Michael Hall

In the latest episode of the SEMICON West 2023 podcast series, Francoise von Trapp of 3D InCites spoke with Weiss and Bindiya Vikal, CEO and Founder of Resilinc and one of the panelists, about how to navigate the complexities of the semiconductor supply chain.

Speaking to nearly 300 executives gathered at the Industry Strategy Symposium (ISS) 2022 in early April, Inna Skvortsova, Market Analyst on the Market Intelligence Team at SEMI, presented upbeat industry forecasts for 2022 and beyond.

U.S. consumers are flush with cash, the American economy is hurtling back from the depths of the COVID-19 pandemic, and the semiconductor industry is flying high on skyrocketing chip demand, with chip equities soaring since the initial outbreak in early 2020 as virus outbreaks worldwide supercharged demand for the digitization of everything from factories to home offices. “Wow, what a difference a year makes,” said Jennie Raubacher, Global Head of Semiconductor Electronics Investment Banking at Wells Fargo, speaking at a recent SEMI webinar. The two rounds of government stimulus payments in 2020 and 2021 gave many U.S. households the safety net to withstand the heaviest blows dealt by the COVID-19 pandemic and stoked consumer spending that has helped lift a hobbled economy. Durable goods spending in the U.S. has also seen a sharp rebound, surging more than 60% from its April 2020 trough, Raubacher said. The twin forces have driven a blistering U.S. economic recovery after GDP shrunk about 10% by the second quarter of 2020 only to bounce back in the first quarter of this year to roughly $19 trillion, regaining the lost ground to match the GDP charted at the end of 2019. With the U.S. economy continuing to gain steam, inflation has, as expected, edged higher, with price increases particularly acute in used vehicle and lumber markets. Despite surging prices, Wells Fargo sees inflation moderating as durable goods demand slows, easing pressure on interest rates, Raubacher said. Equity Valuations at Record Highs Heady semiconductor stock prices are not new. Over the past 15 years, equity prices of chip companies in the S P 500 have grown more than 460%, outpacing the 230% jump in value of the S P 500 index overall, Raubacher said. And chip stocks continue to shine. Since early 2020, when the spread of COVID-19 hit its rapid clip, the recognition of the growing importance of chips to economies around the world has exploded. That dynamic joined secular technology trends including autonomous driving development, industrial and factory automation, 5G infrastructure buildouts, data center expansions, and smart city and smart home innovation fueled by the Internet of Things (IoT) as key drivers of semiconductor stock valuations. With its price/earnings (PE) ratio now at more than 21x, the S P 500 is well above its historical average of 15x PE. “The S P 500 valuation is at record high any way you look at it, and valuation multiples across the board, currently at 3x Next Twelve Months revenue, have increased dramatically from historical averages,” Raubacher said. Semiconductor stock valuations are on similar trajectory, with the SOXX index now at 15x Next Twelve Months EBITDA (earnings before interest, taxes, depreciation and amortization). “While semiconductor stocks may seem highly valued compared to historical levels, the chip industry has grown faster and expanded profitability by a wider margin than S P 500 companies,” Raubacher said. With that differential, “semiconductor equities are not as expensive as they may seem at first glance.” Earnings expansion and valuation multiple increases for the chip industry over the past 15 years have translated into a more than 500% jump in market capitalization, compared to a 300% increase for the S P 500 excluding chip companies, she said. Chip company revenue growth in the first quarter of 2021 was predictably low due to seasonality, dipping 2.4%, though dropped less than the historical average, Raubacher said. Second-quarter revenue growth for the industry is expected to hew to the historical average of 6%. Semiconductor growth forecasts by market analysts for 2021 range widely from 6% to 17% year-over-year, she added. Chip Companies Raise Capital at Record Pace In 2020 and 2021, semiconductor companies have raised an unprecedented $82 billion in capital to finance maturing debt and acquisitions, a wave that will “likely catalyze further consolidation in the sector,” Raubacher said. None of the financing has stemmed from liquidity crunches. Since Raubacher joined Wells Fargo 10 years ago to lead its semiconductor practice, the group has executed more than 175 transactions including $40 billion in mergers and acquisitions and $360 billion of financing for its semiconductor industry clients. “With a strong macroeconomic backdrop and demand environment, relatively low interest rates, semiconductor companies showing strong business fundamentals and robust valuations, we expect a pickup in M A activity,” she said. Growth Forecast Across Most Semiconductor Applications The next four years will see the chip industry grow across most applications including wireless communications, consumer electronics, transportation and medical. Automotive and industrial/aerospace will lead the way, expanding at an expected compounded annual growth rate of 14% and 10%, respectively, from 2020 to 2025 to “drive a significant portion of the TAM expansion during that period,” Raubacher said. Across all applications, the semiconductor industry is expected to grow at a 6.8% CAGR from 2020 through 2025, adding $183 billion in revenue by the end of the forecast period, she said. ESG Rises in Importance For their part, investors now focus on more than pure business performance when valuing individual companies. The ability of businesses to reduce their carbon footprint, promote workplace diversity and take other steps to serve the greater good as part of Environmental, Social and Governance (ESG) programs are carrying more weight in valuation models. “Investors are paying more and more attention to ESG initiatives and targets,” Raubacher said. “On the debt side, we’re seeing things like green bonds and interest rate reductions tied to ESG targets. Only a few semiconductor companies have incorporated ESG measures into their financing, so it’s still early days. It really comes down to the metrics you can track in your companies and the goals and targets you can commit to. It will be a very company-specific approach rather than an industry standard.” In the chip industry, Raubacher noted that ESG targets are geared not only to manufacturing equipment and processes in fabs and other semiconductor facilities throughout the supply chain, but increasingly also to chips themselves. As technology innovation continues to spur the development of chips to power more electronics for consumers and businesses, their proliferation comes at a cost: greater energy consumption. The upshot is that semiconductor makers are becoming more focused than ever on power-efficient designs to bolster their ESG initiatives, Raubacher said. Many semiconductor players across the supply chain are reducing their carbon footprint by switching to energy-saving equipment and reducing water waste, Raubacher said. At the same time, more semiconductor executives are recognizing the rising importance of highlighting corporate achievements across all aspects of ESG. More Governments See Vital Importance of Semiconductors As shelter-in-place orders took hold in countries worldwide after the initial COVID-19 outbreak, work-from-home offices, online shopping, virtual classes and remote doctor’s visits became the norm. The electronics at the heart of this connectivity – born of both necessity and convenience – and the chips that power them took on outsized importance around the world. Geopolitical skirmishes intensified and supply chains across the semiconductor industry were reimagined and redrawn. Governments jockeyed for advantage in the race to build new semiconductor manufacturing facilities and upped their chip investments. An acute chip shortage that started in the automotive industry and quickly spread to other sectors magnified just how pervasive and vital semiconductors had become in making the world go round. “There’s no question that the semiconductor industry is vitally important to global and national economies as governments around the world now recognize its strategic importance,” Raubacher said. That puts the industry in an even stronger position to help lay the regulatory groundwork for its own future. “There’s a unique opportunity for semiconductor industry executives to shape the public policies that could impact the direction of the industry for the next 30 years,” she said. More than 750 people attended the June 2nd webinar, Surging Chip Demand, Digital Transformation, and the Pandemic – What’s Next?, sponsored by SEMI members Brooks Automation, Hitachi, JECT, KLA and TEL. Sven Smit of McKinsey Company also delivered his talk Leading in COVID-19 Exit at the event.

The United States leads the world in COVID-19 vaccine availability and is on pace to amass the supply necessary to inoculate its full population by July, a leading business consulting firm said at a recent SEMI webinar.

Electronics innovation is inching tantalizingly closer to the day when treating neurological disorders such as epilepsy and migraine could be as easy and convenient as dropping into a medical clinic for a minor medical procedure – brain surgery. What today is highly invasive surgery promises to be reduced to a doctor’s office visit as chip engineers work to tether the delicate, complex neurochemical workings of the human brain to the hard wiring of electronics. The goal is to use electrical stimulation to trigger the release of therapeutic doses of natural brain chemicals using small implantable devices in order to restore normal brain functioning, reduce human suffering and help slash the financial burden to economies around the world. The advances come as neurological disorders remain the leading cause of disability worldwide, afflicting up to 1 billion people, a number projected to rise sharply in the years to come, according to the World Health Organization. In 2015, conditions including dementia, epilepsy, multiple sclerosis, Parkinson’s disease and stroke accounted for more than 94 million disability-adjusted life years (DALYS), the number lost globally to ill-health, disability or early death – a total expected to swell to over 103 million by 2030. In the U.S. alone, brain diseases cost nearly $800 billion each year, according to a paper published in the Annals of Neurology in 2017. Bioelectronics Innovation Outpaces Drug Development The trendlines are heightening the urgency to develop new, effective medical treatments, yet traditional drug development alone may not be able to keep pace: The journey to create drugs ready for pick-up at your local pharmacy takes, on average, 10 years from the time they are hatched in the lab. “Unfortunately, pharma is unlikely to help address this problem because drug discovery is becoming slower and more expensive,” George Malliaras, Prince Philip Professor of Technology at the University of Cambridge, noted in his presentation, Electronics on the Brain, at last month’s virtual FLEX 2021 conference. In marked contrast, microelectronics are “becoming cheaper and faster every year.” Dating back to the 1950s with the development of implantable pacemakers to re-establish normal heart rhythms, bioelectronics medicine could help demystify how the brain processes information and lead to more effective treatments for neurological disorders. The field has come a long way since devising cochlear implants to treat hearing impairments in the 1970s, designing spinal cord stimulators to relieve chronic pain in the 1980s and targeting the brain with electrical impulses to help relieve Parkinson’s disease symptoms and neuropsychiatric disorders in the 2000s. ​Deep Brain Stimulation Implants Help Treat Neurological Disorders Deep brain stimulation involves implanting electrodes in the brain through small holes in the skull to send electrical impulses to specific target areas. Used in the U.S. since 1997 to treat Parkinson’s disease, deep brain stimulation can improve motor skills in patients suffering from other conditions too such as dystonia, tremors and epilepsy, enabling them to “function normally, with the flip of a switch,” Malliaras said. Researchers are even testing the technology to treat autoimmune and other disorders not originating in the brain. But the large, rigid electrodes used in the surgery are hostile to the soft, subtle confines of the brain. What’s more, implanting the devices is invasive, with multiple follow-up surgeries typically needed to replace batteries, reposition electrodes or replace deteriorating electrical leads. To overcome these drawbacks, engineers are now designing electronics that can process complex neurological signals to treat brain disorders while conforming to its soft tissue. Malliaras said that means developing electronics capable of interacting with the diverse chemicals the brain uses to bridge the tiny gaps between neurons, called synapses, in order to transmit the neurochemical impulses that give rise to thinking and behavior. Mixed Conductors Form Key Connection Between Electronics and Brain Mixed conductors, materials that can transmit brain signals both ionically and electrically, promise to form this key connection by enabling the development of high-resolution cortical electrodes that monitor neurons without penetrating the brain. They’re also a springboard to the development of flexible pin-sized electronic devices that make neurosurgery much less invasive. That brings new hope for more effective treatments of neurological disorders like epilepsy. Traditionally, the first line of defense against seizures has been antiepileptic drugs, an ineffective treatment since 30% of patients are resistant to the medications, Malliaras said. Another drawback are side effects that include short-term memory loss, fatigue, blurred vision, speech impairments dizziness, nausea and weight loss. Resective surgery – disconnecting the diseased portion of the brain that causes seizures – is often the next option, but is not possible in cases when the procedure would risk damaging circuitry that controls cognition and behavior. Flexible Substrates Fuel Development of Tiny, Expandable Bioelectronics Devices With recent advances, studies on lab rats show that the miniature electrodes designed using flexible substrates made possible by photolithography can conform to the brain’s curvatures and creases to measure the slight electrical signals emitted by individual neurons without penetrating brain tissue and deliver drugs to prevent seizures in animals. Measuring just micrometers in width, these horseshoe-shaped microfluidic devices can pump GABA, a natural neurotransmitter that acts as a brake against neuronal excitability throughout the nervous system, through their minute perforations into the ion exchange membrane of the brain to prevent epileptic seizures. “The data from the research is very exciting, but the path to the clinic is long,” Malliaras said. Still, the findings are a step forward in better understanding the brain and treating its pathologies. Today, microfluidic devices are under development to localize drug delivery in order to bypass the blood-brain barrier and destroy remaining brain cancer cells after a tumor is removed. The devices promise not only to improve cancer treatment since a broad array of cancer drugs can’t cross the protective barrier, but to enable doctors to administer cancer-fighting drugs in smaller doses to help reduce side effects. Implantable electronics today are used to bring relief to sufferers of chronic pain. However, the sizeable paddle-type electrodes involve invasive surgery under general anesthesia and a hospital stay of a few days. An alternative is to implant smaller flexible devices through an outpatient spinal tap with local anesthesia, an approach with its own disadvantages. The devices are less efficient than paddles in delivering electrical stimulation and tend to shift position as the body moves, so are seen as an unreliable solution. That leaves patients to choose between an effective treatment requiring invasive surgery and a less intrusive but less effective alternative. One promising solution combines bioelectronics with soft robotics to enable expandable implants containing microfluidic channels that can be activated mechanically. The device’s malleable paddle electrode can be rolled up inside a needle, inserted with a final tap and then pneumatically unrolled for treatment. While the device so far has been tested only on human cadavers, it could spur the design of a broader category of expandable microfluidics devices that minimize the invasiveness of neurosurgery and get patients back on their feet sooner. The tiny flexible electronics could be available to veterinarians to treat dogs in as soon as next year, Malliaras said, and “hopefully someday in the not-to-distant future they’ll be used to treat human patients.” Michael Hall is a marketing communications manager at SEMI.

In much of post-lockdown China, urban life is humming. The streets of Beijing and Shanghai are bustling with traffic, smog again shrouds city skylines with the resurgence of economic activity, property sales are bouncing back and a revival in consumer confidence is taking hold. Emerging from monthslong shelter-in-place orders, the nation has seized a large measure of control in containing COVID-19 as it breaks fertile new ground in pandemic response and recovery. In Wuhan, Hubei, the fountainhead of the novel coronavirus, one company offers a striking example of China’s muscular COVID-19 containment efforts, carefully continuing to operate through January and February as the virus set root, said Karel Eloot, a Shenzhen-based senior partner and Asia leader of Transformation and Operations practices at McKinsey Company, speaking at a recent webinar presented with SEMI. Soon, COVID-19 spread to eight other provinces that suffered serious outbreaks and forced the nationwide lockdown that sent China’s GDP plunging 7 percent, its first contraction in 28 years. An impressive array of safety protocols, many designed to reduce people density as a bulwark against the virus, animates China’s fight against COVID-19, a return-to-work movement that is laying a path forward for companies around the world. It is these measures, Eloot said, that have kept the Wuhan company afloat and helped other businesses across China restore operations with unusual speed. Community and Social Distancing – The Heart of China’s COVID-19 Response In establishing safeguards, many companies started by assessing staffing requirements, identifying workers essential to sustaining on-site operations while allowing others, such as white-collar staff, to work from home, though some have since returned to their offices. Seen as non-essential, some factory maintenance workers have been instructed to stay home. To fill staffing gaps, business have turned to multi-skilling practices, such as having on-site supervisors and engineers step out of their daily roles to handle lower-level operations activities. Much of the focus has been on community distancing, with businesses quickly identifying workers suffering even minor COVID-19 symptoms and using contact tracing to prevent sick or vulnerable employees from entering offices and factories and turning them into hot zones for community spread, Eloot said. Manufacturing facilities are staggering work shifts to reduce people density, closely monitoring workers’ body temperatures with an eye toward other symptoms, and following up with medical tests and quarantines as needs dictates. QR codes, long a staple of e-commerce, have been a particularly effective weapon in combatting COVID-19. Companies are deployed the scanning technology to identify workers by color code – green, yellow or red – and assign various levels of site access depending on who they’ve been in contact with. Some factory workstations are now walled off by transparent plastic sheeting to prevent COVID-19 infection through aerosol drift. In business meetings and lunchrooms, staffers sit spaced a safe distance apart and facing the same direction to avoid crosscurrents of the microscopic respiratory droplets that can carry the virus. Others eat in isolation. Meeting room windows are opened, weather permitting, to admit fresh air. And elevators – perfect petri dishes for contagion – are shuttered to ward off human clusters, shifting all floor-to-floor movement to staircases. Companies united by the common goal to keep goods flowing through supply chains are providing masks and other personal protective devices to smaller players most vulnerable to the economic shock of COVID-19. The aim: Shield the companies from the potentially crippling effects of the virus to avoid supply chain breakdowns that can undercut the performance of the whole. Even competitors have formed unexpected alliances, sharing parts and components that are in short supply. “Some sectors have maintained steady production throughout the crisis” thanks to these practices, Eloot said. “China has been able to create safe communities where people can operate as normal.” Executive Uncertainty Reigns, Hope Springs Eternal with Innovation The objective of China’s fast, forceful response to the COVID-19 outbreak is economic: A V-shaped rebound after the 7 percent wallop to its GDP in the first quarter of the year. The trajectory is among nine economic recovery scenarios McKinsey Company presented to more than 2,000 executives worldwide in a recent survey seeking their views on the likelihood of each. The business leaders coalesced around two – a full restoration of global GDP growth that could materialize this year or extend into next, or a two- to three-year recovery following the initial economic tsunami, Sven Smit, an Amsterdam-based senior partner with McKinsey and global leader of the McKinsey Global Institute and global COVID-19 response team, said at the webinar. The executives see the multi-year recovery as the most likely. The shorter rebound ranked second on a scale of probabilities. Notably, the business leaders found the V-shaped bounceback China is attempting – returning to GDP growth in one quarter – the least likely outcome. But the biggest surprise from the survey, Smit said, was executives’ view that of the two major global interventions for restoring GDP growth – viral and economic – one will be ineffective, reflecting their deep uncertainty about what lies ahead. A growing body of knowledge about COVID-19 tempers that doubt. It’s established fact that the virus is highly contagious, more lethal than the flu, and spread by means including aerosols and touching contaminated surfaces. But only recently has more insight emerged about human immunity. Broad-based blood testing in the Netherlands has discovered that only 3 percent to 4 percent of the people screened are immune to the coronavirus, leaving the vast majority of the population without natural biological protection – a sweeping vulnerability evident in Asian countries hit early by the virus only to see fresh flare-ups after initial containment. Smit warned of the pandemic’s potential resurgence. Testing has revealed that coronavirus cases are underreported by a staggering 10- to 15-fold, a clarion call that countries “need to be very careful about how they re-open economies.” That means in order to keep COVID-19 at bay until a vaccine is developed, the best defenses will remain temperature monitoring, contact tracing, quarantining, social distancing, mask wearing, frequent hand-washing and other proven protective measures. And while the relative contribution of each safeguard to slowing COVID-19’s spread is unknown, Japan, Korea, China, Taiwan and other Asian countries have shown that “if you apply them all, you are likely to keep this virus under control,” Smit said. It remains to be seen whether protections the U.S. and European countries have put in place will stave off the virus as effectively as the rigorous measures implemented by Asian countries and, if the Western regions deploy a different cocktail of safety protocols, how well they will work. The re-opening of their economies promises to reveal the answers – and the McKinsey recovery scenario they’ll face. These and other open questions help explain the uncertainty of the executives McKinsey polled. Pandemic Supercharges, Adds New Urgency to Long-Term Trends What is known is that, far from upending the way all organizations operate, COVID-19 is supercharging secular trends and showing that people can react with dizzying velocity when confronting global mortal threats. That speed, Smit said, “is not determined by the potential of technology, but by events." For decades, doctors and technologists have teamed to develop ways to examine and treat people from afar, yet telemedicine managed to eke out only small, incremental gains in adoption. Since the COVID-19 outbreak, patients have flocked online, with virtual doctor’s visits accounting for more than 70 percent of all physician-patient interactions. “People like it, and we can reach many more patients as a result. It happened in a few weeks,” Smit said. Similarly, teachers and unions have only inched toward digital communications for years, fearing job losses in education at the hands of technology. When schools closed recently under shelter-in-place orders, teachers quickly switched to online lessons. The transition, Smit said, took one weekend. Meanwhile, as office workers holed up at home, usage of teleconferencing applications skyrocketed. “We’re collectively learning at unprecedented speed,” Smit said. “We’re sharing. We’re learning about supply chains. We’re learning about collaboration. We’re learning about masks. We’re learning about contact tracing. We’re learning how to work more efficiently. We’re learning from real-time data about the behavior of people. And we’re investing collectively enormous sums in finding cures and treatments and expanding hospital capacity.” While the coronavirus’s blistering spread caught many countries off-guard, Smit expects scientists to spare no effort to innovate. Expressing hope that new medical interventions will be available by summer, Smit said the world needs to buttress its key lines of defense against the coronavirus until a vaccine is developed – a shield that will quicken the global economic recovery. “The race is on," he said. Related blog COVID-19: Economic and Microelectronics Industry Impacts – Insights from McKinsey Company For McKinsey’s latest insights on the coronavirus pandemic, visit its website, which is updated daily. For the latest COVID-19 information and SEMI event updates SEMI is providing members, visit Coronavirus Resources. Michael Hall is a marketing communications manager at SEMI.

For five days in the latter half of March, the pall of the heavy human and economic toll COVID-19 has exacted in China appeared to be lifting. The epicenter of Wuhan reported no new coronavirus infections through domestic transmission. And in an initial step to loosen its nationwide lockdown, China began reversing restrictions on travel within its borders.Now, in another sign of progress, the region’s idled factory workforce is preparing to return to the production lines. Outside of Hubei province, home to Wuhan, most manufacturing workers are expected to be back on the job by the end of this month, with the proportion of manufacturing employees returning to work in Hubei cities except Wuhan reaching 70 percent by then, said Didier Chenneveau, Partner, Supply Chain Practice, McKinsey Company, in a late-March webinar presented by the business consultancy and SEMI.McKinsey is also “seeing evidence of a rebound in demand led by China’s online sales” as rising consumer confidence and a surge in the popularity of work-from-home policies spur strong spending on laptop computers, Chenneveau said.The turnaround stands in stark contrast to the unprecedented drop in demand McKinsey saw across retail and durable goods in China early in the year. Over the first two months, passenger car sales plunged 90 percent, smart phone receipts 40 percent and retail sales 21 percent, leading to what Chenneveau calls a whiplash effect that could disrupt supply chains as manufacturers and shipping companies scramble to meet pent-up demand once a recovery takes hold. As the outlook for China’s factories and suppliers brightens, concerns are shifting to the ripple effect of its deep manufacturing pullback on demand for goods in the United States and Europe. Sharp disruptions to global supply chains caused by labor shortages and knotty logistics challenges have also become worrisome. And while China is buoyed by the prospect of normalizing its workforce and manufacturing capabilities, parts shortages are bottlenecking production. In the United States and Europe, where 60 percent of air freight is carried in cargo holds of passenger aircraft, logistics concerns loom large with the widespread flight groundings. “Logistics must be a priority in any crisis war room because it’s a big challenge,” Chenneveau said.Asia Semiconductor Supply Chain ImpactsIn Asia, the semiconductor supply chain is working to overcome intractable challenges caused by COVID-19 including sourcing raw materials for chip manufacturing and maintaining assembly and test operations, Mark Patel, Sr. Partner Semiconductor Practice Lead, McKinsey Company, said at the webinar. Those problems cascade to foundries and IDMs even as they confront the compounding issue of a shortage of fab operators and engineers. Downstream, the inability to package, test and qualify products risks exacerbating the supply constraints.Patel said another acute challenge is that most semiconductor manufacturers and suppliers are operating under restricted practices, making it harder to sustain engineering activities vital to new product introductions, new process development and capital equipment expansion. In the longer term, the supply chain fallout hold implications for product life cycles and investments in capacity and next-generation technology – factors that analysts will need to monitor in evaluating the economic impact.Returning Workers Key to Economic RecoveryIssuing shelter-in-place orders have been an effective antidote to the spread of COVID-19 but a double-edged sword as nations worldwide sustain the economic blowback. Discretionary consumer spending on items such as automobiles has dropped by 45 percent globally so far this year, business investment has fallen and trade has seen a sharp slowdown, said Sven Smit, Chairman and Director at the McKinsey Global Institute, speaking at the webinar.A lockdown for as little as a month can slash aggregate global GDP by as much as 10 percent, a scenario McKinsey expects to play out in the second quarter of 2020. The drop would be the deepest since World War II and larger than the plunge in the first quarter of the Great Depression, raising the question of how long governments can afford to keep workers holed up at home.“The economic shock is unprecedented,” Smit said. “We’ve never sent people home to not work. Even in World War II, next to the front lines, people were harvesting food.”China offers a potential blueprint for economic recovery. McKinsey estimates that China’s rigorous containment efforts could help its economy bounce back in as little as six months – a V-shaped rebound. Western nations generally have not been as forceful with their containment measures. For them, the fight against the pathogen could be prolonged, deepening the economic damage.Yet even with the best protective lockdowns, a new challenge arises: The longer shelter-in-place orders remain in effect to contain the spread of the virus, the longer the economic impact drags on. “Until the path to return to work becomes clearer, people will not be confident to spend,” Smit said.Confronted with that reality, governments worldwide must strike the delicate balance between safeguarding the lives of people – critical forces of economic growth through consumer spending – and limiting the economic shock. The faster the virus can be brought to heel, the softer the impact to economies around the world. And the stronger the return-to-work protocols in place once COVID-19 has been brought under control, the faster workers can get back to their jobs. Smit believes resolving both issues simultaneously is not only possible but necessary for a return to normalcy.“That’s the imperative of our time,” he said. Related blog COVID-19: The Way Forward – Insights from McKinsey Company For McKinsey’s latest insights on the coronavirus pandemic, visit its website, which is updated daily.For the latest COVID-19 information and SEMI event updates SEMI is providing members, visit Coronavirus Resources.Michael Hall is a marketing communications manager at SEMI.

As technology companies worldwide struggle to narrow the yawning gender parity gap, organizations in other industries ranging from insurance and food services to banking have emerged as guiding lights for how to boost the number of women in the workplace. MetLife, the 48,000-employee insurance giant, is among the standouts. In 2015, the New York-based company launched Developing Women’s Career Experience, a 14-month program designed to hone the business and strategic acumen of high-potential female workers. The goal was to increase the sense of urgency to promote women. The program bore fruit, expanding the representation of female managers and entry-level workers to 50 percent. Over the past five years, Sodexo, the French food services and facilities management company headquartered in Paris, has also upped female representation on its list of corporate priorities, expanding the ranks of women in entry and manager roles by 10 percent on average. More impressively, the number of women senior vice presidents has grown 20 percent and those in the C-suite have doubled.Sodexo drove the increases by developing a scorecard to hold managers accountable for diversity and inclusion and tying their performance to total compensation. Fully 10 percent of their bonuses were linked to strides in diversity and inclusion. Leaders at the 470,000-employee company scored points for hiring, promoting and retaining more women and underrepresented groups and could hike the total by taking other steps to improve the work culture by demonstrating inclusive leadership.“We do see companies taking bold actions and are seeing tremendous results,” said Audrey Bernardo, a partner at consultancy McKinsey Company, as she presented the case studies at Diversity – Women in Tech to kick off FLEX|MEMS Sensors Technical Congress (MSTC) 2020 last week in San Jose.And it turns out the payoffs matter not only for the bottom line but also a company’s ability to attract and retain the best talent. Citing research from the McKinsey Company and Lean In 2019 report Women in the Workplace as well as McKinsey’s 2018 Delivering through Diversity, Bernardo noted that gender-diverse companies are 24 percent more likely to financially outperform their less inclusive counterparts, while organizations with higher ethnic diversity are 33 percent more likely to outshine less diverse companies.Younger workers are particularly sensitive to diversity biases. The survey of more 250,000 employees at 600 companies found that employees under the age of 30 are almost two times more likely than older workers to raise the need for diversity and more likely to see bias in the workplace.“Diversity and inclusion has become a business imperative,” Bernardo said. Yet despite the urgency, gains among tech companies in cultivating a diverse workforce have been hard-won in part because of the challenge to better balance the proportions of male and female workers. And the headwinds start to gather when females are young. According to the report, 15-year-old females are vastly outnumbered by boys in their appetite to work in tech fields, with girls 65 percent to 84 percent less interested in pursuing tech careers than boys the same age.That dynamic extends to females in their college years. Despite earning more degrees than men overall, women account for the minority of tech degrees – ranging from as low as 13 percent representation in Chile and 15 percent in Brazil to as high as 45 percent and 36 percent, respectively, in India and Mexico. In the U.S., women account for just 23 percent of undergraduate degrees in tech.Bernardo praised the growing number of companies that are “reaching further down the age pipeline” to inspire young students to pursue STEM educations and careers in tech and cited the work of the SEMI Foundation – through High Tech U and other programs geared toward young students – to inspire the next generation of industry workers.The picture brightens once women have entered careers at technology hardware companies – they are promoted at only a slightly lower rate than men. Yet when it comes to outside hires, women are brought on board at a much lower rate than men. For example, women account for just 22 percent of the senior vice presidents hired at hardware companies, 17 percent of vice presidents, 22 percent of senior managers and directors, and 25 percent of managers.Part of the challenge for women in senior leadership positions is balancing careers with their home lives since they are two times more likely to be in dual-career households than their male counterparts.“We will never solve the women-in the-workplace problem until we solve the women-in-the-home problem,” Bernardo said.Indeed, giving women the leeway to work from home and take time off for family or personal reasons ranked among the power practices the study found most correlated to diversity and inclusion progress. Others include C-level executive participation in shaping a diversity and inclusion strategy, establishing numeric targets for tracking gender representation across the workforce as Sodexo has done, and unconscious bias training. “D I needs to be visible from the top,” Bernardo said.A shining example of executive support for diversity and inclusion initiatives is the work by Atlanta-based SunTrust Bank to encourage workers to embrace differences in people and build awareness of unconscious bias. In 2018, the 23,000-employee company held a daylong event that included workshops focused on candid conversations about gender, race, disability, LGPTQ identity, religion and military service.The Day of Understanding was sponsored by the SunTrust CEO. Within three years, the proportion of employees viewing the SunTrust workplace as inclusive grew to 80 percent, an 11 percent jump.Michael Hall is a marketing communications manager at SEMI.

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.