By Stanley Myers, President and CEO, SEMI

Protection of intellectual property (IP) rights is an important area of concern for the semiconductor manufacturing industry. In a competitive global business environment, IP protection is essential to the survival of equipment and materials suppliers, enabling them to invest the significant R&D funds needed to sustain technological advancement of the semiconductor industry.

In recent years, suppliers have been increasingly funding a larger portion of the escalating R&D costs needed for the continued success of the semiconductor device industry. These challenging conditions pose a serious threat to the well-being of the entire electronics supply chain, where IP has always been the main engine for growth. Continued IP violations of various forms undermine the development of the next generation equipment and materials needed to remain on the Moore’s Law technology curve.

In response to calls from our members to support efforts in protection and enforcement of IP rights, SEMI recently commissioned a detailed study on the extent and impact of IP challenges facing the industry. A white paper, based on the survey findings, has been developed and will be published this month.

About 90 percent of respondents reported that they have experienced some form of IP violation. More than half of the companies surveyed have taken legal action against IP violations, approximately 56 percent were not satisfied with the outcome. Legal processes are slow, expensive and unpredictable. More than 60 percent of the companies have experienced adverse economic impact.

Surprisingly, more than 50 percent of the companies reported IP-related issues with their device-making customers, which was obviously seen as a sensitive issue that suppliers are reluctant to confront or discuss in detail.

To address these issues SEMI will focus on public policy and work with governments to foster global IP protection. We will also drive customer dialog and work with SEMI member companies to promote a global culture of respect for the industry’s IP assets as well as providing IP management education to our members.

For more information on IP-related resources from SEMI, including a downloadable version of the IP White Paper, please visit http://www.semi.org/ipwhitepaper.