Business and Markets

Held at the Moscone Center in San Francisco on October 12, SEMI’s annual Market Symposium kicked off SEMICON West 2026, setting the tone of the show for the week. The Market Symposium was hosted by Clark Tseng, senior director of SEMI Market Intelligence. The agenda focused on the pressing issues facing the semiconductor industry, enabling the leading analysts and strategists to gain insight into the drivers influencing the semiconductor industry and to guide the day-to-day decisions needed to grow their businesses. While the 2025 symposium focused on the geopolitical landscape, trade policy, and AI-driven investment, the 2026 talks centered on the influence that AI is having on the semiconductor industry, and how it will drive the industry and economics past the $1.5 trillion mark to $3 trillion in revenue over the next decade.This year’s topics covered how semiconductors are building the critical infrastructure of AI, and what to expect in the near future, from chip types to power consumption to how AI is influencing the global engineering and supply chain—and, of course, what types of revenue the industry might expect as AI continues to scale. Speakers and talk titles this year includedBill J. Wiseman – McKinsey Company “Beyond Moore’s Law to Win the Race for AI Inference”Duncan Meldrum – Hilltop Economics “Macroeconomic Cross Currents: Are Semiconductors Vulnerable?”Kunjan Sobhani – Bloomberg Intelligence“AI Demand in the Next Semiconductor Cycle: GPU, ASICS and Beyond”Jean-Christophe Eloy – Yole Group “Powering the Next Phase of AI: The Role of Next-Generation Chips in Driving Industry Transformation”Syed Alam – McKinsey Company “Building the Backbone of the AI Revolution: The Semiconductor Technologies Powering Next-Generation Data Centers”Joseph C. Fitzgerald – Boston Consulting Group (BCG)“Scaling Artificial Intelligence, Reshaping Supply: How AI Is Transforming Semiconductor Demand, Engineering, and Global Footprints”Clark Tseng – SEMI“AI Demand Meets Manufacturing Reality: Capacity, Equipment, and Supply Chain Outlook”Economic InfluencesAs the talk titles suggest, the semiconductor market is being driven by the economics of AI. Clark Tseng and Duncan Meldrum pointed out that AI capital spending is driven by the top four hyperscaler companies. It is estimated that they will spend $750 billion in 2026 on data centers. The total market will be somewhat higher, as was highlighted by Kunjan Sobhani, suggesting the total capex for data centers would be $1.2 trillion in the US by 2027. According to Meldrum, economic growth is facing two competing forces moving in opposite directions. Inflation is having a negative impact, and AI is having a positive impact. Meldrum's research on AI shows that it is steadily being adopted, but companies are not seeing measurable results they can talk about. He sees a strong continuing AI investment in the U.S., with the risks being changes in policy or disruptions by society as the buildout continues. This suggests that AI will continue its robust growth for at least the near future, with Sobhani predicting a $2.8 trillion total available market (TAM) in 2030, which also includes behind-the-grid power requirements. The Dynamics and Drivers of AI The speakers agreed that the industry is moving into the agentic AI era, with inference becoming the dominant driver of AI growth and models for the foreseeable future. Bill Wiseman believes that as AI moves into the agentic era, it will further reshape AI demand. Wiseman’s colleague Syed Alam pointed out that inference will account for 42% of AI demand in 2030. Strong token demand will drive chips, data centers, and power exponentially over the next several years, according to Wiseman, Alam, Sobhani, and Joseph Fitzgerald.This will place a tremendous strain on the industry as it struggles to keep pace with the demand. Fitzgerald pointed out that AI demand is exceeding supply by 60%. Wiseman stated that AI is growing exponentially while supply, or current processes, are growing linearly, and each of the speakers gave thoughts on ways to deal with the bottlenecks and cost. There is a consensus that the cost per token per joule needs to come down considerably. To achieve lower token cost, the speakers agreed that the industry needs to think differently. Alam suggested using six interconnecting dimensions that will drive a systems-level approach for the future of AI.By addressing each of these six dimensions as an interconnected system, the industry can address and reach solutions for the pressing issues challenging AI growth. Wiseman had slightly different ideas regarding the approach to meeting demand. Using a Peter Drucker quote—"The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic”—Wiseman then summarized: AI is growing exponentially, and the supply chain is linear. The industry needs visionary thinking that is not business as usual but instead challenges the fundamentals of how integrated circuits currently work together to achieve the needed growth. Practical Use of AI and Supply Chain ShiftsFitzgerald dealt with some of the more practical aspects of how AI is transforming design. AI has demonstrated gains particularly in product design and design verification. The process moves from sequential to continuous, and engineers are used for final validation, where judgment is required. It is crucial to explore model and agent costs, as they are coming down and differ by model, and the cost savings can be significant.Fitzgerald also shared information on the supply chain, which is shifting due to tariffs, geopolitical concerns, and the host-nation environment. He concluded by noting that the supply chain will not reset; this means that supply chain leaders should continue to optimize for regional networks through 2030, and likely beyond. The integrated global supply chain will not return. Regional hubs are replacing it, and winners will pick a clear position, commit early, and execute with disciplineNow, down to why the symposium is a must-attend event: the industry outlook. The AI and Semiconductor OutlookIt's no secret AI is driving the semiconductor industry to new heights. How the industry thinks about forecasting is changing to gigawatts (GW) and tokens per joule. The rapid increase in AI activity and models, along with the rising average selling prices (ASP) of DRAM and accelerators, has made forecasting a moving target, according to Jean-Christophe Eloy. In 2031, the AI market is estimated to be demanding between 245-300 GW of power, according to Fitzgerald and Alam. The high side will see an accelerated market; the low side of 245 GW will be constrained by power and memory supply. AI inference is expected to be the key growth driver, with inference accounting for 70% of AI in 2025, growing to 90% of AI compute in 2040, according to Wiesman. This will drive a $2.8 trillion data center TAM, which does not include China, according to Sobhani. He also reported that the accelerator market, which includes GPUs and high-bandwidth memory (HBM), will grow from $400 billion in 2026 to $1.4 trillion in 2030. GPUs and ASICs will expand together in this market. Eloy is in close agreement, citing $464 billion in data center processor revenue in 2026, which includes GPUs, CPUs, networking, and ASICs. This expands to $1,631 billion in 2030.Total semiconductor chip revenue in 2026 is forecast to be $1.5 trillion by SEMI and $1.7 trillion by Yole. As mentioned earlier, these are revisions from Q2, and the increases are driven by the rapidly growing ASP of DRAM, as well as accelerators. The market for 2030 is forecast to be $2.3 trillion by SEMI; Yole’s prediction is $3.5 trillion. While the bulk of the growth is attributed to accelerators and HBM, according to Yole, power semiconductors are expected to see significant growth—from $15,000 per AI rack to $100,000 by 2030. To drive this growth in semiconductors, SEMI forecasts that 300mm equipment spending will grow from $149 billion in 2026 to $227 billion in 2029, thanks to double-digit growth each year over the time period. The global wafer fab equipment market will rise from $117 billion in 2025 to $220 billion in 2028. Foundry/logic remains the largest segment, increasing from $65.6 billion to $116 billion as AI/HPC and advanced-node ramps continue. DRAM investment expands strongly, reaching $63 billion by 2028, supported by HBM and advanced-node migration and capacity expansion. The growth in AI is also driving packaging and assembly to new heights. Growing from $6.1 billion to 10 billion in $2028. Materials are expected to grow in 2026 and 2027 by 12.85 and 11.4%, reaching $92 billion in 2028. Wrap-upThe SEMI Market Symposium laid out the industry journey that AI is piloting. While there are discussions of a bubble, the information shared suggests strong growth for the semiconductor industry through 2030, with semiconductor revenue potentially surpassing the $3 trillion mark by then. Equipment and material revenues will keep pace, albeit at a slightly slower growth rate due to market dynamics. SEMI would like to thank Market Symposium speakers and attendees for their participation at the SEMICON West 2026. For additional market insights, explore the latest SEMI Market Intelligence reports, covering historical reporting, actionable foresight into emerging trends, and technology investments to make confident, forward-looking decisions across the semiconductor and microelectronics value chain.Please join us in Phoenix on March 29 for the SEMI Market Symposium at SEMICON West 2027. Dean Freeman is Technology Advisor at Bodewell Group.

Global silicon wafer shipments are forecast to grow 11.8% in 2026, according to the Q3 2026 SEMI Silicon Wafer Market Monitor. This increase is primarily due to strong demand for AI, which is projected to drive shipments through 2029. Alongside AI, rising process material sales are also supporting recovery. The positive correlation between material sales and silicon wafer demand not only reflects growth in manufacturing complexity, but it also points to greater material consumption per wafer. Finally, increases in memory demand, precautionary inventory building, and global fab capacity expansions are boosting silicon wafer shipments as well. To better understand today’s landscape, it’s helpful to revisit past silicon wafer demand curves. From 2018 to 2019 and from 2022 to 2023, silicon wafer shipments rose ahead of major increases in memory work-in-process (WIP) inventories, or unfinished memory chips undergoing fabrication. However, shipments lagged at the same time WIP inventory peaked. Because fabrication lines were already producing at full capacity, their need for silicon wafers slowed. While this pattern provides historical context for today’s demand recovery, the high number of new and upcoming production lines is a unique factor influencing this particular cycle. Silicon Wafer Shipments and Memory WIP: Historical Lead–Lag Pattern. Both series use four-quarter moving averages. Sources: SEMI SMG and financial disclosures from Samsung Electronics, SK hynix, and Micron. Data for 3Q26–2Q27 are forecasts. Fab Investments Support Wafer DemandSEMI’s fab investment outlook predicts continued growth in planned equipment spending beyond 2026. So long as investment plans remain broadly on track, ongoing equipment installation and capacity ramps are likely to support silicon wafer demand. The report also demonstrated a widening gap between YoY growth rates for semiconductor fab equipment spending and silicon wafer manufacturing equipment spending, suggesting that investment support for wafer demand may persist longer than initially expected. This also helps explain why the historical relationship between wafer shipments and WIP does not necessarily imply an imminent slowdown. Wafer procurement momentum can moderate before WIP inventories peak, although investment support may slow if moderation becomes visible in wafer shipments.Investment Spread: A Signal of a Later Wafer-Cycle Slowdown. Spread between the YoY growth rates of semiconductor fab equipment spending and silicon wafer manufacturers' equipment spending, compared with silicon wafer shipment trends. Sources: SEMI Silicon Wafer Shipment Statistics and SEMI WWSEMS. Shipment data are updated through 2Q26, while equipment spending data are updated through August 2026. The Next Test is Inventory AbsorptionSEMI projects continued wafer shipment growth in 2027, although growth will likely be more moderate than it was in 2026. As inventory stockpiles subside, ongoing production will be important for sustaining demand. If planned capacity expansions continue and customers buy the resulting chips, semiconductor companies can gradually reduce their wafer inventories while also maintaining their purchase rate. However, investment delays or weaker demand for semiconductors would slow this absorption and increase the risk of declining silicon wafer orders.While AI-related investment is a critical source of support, broader semiconductor recovery is still uneven. Because of this, the key to maintaining demand growth will be how quickly fabs can use wafers purchased in advance. Doing so will help shape the duration of this recovery period and the depth of any subsequent wafer inventory adjustments.The Q3 2026 SEMI Silicon Wafer Market Monitor provides a deeper analysis of these dynamics. Its Market Update section offers insights from eight analysts and a scenario table that examines how inventory rebuilding, forward procurement, and fab investment may shape the wafer cycle through 2029. The full report package also includes a comprehensive market presentation and supporting Excel chart data.Additional details on the Q3 2026 SEMI Silicon Wafer Market Monitor and purchasing information are available at: www.semi.org/en/products-services/market-data/si-wafer-monitor. Sungho Yoon is a Principal Analyst on the SEMI Market Intelligence team.

For years, quantum computing has lived almost entirely in the research lab, but that is changing fast. The clearest sign of change came in spring of 2026, when IBM announced it would spin off Anderon as a standalone quantum foundry, separating its fabless chip design work from dedicated 300mm manufacturing. A company that had kept quantum fabrication tightly in house for over a decade realized that external demand now justified building a business around supplying wafers to others. When such a dominant incumbent decides to build a foundry business, that is a good indication the rest of the industry is not far behind.Over the past year, ATREG has spoken directly with a wide range of quantum hardware companies about their facility strategies. Nearly all of them are actively planning some form of scale-up, whether that means leasing cleanroom space, acquiring tools, or exploring options with existing fab operators. Alongside these conversations, we have tracked a wave of public funding rounds and cleanroom expansions from companies like QuantWare, IonQ, and IQM. Taken together, the pattern is unmistakable. Quantum computing is transitioning from a research curiosity into a manufacturing capacity question, and the companies driving this shift are bifurcating into two camps. These include vertically integrated players building or owning captive cleanrooms, and fabless designers routing wafers through commercial foundries. Both segments are now generating real fab transaction demand, which is relatively new.Why Now?Three forces are converging, with the first being government money. The U.S. Department of Commerce has signed letters of intent to invest roughly $2 billion into nine quantum computing companies in exchange for minority equity stakes. IBM’s Anderon spin-off and GlobalFoundries’ new quantum-focused business unit were granted the biggest incentives, while seven other venture-backed quantum hardware makers were granted smaller sums. Europe is moving in parallel, with France recently adding over €1 billion to its National Quantum Plan and Denmark building dedicated nanofabrication capacity for quantum chips near Copenhagen.Second, private capital is moving just as fast. Quantinuum's Nasdaq listing valued the company at over $15 billion. PsiQuantum's most recent raise pushed its valuation past $10 billion, and finally, IonQ's move to acquire SkyWater signaled that some fabless players are now willing to buy foundry capacity rather than wait for it. Third, although quantum computing is moving toward commercial production, the few specialized foundries capable of making quantum chips have already reached capacity with semiconductor demand. In discussions with foundry partners, we’ve learned that the U.S. Department of Commerce has received several proposals from companies looking for an industrialization partner and fab capacity for quantum manufacturing. Even before considering how many proposals ultimately get funded, the space available to absorb new quantum programs is limited. Separately, early company engagement is already happening well ahead of any formal facility buildout. This is a sign that demand is running ahead of infrastructure, and that latent demand is becoming active demand in real time. How Quantum Cleanroom Needs Compare to Traditional Fab Cleanroom RequirementsThe overlap with conventional semiconductor manufacturing exists, but it is narrower than the marketing suggests. Silicon-spin and superconducting modalities (the two furthest along commercially) map fairly directly onto standard 200mm-to-300mm wafer lines, running at mature nodes (16–28nm class) with no need for EUV lithography. While a qualified 200mm or 300mm metal deposition and etch line is one of the stronger brownfield fits available in the market today, quantum divergences can be seen in the following three areas. First, contamination control runs almost backwards from what logic manufacturers expect. For example, quantum fabs typically only need ISO 6 to 8 cleanroom classes. This is looser than what is standard for leading-edge logic, but specific materials like niobium, titanium nitride, and cobalt introduce isolation requirements that have nothing to do with particle counts. For instance, quantum hardware makers report that cobalt use in particular, creates friction with fabs built around conventional CMOS material rules. In addition, one major foundry noted that certain existing 300mm lines simply can't be converted for quantum work because of contamination risk from these non-standard materials.Second, packaging and assembly, not front-end fabrication, appears to be the primary roadblock. Bonding qubit chips to interposers, wiring for cryostats, and hybrid bonding require different tooling and tolerances than a front-end fab. In conversations with both foundry executives and quantum hardware companies, this stage was consistently described as the most fragmented and least mature part of the supply chain.Third, cryogenics and system integration are facilities problems, not cleanroom problems. Dilution refrigerators, cryostats, and helium supply require power capacity and vibration isolation more than particle control. In some cases, ISO 8 warehouse-grade space is sufficient. That reframes what "quantum-ready" facility space needs to look like, and it opens the door to buildings that wouldn't traditionally register as fab candidates.Where the Competitive Landscape is HeadedFewer than 100 meaningfully-funded quantum hardware companies exist today, but the small number of foundries qualified to serve them (including GlobalFoundries, imec, STMicroelectronics, Infineon, Tower, and SkyWater) are already seeing demand concentrate quickly. GlobalFoundries specifically, has emerged as an early plurality winner across multiple modalities. Whether that concentration holds, or whether scale-up costs push more players toward the SkyWater/IonQ model of outright acquisition, is one of the more consequential open questions in this space.What we are seeing in the market supports both scenarios simultaneously. Some companies are doing multi-year capacity planning well ahead of actual need, treating facility strategy as a long-lead problem to be solved early. Others are already outgrowing prototype-scale fabs and are looking to consolidate into shared or leased capacity. Both point to the same underlying reality: demand is forming faster than supply, and the packaging and assembly layer of the value chain remains particularly underserved.For a global industry built on brokering semiconductor fabrication assets, this is a familiar scenario with new variables. Brownfield capacity is a strong match for two of quantum computing's leading modalities today, with photonics and advanced packaging representing the next frontier. Ultimately, evaluating capacity gaps and moving before the rest of the market will be the next major opportunity for quantum computing's cleanroom moment. About Stephen M. RothrockStephen Rothrock is founder and CEO of ATREG, Inc. He founded ATREG in 2000 to help advanced technology companies divest and acquire infrastructure-rich manufacturing assets, including wafer fabs (front-and back-end) as well as MEMS, solar, display, and R D facilities. Over the last 25 years, ATREG has completed 40% of all global operational wafer fab sales in the semiconductor industry, representing a total of 60 transactions. Recent global acquisitions and dispositions have involved Allegro MicroSystems, Bosch, Elmos, Fujitsu, GlobalFoundries, IBM, Infineon, JDI, Maxim, Micron, Nexperia, NXP, onsemi, Plessey, Qualcomm, Renesas, Sony, Texas Instruments, TSI, VIS and more. Prior to founding ATREG, Rothrock established Colliers International’s Global Corporate Services initiative and headed the company’s U.S. division based in Seattle, Washington. Previously, he worked as director for Savills International real estate brokerage in London. There, he established the company’s corporate services platform serving large multinationals, many of whom were leading technology companies. Stephen also served on the U.K.-listed property company’s international board. He spent four years near Paris working for an international NGO. Stephen holds an MA degree in Political Theology from the University of Hull, UK and a B.A. in Business Commerce from the University of Washington in Seattle.

Several years ago, the ESD Alliance, a SEMI Technology Coalition contacted Jay Vleeschhouwer, Managing Director of Software Research at Griffin Securities, about his yearly presentation on the state of EDA and the industry’s successes during the Design Automation Conference (DAC). He willingly agreed, and it has been a yearly tradition for our executives to interview Vleeschhouwer.This year is no exception. He took time to chat with us about this year’s presentation and his findings that show EDA’s phenomenal revenue growth and startup activity. Our talk covered EDA mergers and acquisitions, AI and what’s next.In his presentation, Vleeschhouwer references the ESD Alliance quarterly Electronic Design Market Data (EDMD) report on EDA, Semiconductor IP and Services industry revenue data from public and private companies. Rogers: EDA has grown continuously since 2010. What do you attribute the growth to? The revenue numbers suggest it's sustainable.Vleeschhouwer: The growth can be attributed to many of the factors that have been in place for many years now. What we have observed from the ESDA (EDMD) market data, for example, is that numerous categories, which we include in our quarterly report, have been growing continuously on a trailing 12-month basis for many years. There are far more categories that are growing than are not growing. In fact, very few categories show no growth or little growth.The growth has been diverse across the categories, a crucial underpinning for growth in the industry. It is also different from the situation a quarter century ago or more. I often make this point to investors when speaking about EDA. Years ago, the growth would typically be much more limited in terms of the product categories that perhaps one or two categories would be showing good growth or well above industry average growth. Those would eventually run their course.Now, what we've seen is multiple categories growing, in some cases, well above the industry average. That is driven by technology needs on the part of the customers. In other words, when you think about how the whole design and engineering process has evolved, requiring more product categories to be integrated, to be used heuristically, then that underpins the improved and more diverse growth across the industry that we've seen now for many years.It also ties into what’s gone on with the two largest vendors, Cadence and Synopsys. This ties directly to why their market share has gone from just over half of industry revenue now to nearly three-quarters of industry revenue. Their portfolios have become increasingly diverse and more integrated. A lot of that was inorganic through acquisition, but mostly in the last number of years through internal development. These growth phenomena and market share phenomena are highly correlated.Rogers: How is AI impacting industry growth in the EDA companies themselves? Should we expect a flurry of mergers and acquisitions?Vleeschhouwer: The first of those two questions is an important one. Unfortunately, we don't have a great answer yet. We've been encouraging the largest vendors to be more explicit to the extent they can be about the AI impact on their business. Cadence and Synopsys have separately branded AI products or agents. Cadence has a family of products. Synopsys has its family of products. Those are separately priced.We would love to see over time how those are contributing to revenue. At the same time, or over time, we do expect not only EDA, but for all our Engineering Software companies, AI will become increasingly infused in legacy products. It's just going to become part of the capabilities naturally offered to customers. We’re going to see hybrid portfolios that we have today separately branded as additional flavors, and those capabilities will be increasingly embedded as well.As that occurs, it would naturally become more difficult to separately attribute revenues to AI, but to the extent that there are separate brands, then it should be possible for the companies to be more explicit about those contributions. Synopsys will be hosting an investor day in New York at the end of September. I'm sure this question will come up as to the contribution of AI, among many other questions. At this point, all I can say is our observation is that, of the three major categories that we define as Engineering Software—EDA, Technical Software, and architecture, engineering, and construction (AEC)—it appears AI availability, customer adoption and production is further along in EDA.That observation is based on customers’ commentary and presentations at, for example, the Cadence conference and the Synopsys conference. It's that accumulated customer presentation and availability of customer results that suggests that AI adoption is further along in that part of Engineering Software, and the rest will undoubtedly follow over time. On the Technical Software side or industrial side of Engineering Software, the AEC side, I have no doubt it will become increasingly important. So far, however, for some good technical reasons, we think AI adoption is further along in EDA.Cohen: You mention the EDMD report on industry revenue in your DAC presentation. The numbers reported are not the same as the numbers you tend to report in your publications. Can you discuss the differences?Vleeschhouwer: Yes, thank you for the easy question. I was waiting for that one. As you know, we've been using this data for over a quarter of a century, every quarter. I always make the distinction in the report that the difference between what the SEMI/ESD Alliance report shows and what my report shows is a single category, and that is non-reporting-company IP.We include reporting-company IP, but for the purpose of our parsing of the data, we exclude from the total and from the growth comparisons what the market data refers to as the non-reporting-company IP. In all other respects, the categories line up. As much as possible, we try to correlate the industry data by geo and by category to the company results for market share calculation purposes, for growth purposes, and the like. Rogers: What should SEMI readers be looking for in terms of 2027 EDA revenue?Vleeschhouwer: All I can do is repeat what we've published in our industry report, which is that we expect industry growth to exceed $17 billion this year. That's based on our estimates for Cadence's revenues, what we call Synopsys Classic, plus an assumption for the EDA part of Ansys, and only the EDA part of Ansys, plus some assumption for Siemens EDA. Siemens EDA has done well since Mentor was acquired over nine years ago. That business has doubled since Mentor's last year as a public company. That includes some small acquisitions that Siemens has since done, but again, the overall business has roughly doubled.The business, I should also point out, on a quarterly and even annual basis, can be quite variable at Siemens because of the nature of their revenue models. Taking that into account, again, we expect over $17 billion this year in industry revenue, as compared with nearly $16 billion in 2025. This should be another good year for EDA. With respect to 2027, we haven't yet published an industry forecast. I have no doubt it will continue to grow, but we have only published forecasts for Cadence and Synopsys individually. Even though they still account for almost three-fourths of the industry, we would have to give a number for the other, more than one-fourth of the industry, which at this point we've not yet published.About Jay Vleeschhouwer  Jay Vleeschhouwer, Managing Director of Software Research at Griffin Securities, has more than 40 years of research analyst experience in the technology sector, including software, semiconductors and computer hardware. Julie Rogers is executive director of the ESD Alliance.  Paul Cohen is Senior Manager of the ESD Alliance.

Between January and July 2026, Stanton Chase developed three regional Semiconductor Spotlight reports focused on market dynamics and executive leadership imperatives. The research found that North America, EMEA, and Southeast Asia are all facing engineering and leadership talent shortages.The Semiconductor Bottleneck is Moving from Lithography to Advanced PackagingThe semiconductor industry is growing rapidly. Currently, IDC is forecasting that global semiconductor revenue will reach $1.29 trillion by the end of 2026, representing more than 50% growth over 2025. A separate McKinsey report takes a wider measure of the industry than sales alone, accounting for in-house design teams in its projections. On this wider measure, the semiconductor industry is projected to reach $1.6 trillion by 2030 under McKinsey’s base-case scenario.These revenue gains are being spent on innovations in memory and advanced packaging to help address the memory wall. IDC identifies high bandwidth memory (HBM) as the primary constraint in the AI accelerator supply chain. However, most HBM capacity is pre-committed through 2026, with forward allocations reaching into 2027. With strained capacity around the world, IDC does not expect any meaningful new supply before late 2026 at the earliest. Companies wanting to circumvent capacity limits must build their own facilities, but this requires experienced operations leaders.Why Semiconductor Subsidies Cannot Buy Packaging and Yield ExpertiseGovernments around the world have tried to solve the capacity shortage with public money. McKinsey’s analysis of the New Industrial Policy Observatory tracker noted a roughly 390% growth in industrial-policy actions between 2017 and 2024, listing defense, semiconductors, and high-end equipment as the focus.Government investments also go where skills are thinnest. For example, Deloitte found that expertise in back-end steps like molding and bumping is scarce in the United States and Europe. These are the two regions spending the most on bolstering their industries, and subsidies are quickly funding new packaging lines. Although facilities investments are being made, engineers who can ensure the success of these lines have typically been trained over decades. As it stands today, there are not enough skilled senior engineers to staff new buildouts.How Semiconductor Talent Shortages Differ Across North America, EMEA, and Southeast AsiaThe U.S. is rebuilding the manufacturing infrastructure that was moved offshore after the year 2000. Section 48D, a manufacturing investment tax credit to incentivize domestic semiconductor production, now offers a 35% investment credit for advanced manufacturing facilities, up from the 25% rate set in 2022. The higher rate applies to qualifying property placed in service after 2025, and the credit does not apply to projects whose construction begins after December 31, 2026.Although this incentive is large, the country’s workforce is not in place to staff new manufacturing sites. McKinsey’s 2024 labor analysis stated that the U.S. semiconductor manufacturing workforce was down 43% from its peak in 2000. While around 1,500 engineers join the semiconductor workforce each year, forecasts show demand for 88,000 new engineers by 2029.Europe’s shortage runs the other way. While the U.S. lacks engineers it never trained, Europe is losing its engineers to retirement. The European Court of Auditors highlighted that the EU’s 20% output target is very likely to go unmet and cited skilled worker shortages among the factors affecting implementation. The European Chips Skills Academy, coordinated by SEMI Europe, reported that nearly 30% of the European semiconductor workforce is expected to retire by 2030. At the same time, graduate inflow is rising by less than 1% each year.Furthermore, Southeast Asia trains a high volume of engineers, but some Southeast Asian countries struggle to keep them. Malaysia’s deputy trade minister noted that of every ten graduates trained, only three remain in the country after a few years. Those engineers typically move within Southeast Asia rather than out of it, but they move to Singapore, where pay is better. While Singapore represents 10% of the global chip market, it also struggles with an aging workforce. To keep pace with its demand, Singapore recruits from neighboring countries.Every Regional Semiconductor Facility Competes for the Same Talent PoolEven though each region is specializing in something specific, all of them are recruiting the same engineering experts. For example, Deloitte expects Southeast Asia and India to grow as hubs for high-volume, back-end manufacturing. Meanwhile, Taiwan, the U.S., Japan, and parts of Europe are furthering heterogeneous integration and advanced packaging innovation. Deloitte concludes that talent constraints in advanced packaging may hold back regional autonomy goals around the world, even as back-end capacity keeps expanding in Asia.Every program described exists to move advanced production out of Asia; however, the only people who have run advanced production at scale are in Asia. Public money can pay for a fab, but it cannot produce an experienced operator. This forces each region to compete for the same small group. For instance, hiring an engineer in the U.S. removes them from Taiwan.What Semiconductor Leadership Planning Should Look Like Before 2030To adequately staff new facilities and meet rising demand, hiring decisions must be made before 2030. Chipmakers that fill senior plant and engineering roles on time do so by planning for new hires years in advance rather than waiting until someone resigns. Companies that hire successfully also benchmark pay against Taiwan and South Korea and allocate enough budget for relocation.This article summarizes the key findings of the three Semiconductor Spotlight reports and their shared talent development roadblocks. Each white paper covers its own region in depth, outlining where investments have been committed and the roles that need to be filled.Read each report to learn more.Semiconductor Spotlight: North AmericaSemiconductor Spotlight: EMEASemiconductor Spotlight: Southeast AsiaAbout the AuthorJan-Bart Smits is managing partner at Stanton Chase Amsterdam, global sector leader for technology, and global subsector leader for semiconductors. In his more than 30-year career, his work has taken him across semiconductors, technology, and professional services, and his earlier global roles at Stanton Chase included global practice leader for professional services and global chair. He contributed to each of the three regional Semiconductor Spotlight reports and holds a master’s degree in astrophysics from Leiden University.

The semiconductor industry is in one of the largest construction booms in its history, fueled by surging demand for advanced chips, particularly those powering artificial intelligence (AI). AI is fundamentally reshaping both the technology landscape and the infrastructure required to support it. Meeting the construction demand requires collaboration across the semiconductor ecosystem and a strong talent pipeline.What it Takes to Build a Fab Modern semiconductor fabs are complex. These sites include cleanroom fab buildings, central utility plants, electrical substations, wastewater treatment facilities, support buildings, offices and logistics infrastructure.Constructing such facilities requires a highly coordinated, multi-phase approach. Firms like Skanska are typically involved early through design-build models, working alongside owners and stakeholders from the outset. The fab construction process typically has three phases:Core and shell construction, where the structural building is erected and enclosedFit-out, focused heavily on mechanical, electrical and plumbing (MEP) systems Tool installation and utility connection, where the fab becomes fully operational Each phase demands precision and synchronization. A large project can host around 10,000 workers per day—a small town’s worth of activity requiring seamless coordination, logistics planning and rigorous safety protocols.The Workforce ChallengeThe biggest constraint on the semiconductor boom isn’t capital or technology—it’s skilled labor. It’s faced with a shortage of qualified tradespeople, particularly in critical disciplines like electrical and mechanical work.Electricians are in extremely high demand. The rise of both semiconductor fabs and data centers has created concentrated construction activity, where companies compete for the same limited talent pool. But this is not just a numbers problem—it is a challenge of increasing technical skills.Fab construction is far more technical than traditional commercial building. It requires highly trained journeymen and master electricians, pipefitters and welders who understand complex systems and can work in specialized environments such as cleanrooms. Workers must be trained not only in their trade, but also in contamination control, safety protocols and the unique operational requirements of semiconductor manufacturing.Compounding the issue is a generational gap in the workforce. The construction industry is seeing experienced workers retire or leave the field, while the next generation is only beginning to enter the workforce, leaving a shortage of experienced professionals in the middle of the pipeline. At the same time, attracting and retaining next-generation talent is a challenge, as many gravitate toward careers perceived as more analytical, technical and specialized rather than field-based project management work.Ironically, semiconductor construction is exactly that—highly technical, increasingly digital and deeply connected to the future of AI and advanced manufacturing. The challenge lies in communicating that reality and creating clear, compelling career pathways.Beyond Hiring: Building Skills and CapacityOne strategy is to create mentorship models within the trades. Rather than relying on a single large subcontractor to deliver the entire scope—such as electrical work—projects can break the work into smaller packages. This enables multiple firms to participate by pairing experienced trades with newer firms entering the market. These mentor-mentee structures help expand the labor pool while maintaining quality and knowledge transfer. Assumptions about workforce capability cannot be taken for granted. Even when working with established contractors or unions, skill levels can vary by region. This requires more rigorous qualification processes, targeted training and closer oversight, particularly in highly technical areas like MEP systems, which can account for roughly 25% of a fab’s total construction cost.Off-site manufacturing (OSM) is another lever. By prefabricating components in controlled environments, companies can reduce on-site labor demands, improve quality and mitigate workforce shortages. This approach requires tight coordination across the supply chain and early alignment between design, construction and equipment installation teams.Efforts to build the talent pipeline are underway, but many remain localized or in the early stages. In Arizona, for example, Skanska is partnering with community organizations, trade schools and veteran groups to attract new workers into construction careers. Initiatives include job fairs, training programs and “day of discovery” site tours that expose students to real-world projects.Engagement is also expanding to younger audiences. Programs with organizations like the Girl Scouts and STEM-focused institutions are introducing K-12 students to construction and semiconductor manufacturing, helping reshape perceptions and spark early interest.Subcontractor engagement programs are another important component. By supporting small, local subcontractors, companies can broaden participation in the ecosystem while creating new pathways for workforce entry and development, opening capacity for other firms.Subcontractor engagement is not simply a supporting initiative—it is a critical lever for expanding workforce capacity. By intentionally developing and integrating small and local subcontractors into projects, companies can unlock new pools of labor, strengthen regional capabilities and reduce reliance on a limited set of established firms. These efforts create meaningful entry points into the industry, accelerate skill development and enable a more scalable delivery model. When paired with mentorship and structured onboarding, subcontractor engagement becomes a powerful mechanism for both immediate project execution and long-term workforce growth.Yet these efforts are not enough on their own. The scale of the semiconductor boom demands a more coordinated, industry-wide response.A Call for Greater Industry AlignmentEquipment manufacturers, material suppliers and construction firms all share a common customer: the semiconductor manufacturer striving to bring capacity online quickly and competitively. Success depends on how effectively this ecosystem works together.That collaboration must begin early in the project lifecycle. Facilities should be designed with equipment integration in mind, ensuring that tools can be installed efficiently and without rework. Construction schedules must align with equipment delivery timelines. Suppliers must provide clarity on requirements and constraints. All stakeholders must consider how their decisions impact labor demand and workforce readiness.Equally important is a shared commitment to workforce investment. This includes:Developing standardized training programs for semiconductor construction Expanding apprenticeship and mentorship models Partnering with educational institutions and community organizations Promoting construction as a high-tech, future-oriented career path Leveraging innovation, such as OSM, to optimize labor utilization Building the Future TogetherThe semiconductor fabs being built today will underpin the technologies of tomorrow—but these facilities do not build themselves. They require thousands of highly skilled, specialized workers who operate in sync and are supported by a network of companies that must collaborate more closely than ever before. This is the time for the semiconductor value chain to operate as an integrated ecosystem rather than a series of isolated players. Through shared commitment to workforce development, collective responsibility and sustained investment in talent, the industry has the opportunity not just to meet demand, but to fundamentally shape the future of advanced manufacturing.Joycelyn Yue is National Director - Subcontractor Engagement at Skanska, where she leads a team of professionals in 23 offices. Yue partners with regional and national leadership to further develop and elevate the company’s Supplier Diversity Compliance program. In her role, Yue maximizes opportunities for small and diverse businesses while establishing relationships with the communities where Skanska builds.Yue joined Skanska from Southern California Edison where she served as Supplier Diversity Senior Program Manager. Yue has a B.S. in Business Management from California State Polytechnic Pomona and is based Los Angeles.

Taiwan is entering a decisive decade. The rapid growth of artificial intelligence, advanced semiconductor manufacturing, and high-tech information and communications technology (ICT) supply chains is increasing the strategic importance of electricity availability, cost stability, and progress toward net-zero by 2050. For Taiwan’s semiconductor and high-tech industries, energy is no longer only an operational matter. It is increasingly connected to competitiveness, supply chain resilience, customer expectations, and long-term investment confidence.Within this broader transition, renewable energy remains one of the most important tools available to corporate off-takers. Larger-scale renewable energy resources, including offshore wind, can play a strategic role in supporting post-2030 electricity demand and strengthening Taiwan’s position as a trusted global technology hub. However, the central challenge is no longer simply whether renewable energy demand exists. The more urgent question is how that demand can be converted into bankable, executable, and scalable procurement pathways.Against this backdrop, SEMI Energy Collaborative (SEMI EC) explored the Group Buy Initiative not as a single procurement model, but as a broader study of collaborative pathways that could strengthen Taiwan’s high-tech sector as it moves from renewable energy demand signals toward practical market delivery. The study identifies three possible directions: a straightforward Group Buy Program, Qualified Anchor Investment, and a JV-Aggregator model that could serve as a scalable bridge between renewable energy developers and a broader base of corporate off-takers.Renewable Energy as an Industrial Competitiveness IssueFor many companies, renewable energy procurement has historically been discussed through the lens of sustainability reporting, supply chain requirements, or corporate commitments. Those drivers remain important, but the context has changed. In the AI era, renewable energy procurement is becoming a strategic enabler of broader industrial strategy. This shift creates a practical market question: can disclosed corporate demand be converted into bankable long-term contracts and workable procurement mechanisms? The answer depends on whether developers, corporate off-takers, financial institutions, and government agencies can align around transaction structures that are commercially workable, financeable, and aligned with Taiwan’s evolving electricity-market rules.SEMI EC’s role in this context is to support market understanding, structured dialogue, and voluntary collaboration. The Group Buy Initiative study was therefore designed to examine possible collaborative pathways and identify scalable market solutions, not to prescribe a single procurement direction.Clear Demand Signals, Slow Market ConversionMany large and medium-sized companies have already disclosed renewable energy requirements, decarbonization milestones, supply chain expectations, or corporate commitments through annual reports, sustainability reports, ESG disclosures, and public statements. These signals indicate that substantial corporate demand exists and that renewable energy procurement is becoming increasingly critical to long-term business planning.The more important question is why these demand signals have not translated more quickly into actual market deployment. Demand disclosure alone does not automatically create bankable projects or executable Corporate Power Purchase Agreements (CPPAs); it must be translated into transaction-ready structures with sufficient offtake certainty, risk allocation, credit support, certificate clarity, and regulatory certainty.In other words, Taiwan’s challenge is not only a renewable energy demand challenge. It is a market-conversion challenge. The task is to build the structures, mechanisms, and confidence needed to convert disclosed demand into bankable and executable renewable energy procurement pathways. This is where collaborative models may have a role. The Group Buy Initiative study therefore shifted its focus from demand assessment to pathway assessment, asking which collaborative structures could most effectively bridge the gap between renewable energy demand signals and executable market transactions. The CPPA Challenge: Availability, Accessibility, Affordability, and AcceptabilityThe market-conversion challenge is especially visible in CPPAs. In Taiwan, offshore wind CPPAs are particularly complex because they must satisfy several requirements at once: project bankability, buyer readiness, regulatory compliance, certificate treatment, and internal approval.The Group Buy Initiative study categorizes CPPA execution barriers across four dimensions: availability, accessibility, affordability, and acceptability.Availability refers to whether sufficient renewable energy projects can be delivered on time and at scale. Taiwan has made important progress in renewable energy development, but larger-scale projects continue to face execution pressures, including cost escalation, financing uncertainty, supply chain constraints, permitting complexity, and policy-design challenges.Accessibility refers to whether corporate buyers can access renewable energy through workable procurement structures. Large-scale offshore wind projects often require highly bankable off-takers to support project financing. As a result, not every company with renewable energy demand can easily sign a direct project-level CPPA. Some buyers may still be building the credit readiness, balance sheet capacity, internal procurement process, or long-term risk-management experience required for this type of transaction.Affordability refers to the price gap between renewable energy CPPAs and regulated electricity tariffs or other available procurement options. For many companies, especially those under cost pressure, it is difficult to justify long-term renewable energy procurement unless the price, risk allocation, and certificate treatment are sufficiently clear.Acceptability refers to whether CPPA terms can pass internal review. A CPPA is not a simple “sign-and-forget” transaction. Companies must evaluate whether project delivery, contract tenor, generation profile, Surplus RE exposure, Taiwan Renewable Energy Certificate (T-REC) allocation, settlement and accounting treatment, and approval requirements can be managed within their internal governance framework. These issues are manageable, but they require greater market understanding and more structured engagement.Figure 1: Major Challenges for Offshore Wind CPPA in TaiwanOffshore Wind: A Strategic Pillar Under Execution PressureTaiwan’s offshore wind sector is facing real execution pressure. These challenges should not be understated, but they should also be understood as part of the market’s ongoing transition rather than as a reason to step back from larger-scale renewable energy development. Offshore wind remains strategically relevant because of its scale, generation profile, and potential contribution to post-2030 industrial electricity demand.For Taiwan’s semiconductor and high-tech ICT sectors, offshore wind is therefore not only a source of renewable electricity. It is a strategic component of Taiwan’s long-term industrial competitiveness. However, the same characteristics that make offshore wind strategically important also raise the execution threshold: projects must secure lender-grade revenue certainty while giving corporate buyers workable solutions for credit, settlement, T-REC allocation, and Surplus RE exposure.This led to a key conclusion from the Group Buy Initiative study: the most intuitive collaborative model is not necessarily the most executable. A straightforward Group Buy Program can support coordination and readiness, but offshore wind procurement also requires a transaction structure capable of meeting lender, developer, and corporate-buyer requirements at scale. This is why aggregator-based and investment-linked pathways deserve further assessment alongside more conventional procurement models.Rethinking Collective Action: From Obvious Options to Practical PathwaysThe Group Buy Initiative study examined collective action from a practical market perspective. Rather than assuming that one model could solve all procurement barriers, the study considered three possible pathways. Each pathway addresses a different part of the market-conversion challenge.One of the clearest observations is that the most obvious option is not always the easiest to implement. A Group Buy Program appears straightforward at first: companies with renewable energy demand could aggregate interest, align common procurement principles, and engage developers through a more coordinated process. In theory, this could reduce transaction costs, improve transparency, and convert disclosed demand into a more actionable procurement signal.In practice, however, Taiwan’s market conditions make a straightforward Group Buy Program more complicated. Larger and more creditworthy off-takers may already be able to negotiate directly with renewable energy developers, while smaller or medium-sized off-takers may benefit more from collective procurement but may not individually provide the bankability that project-financed offshore wind projects require. This creates an anchor gap: the companies most able to support project finance may have less need for a Group Buy structure, while the companies most likely to benefit from Group Buy may not be sufficient to support project finance on their own.This does not mean that a Group Buy Program has no value. It can still serve as a useful platform for demand mapping, member segmentation, CPPA capacity building, common-term discussion, and market signaling. However, the study suggests that the Group Buy Program should be understood primarily as a coordination and readiness-building pathway, rather than a simple shortcut to large-scale offshore wind procurement. Any structure that involves shared procurement, aggregated demand, or anchor participation would still require careful legal, financial, credit, and competition-law review.This is where the JV-Aggregator pathway becomes relevant as a potential market-enabling structure. Taiwan already has 125 registered renewable energy sellers, according to publicly available Energy Administration information as of 1 July 2026. However, many appear to be focused on solar PV or smaller-scale transactions and may not have the scale, credit profile, balance sheet capacity, or client base required to engage with offshore wind developers. This creates an imbalance: offshore wind developers need credible and scalable offtake partners, while many existing aggregators may not yet be able to serve that role.Under current market conditions, a larger and more institutionally credible JV-Aggregator could address several gaps that a straightforward Group Buy Program may not fully resolve. Such a platform could potentially be developed through partnership, strategic investment, or by leveraging existing licensed market capabilities, followed by credit enhancement, governance strengthening, and clearer market positioning. If properly structured, it could provide a more scalable interface between larger renewable energy developers and a sector-focused corporate off-taker base.For developers, an aggregator-based model could provide a more credible route to diversified corporate demand. For off-takers, it could offer more flexible procurement arrangements than direct project-level CPPAs, particularly for companies that have renewable energy demand but may not be ready or able to serve as standalone bankable anchors. In this sense, the JV-Aggregator pathway appears to address practical market gaps related to scale, credit intermediation, customer aggregation, settlement, and allocation.However, this pathway would require careful qualification. A JV-Aggregator would need to demonstrate institutional capacity across capitalization, credit support, retail licensing, pricing transparency, T-REC accounting, settlement and allocation, risk management, and governance. If connected to an industry platform in any form, it would also require safeguards to preserve member independence, avoid competition-law concerns, and ensure that any associated industry platform remains a neutral facilitator rather than a commercial contracting party.Qualified Anchor Investment remains a third and more selective pathway, and may include SPV-type participation in selected renewable energy projects or platforms. For companies with sufficient capital capacity, investment mandate, and long-term renewable energy demand, strategic capital participation may help improve project bankability and market confidence. However, this is not a general solution for all off-takers. It requires investment committee approval, project due diligence, governance rights, exit planning, legal and tax review, and careful assessment of construction, permitting, operational, market, and concentration risks.Taken together, these pathways represent different levels of market engagement. They should not be viewed as mutually exclusive or uniformly applicable. Their relevance will depend on each company’s demand profile, internal readiness, credit position, investment mandate, and strategic priorities.PathwayMain rolePractical noteGroup Buy ProgramDemand mapping and CPPA readinessUseful for coordination, but limited without sufficient anchor bankabilityJV-AggregatorScalable market bridgeWorth further assessment if professionally governed and properly capitalizedQualified Anchor InvestmentStrategic capital participationSelective option for companies with suitable capital mandate and risk appetiteFigure 2. Collaborative Pathways to Convert Demand Signals into Renewable Energy TransactionsPolicy and Market Conditions MatterCollaborative corporate action can help, but no pathway will succeed without supportive policy and market conditions. Whether companies pursue direct CPPAs, Group Buy coordination, aggregator-based procurement, or Qualified Anchor Investment, several enabling conditions remain important.These include clearer and more stable CPPA rules; practical T-REC and Surplus RE treatment; reliable wheeling, settlement, and allocation mechanisms; and credit-enhancement tools that can help bridge the bankability gap between developers and corporate buyers. These issues directly affect whether renewable energy demand can be converted into bankable and executable transactions.Continued dialogue among government agencies, Taipower, certificate authorities, developers, financial institutions, and corporate users will therefore remain important. SEMI EC can support this process by providing structured industry feedback and helping translate market observations into practical policy discussion.A Road Worth TakingThe Group Buy Initiative study suggests that Taiwan’s renewable energy procurement challenge cannot be solved through a single uniform pathway. A straightforward Group Buy Program can support demand mapping, member readiness, common-term discussion, and market signaling, but may face limitations when applied to large project-financed renewable energy transactions. Qualified Anchor Investment may help selected companies support project bankability, but it is not suitable for all off-takers. A professionally governed JV-Aggregator model warrants further assessment, as it could offer a more scalable bridge between renewable energy developers and a broader corporate off-taker base.These findings point to a shared need for more mature market infrastructure, better alignment between demand and bankability, and continued policy-market dialogue. For Taiwan’s semiconductor and high-tech ICT sectors, the task is not only to express renewable energy demand, but to help shape the market pathways through which that demand can become bankable, executable, and scalable.The opportunity is clear: Taiwan can turn AI-driven growth into a catalyst for renewable energy market acceleration, but doing so will require better market preparation, stronger transaction structures, and shared recognition that renewable energy is now central to Taiwan’s next stage of competitiveness.This article reflects SEMI EC’s general market observations, public information, and expert discussions. It does not disclose company-specific information and does not represent the position of any individual member company.Selected References:Energy Administration, Ministry of Economic Affairs, “Registered Renewable Energy Sellers,” [Accessed 29 June 2026]. Available: https://www.moeaea.gov.tw/ecw/populace/content/Content.aspx?menu_id=8887.Tony Lenoir, Adam Wilson, “Whether you call it 'sustainability' or 'energy autonomy,' AI needs solar and wind,” S P Global, 7 April 2026. [Online]. Available: https://www.spglobal.com/en/research-insights/special-reports/ai-needs-solar-wind-sustainability-energy-autonomy. [Accessed 18 April 2026].陳昭宏, “龔明鑫喊「不會斷氣」 學者預估：台積電2030用電占全台15% 能源安全面臨挑戰,” 環境資訊中心, 13 3 2026. [Online]. Available: https://e-info.org.tw/node/243170. [Accessed 30 4 2026].T.-R. Center, “National Renewable Energy Certificate Center,” 2026. [Online]. Available: https://www.trec.org.tw/. [Accessed 10 April 2026].IEA, “Energy and AI,” IEA, Paris, 2025.柯昀伶, “補綠電缺口 離岸風電3-3期刻不容緩,” UP Media, 25 September 2025. [Online]. Available: https://www.upmedia.mg/tw/commentary/energy-and-environment/240780. [Accessed 20 April 2026].SEMI Energy Collaborative and NIRAS Taiwan, market screening and stakeholder discussions, 2026.Raoul Kubitschek is the Managing Director of NIRAS Taiwan, a Danish-headquartered, multi-disciplinary engineering firm. Active in Taiwan’s renewable energy sector since 2007, he has worked across PV, onshore, and offshore wind—from project development and execution to policy and market advisory for developers, supply chains, and public stakeholders. His role extends to Japan, the Philippines, Vietnam, and Australia, where he advises international institutions and private sector clients on offshore wind development and capacity building. Kubitschek also serves as Chairman of the Taiwan Renewable Energy Alliance, an NGO advocating for renewable energy adoption.Wen Huang is Director, NIRAS Taiwan. He has over 10 years of consulting experience in sustainability, specializing in renewable energy development, policy analysis, commercial strategy, environmental and social impact assessment, and stakeholder engagement. He has played key advisory roles in several offshore wind projects in Taiwan and supported policy development and environmental and social impact analyses for renewable energy initiatives across the Asia-Pacific region.David (Ta-Wei) Chiang is Program Lead for the SEMI Energy Collaborative in Taiwan, where he leads policy advocacy and industry collaboration on renewable energy priorities for the semiconductor and high-tech sectors. Working across industry, government, utilities, and energy-market stakeholders, he advances policy and market solutions that align corporate decarbonization needs with Taiwan’s energy transition and industrial competitiveness, with a focus on renewable energy access, corporate procurement, and market design. Through public-private engagement, Chiang helps advance a more flexible, mature, and accessible renewable energy market that supports Taiwan’s long-term industrial competitiveness.

John Barr, Portfolio Manager of the top-ranked Needham Aggressive Growth Fund, is known for his disciplined, long-horizon investment style — a style distinctive enough to earn him a profile in Stock Market Maestros, a book featuring 12 of the world's best investors.Julie Rogers, Executive Director of the ESD Alliance, sat down with Barr to explore his strategies, habits, and investing mindset. For readers in the EDA and semiconductor community, his perspective will feel familiar: Barr spent 14 years in EDA before moving to Wall Street, and he credits that experience as foundational to everything he does today."The EDA industry of the '80s and '90s was an amazing place to learn about technology and business," he says. "Those lessons carry forward."Rogers: How do you stay on top of a changing investment landscape?Barr: I've been managing this Fund for 17 years. I call my investment process "Hidden to Quality Compounders." A “Hidden Compounder” meets four criteria. First, the company has an established business but is investing in something new beyond the typical Wall Street horizon of 12 to 18 months. That requires understanding both the current business and where it's going. Second, the company has the potential to grow five to ten times its current size. Because I invest for the long term — my Fund averages a ten-year holding period — I believe that kind of upside is the only way to reliably beat the market.Third is great management. To me, that usually means founders, family members, or long-tenured executives. I came to that view through my EDA experience. These are people who think long-term and don't veer off course technologically. Finally, I look for availability at a margin-of-safety price — one that reflects the value of the new business or is supported by the balance sheet. Then, I hold while the company transitions and the new business begins to contribute meaningfully.Where do I invest? Broadly defined infrastructure. That starts with technology and manufacturing infrastructure — the tools and products used by engineers — which means semiconductors and data centers, general manufacturing, and traditional infrastructure: concrete, the grid, water, and energy.Defense is another area. Since Russia's invasion of Ukraine, I've thought more seriously about deterrence and the role technology plays in it—autonomous systems, drones, maritime operations, and cybersecurity. Labor is part of this too. The U.S. has a serious shortage of skilled trade workers, and there are publicly-traded skilled-labor trade schools training people to become HVAC technicians, electricians, electrical linemen, welders, auto and aviation technicians. The architecture, engineering, and construction firms that employ those graduates are worth watching.That's my universe: tech and industrials, broadly defined. Finding opportunities means reading conference call transcripts and federal filings, piecing together signals the market hasn't yet recognized. None of it would be possible without my years in EDA.Rogers: It sounds like most of these are small cap stocks.Barr: It's a small cap fund. When I own a small cap stock for ten-plus years and it succeeds, it doesn't stay small. Some of them, anyway.Rogers: Do you hold on at that point, or do they exit the portfolio?Barr: Generally, we hold on. If a position crosses 7.5% of the portfolio, we may trim. If something is off track, we may sell. Once a company crosses the $10–15 billion market cap range — the upper end of small caps — we may opportunistically purchase shares, but generally, we let the position appreciate.Rogers: How do you research a portfolio company’s competition?Barr: The same way: read the transcripts and the filings, and talk to competitors and customers. It's reading, writing, and talking to people — constantly. Everywhere I go, I'm trying to observe what's happening and find connections that may not be obvious.Rogers: As more companies pass the baton to the next generation, how do you build trust in new leadership? Do you develop that second-tier relationship that you had with the founder?Barr: Ideally, I've gotten to know them before the transition. Formally, that happens when companies make their next-tier leaders available to investors. Informally, it happens at trade shows and industry events. The best practice approach is for companies to introduce the heir apparent to the investing community well before any leadership change. That gives everyone time to build a relationship.Rogers: How long does the “Hidden Compounder” stage typically last?Barr: When I invest, these companies are small — market caps of $200 million to $2 billion, often with a single product or business line. They're already investing in the next thing; that's what I'm really investing in. The new business might start contributing within a year or two of my investment, but the company has probably been working on it for two to five years before it crossed my radar.In my experience, about half of my “Hidden Compounders” successfully transition to the next stage. Of those, about half become what I call “Quality Compounders,” which are companies that have clearly hit their stride, like Cadence and Synopsys did years ago.Of that final group, a handful become the big successes — stocks that appreciate between five and 100 times. I have one at roughly 230x since time of first purchase. The full arc, from “Hidden” to “Quality,” can take a decade. Synopsys and Cadence are great examples. Unfortunately, I did not invest in either, despite my background. It's a long-term proposition, and it happens to a minority of companies. But that's exactly where I want to be invested — at the beginning of that journey.Rogers: What's your geographic focus?Barr: The Fund predominantly invests in U.S.-listed companies. But like everything in electronics, it's a global business. Asia matters a great deal. Europe, less so, but you have to know what's happening on all sides.Rogers: Do you have some all-time favorites? Barr: PDF Solutions is at the top of the list. Co-founders John Kibarian and Kimon Michaels have led the company since the beginning and they think in decades, not quarters. I first bought PDF Solutions in 2010 at $4 a share. The Fund is up over 15x on those initial shares.The company has gone through three distinct transitions in that time. We added to our position between 2015 and 2018 as it navigated the loss of Samsung as a major customer and began investing in the Exensio data analytics platform, and its Design-for-Inspection™ contactless E-beam tool. By 2020, those investments started generating returns. In my framework, I still place PDF Solutions in the late “Hidden/early Transition” stage — there's more to come.What makes John and Kimon stand out, beyond their engineering leadership, is their approach to compensation. Since their IPO in 2001, they have never taken a stock option grant — preferring, as their proxy states, to leave those shares for employees and contractors. Their base salaries are a fraction of what comparable small cap CEOs earn. They own substantial stock and rarely sell it. I believe they are building PDF for their customers, their team, their public investors and themselves, in that order. No one else does this. It's extraordinary. I use PDF Solutions as an example of best practice in management compensation and stock ownership.Rogers: What other advice would you have for readers of our blog and individual investors?Barr: Start with Peter Lynch's One Up On Wall Street: How To Use What You Already Know To Make Money In The Market. His core message is to invest in what you know — and your readers know a lot. That's a real edge.Second, be patient. Some people make money through trading and with options, but lasting wealth comes from holding. Have a clear reason for buying and then give it time. Some investments won't work. Some companies will fail. Some will peak and decline. But a few will more than make up for the inevitable mistakes.Third, learn basic financial statement analysis. It doesn't need to be complicated — just enough to navigate an income statement, balance sheet, and cash flow statement. For people in the EDA industry, that's genuinely straightforward. You can teach yourself in about ten hours.And fourth: past performance is not indicative of future results. Things can go wrong. Be careful. Diversify — though if investing isn't your full-time job, you don't need to follow 20 companies. Studies suggest owning around ten, across different industries, captures most of the benefit of diversification.I must add a disclaimer from a compliance perspective that not everything works out and be careful. Consult a financial advisor or expert.About John BarrSince 2010, John Barr has served as Co-Portfolio Manager of the Needham Growth Fund and Portfolio Manager of the Needham Aggressive Growth Fund. He began his Wall Street career in 1995 at Needham Company as a sell-side analyst covering technical software companies. He was named an Institutional Investor All-Star and led a top-ranked software team recognized by Reuters.From 2000 to 2002, Barr was a senior analyst at Robertson Stephens covering semiconductor technology. In 2002, he joined Buckingham Capital Management as a portfolio manager and analyst for a long/short domestic equity hedge fund. From 2009 to 2017, he served on the board of directors of Coventor, Inc., prior to its acquisition by Lam Research. He joined Needham Asset Management in 2009.Before his Wall Street career, Barr spent 14 years in the EDA industry in marketing, sales, and corporate development. In 2020, he co-founded the Wall Street Development Accelerator Internship Program, which introduces students to career opportunities in financial services.Julie Rogers is Executive Director of the ESD Alliance, a SEMI Technology Coalition.

The SEMI Startups for Sustainable Semiconductors (S3) program, now in its 5th year of inviting startups to apply, is pleased to announce the 33 startups chosen to move to the semifinalist virtual pitch event happening July 29-30. From this pool, 10-12 finalists will be selected and invited to pitch to a live audience at SEMICON West 2026 in San Francisco, October 13-15, 2026. The committee, made up of experienced Corporate Venture Capitalists (CVCs) from the global semiconductor industry, received impressive submissions in all four categories for 2026:Decarbonized Semiconductor ManufacturingDesign for Sustainability – Chips PackagingDatacenter Efficiency in Power Delivery and ThermalsNew Frontiers in Sustainable ComputingLed by Micron this year, the program’s strongest feature is the exposure to the CVCs, as well as the personal mentoring each semifinalist receives. The mentoring topics are tailor-made to align with the greatest need of the startup and can range from a basic introduction to semiconductor manufacturing, to connecting them to funding sources. A full analysis of the program kicked off this year’s efforts and is captured in a report available here.The program saw an increase in quality applications with a geographically diverse group of semifinalists who will all share their solutions for the building and use of more sustainable electronics. Are you an investor and would like to receive notice of the virtual and live pitch events around S3? Register your interest here. 2026 S3 SemifinalistsAikido TechnologiesSan Francisco, CA, USAAikido Technologies is building clean, marine datacenters - AI-grade compute on the ocean, built faster, cheaper and more efficiently than conventional infrastructure. Axonal NetworksMontreal, QC, CanadaAxonal Networks develops digital photonics technology (paraLITE™) that performs computation directly in silicon photonics. Our devices eliminate electronic bottlenecks, enabling ultra-high-speed, energy-efficient computing for AI infrastructure and next-generation semiconductor systems. C1 BioChicago, IL, USAC1 Bio is building a biomanufacturing platform that converts low-cost agricultural waste into high-performance photoresist materials for semiconductor manufacturing. Our initial product, bio-based 4-acetoxystyrene (ASM), is a drop-in replacement for petroleum-derived monomers, enabling sustainable, domestic production of critical lithography materials without compromising cost, purity, or performance. CHIPADD, Corp.Binghamton, NY, USACHIPADD is the first to additively manufacture ultra-efficient copper cooling features directly onto the surface of GPU, CPU, and other high power silicon chips. The company’s innovation includes materials and methods for robust bonding, manufacturing of solid and porous cooling features, enhanced materials for cooling, manifold and precision jet design. EMTAR Technologies IncRichmond, VA, USAEMTAR Technologies designs highly integrated beamforming SoCs and RF front-end ICs for 6G non-terrestrial networks. Our chips enable low-latency, high-throughput satellite communications while reducing power consumption and hardware complexity, improving energy efficiency of satellite communication infrastructure. enaDyneLeipzig, Saxony, GermanyenaDyne builds a fully electric, modular abatement system for semiconductor fabs based on non-thermal plasma catalysis. Our reactor destroys PFCs, VOCs, and NOx at 99% DRE through electron-impact chemistry at near-ambient temperature, fitting the same footprint as burn-wet for direct drop-in replacement. Same hardware extends to electrified chemical synthesis. FlexcomputeBoston, MA, USAFlexcompute builds a GPU-native physics simulation platform: Tidy3D (photonic/electromagnetic FDTD), PhotonForge (photonic design automation), Flexcompute RF (full-wave EM), and Flow360 (CFD/thermal), delivering results 50-500x faster than legacy CPU tools. FlexAgent, our AI assistant, enables engineers to run and iterate simulations via natural language, accelerating chip and data center component design. Floadia CorporationTokyo, JapanAI data centers are consuming large power. This is a global issue. Floadia developed analog CiM (Computing in Memory) technology that execute AI matrix calculation at 1/1000 power of digital way to solve AI data centers power issue using unique memory technology. FS2Saint Louis, MO, USAFS2 is developing a revolutionary Monolithic 3D (M3D) integration platform and memory. We are building next-generation stacked 3D SRAM and Process-on-Memory (POM) architectures. Our product delivers memory solutions with superior bandwidth, capacity, low latency, high energy efficiency, and lost cost for AI workloads. HEXAspec IncHouston, TX, USAHEXAspec develops advanced molding compounds for semiconductor encapsulation using high-aspect-ratio hexagonal boron nitride (hBN) nanosheets in polymers. Its scalable, patent-protected exfoliation process enables 10x — higher thermal conductivity while maintaining electrical insulation, mechanical strength, and compatibility with standard OSAT and foundry packaging for HPC, automotive, and edge-AI applications. IL-BSC TechnologiesBrooklyn, NY, USAHelium-free wafer thermal stabilization system for electrostatic chuck applications. Replaces helium backside cooling with low-vapor-pressure ionic liquid thermal fluid, tier-specific chemical getter, dual-mode acoustic purge, and plasma-resistant barrier integrity sensor. Eliminates dependence on critical helium supply while maintaining thermal uniformity required for advanced node semiconductor manufacturing. IWI Australia Pty LimitedSydney, NSW, AustraliaWe have developed and piloted a patent-pending catalytic quench of hydrogen peroxide (CQ) in fab wastewater, especially in complex water matrix with high peroxide load, extreme acidity and heavy metal. We have also developed a patent-pending oxidation process for triazole, another pain-point of fab operation and water reuse. K1 SemiconductorChicago, IL, USAAt K1 Semiconductor, we create engineered semiconductor wafers by peeling thin layers from high-quality single-crystal “parent” wafers. Our patented wafer splitting method releases a 5-50 micron-thick layer of single-crystal material from the parent wafer, which is then transferred and bonded to a handle wafer to create a custom semiconductor wafer. KoolMicro, Inc. Dongtan, Gyeonggi-do, South KoreaKoolMicro is engineering the "Thermal Highway" for the AI era. We develop Integrated Manifold MicroChannel (IMMC) modules that handle 4,000W+ thermal loads. Our Direct-to-Chip solution utilizes vertically sprayed coolant to remove heat directly from the chip level, ensuring next-gen GPUs and CPUs never throttle. NanoPattern Technologies, inc.Chicago, IL, USAAt NanoPattern, we are commercializing a photodefinable hardmask (PDH) liquid formulation for advanced semiconductor packaging. Our resin-free, sustainable, metal-oxide formulation enables the use of non-photosensitive polymer dielectrics to form sub-micron lines and vias for high-resolution RDLs. We eliminate expensive vacuum deposition tools, drastically improving design freedom for next-generation AI chips. NicslabRochester, NY, USANicslab develops advanced electronic and photonic control systems that enable precise testing, operation, and deployment of photonic integrated circuits and semiconductor devices. Its platforms replace complex lab equipment with scalable, software-driven solutions, helping transform photonics from research into reliable, real-world applications across AI, data centers, quantum technologies, and advanced sensing. NordAmpsLund, Skåne County, SwedenNordAmps develops ultra‑high‑performance RF circuits using vertical III‑V nanowire transistors on standard silicon. The architecture delivers higher frequency performance, lower power use and smaller footprint than GaAs, GaN or SiGe, while being fully compatible with existing semiconductor fabs for true scalability. Normal ComputingNew York, NY, USANormal EDA is a purpose-built AI platform for semiconductor design that applies auto-formalization, combining LLMs with formal logic, to accelerate chip design and prove correctness. Deployed with half of the top ten semiconductor companies by revenue, and used to design our silicon: CN101, the world's first thermodynamic computing chip. NSS WaterGothenburg, Västra Götaland County, SwedenAt NSS water we are building a solution to drastically decrease water and chemical use in semiconductor industry and doing advanced solvent reclaim of downstream waste from rinse processes such as wafer cleaning, etch and more. With our new patent technology we can do IPA-reclaim and produce extremely pure water Plaid SemiconductorsAtlanta, GA, USAPlaid is building a modular platform that enables rack-on-package integrating large numbers of AI processors onto a single package. By collapsing distance within systems, we deliver higher bandwidth, lower power loss, and dramatically improved performance for next-generation AI infrastructure. Power to HydrogenColumbus, OH, USAPower to Hydrogen is building industrial-scale AEM electrolysers that reduce the stack costs by 65% for clean hydrogen production. For semiconductor manufacturing, we are developing a pathway from a 10 kW pilot to a 500 kW fab-ready module for onsite, ultra-high purity, low-carbon hydrogen production. Powerlattice Technologies Inc.Phoenix, AZ, USAThe first true monolithic integrated voltage regulator designed for high wattage ( 1kw) ASICs and XPUs. Project LegacyLondon, England, United KingdomA neuromorphic semiconductor for autonomous systems (robotics). Our chip architecture consists of neurons taken from the 7-brain regions within neuroscience. This will allow for predictive learning and tasks to occur once a software algorithmic layer is applied. We see current neuromorphic hardware layers as the problem. Rise Technology srlMilano, Lombardy, ItalyRiseTech develops next-generation semiconductor equipment based on its proprietary Dynamic Drop™ technology, overcoming the limits of conventional electroplating. The platform enables high-uniformity, high-throughput formation of interconnects, improving yield and enabling advanced architectures in heterogeneous integration, including chiplets, DRAM stacking, and 2.5D/3D packaging. SolidT Technologies LtdPetach Tikva, Central District, IsraelSolidT develops thin-film thermoelectric solutions enabling localized, active thermal control in semiconductor systems. Our technology mitigates hotspots, reduces thermal gradients, and improves efficiency and reliability. It integrates at chip or module level alongside existing cooling systems, supporting high-performance computing and advanced semiconductor applications. Stellar Engiine Milpitas, CA, USAInnovation is plasma chemistry creation, 100 C, atmospheric to vacuum pressures, with significantly lower energy than legacy RF and microwave methods. Product is plasma reactor and pulsed high voltage generator controlled by advanced recipe algorithms. Applications are PFC abatement, followed by NF3 chamber cleaning, advanced packaging surface conditioning and PEALD. Supra Elemental Recovery, Inc.Austin, TX, USASupra is a technology startup addressing the key chokepoint in the global critical minerals supply chain: element-specific separation. While existing technologies struggle to separate individual minerals at high-purity—leading to inefficient and expensive processes—Supra is building an affordable and effective solution. TopoLogic Inc.Tokyo, JapanWe are developing a high-speed, high-capacity memory design IP technology, that can be directly embedded to CMOS based processors. It is capable of 1~2ns write speeds, and be 5~10x high capacity compared to conventional SRAM technology, based on a material innovation to conventional MRAM platform. UNISERSZurich, Canton of Zürich, SwitzerlandUNISERS has developed a novel wafer defect inspection and characterization technology to help fabs find and identify minute contaminants (sub 10nm), which are mostly invisible to currently used inspection equipment. As transistor nodes move to 3nm and below, these very small particles cause huge yield issues in state-of-the-art wafer fabs. VEIR, IncWoburn, MA, USA Superconducting power solutions (cables and supporting infra). From grid to rack. Wise IntegrationFranceWise-Integration digitalizes power converters to overcome power limitations for AI data center and electrification. We build smaller, faster and more efficient AC/DC and DC/DC converters by combining WiseWare®, a 32-bit digital controller, and WiseGan®, a digital-first GaN power IC, enabling smarter regulation, higher power density and reduced system complexity. xMEMS LabsSanta Clara, CA, USAWe are building µCooling, a novel active thermal management solution for high-density data centers. We provide precision active cooling that targets severe component hot-spots directly. Acting as a third cooling option beyond liquid and fans, it maximizes density and minimizes complexity, covering SSDs, VRMs, optical transceivers, and DIMMs. YPLASMAMadrid, Community of Madrid, SpainYPlasma develops solid-state ionic wind cooling using Dielectric Barrier Discharge (DBD) plasma actuators—no moving parts, silent, and ultra-thin. Our technology replaces fans in Edge AI devices, data centers, and high-performance electronics, delivering targeted airflow with higher reliability, lower acoustic signature, and form factors impossible for mechanical cooling. Kenneth Guertin is Program Manager, Operations at SEMI.

Manufacturing is a cornerstone of U.S. national security and economic prosperity, supporting jobs, growth, and global competitiveness. Within this ecosystem, the U.S. semiconductor industry holds a uniquely critical role, powering the advanced technologies that form the backbone of the modern world. Realizing the full potential of American manufacturing, however, depends on a policy environment that encourages investment and innovation. The pro-growth, competitive, and predictable tax policies in President Trump’s Working Families Tax Cuts (WFTC) are therefore essential to sustaining global leadership of the U.S. semiconductor industry. SEMI welcomes the Administration’s signing of the “One Big Beautiful Bill” and delivering a pro-investment tax framework that accelerates domestic investment and strengthens the American semiconductor industry’s global competitiveness. Demand for semiconductors is rapidly increasing, driven by critical applications such as artificial intelligence and quantum technologies that are integral to American innovation and national security. Meeting this demand requires billions in capital investment across the comprehensive supply chain, making tax policy a key factor in investment decisions. Policies such as the WFTC’s permanent extension and doubling of immediate expensing for qualifying equipment and software provide a significant advantage for companies building, maintaining, and supporting American chip-making. Likewise, by making 100% bonus depreciation permanent, the WFTC allows businesses to expense qualified equipment and property in the first year, significantly improving return on investment for capital-intensive semiconductor projects.Importantly, the American semiconductor supply chain includes not only large manufacturers but also droves of small and medium-sized businesses. President Trump’s WFTC permanently extends the Section 199A deduction, leveling the playing field for these businesses that would otherwise face higher hurdles to growth. That long-term tax certainty allows for businesses to confidently invest in and expand their facilities, hire new employees, and grow production—directly supporting American families. Together these pro-growth tax cuts help drive American semiconductor innovation, growth, and competitiveness. SEMI applauds the Administration’s competitive WFTC policies that support the full semiconductor supply chain. The WFTC allow companies to commit the capital necessary for multi-year semiconductor manufacturing investments with confidence and drive continued U.S. semiconductor and technological leadership. SEMI supports the Administration’s efforts to make the United States the premier destination to do business and looks forward to continued collaboration on U.S. economic and national security policy priorities. Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Royal Kastens is Vice President, Global Public Policy Advocacy at SEMI.