Business and Markets

Under the Greenhouse Gas Protocol (GHGP), all companies are required to calculate and report their emissions, including those of all members of their downstream and upstream supply chains. These are called Scope 3 emissions, and are divided into 15 Categories, including Category 11 - Use of Sold Products, a heavy lift for many small (and often large) companies. Measurement and improvements in vendor Scope 3 emissions are already influencing vendor selection and sourcing decisions, and experts agree that this will continue to increase. Upstream suppliers have typically relied on broad GHGP guidance to follow in making their calculations. For the semiconductor sector, and its well-documented, incredibly complex supply chain, there was no guidance accounting for the nuances within the industry to standardize calculations. Work began a year-and-a-half ago to change that.The Semiconductor Climate Consortium (SCC)’s Scope 3 Working Group compiled, verified and published a guidance document for calculating Scope 3, Category 11 emissions. The guidance document helps standardize emissions reporting and calculation methods and accounts for the unique requirements and circumstances of the semiconductor value chain.The SCC 3.11 guidance explicitly highlights where it maintains consistency with the existing guidance (e.g., GHG, SBTi, US EPA) and where it expands on that guidance to close a gap relevant to one or more of the semiconductor industry segments. The document was developed with the help of the Sustainability Consulting Group ERM, as well as excellent participation from the Scope 3 Working Group members, including representation from every segment of the semiconductor value chain from IDMs to foundries, fabless companies, chemical gas and materials companies, OSATS, and equipment manufacturers.Some of the significant areas considered while compiling the guidance included:Boundaries, especially around products and direct use-phase emissionsProduct lifespan, especially across the different sectors of the value chainMarket based emissions guidanceIncorporating grid decarbonization into the inventory and calculationsThe document includes several useful calculation examples, including direct use phase emissions and direct and indirect energy consumption. The examples help to make the guidance more tangible and practical in real world application.We were pleased to collaborate with our industry colleagues on developing this guidance as we work to align with others in the industry and minimize our reporting via efforts by the SCC. Download the Guidance Document.For further insights into the Guidance, the authors, including experts from ERM recently hosted a webinar. Register to watch the recording. Sara Turner is Climate Program Manager at Lam Research, and Mike Halblander is Product Marketing Manager at Teradyne. Both Turner and Halblander lead the SCC’s Scope 3 Working Group.

The SEMI Startups for Sustainable Semiconductors (S3) program, now in its 4th year of inviting startups to apply, is pleased to announce the 35 startups chosen to move to the semi-finalist virtual pitch event happening July 31 and August 1. From this pool, 10-12 finalists will be chosen and invited to pitch to a live audience at SEMICON West 2025 in Phoenix, AZ, October 7-9, 2025. The committee, made up of experienced Corporate Venture Capitalists (CVCs) from the global semiconductor industry, received impressive submissions in all three categories identified for 2025:Sustainable Semiconductor ManufacturingSustainable Data CenterGen AI for Sustainable DesignLed by Applied Materials this year, the program’s strongest feature is the exposure to the CVCs, as well as the personal mentoring each semi-finalist receives. The mentoring topics are tailor made to align with the greatest need of the startup and can range from basic introduction to semiconductor manufacturing, to connecting them to funding sources. A full analysis of the program kicked off this year’s efforts. The program saw a 100% increase in applications to 145 this year and thus the pool of semifinalists expanded from 30 to 35. While geographically diverse, the semi-finalists 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.2025 S3 Semifinalists3D Architech, Inc.Boston, MA, USA 3D Architech develops and commercializes advanced cooling devices for AI chips using a proprietary gel-based metal 3D printing technology. Unlike conventional methods limited to 100-micron structures, our technology enables highly complex microstructures at 10-micron precision, achieving up to 60% improvement in cooling efficiency. Actasys Inc.Brooklyn, NY, USAActasys has developed a precision cooling solution designed for thermal bottlenecks in semiconductor-driven systems such as networking cards (NICs), DPUs, switches, and optical transceivers. Instead of cooling entire racks or server rooms ActaJet™ targets localized hotspots at the device level, delivering scalable, high-efficiency airflow through a compact, adaptive, and electronically controlled actuator system. AlixLabs ABLund, SwedenAlixLabs AB is developing a disruptive semiconductor manufacturing technology based on Atomic Layer Pitch Splitting (APS). It enables cost-effective and environmentally sustainable scaling of transistor architectures by doubling pattern density without requiring advanced lithography. The core product includes both the APS process and customized etching equipment that integrates into existing semiconductor fab workflows, reducing complexity, cost, and environmental impact.AllonniaBoston, MA, USAAllonnia™ Surface Active Foam Fractionation (SAFF) unit is a turnkey PFAS remediation system engineered for on-site deployment. The system employs foam fractionation to physically separate PFAS from contaminated water streams, including both long- and short-chain compounds. SAFF arrives in a standard container and requires only electrical power, influent, and effluent hookups, and is telemetry-enabled for remote monitoring and control.Alloy EnterprisesBurlington, VT, USAAlloy Enterprises develops and manufactures cold plates, manifolds, and integrated thermal solutions for liquid cooling GPUs, CPUs, and other high-performance components in data centers and semiconductor equipment. Alloy utilizes a patented Stack Forging® process to enable direct-to-chip cooling to improve thermal performance and reduce pressure drop by up to 40 times, enabling data centers to run 44°C water and reduce pumping power.AlsemySeoul, South KoreaAlsemy is building an AI-powered platform that bridges Manufacturing Execution Systems (MES) and EDA domains enabling fabless engineers to reflect manufacturing data characteristics in their chip designs, while process engineers can make data-driven decisions to optimize manufacturing processes for maximum chip performance. By connecting these traditionally siloed areas, a feedback loop is created to drive efficiency and innovation across the semiconductor value chain.Arieca IncPittsburgh, PA, USAArieca's adaptable Liquid Metal Embedded Elastomer (LMEE) technology, which blends liquid metal and polymer, delivers both thermal performance and mechanical reliability. LMEEs are a cost-effective, dispensable emulsion that is compatible with existing high volume manufacturing tools and allows for low pressure spreading and excellent wetting. Atomos 3DWest Lafayette, IN, USAAtomos 3D offers low temperature transistor technology for monolithic 3D chip integrationCoflux Purification, IncHouston, TX, USACoflux Purification is developing a modular, point-of-use reactor system that both captures and destroys PFAS in semiconductor wastewater using our patent-pending Covalent Organic Frameworks (COFs). These materials serve as photocatalytic adsorbents, combining high surface area, tunable porosity, and chemical stability to enable efficient PFAS adsorption and UV-driven degradation within a compact, modular system ensuring smooth operational deployment. CoolSem TechnologiesEindhoven, The NetherlandsCoolSem is developing a breakthrough thermal management technology for semiconductor devices. The Wafer Level Thermal Interface Stack (WLTIS) enables 1) up to 15x better thermal management; 2) 25-55°C lower chip temperatures; 3) 2-4° increase in device performance, reliability, and lifespan; and 4) up to 30-50% reduction in cooling energy needs. CoolSem help handle the exploding demand for AI training and inference without proportional increases in power usage or carbon footprint.CuspAICambridge, UKCuspAI is building an engine that combines Gen AI models, virtual twins, and active learning pipelines for simulation to develop sustainable materials solutions that address critical environmental challenges, including, environmentally-friendly etching reagents, specialized sorbents for emissions capture, and novel catalysts for manufacturing waste remediation. The engine has already proven successful in designing metal-organic frameworks (MOFs) for carbon capture and PFAS removal from water.FlexiramicsEnshede, The NetherlandsFlexiramics® is a flexible, 100% ceramic fiber material engineered as a drop-in replacement for PCB substrates. It dramatically improves heat dissipation and signal integrity in high-performance electronics, enabling faster, cooler, and more reliable semiconductor systems.FluorityxWatertown, MA, USAFluorityx is commercializing a portable low-cost polymer sensor for PFAS. This fast and efficient system will be able to measure low concentrations of PFAS and replace expensive equipment and does not require highly trained staff to operate and maintain the equipment.Forever AnalyticalSouth Bend, IN, USAForever Analytical is developing a field-deployable sensor capable of providing real-time total fluorine (TF) mass-balance information. The company is also developing a mass-spectroscopy based solution that can be coupled with the sensor to provide information on the specific PFAS molecules present in the waste stream and can be adapted to measure other contamination of interest, such as heavy metals, lead, and copper.Gallox Semiconductors Inc.Ithaca, NY, USAGallox Semiconductors is dedicated to commercializing beta-gallium oxide (Ga2O3)-based transistors and diodes. Our patented device topologies take advantage of Ga2O3's large bandgap (~4.8 eV), which enables lower conduction losses and higher voltage handling compared to SiC. Higher voltage operation means greater power densities and system-level efficiency, effectively generating less waste heat and reducing both energy loss and cooling burdens.IC Recovery, a Division of Greene Lyon Group, Inc.Beverly, MA, USAIC Recovery's multi-patented CHIP-RENEW® technology uses a proprietary process to apply a unique thermal fluid to the surface of PCBs until the solder alloy attaching chips and other components to the board substrate reaches temperature liquidus. At that point, we can selectively recover functionally valuable chips for renewal and reuse, and/or harvest all other chips and components on the board in order to concentrate their content for subsequent, sustainable refining.icspiKitchener, ON, CanadaIcspi has created a complete atomic force microscope (AFM) scan head on a 1 mm x 1 mm chip - 1 million times smaller than traditional AFMs and the future of nanoscale semiconductor metrology and inspection powered by arrays of thousands of micro-AFM devices. The technology boosts wafer coverage and speeds time-to-yield and reduces scrap. Kelvin Cooling Inc.Berkeley, CA, USAKelvin Cooling introduces high-efficiency nano-film evaporation cooling technology - enhancing thermal management by increasing heat transfer efficiency while reducing power consumption. This thin-film evaporation system enables direct-to-chip cooling, in a compact, scalable, and energy-efficient platform.LinqueMunich, GermanyLinque provides an integrated photonic switch (IPS) enabling AI-capable network nodes with reconfigurable all-optical routing for high data-rate channels with ultra-low latencies suitable for scale-out and scale-up layers of data center networks.Makr MicrosystemsBangalore, IndiaMakr Microsystems has developed a novel approach to AcousticAtomic Force Microscope (AFM) that uses common AFM instrumentation and simplifies interpretation, with a modified probe geometry that enables both acoustic transduction and sensing. We have demonstrated nanometer scale imaging from samples with shallow and deep subsurface structures.MatnexLondon, UKMatnex platform uses AI to rapidly scan the periodic table, allows input of objectives (functional electronic, optical, or mechanical properties) and constraints (element exclusions, intrinsic price, emission limits, etc.), and then searches a proprietary database to identify suitable stable candidates and their production methods. This provides fit-for-purpose materials that reduce environmental impact, improve the bottom line, and open new markets with technological breakthroughs.Mixx Technologies, Inc.San Jose, CA, USAMixx Technologies is a deep-tech startup building next-generation optical interconnect solutions to deliver non-blocking, energy-efficient data movement. The advanced 3DS platform enables petabit level end-to-end connectivity for AI workloads resulting in sustainable, efficient, and cost-effective scaling. The 3DS platform comprised of the engine, package and system, enables seamless deployment of the optical IO chiplet.Nano Performance Technologies Ltd.Coquitlam, BC, CanadaNano Performance Technologies (NPT) is developing next-generation nanomaterials, specifically, Tellurene and Bismuthene (2D materials) and ultra-pure gold nanoparticle, for use in semiconductors, quantum computing, and advanced biosensing. The innovation is the scalable production and commercialization of these materials. The platform combines IP from Purdue University with in-house lab capabilities, enabling a supply of application-ready nanomaterials to R D and manufacturing partners.NextGO EpiBerlin, GermanyNextGo Epi delivers high-quality and large-scale Gallium Oxide epiwafer for high-voltage (up to 10kV-level) applications that are durable in high-temperature operations and environments with high radiation levels.NextoarBangalore, IndiaNextoar is a deeptech AI startup, focused on using AI to train the frontline fab technicians, equipment engineers, maintenance engineers, test engineers, service engineers, etc., and others closest to the action. The system will make them part of the innovation engine by, augmenting frontline workers, amplifying their business impact and creating continuously innovating organizations.PhysicsXNew York, NY, USAThe PhysicsX platform is an AI-driven simulation software stack designed to speed up traditional numerical simulations, optimizes components within defined constraints, and generate innovative geometries using generative Large Geometry Models (LGMs). The technology seamlessly integrates into enterprise engineering workflows, driving tangible improvements in product design, manufacturing, and operations and has several successful implementations in the electronics ecosystem.Point2 TechnologySan Jose, CA, USAPoint2 designs and manufactures mixed-signal interconnect SoCs for terabit data transmission, to overcome the barriers of copper and optical cabling to accelerate AI interconnect in GPU cluster scale-up. e-Tube technology uses an RF Transmitter SoC to convert data from the electrical to the RF domain for transmission over plastic waveguides, with the RF Receiver SoC converting the data from the RF domain back to the electrical domain.PROUDLausanne, SwitzerlandPROUD's patented diamond-layer technology with the highest heat dissipation capacity ( 1000 W/m.K) of any existing material, deposited on chips, allows a direct upgrade in heat extraction, power output and efficiency.Scrona AGZurich, AustriaScrona has developed a scalable multi-nozzle electrohydrodynamic (EHD) inkjet printhead for additive microfabrication in semiconductor and electronics manufacturing. This MEMS-based 128-nozzle printhead enables sub-10 nm resolution, ultra-low material use, and wide material compatibility, including metals, dielectrics, and polymers. It replaces wasteful lithography and etching with direct-write precision printing, significantly reducing energy, water, and chemical consumption in an automation-ready format.SKYRE, Inc.East Hartford, MA, USASKYRE develops and manufactures products for on-site purification and pressurization of process hydrogen and makes it available for reuse at the fab facility. The hardware is highly reliable with low maintenance costs with equal or better quality and lower cost than merchant hydrogen or onsite hydrogen generation.SyentaSydney, AustraliaSyenta has developed LEM - Localized Electrochemical Modelling - a process for depositing metal patterns using a local electrochemical process. The pattern is created on a stamp, which then prints the pattern on the substrate in an additive process.Terecircuits CorporationMountain View, CA, USATerecircuits develops advanced material solutions for heterogeneous assembly of small, fragile, and thinned components, Chiplets, sensors, power devices, and passives. The process is ideal for achieving scale with reduced waste; while meeting critical assembly challenges such as 3D assembly, silicon carbide die attach, flexible circuits, and optics. Vertical HorizonsCambridge, MA, USAVertical Horizons is a fabless semiconductor company commercializing vertical gallium nitride (GaN) power transistors to revolutionize energy efficiency. Vertical GaN reduces energy losses by up to 30% and doubles power density, enabling a 50% reduction in system footprint. This innovation tackles the urgent need for a new generation of power infrastructure designed to scale AI, and high-density and high-power applications.Vionano Innovations IncSt. Paul, MN, USAVioNano Innovations is building a patterning platform to enable advanced feature scaling using self-assembling polymer brush materials. The system enables polymers over 193 nm DUV lithography patterns to double feature density without requiring ALD/CVD or etch steps. The result is a low-energy, high-resolution process for sub-20 nm features using existing infrastructure.XLYNX MaterialsVictoria, BC, CanadaXLYNX designs and manufactures a revolutionary family of polymer crosslinkers. These reagents are uniquely able to cure virtually ANY aliphatic polymer, by harnessing high-yielding insertions to carbon-hydrogen bonds. Curing can be triggered thermally (at temperatures as low as 80°C) or photochemically (using either UV or blue light). Heidi Hoffman is Senior Director, Marketing Sustainability at SEMI.

The semiconductor industry faces an uncomfortable contradiction. Markets are expanding and demand continues rising, but the talent pool is shrinking.By 2030, the industry will need to add 1 million skilled workers globally, with shortages of over 100,000 engineers in Europe and more than 200,000 engineers in Asia-Pacific. This expansion requires at least 100,000 second-line leaders and 10,000 third-line leaders—many of whom must come from outside the industry.Markets Keep Growing, Leadership Doesn'tThe industry's outlook remains optimistic. Nearly one in five (19%) semiconductor executives anticipate continued demand growth without inventory excess in the next four years. Global sales hit $627.6 billion in 2024—a 19.1% increase driven by AI advancements, consumer electronics demand, 5G adoption, and automotive innovation.Governments are backing this growth with large investments too. The European Chips Act aims to double the EU's production share to 20% by 2030 with €43 billion. Companies like NXP Semiconductors, Infineon Technologies, and STMicroelectronics are expanding. Taiwan Semiconductor Manufacturing Company (TSMC) remains the world's largest contract chipmaker. The UK government unveiled a £1 billion strategy over 10 years, while the CHIPS and Science Act allocated $52.7 billion for US manufacturing and research.But there aren't enough semiconductor leaders to manage this growth.The Education CrisisThe talent shortage begins in universities. Electrical engineering and computer science enrollment has been declining for years. Germany saw 6.5% fewer STEM students in 2021 than the previous year.An analysis of recent data shows concerning patterns. While Germany had 81,934 electrical engineering students in 2018, Ireland had only 742 new electrical engineering students in 2017. The United States awarded just 13,767 bachelor's degrees in electrical engineering in 2018.Retirement and Skills GapsWhile universities produce fewer graduates, experienced leaders are retiring. One-third of US semiconductor employees are 55 or older. In Germany, one-third of the workforce will retire within the next decade.The job itself is also changing. Artificial intelligence and machine learning have surpassed systems architecture as the most sought-after skills in European markets. Software engineers specializing in embedded programming are becoming more important than traditional design engineers.Competition and TurnoverThe semiconductor industry competes with other tech sectors for talent, and ninety-two percent of tech leaders report challenges finding skilled workers.Employee turnover is accelerating as well. Fifty-three percent of semiconductor workers were expected to resign in early 2024, compared to 40% in 2021. Top reasons include lack of career development (34%) and insufficient workplace flexibility (33%).Geographic ChallengesManufacturing concentration creates additional problems. Taiwan handles 65% of global manufacturing, China 15%, South Korea 12%, and the US 12%. Despite this, U.S.-based companies hold roughly 46.3% of global market share.Each region has developed different skill sets, making it difficult to move leaders across markets.What Companies Are DoingAbout 60% of senior executives believe semiconductor companies have weak employer brands compared to higher-profile tech companies. Many are working to change this through competitive compensation, improved work-life balance, and better career opportunities.Some companies are expanding their search beyond traditional candidates, too. Seventy-three percent now use skills-based hiring, focusing on capability rather than traditional backgrounds. Others target adjacent tech sectors for executives with transferable skills.Retention has become more important as well. With the tech industry's 13.2% attrition rate, companies are investing in career progression and workplace flexibility.Diversity initiatives are also still gaining traction worldwide. Women represent only 17% of semiconductor tech roles, compared to 23% in the industrial sector.The semiconductor industry's future depends on solving this talent paradox. Companies that act decisively to attract, develop, and retain leadership talent will be best positioned to capitalize on market opportunities.About the AuthorJan-Bart Smits is Managing Partner at Stanton Chase Amsterdam and Global Subsector Leader for the Semiconductor industry.

Congress has committed billions of dollars to expand America’s domestic advanced manufacturing capacity in semiconductors and related technologies. To speed up the reshoring process, President Trump established the office of Investment Accelerator in the Commerce Department to streamline government rules on investment, permitting, and site selection that historically have caused inordinate construction delays. The Investment Accelerator is a major step in rebuilding our nation’s technological manufacturing infrastructure. Equally critical is a skilled workforce to build trusted tech supply chains. The semiconductor industry worries that there won’t be enough workers to fill the supply chains. Shari Liss, Vice President, Global Workforce Development Initiatives, has said “my biggest fear is investing in all this infrastructure and not having the people to work there.” The fear appears warranted. A 2022 McKinsey Company report cited a projected shortfall of 300,000 engineers and 90,000 skilled technicians by 2030. To fill those jobs, workers need to know where to find them. Federal, state, and local governments can help promote such opportunities through various job centers and agency websites. But an essential piece of the puzzle are private-sector staffing firms that know how to find, place, and manage the talent supply chains manufacturers need. The staffing industry is uniquely qualified to meet this challenge. For more than eighty years, staffing firms have been the nation’s premier experts in recruiting, screening, and onboarding trusted talent, both temporary and permanent, in every job category. The last point is important because in addition to engineers and other STEM occupations, the construction and operation of advanced chip manufacturing plants requires large numbers of workers in ancillary and support roles, including managerial, administrative, human resources, legal, finance and accounting, health care, and industrial. The staffing industry has a proven track record of helping businesses quickly gain access to qualified talent. During the COVID-19 crisis, companies turned to staffing firms to supply workers to produce and deliver food, drugs, and other necessities, and nurses to augment overstressed hospital and nursing home staffs. The American Staffing Association partnered with retailers to fill openings for store clerks, warehouse workers, and forklift drivers at essential businesses like grocery stores and pharmacies. The Investment Accelerator will transform our technological infrastructure and create hundreds of thousands of great new jobs. Staffing firms’ demonstrated expertise in finding trusted talent makes them an essential partner in achieving President Trump’s goal of bringing those jobs back home. Matt Vuckov is the founder and CEO of TalentCraft, a strategic staffing partner based in the Chicagoland area, specializing in talent solutions for industries including healthcare, technology, government policy, and life sciences and biotech. With a strong focus on reshoring and semiconductor innovation, TalentCraft connects organizations with top talent to drive digital transformation and workforce development.In addition to leading TalentCraft, Matthew serves as Chair of the Engineering, IT, and Scientific Section Council and leads the ASA Reshoring Task Force, advocating for workforce strategies to support critical manufacturing and technology sectors in the U.S.Passionate about the future of work, Matthew leverages strategic partnerships with organizations like Purdue University’s Krach Institute for Tech Diplomacy to help companies scale through skilled talent that fuels business growth and national impact.

As geopolitical dynamics continue to influence global industries, the semiconductor sector finds itself at a pivotal crossroad. During the SEMI Industry Strategy Symposium (ISS Europe) held in Sopot, Poland, a high-level panel on the Geopolitics of Semiconductors brought together leaders from across the ecosystem to explore Europe’s role in an increasingly fragmented world shaped by strategic dependencies and evolving alliances.Moderated by Stefano Ramundo Orlando, Advocacy Manager at SEMI Europe, the panel convened industry executives, strategic advisors, and policy experts for a forward-looking dialogue on the challenges and opportunities shaping Europe’s semiconductor future.The session opened by acknowledging the rapidly changing geopolitical landscape and its impact on the global semiconductor supply chain. Export controls, investment screening mechanisms, and economic security strategies are no longer abstract policy discussions — they are reshaping investment decisions, manufacturing strategies, and even workforce planning across the globe. While these disruptions present undeniable challenges, panellists underscore that they also mark a pivotal opportunity. For Europe, this is not a moment to retreat but a call to adapt with purpose.Closing the Gaps: Building on Europe’s Strategic AdvantagesGiulietta Poltronieri, Partner at McKinsey Company, mapped out Europe’s strategic position in the global value chain. While Europe boasts global leadership in intellectual property (IP), lithography, and research and development (R D), key gaps remain in foundry capabilities and backend manufacturing. The solution lies not only in plugging these gaps but in securing Europe’s existing strengths — a balancing act between resilience and competitiveness.Giulietta Poltronieri, Partner, McKinsey Company’s Global Semiconductor PracticeMalcolm Penn, Founder CEO of Future Horizons, echoed this sentiment and emphasized that success in semiconductors requires long-term vision and a global mindset. Penn argued that Europe must look beyond its local market, citing Taiwan’s TSMC as a model of how small domestic markets need not constrain global leadership, “The excuse of having no end market in Europe is just an excuse.” Europe, Penn contended, must have the courage to think big and act boldly.Malcolm Penn, Founder Chief Executive Officer, Future Horizons Corporate Strategy Amid UncertaintyHendrik Bourgeois, Vice President of European Government Affairs at Intel, offered insight into how geopolitical risk has become an embedded factor in corporate strategy. Intel’s decision to expand manufacturing in both the U.S. and Europe was directly influenced by a recognition of over-reliance on certain global regions.Bourgeois stressed that while business can adapt to restrictive policy, uncertainty remains the greatest challenge to long-term decision-making. Consistency, trust, and engagement with governments are crucial — and businesses must invest in building political capital just as they do in infrastructure or talent.Hendrik Bourgeois, Vice President, European Government Affairs, Intel China: Partner, Competitor, and Geopolitical PuzzleBoris Metodiev, Director at TechInsights offered a balanced view of China’s role — acknowledging it as both a vital market and a strategic competitor. With nearly 40% of global semiconductor demand and significant state backing, China presents both irresistible opportunity and real systemic risks.Key concerns include technology transfer, the impact of heavy subsidization, and growing market concentration. Addressing these issues, Metodiev suggested, will require a balanced approach focused on diversifying supply chains, protecting intellectual property, and reinforcing trade enforcement — all while maintaining open channels for cooperation and avoiding the pitfalls of full decoupling.Boris Metodiev, Director, Manufacturing Analysis, TechInsights Talent: The Silent BottleneckPanellists identified talent shortages as one of the most yet under-discussed threats to Europe’s semiconductor future. Europe lacks the scale of skilled STEM graduates to meet current and projected demand.Companies like Intel are investing heavily in partnerships with universities and training institutions. However, regulatory obstacles — especially for intra-European mobility of non-EU nationals — remain significant. The call to action was clear: Europe must rethink migration and education policy through the lens of economic strategy, not just under traditional policy frameworks, aligning policy with industrial goals and scaling efforts to match future workforce needs.Central and Eastern Europe: Emerging Pillars of European StrategyThe panel explored how Central and Eastern Europe are increasingly integral to Europe’s semiconductor strategy. Mikołaj Trunin, Deputy Director at Invest in Pomerania, noted that despite geopolitical headwinds, the region continues to attract strong foreign direct investment (FDI). Poland has emerged as a trusted investment destination and a budding semiconductor hub, with Pomerania positioned as a key region for advanced packaging.With nations like Poland taking on higher political and industrial profiles—such as upcoming leadership of the EU Council— the region is positioned to serve as a strategic bridge between Europe’s industrial core and frontier markets. This momentum underscores the importance of embedding these regions more fully into the broader semiconductor ecosystem.Mikołaj Trunin, Deputy Director, Invest in Pomerania A Call for Coordinated ActionThe panel concluded on a note of clarity: geopolitical disruption is not a temporary deviation, but a defining characteristic of the coming industrial era. With semiconductors positioned at the intersection of technology, security, and sovereignty, Europe must act decisively. Companies must continue to evolve, engage politically, and remain agile. To ensure long-term competitiveness and resilience, policymakers and industry leaders must work hand in hand to shape an integrated European semiconductor ecosystem. The stakes are high — but so is the potential.SEMI ContactIranda Chaki, Senior Policy CoordinatorEmail: [email protected]

The semiconductor industry has long followed a well-defined cyclical structure. Typically, price declines lead to a contraction in capital expenditure, followed by inventory normalization and eventual recovery. This repeated pattern—comprising pricing correction, investment pullback, inventory adjustment, and eventual market rebound—continues to offer a relevant lens through which to interpret the current uncertain market environment.As of April 2025, the industry faces a mix of conflicting signals. Concerns are rising that AI-related demand may have already peaked, while cautious optimism persists over a possible rebound in DRAM prices in the second half of the year. These market dynamics are further complicated by rising macroeconomic uncertainty, including renewed trade friction between the U.S. and China, reemerging tariff risks, and persistent inflationary pressure. In such a complex and volatile environment, the importance of cycle-based structural analysis has never been greater.Viewed from a momentum perspective, the recovery in semiconductor equipment investment—marked by a rebound in year-over-year growth (measured on a 12-month moving average basis) beginning in mid-2024—can be interpreted as a potential sign of renewed demand. However, this apparent stability may be misleading. While global companies significantly curtailed their fab investments throughout the second half of 2023 and the first half of 2024, China moved in the opposite direction, intensifying state-led expansion efforts aimed at achieving semiconductor self-sufficiency. This divergence in investment behavior has distorted the global capital expenditure landscape, potentially creating the impression of a broader recovery, while in reality the momentum remains concentrated in a single region driven by policy rather than market fundamentals.Similarly, the recent uptick in DRAM pricing appears to be driven more by production cuts than demand-side momentum. Major suppliers have been deliberately scaling back output to manage inventory and support pricing. In this context, price rebounds not backed by end-market demand are unlikely to sustain a meaningful recovery in wafer procurement. Simulation results—based on second-half projections—suggest that unless DRAM blended ASP increases by more than 20% quarter-over-quarter in both Q3 and Q4 2025, a meaningful upward inflection in the year-over-year pricing trend (on a 12-month moving average basis) remains improbable. This highlights the fragility of the current price recovery suggests that without a meaningful improvement in end-market demand—particularly for DRAM—wafer procurement for DRAM production is unlikely to recover in a sustained manner, regardless of supply-side actions. As SEMI highlights in this Silicon Wafer Market Monitor Report, a deeper understanding of the wafer market requires a close examination of raw material inventory trends. The inventory behavior of memory makers—due to their dominant scale and transparency—is widely regarded as a proxy for broader semiconductor industry trends. Following the pandemic, memory makers' raw material stockpiles surged to levels equivalent to five times their historical average relative to sales. While these ratios were significantly reduced between 2023 and 2024, inventory levels still meaningfully exceed pre-pandemic norms. With leading players signaling further inventory drawdowns, there is little incentive to rebuild raw material stockpiles—including silicon wafers—unless there is clear evidence of sustained demand recovery.This inventory dynamic is closely tied to wafer shipment growth. Historical data reveals a strong inverse relationship between raw material inventory-to-sales ratios at the top three memory makers—Samsung, SK hynix, and Micron—and wafer shipments. When this ratio declines year-over-year, wafer shipment growth typically improves. However, a slowdown in the pace of inventory ratio reduction could result in stagnant or declining wafer shipment growth in subsequent periods.Moreover, even as these inventory ratios continue to decline, wafer average selling prices (ASPs) have yet to show signs of recovery. This decoupling of pricing from inventory adjustments reflects the presence of a structural imbalance in supply and demand. On the supply side, all top five global wafer producers have secured greenfield fab capacity and are prepared to scale production. With depreciation pressures mounting, they face strong incentives to maintain economically viable utilization rates, contributing to ongoing ASP erosion.Meanwhile, chip capacity expansion in China—primarily driven by demand for 200mm applications—is adding further downward pressure. Chinese wafer suppliers, who already hold a meaningful share in China’s 200mm market, are now directing more of their investment toward 300mm wafer production—intensifying price pressure and adding to the longer-term competitive pressures facing global suppliers. This focus aligns with China’s broader push into mature process nodes, even as demand outside the region remains tepid. Accordingly, local Chinese wafer suppliers are competing aggressively on price, weakening the regional competitiveness of established global wafer players.As a result, the competitive landscape is undergoing a structural shift: global wafer suppliers are contending with intensified price-based competition among themselves in non-China markets, while simultaneously coming under mounting pressure from Chinese local players within China. This dual-front competition highlights the threshold point the industry has reached—where traditional pricing models and market dynamics are being fundamentally challenged.Moreover, long-term supply agreements (LTAs), once effective tools for pricing stability, are expected to gradually lose relevance. As semiconductor manufacturers—who purchase wafers under LTAs—move toward shorter-term and more customized purchasing models, and as pricing volatility increases, the incentive to commit to such agreements is projected to steadily diminish. The market, therefore, is not yet in a phase of strong recovery but appears to be undergoing a structural transition defined by persistent imbalances. The full report presents three scenario-based outlooks centered on four key variables—DRAM pricing, inventory normalization, equipment investment, and China’s regional influence. The most probable scenario currently assumes modest growth in 2025–2026, a correction in 2027, and a recovery in 2028. Wafer shipment growth rates under this scenario are projected at +5.1%, +5.4%, –6.2%, and +9.8%, respectively.However, even this base case remains vulnerable to potential macroeconomic disruptions. The large-scale tariff measures announced by the U.S. in April 2025 could trigger cascading effects across the ecosystem—from weakening enterprise demand and delaying infrastructure investments to softening DRAM prices and curbing wafer procurement. In past cycles, leading macro indicators such as the OECD Composite Leading Indicators (CLI) tended to lead DRAM price movements. If macro momentum slows, the market could deviate from the base case and move closer to the downside scenario. This downside scenario assumes weak or negative growth through 2026, a moderate recovery in 2027, and a stronger rebound by 2028 as supply-demand conditions begin to normalize.The current market trajectory suggests limited room for either sharp declines or sharp rebounds. The next phase will depend on how four forces interact: DRAM price momentum, inventory rebalancing pace, regional investment activity, and policy risks. A clear inflection point will only emerge when these factors begin to align. In other words, a meaningful shift—either upward or downward—will only occur when these forces move in the same direction and reinforce one another. Ultimately, any directional shift—whether delayed or accelerated—will still unfold within the broader framework of the semiconductor cycle previously discussed. In that sense, these indicators do not reverse the cycle itself; they merely influence the timing and pace at which it plays out.This article presents a summary of key insights from the Q1 2025 Market Update section of the SEMI’s Silicon Wafer Market Monitor Report, which is compiled in PowerPoint format and distributed as a PDF. In this edition, scenario-based analysis was used to navigate growing macroeconomic uncertainty and assess potential turning points in wafer demand. To support this analysis, the Market Update section presents 10 core quantitative charts and long-term data series dating back to 2000—particularly curated to visualize and analyze semiconductor revenue, investment, and pricing cycles in a single view. Separate from this focused section, the full SEMI’s Silicon Wafer Market Monitor Report includes a much broader array of charts and indicators, providing a multi-dimensional analysis of how fundamental variables interact to shape the future of the silicon wafer industry. Rather than simply offering background explanation, the full report is intended to provide clear, data-driven insights that can support strategic thinking amid market uncertainty.For more information on the report or to subscribe, please contact the SEMI Market Intelligence Team at [email protected]. Details on SEMI market data are available at SEMI Market Data. Sungho Yoon is a Principal Analyst on the SEMI Market Intelligence team.

The semiconductor industry is at the forefront of technological innovation, with rapid advancements in recent years. As a result, the need for high-quality products and technologies has become increasingly important. To address this challenge, SEMI has launched the Quality Benchmarking Consortium (QBC), a new initiative dedicated to advancing quality best practices across the global semiconductor industry. Quality is a fundamental requirement for all semiconductor products and technologies. Over the past decade, state-of-the-art quality practices have evolved significantly to keep pace with rapid innovation and technological advancements. However, new challenges have emerged, including qualifying increasingly complex systems, advanced packaging and 2.5/3D integrated systems, and the growing role of AI/ML in manufacturing. Company-to-company benchmarking is a powerful tool for enhancing quality practices. By sharing information, input, and feedback, companies can establish best-known methods (BKMs) to elevate quality best practices across the entire industry. This approach can save time and money, while also driving innovation and improvement. The QBC is open to multinational corporations, including device manufacturers, fabless device makers, and foundries, that ship over 100 million units per year and have a high-caliber quality organization. The consortium operates on a "Give-to-Get" philosophy, requiring members to actively participate in discussions and activities. Permitted topics for discussion include working processes, management systems, approaches, and KPIs, driven by global customer trends or internal development. However, off-limit topics include IP and patent-protected quality technical solutions embedded in technologies, packages, design, testing, and software.Figure 1: (From Right to Left) - Georg Talut (Global Foundries), JensLuepke (Infineon), Rutger Wijburg (Infineon), Roberto Lissoni (ST Microelectronics), Marcus Richter (Bosch), Bill Lechten (Micron), Georg Georgakos (Infineon) Mark da Silva (SEMI)The first in-person consortium meeting was hosted by Infineon at its Campeon campus in Munich, Germany, and brought together representatives from Infineon, STMicroelectronics, Bosch, GlobalFoundries, and Micron. The event commenced with a warm welcome from Jens Luepke, Senior Director of Quality Management at Infineon, who introduced the company's global operations, history, and employee support initiatives. Rutger Wijburg, COO at Infineon, outlined the company's strategic focus on decarbonization, digitalization, and revenue growth across key business segments. He shared Infineon's investments in new facilities and emphasized the critical role of quality management in navigating industry challenges such as accelerated qualification cycles, increasing product complexity, and mounting cost pressures. Wijburg encouraged participants to leverage insights from the consortium to enhance quality processes within their own organizations and deliver greater value to customers. In preparation for the first in-person meeting, consortium members were organized into three teams, each addressing a core area of quality management: Design Quality (Robustness), (Quality) Organization Structure and Supplier Quality Management.The Design Quality session at the QBC focused on integrating design quality into the New Product Introduction (NPI) process, covering topics such as accountability, quality metrics, and bug tracking systems. Subject matter experts shared strategies on design quality methodologies, metrics, and verification processes, including the use of generative AI. The Organization Structure session shared existing quality organizational structures and management strategies, including reporting lines, functional responsibilities, and employee training programs. The Supplier Quality Management session addressed procurement practices, inventory management, and supplier qualification, with companies sharing best practices for mitigating material fluctuations and advancing sustainable procurement. Overall, the sessions aimed to share knowledge and best practices to improve design quality, organizational structure, and supplier quality management in the semiconductor industry.The meeting concluded with formal nomination of Roberto Lissoni (STM) and Jens Luepke (Infineon) as QBC co-chairs. The meeting wrapped up with a call to action: Expanding the consortium, planning the next in-person meeting (targeted July’25), and amplifying industry engagement. We're excited to welcome new members to the Quality Benchmarking Consortium! If you're interested in joining the conversation, contact Mark da Silva ([email protected]) or Sarah Shen ([email protected]) to learn more.Sarah Shen is Senior Coordinator, MEMS Sensors Industry Group at SEMI.

As the global semiconductor industry charges toward a projected $1 trillion market by 2030, regional innovation hubs are stepping into the spotlight. The inaugural SEMIEXPO Heartland—held April 1–2, 2025, at the Indiana Convention Center in Indianapolis—brought together key players from across the ecosystem to explore how advanced packaging, smart manufacturing, smart mobility, AI, and workforce development are fueling the semiconductor revolution.With a special focus on building self-reliance in the U.S. chip supply chain, the event highlighted efforts that are revitalizing the Midwest’s role as a key region driving innovation in the global semiconductor ecosystem. SEMIEXPO Heartland showcased leading-edge strategies and technologies from global giants and regional champions alike—underscoring the deep connections between government, academic, research, and industry leaders.Keynote HighlightsSK hynix: Accelerating the Future with Chiplets and Advanced PackagingDr. Woong Sun Lee, Senior Vice President at SK hynix, kicked off the event with a powerful vision for the future of semiconductor manufacturing. In response to skyrocketing demand fueled by AI, autonomous vehicles, and next-gen mobile applications, SK hynix is pursuing aggressive innovation through heterogeneous integration and chiplet-based design.Using 12-inch wafers, SK hynix’s chiplet strategy compresses product development timelines from 10-20 years to as little as 2-5 years. This leap in design efficiency enables faster time-to-market and greater performance optimization—crucial in an industry where speed and scale are paramount.A major component of this vision is the company’s investment in a state-of-the-art advanced packaging facility in Indiana. Targeting mass production by 2028, the new hub will not only expand SK hynix’s U.S. manufacturing footprint but also support national goals around workforce development and ecosystem growth. It’s a bold move that aligns the company’s R D leadership with America’s strategic reshoring efforts.Robert Bosch Semiconductor: Driving the Future with Silicon Carbide (SiC)Thorsten Scheer, Regional President Mobility Electronics and Plant Manager at Bosch Roseville, presented a deep dive into how Bosch is preparing for the electrified mobility era. Central to Bosch’s strategy is the adoption of silicon carbide (SiC) semiconductors, which are increasingly critical to electric vehicle powertrains.As vehicles become more connected and automated, Bosch projects more than 40 semiconductor chips per car by 2035. To meet this demand, Bosch is developing dual-channel trench MOSFET technology using SiC—a move that enhances power conversion efficiency and reduces heat, two of the biggest challenges in EV design.Bosch’s global expansion includes a new SiC wafer fab in Roseville, California, which is set to begin production in 2026. This facility is not only a technological investment but also a commitment to supply chain resilience, ensuring that the U.S. plays a central role in future automotive innovation.Polar Semiconductor: Reshoring Advanced Foundry CapabilitiesSurya Iyer, President and COO of Polar Semiconductor, shared the company’s mission to reinvigorate America’s semiconductor manufacturing capabilities. Headquartered in the Midwest, Polar is a rare U.S.-owned foundry playing a strategic role in reshoring production and building domestic capacity.Specializing in power semiconductors—including MOSFETs, IGBTs, and wide-bandgap (GaN) devices—Polar focuses on serving critical sectors such as automotive, aerospace and defense, and industrial applications. With advanced automation and a commitment to cost-efficient scale, the company is helping to bring more semiconductor innovation back to U.S. soil.Polar’s flexible business models and emphasis on workforce training position it as a linchpin in the nation’s efforts to build a more secure and agile semiconductor supply chain.Smart Manufacturing and Mobility SessionsUnlocking the Future with AI, Edge, and Digital TwinsThe opening session on April 1 showcased how AI and advanced simulation are transforming the semiconductor manufacturing process. NHanced Semiconductor introduced "Foundry 2.0," a platform delivering chiplet-based solutions tailored for low-volume, high-mix applications—highlighting flexibility and speed.Kulicke Soffa emphasized the use of AI, digital twins, and agentic automation in backend operations, helping to cut costs and boost efficiency. Humatics demonstrated its Milo microlocation system, addressing factory automation and labor challenges with precision positioning technologies.Meanwhile, Purdue University’s research in chip-package co-design and semiconductor education reflected the essential role of academia in building future-ready capabilities.AI, Edge, and Digital Twins in Backend ManufacturingThis session continued to explore the shift toward intelligent, connected manufacturing ecosystems. Allan Lewis of Nordson Electronics Solutions showcased AI-powered inspection systems that reduce downtime and improve yield.Jim Redman from ErgoTech Systems emphasized the importance of scalable, decentralized data platforms using low-code tools. Luis Rivera of Koh Young Technology introduced KSMART Server and CFX standards, enabling real-time optimization and machine-to-machine communication.Josh Mangahas from INFICON detailed how digital twins and AI/ML models are enhancing production scheduling and delivery timelines, while Mahesh Deshpande of Dassault Systèmes illustrated how virtual twins and XR-based tools are supporting agile packaging environments.The Convergence of AI, Robotics, and Digital TwinsSession 3 on April 2 featured cross-disciplinary insights from leaders at Arizona State University (ASU), Fraunhofer IZM, Teradyne, and Purdue. A common theme: AI, robotics, and digital twins are converging to redefine factory dynamics.Dr. Binil Starly (ASU) explained how reinforcement learning and MQTT protocols are enabling adaptive robotic inspections. Erik Jung (Fraunhofer IZM) highlighted how packaging and AI systems evolve in tandem to achieve tighter integration and higher performance.Teradyne’s Mat Najibnia focused on the ROI of robotic material handling systems, while Purdue’s Dr. Martin Jun shared a vision for democratized smart manufacturing—especially for small and medium-sized manufacturers (SMMs).Building Future-Ready Semiconductor EcosystemsThe final session underscored the importance of collaboration, resilience, and cybersecurity. Athinia discussed its work harmonizing raw material and fab data to improve manufacturing insights. IBM presented use cases combining digital twins and generative AI for yield improvement and predictive maintenance.Siemens focused on sustainability and decarbonization through digital twin platforms. The Florida Semiconductor Engine (FSE) illustrated how regional ecosystems can support leadership in packaging innovation and talent development.PEER Group spotlighted the Semiconductor Manufacturing Cybersecurity Consortium (SMCC), advocating for a standardized, collaborative approach to securing manufacturing infrastructure.Workforce Development and Regional ImpactA strong undercurrent throughout SEMIEXPO Heartland was the need for strategic workforce development. The event featured a Workforce Pavilion offering job seekers access to career coaching, resume guidance, and mentorship.Local universities and community colleges were well represented, as were federal and state workforce programs. These partnerships are crucial to ensuring a robust talent pipeline and equipping workers with the skills needed for a rapidly evolving industry.The presence of SK hynix, Polar, and other major players making sizable investments in the Midwest signaled not just a resurgence of regional manufacturing, but a renewed commitment to community growth, equitable opportunity, and long-term sustainability.A Midwest Moment with Global ImplicationsSEMIEXPO Heartland 2025 captured a pivotal moment in the evolution of the semiconductor industry. From chiplets and SiC to AI-driven smart factories and cyber-resilient ecosystems, the event highlighted how innovation, collaboration, and policy alignment are driving progress.As America looks to fortify its semiconductor future, the Midwest is emerging as a powerhouse of talent, technology, and tenacity. With support from industry, government, and academia, the region is well-positioned to lead the charge into a smarter, more secure, and more resilient semiconductor era.For questions about SEMI’s Smart Manufacturing initiative, contact Anshu Bahadur at [email protected]. Read more about SEMIEXPO Heartland in this press release: Inaugural SEMIEXPO Heartland Event Underscores Midwestern U.S. as a Global Hub for Smart Manufacturing and Smart Mobility.Anshu Bahadur is Sr. Program Manager, Technology Communities at SEMIRafael Tudela is Sr. Technical Marketing Manager at SEMI

Industry growth has consequences.Rapid growth for semiconductor companies has meant increasing amounts of spent materials and chemicals. As expected, these have enlarged environmental impacts, disposal costs, and liability. Semiconductor companies confront challenges that not every sector faces: larger company size, higher value added per unit of production, and higher technological capacity are not always related to lower quantities of waste per unit of production.Collective action is needed to turn this challenge into business resilience. SEMI, imec, and our SEMI Circularity Working Group community are sharpening our cooperation to meet the need.MOVING FROM LINEAR TO CIRCULARSemiconductor value chain companies are making strides to pivot from a linear economy (take, make, waste) to a circular economy (maintain, reuse, refurbish, remanufacture, recycle). Early strategies were anchored primarily to waste management, waste-to-energy, waste diversion, and recycling programs. Lately companies are expanding to novel raw materials strategies, waste repurposing methods, and improvement of remanufacturing through resale at new-product-like performance and quality. This is a real opportunity for companies because using spent chemicals as a feedstock can cut costs, bolster supply chain management, reduce greenhouse gas emissions, create opportunities for brands, and bolster social license to operate. Yet most breakthroughs in circular practices are happening in relative isolation across the value chain. Until now, there is no widely recognized system for identifying and ranking materials used in manufacturing to prioritize where conversion from linear to circular use would provide the most gains. A FRAMEWORK FOR PRIORITIZATIONA 2025 report – produced through collaboration between SEMI and imec – presents an inventory of 69 distinct materials prioritized for circularity along with the framework for ranking. It also shares the method to support calibration to fit specific use cases. The outputs will be immediately useful for decision-makers across functions in the semiconductor value chain, including, but not limited to:ProcurementSustainabilityEHS (environment, health, and safety), andRisk management. These professionals now have a cross-industry reference for driving impactful circular initiatives at their firms.Download the reportCATALYZING RESEARCH DEVELOPMENT, VALIDATION, AND ADOPTIONIn conjunction with the publication, SEMI and imec are launching the Circular Semiconductors Research Network, a platform to connect research teams with industry adopters to accelerate validation and deployment of circular technologies and methods. Ideal collaborators can substantiate Technology Readiness Level (TRL) 4 or greater and seek industry validation, adoption, and acceleration of circularity solution deployment aimed to purify, reuse, and/or resell spent materials and by-products – either onsite or offsite at a permitted facility under the conditions set out in our invitation.Research teams with relevant subject matter expertise are welcome to submit proposals for research in exploratory phases (lower TRLs) for review by SEMI members. Preference will be given to research teams that address practical hurdles faced by semiconductor value chain companies as they navigate regulatory frameworks for onsite vs. offsite treatments.The call for collaboration seeks to amplify research and development of technologies that comply with applicable regulations and meet one of the following conditions: (1) the owner/operator does not need to obtain a waste permit, or (2) the technology needs to be put offsite at a permitted waste facility. View the Invitation – Applications due May 30, 2025THE BIGGER PICTUREThe publication and launch of the Circular Semiconductors Research Network is a response to growing attention from business leaders and policymakers on critical materials in semiconductor manufacturing. Supply chain security for these materials has become a strategic issue for governments and the private sector, not only because it could affect the pace of the energy transition but also because materials sourcing has become contested among geopolitical rivalries and alliances. The network will provide momentum for industry and research to prioritize the development and adoption of circular methods for materials that would generate the most strategic, economic, and environmental gain in the semiconductor value chain. It will do so in dialogue with the SEMI Circularity Working Group, a venue for collective action among SEMI members that works closely with other trade association initiatives such as the SEMI Supply Chain Management Initiative, which is focused on resilience, agility, and responsibility, and the SEMI Accelerating Sustainability with Smart Manufacturing Task Force, which develops an industry technology roadmap. For more information, write to the Circular Semiconductors Research Network at [email protected]. SEMI members are invited to join the Circularity Working Group meeting monthly. If interested, contact Jordan Famularo at [email protected]. Jordan Famularo, PhD, is Program Manager – Sustainability at SEMI.

Geopolitical shifts, rapid technological advancement, and supply chain pressures continue to redefine the global semiconductor landscape. These forces framed the discussions at the 2025 SEMI Industry Strategy Symposium Europe (ISS Europe), held in Sopot, Poland. Over two days, industry leaders, and policymakers examined how Europe can boost resilience amid growing uncertainty.Artificial intelligence (AI) stood out as a key driver—powering global chip demand and transforming industry operations. In the past year, AI applications like generative models and edge computing helped push chip sales to new highs. The EU Chips Act, effective since September 2023, also fueled change. It has drawn tens of billions of euros into European semiconductor infrastructure, including major investments in Pomerania, the host region for this year’s symposium. “With AI expected to drive exponential growth in the semiconductor industry—projected to reach $1 trillion by 2030—Europe must act collectively to remain competitive,” said Laith Altimime, President of SEMI Europe. “We encourage collaboration across all countries to strengthen supply chain resilience, mitigate geopolitical risks, and harness the full potential of our diverse talent base.”Laith Altimime, President, SEMI EuropeSo what has the EU’s investment in the semiconductor industry achieved, and how much more remains to be done? Gustav Kalbe, Acting Director of Enabling and Emerging Technologies at the European Commission, cited €80 billion in public and private investment in European fabs as clear progress toward introducing "advanced technology that has not before been deployed on the continent of Europe." However, Kalbe emphasized a new urgency driven by AI’s rise. “We need in Europe a secure supply chain for AI chips in key sectors—particularly automotive,” said Kalbe. “That’s why we are really pushing for accelerated development of AI chips here.”Gustav Kalbe, Acting Director of Enabling and emerging technologies,DG CNECT, European CommissionPoland is a prime example of the EU Chips Act’s impact—driven by consistent government support. Dariusz Standerski, Secretary of State in the Ministry of Digital Affairs, highlighted Poland’s seven-pillar national semiconductor strategy, which includes expanding infrastructure and increasing engineering talent by 20% by 2030. “We need to build our production capacity to meet the strategic needs of Poland,” said Standerski. “Semiconductors are important not only because of market size, but because of their role in national security.”Dariusz Standerski, Secretary of State, Ministry of Digital Affairs, PolandRisks to the Industry from a World in Political TurmoilGeopolitical shifts and market volatility dominated the opening session of ISS Europe 2025. Malcolm Penn, CEO of Future Horizons, warned that despite strong 2024 revenues, industry fundamentals remain fragile. “All of the growth is in graphics processing units (GPUs) for AI and high-bandwidth memory (HBM) for AI servers—every other product sector is currently in recession,” said Penn. He forecast 12% industry growth in 2025 but cautioned against overcapacity and price pressures from China. “We are not seeing unit growth, and without unit growth, you don’t have sustainable market growth,” explained Penn. “If momentum in AI slows, the industry could face a significant retrenchment.”Malcolm Penn, CEO of Future HorizonsLooking beyond the immediate outlook for semiconductors, Hendrik Bourgeois, Vice President for European Governmental Affairs at Intel, turned the spotlight onbroader economic and security challenges facing the region. Bourgeois outlined four strategic policy priorities for Europe: Build internal strength to ensure external (global) relevance;Deepen alliances beyond the United States—such as with the UK, Canada, Japan, and South Korea;Be open to a stronger economic relationship with China;Recognize that the U.S. is more than its federal government: states, cities, people and corporations all have a role to play in bringing stability and certainty.Hendrik Bourgeois, Vice President for European Governmental Affairs, IntelBenedikt Ernst, Senior Vice President and Head of Strategy Transformation at Merck KGaA, Darmstadt, Germany, emphasized the strategic importance of strengthening Europe’s domestic semiconductor ecosystem. “No country or region can be fully self-sufficient,” said Ernst. “But Europe is particularly strong in domains like advanced materials, fabrication equipment, and semiconductor manufacturing. We have leading players in these fields – let’s bet on them.”Benedikt Ernst, Senior Vice President and Head of Strategy Transformation, Merck KGaA, Darmstadt, GermanyMikolaj Trunin, Deputy Director of the Invest in Pomerania, and its Strategic Investment Manager Radoslaw Bojarczuk, highlighted the region’s rising profile among global investors. Despite a global downturn in foreign direct investment (FDI) since 2015, the region stretching from Gdansk and Warsaw to Dresden and Magdeburg is emerging as a vibrant semiconductor hub. “The environment is becoming increasingly attractive to outside investors drawn by the region’s large talent pool, robust venture capital activity, and strong and stable economic growth,” said Trunin.Left: Mikołaj Trunin, Deputy Director, Invest in PomeraniaRight: Radosław Bojarczuk, Strategic Investment Manager, Invest in PomeraniaAdvancing on the Roadmap to Net ZeroThe symposium’s second session tackled sustainability—how to grow the industry beyond $1 trillion in revenue while cutting emissions. AI emerged as a key enabler of sustainable innovation. Bill Lussier, Managing Director of Tokyo Electron Europe, highlighted recycled aluminum which has a much lower carbon footprint, but noted that semiconductor equipment requires ultra-pure aluminum, which is not available off-the-shelf in recycled form. “The solution is to create a new circular economy for ultra-pure aluminum—a supply chain so complex that it cannot be managed without the aid of AI,” explained Lussier.Bill Lussier, Managing Director, Tokyo Electron EuropeAI is also helping decarbonize logistics, a critical yet often overlooked part of the semiconductor ecosystem. Rainer Kiefer, Executive Vice President and Global Head of Sales at Schenker AG, underscored the environmental cost of air cargo: “We need smart supply chain design to reduce the air miles of chips.” AI supports this by optimizing routing, loads, predictive maintenance, and demand forecasting. Rainer Kiefer, Executive Vice President and Global Head of Sales, Schenker AGHowever, AI brings new energy demands. Malgorzata Kasperska, Vice President of Secure Power at Schneider Electric, urged greater efficiency in AI data centers: “We need to optimize both power capacity and efficiency, and deploy high-density infrastructure, all while enhancing sustainability practices.” Malgorzata Kasperska, Vice President of Secure Power, Schneider ElectricEnergy-intensive fab operations remain a major challenge. Charles Vaillant, Chief Technology Officer at MANN+HUMMEL, noted that heating and ventilation account for up to 50% of a fab’s energy use. To improve efficiency, the company introduced a filtration system using activated carbon ceramic technology. The innovation reduces pressure drop, cutting fan energy use and delivering up to 41% energy savings in cleanroom environments.Charles Vaillant, Chief Technology Officer at MANN+HUMMELFinding the Talent to Fuel the Industry’s GrowthAttracting and developing talent remains a critical challenge for the semiconductor industry. Andreas Schleicher, Director for Education and Skills at the OECD, cited a visibility gap: “Young people don’t see these engineering and IT jobs. You cannot be what you do not see.” Meike Boekelmann, Chief Human Resources Officer at Comet, echoed the sentiment. “Face-to-face, we can get people excited about joining our industry,” said Boekelmann. “The challenge is getting them in front of us in the first place.” Andreas Schleicher, Director for Education and Skills,Organization for Economic Co-operation and Development (OECD)In a panel discussion on Bridging the Talent Gap for Sustainable Growth, moderated by SEMI Europe’s Maria Daniela Perez, speakers explored how industry and academia can better collaborate to meet evolving workforce demands. Thomas Kralinski, Saxon State Secretary of Economic Affairs, Labor, Energy and Climate, emphasized the importance of future-ready education. “Do we know which fab is going to be built in 2035, or which start-up will be founded? No—but all the people who will work there are already alive. We need education to prepare these people for this unknown future.Thomas Kralinski, Saxon State Secretary of Economic Affairs, Labor, Energy and ClimatePanel Discussion on Bridging the Talent Gap for Sustainable GrowthAI Intensifies Scale of Innovation in Semiconductor FabricationDay two of ISS Europe 2025 spotlighted AI’s transformative impact on semiconductor innovation, from materials to manufacturing and chip design. John Behnke, General Manager for Smart Manufacturing at INFICON, emphasized AI’s growing role in managing fab complexity. “You need a lot of highly knowledgeable people to run a fab today,” said Behnke. “They must analyze huge amounts of data, and balance priorities like quality, on-time delivery, cycle time, and profitability.” In the future, he explained, AI-powered optimization engines will shoulder that burden by making autonomous decisions.John Behnke, General Manager for Smart Manufacturing, INFICONJean-Christophe Eloy, CEO of Yole Group, pointed to the rapid growth of data centers as a catalyst for architectural transformation, predicting a shift from monolithic AI ASICs to chiplet-based designs. “In the future, we can expect to see much of the value in the semiconductor business transfer from the front-end chip to the advanced packaging that integrates chiplets,” said Eloy. Jean-Christophe Eloy, CEO, Yole GroupThis sentiment was echoed by Christophe Frey, Vice President of EU Engagement at Arm, who described the industry’s shift from systems-on-chip to systems-of-chips. “Chiplets represents a unique opportunity for Europe to re-enter the game of high-end chips,” said Frey. He emphasized the need for an open chiplet marketplace, an effort Arm supports, but warned, “There is a long road ahead of us,” citing the need for silicon qualification, profiling, test and debug infrastructure, software standards, and specifications for mechanical and thermal integration.Christophe Frey, Vice President of EU Engagement, ArmThat transition is already taking shape in manufacturing. Volker Herbig, Vice President of the Microsystems Business Unit at X-FAB, noted that capabilities developed for CMOS+MEMS sensor in the early 2000s are now enabling heterogeneous integration (HI) at scale. “We are now an open HI foundry,” said Herbig, adding that X-FAB is building a dedicated HI facility with support from the EU Chips Act. “This technology is propagating down from the high-performance computing (HPC) world to medical and industrial applications — It’s happening as we speak.”An Industry Changing Faster Than Ever Volker Herbig captured the industry’s rapid evolution with the “Red Queen” theory from Alice in Wonderland: “You need to run as fast as you can just to stay in the same place.”Volker Herbig, Vice-President, BU MEMS, X-FABClosing the symposium, Leonard Hobbs, Director for Government Affairs at Intel Ireland, cited Charles Darwin: “The species which can best adapt to changes in its environment is the one which survives,” Hobbs added, “Over the past two days we have learned much that can help Europe’s semiconductor industry to adapt successfully to a rapidly changed world.” Leonard Hobbs, Director for Government Affairs, Intel IrelandAt the symposium’s gala dinner, delegates celebrated leaders driving the industry forward. SEMI presented the 2024 SEMI European Award to Kurt Sievers, President and CEO of NXP Semiconductors, and honored Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer of Okmetic, with the Special Service Award.Kurt Sievers, President and CEO, NXP Semiconductors (Middle)Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer, OkmeticOn behalf of SEMI, the SEMI Europe team and ISS Europe committee would like to thank all speakers, sponsors, and attendees for making the event a great success.SEMI Contact Cassandra Melvin, Senior Director of Business Development and Operations Email: [email protected]