industry concerns, including our recommendation that companies should report only the minerals directly incorporated or specified for inclusion in products. In terms of Rare Earth Minerals, SEMI supports the DOE goal of developing substitutes for Rare Earth Minerals, lobbying for continued appropriations.

SEMI Industry Research and Statistics
  • Book-to-Bill: October 2010: $1.59 billion in orders; book-to-bill ratio of 0.98; November 2010: $1.51 billion in orders; book-to-bill ratio of 0.96; December 2010: $1.53 billion in orders; book-to-bill ratio of 0.90.
  • Silicon Wafer Shipment Forecast: For the semiconductor industry, polished silicon shipments will total 9,142 million square inches in 2010 (39% year-on-year growth), 9,702 million square inches in 2011 (6% growth), and 10,168 million square inches in 2012 (5% growth).
  • Silicon Wafer Shipments: Total silicon wafer area shipments were 2,489 million square inches during Q3, a 5% increase from Q2.
  • Semiconductor Equipment Sales: SEMI projects 2010 semiconductor equipment sales will reach $37.54 billion, an increase of 136% over 2009.
  • Installed Fab Capacity: The World Fab Forecast shows 8% annual growth in installed fab capacity for both 2010 and 2011, then 9% growth for 2012.
*Book-to-Bill: a ratio of 3-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers

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Bettina Weiss The Photovoltaics Report (Q4)
By Bettina Weiss, executive director, PV Group

Since its inception, PV Group has been steadily evolving. We strive to develop programs and lead efforts that help our members and advance industry growth. This year, we supported you by making tangible progress in international standards development, roadmaps, and events.

Cost reduction continues to be the main driver for PV and has been one of the primary motivators for the European special interest group for crystalline cell manufacturing technology (CTM). Over the last year, SEMI PV Group has been facilitating the early CTM roadmap efforts, with the primary goal to develop an International Technology Roadmap for PV-- akin to to the ITRS in semiconductors, but tailored to the specific requirements for c-Si manufacturing. Status updates will be presented at SEMI and PV Group events across the globe in 2011. Industry standards are one of the natural outcomes of a roadmap activity. The Global PV Standards Committee is one of the most active committees in the SEMI International Standards Program. So far, a total of 15 global PV Standards have been developed and published. In Q4, SEMI published three new PV standards, including a Test Method for Lifetime Measurement, Phosphorus Oxychloride, and Light Scatter Measurements.

The recently formed PV Automation Standards Committees in Japan and Europe will initially focus their efforts on equipment-to-equipment communication, cell transport carriers, and single substrate tracking. SEMI and PV Group events provide an ideal platform to share these important developments and engage with other stakeholders. In 2010, PV Group was a major part of SEMI expositions and conferences all over the world -- SOLARCON expositions in China, India, and Korea, a SOLARCON Pavilion in Singapore, and of course our partner shows in North America, Taiwan and Japan. Our European PV Fab Managers Forum continues to grow and attract top tier representatives from the entire PV manufacturing supply chain. 2010 was the first year we introduced a PV Fab Managers Forum in North America. Rounding out the year was our 5th SEMI Photovoltaic Technology Symposium in Japan in December.

Much remains to be done, but we believe that meaningful, global and continuous dialogue among manufacturing supply chain players is the heartbeat of the industry, and with your help we can do even more!
I invite you to share your thoughts about SEMI, PV Group, our priorities and activities worldwide -- and how we can serve you better. Please send me an email at

Heinz Kundert Presents at Rusnanotech 2010
Heinz Kundert, president of SEMI Europe, gave the solar PV industry overview speech at Rusnanotech 2010, one of the most influential technology forums in Russia. Dmitry Medvedev, president of the Russian Federation gave the keynote address. There are many solar initiatives in Russia and Rusnano is engaged to push this market up from silicon production to installations. The Rusnano forum, which is supported by the Russian Corporation of Nanotechnologies (RUSNANO), provides a platform for scientists and tech industry players from around the world to discuss Russia's developing innovation sector and the outlook for its nanotechnology industry. More than 10,000 people from over 38 countries are estimated to have participated.

SEMI International Standards
SEMI published three new PV standards addressing test methods for Lifetime Measurement in Silicon Wafers, Ingots, and Bricks; Chemicals; and Measurements for PV Materials. In addition, an auxiliary report for Test Method for Measuring Trace Elements in Silicon Feedstock was approved. 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. Initially formed in 2007, the PV Standards Committee has rapidly become one of the most active committees in the SEMI International Standards Program, and has now developed and published a total 15 PV Standards.

PV Taiwan 2010
PV Taiwan (October 26-28), which grew 25 percent over the previous year, hosted 11,437 visitors from 57 countries. The PV Taiwan CEO Forum was the highlight of the conference where distinguished speakers from Motech Industries, Gintech Energy Corporation, Topcell Solar International (a subsidiary of UMC), Auria Solar, Manz Automation AG, and MEMC discussed their business strategies and future prospects for the PV industry.

Fifth SEMI Photovoltaic Technology Symposium
On December 3, in conjunction with SEMICON Japan, the 5th SEMI Photovoltaic Technology Symposium was held. During this symposium chaired by the National Institute of Advanced Industrial Science and Technology (AIST), leading companies discussed their strategies and advanced technologies for achieving lower manufacturing cost and higher efficiency to survive in the competitive global PV market.

Top U.S. Solar Policy Extended
A big win for our policy initiatives included the extension of the Sec. 1603 Treasury grant program that allows alternative energy projects, such as Solar PV, to claim the 30 percent investment tax credit (ITC) as a grant. This was one of our top four solar PV priorities. The one year extension of this program will allow many solar projects to be funded that otherwise would not have the necessary upfront capital to get started. In addition, it keeps the program alive marking the first time it has been renewed, thus giving it a greater chance of being renewed again when it expires at the end of 2011.

Joint Forces for Solar
PV Group joined forces with EuPD Research and Intersolar North America to present the "US Photovoltaic Intelligence Breakfast Briefing Forum" on October 14. The event covered an "Overview of the U.S. Photovoltaic Market", "Insights into the U.S. Downstream Market – California" and finished with a panel discussion.

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Tom Morrow The Emerging Markets Report (Q4)
By Tom Morrow, EVP, Emerging Markets Business Unit and CMO, SEMI

The Emerging and Adjacent Markets business unit concluded the year by establishing strong emerging market pavilions, programs and/or partnerships in every region and every SEMICON exposition. A critical milestone was reached in the quarter with the establishment of a dedicated LED Standards Committee comprised of senior leaders from the LED manufacturers, substrate suppliers, and equipment and materials companies. This culminated a year-long effort of LED industry engagement, including the establishment of the SEMI LED Steering Committee, currently comprised of over 25 SEMI member companies.

Other highlights of the quarter were the successful co-location of the Plastic Electronic Conference with SEMICON Europa, and the highly successful Emerging Technologies Pavilion and program at SEMICON Japan.

For global information on SEMI activities in emerging and adjacent markets, please contact me at

SEMI International Standards Forms HB-LED Standards Committee
The SEMI International Standards Committee approved the petition for the HB-LED Standards Committee on November 4, 2010. The Committee met for the first time on November 11 and initiated standards Task Forces on wafers, carriers/automation, and assembly. The Committee and Task Forces are comprised of industry leaders in HB-LED devices, sapphire wafers, MOCVD wafer processing, and key equipment and materials suppliers to the LED industry.

MEMS Technology Forum at SEMICON Europa
A successful MEMS Technology Forum, organized by the SEMI MEMS Europe Committee, was held at SEMICON Europa in October with 75 attendees. Speakers included key industry leaders from Bosche, X-Fab, Analog Devices, Nokia, STMicroelectronics, Multitest, EV Group, Freescale, Colibrys and more.

Plastic Electronics Co-located with SEMICON Europa 2010
The successfully concluded first co-location of the Global Plastic Electronics Conference & Exhibition at SEMICON Europa brought the latest developments in organic, printed and flexible electronics to our key European stakeholders. The keynote speech was provided by this year's Nobel Prize winner for Physics, Dr. Kostya Novoselov, for his work on graphene.

Next Generation Technology Pavilions at SEMICON Japan 2010
Approximately 16,000 people visited the first New Technologies Pavilion at SEMICON Japan 2010. The event included 65 exhibitors from LED, MEMS and other emerging industries. Complementing the exhibition was a dedicated presentation area that included a MEMs technical symposium (200 attendees) and a special presentation/exhibit area supported by the Japan LED Association.

SEMI Opto/LED Fab Watch Database Updated in November 2010
Looking at year-over-year capacity growth by industry segment, since 2004, the LED segment stood out. The LED industry has shown huge growth rates of installed capacity, in the double-digit range for the past six years. From 2007 to 2010, at least 12 LED fab projects began construction annually with 22 beginning in 2010.

Extreme Electronics Online Communities Continue to Grow
The three SemiNeedle online "virtual media" communities continue to grow. Join an online community today:

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Upcoming SEMI Events
  • Jan 26-28: SEMICON Korea 2011 (Seoul, Korea)
  • Jan 26-28: LED Korea 2011(Seoul, Korea)
  • Jan 26-28: SEMICON Korea Standards Meetings (Seoul, Korea)
  • Jan 28: Japan FPD Technical Standards Committee Meetings (Tokyo, Japan)
  • Jan 31: Taiwan PV Standards Committee Meeting (Hsinchu, Taiwan)
  • Feb 9: LED Webinar Series (Part 1): HB-LED Manufacturing Growth & Transition
  • Feb 27-Mar 1: Industry Strategy Symposium Europe 2011(Grenoble, France)
  • Mar 8: CAST Workshop (San Jose, CA)
  • Mar 15-17: SEMICON China 2011 (Shanghai, China)
  • Mar 15-17: FPD China 2011 (Shanghai, China)
  • Mar 15-17: SOLARCON China 2011 (Shanghai, China)
  • Mar 20-22: PV Fab Managers Forum Europe (Berlin, Germany)
  • Mar 23: NE Forum: Where Will the Road Lead us? ITRS & More Moore (Albany, NY)
  • Mar 28-31: NA Standards Spring Meetings (San Jose, CA)
  • Apr 8, 13, 19, 21, 22: Japan Technical Standards Committees (Tokyo, Japan)
  • May 11-13: SEMICON Singapore 2011 (Suntec, Singapore)
  • May 15-18: ASMC 2011 (Saratoga Springs, NY)
  • May 31-Jun 2: SEMICON Russia 2011 (Moscow, Russia)
For a full list of events, click here.

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