Business and Markets

Insights from the ISS Europe 2025 Press Briefing in SopotAt the SEMI Industry Strategy Symposium Europe (ISS Europe) 2025, held in Sopot, Poland, senior leaders from government, industry, and the investment community came together to share insights on Europe’s evolving semiconductor landscape. During a dedicated press briefing, they addressed Poland’s growing role in the ecosystem, the significance of international collaboration, and the strategic levers needed to bolster Europe’s competitiveness in semiconductors.Against the backdrop of accelerating investment through the EU Chips Act, speakers emphasized that building Europe’s semiconductor future will require more than funding. It will demand cross-border collaboration, cohesive public-private strategies, and a long-term vision to ensure talent pipelines and supply chain resilience.The briefing featured remarks and commentary from:Laith Altimime, President, SEMI EuropeAgnieszka Sygitowicz, President, The Polish-Taiwanese Chamber of Commerce and IndustryPawel Pudlowski, Ph.D., Deputy CEO, Polish Investment and Trade Agency (PAIH)Monika Morali-Majkut, Chairwoman of the Supervisory Board, Atlas WardBenedikt Ernst, Senior Vice President and Head of Strategy Transformation, Merck KGaA, Darmstadt, GermanyDionys van de Ven, President, Comet YxlonAnna-Riikka Vuorikari-Antikainen, Chief Commercial Officer, Okmetic From left to right: Agnieszka Sygitowicz, President, The Polish-Taiwanese Chamber of Commerce and Industry; Pawel Pudlowski, Ph.D., Deputy CEO, Polish Investment and Trade Agency; Monika Morali-Majkut, Chairwoman of the Supervisory Board, Atlas Ward; Laith Altimime, President, SEMI Europe; Benedikt Ernst, Senior Vice President and Head of Strategy Transformation, Merck KGaA, Darmstadt, Germany; Dionys van de Ven, President, Comet Yxlon; Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer, OkmeticSEMI: How are the private sector and international partners contributing to Poland’s ecosystem development?Morali-Majkut: The private sector is essential to building Poland’s semiconductor ecosystem. At Atlas Ward, together with like-minded companies, we’ve launched SEMICON Supply Poland to help develop a strong, scalable supply chain. We’re working to ensure that essential infrastructure is ready: land, utilities, materials, and specialized service providers that can meet the needs of incoming semiconductor investments. But this isn’t just a national effort. We’re closely aligned with ecosystem-building in Dresden, Prague, and across Central Europe. Collaboration across borders is essential.Sygitowicz: We believe strongly in the philosophy of “building bridges.” In our work with Taiwan and other partners, we focus on five “bridges”: knowledge, people, business, development, and shared success. These connections are critical for Poland to become an integral part of the global semiconductor supply chain. Poland is not trying to replicate what others have done, but to learn from it—particularly in ecosystem development. The long game is not just investment attraction; it’s ecosystem maturity. SEMI: Talent shortages remain a major concern across the industry. What steps are being taken to prepare the future-ready workforce?Morali-Majkut: We are working closely with academia to build the talent pipeline Poland will need as its semiconductor sector grows. Together with industry partners, we’re developing vocational training programs and university-level collaborations aimed at aligning skills with industry needs. There are already several R D-focused projects underway at Polish technical universities, and Poland’s strong foundation in technical education positions us well to support workforce growth as the industry scales up.The semiconductor industry has one of the most complex supply chains in the world. Investing in this industry creates ripple effects across a wide range of skill areas. When we invest in semiconductor education, the spillover benefits for the broader economy will be immense.Altimime: While the talent shortage is certainly a challenge, it also presents a massive opportunity. At SEMI, we’re committed to making Europe’s semiconductor investment a long-term success. Through strong collaboration with the European Commission and a broad network of consortium partners across Europe, including Poland and other Eastern European countries, we’re pushing forward both public and private sector engagement to ensure the continuity of growth and innovation.Europe is projected to face a shortage of 271,000 skilled workers in the semiconductor sector by 2030 if current trends persist. To address this challenge, SEMI is leading a range of initiatives focused on reskilling, upskilling, and cross-sector knowledge development. We’ve established an Educational Leaders Board with 18 consortium members and are organizing events to reach out to students and educational institutions – including the recent SEMI On Campus with the University of Gdańsk — all to foster stronger connections between academia and industry. SEMI: How can Europe strengthen its semiconductor supply chain resilience in the face of geopolitical challenges?Ernst: Resilience starts with recognizing and building on Europe’s existing strengths. While much attention is often given to gaps, Europe already has world-class players, technologies, and a strong consumer market. These are key strategic assets. What’s needed now is coordination—government and industry must work together to align efforts, avoid fragmentation, and ensure that political initiatives channel support in a unified direction.Van de Ven: For industry, true resilience means the freedom to operate globally. Trade controls and IP restrictions can create bottlenecks, so policies must support open access to markets across regions—including the U.S., Europe, and Asia. Companies also need to co-create with fabs and universities, embedding themselves where talent is trained and where innovation happens. This creates a robust, future-ready ecosystem. Location decisions are increasingly influenced by proximity to both production facilities and research institutions.Sygitowicz: Poland is well-positioned to support investment through a combination of ready-to-develop land, financial incentives (such as grants and tax exemptions), and ecosystem services. Beyond infrastructure, there is growing government support for talent development and innovation. Startups, accelerators, and academic partnerships are playing a larger role in building the technology pipeline—creating a more comprehensive, innovation-friendly environment for foreign investors.Vuorikari-Antikainen: Speed is an often overlooked but critical factor in competitiveness. Europe has historically moved slowly, but if countries like Poland can create fast-track pathways for permitting, investment, and project execution, they can set themselves apart. Pairing this agility with strong education and startup ecosystems will help deliver long-term resilience and responsiveness to market needs.Altimime: We must avoid country-centric thinking. Europe’s strength lies in its diversity with different regions excel in different areas, and the challenge is to bring those strengths together. Initiatives like the pilot lines are a great example of this in action, connecting capabilities in photonics, advanced packaging, and quantum technologies across the continent. With strong leadership from Europe’s research and technology organizations (RTOs), such as the Technical Research Centre of Finland (VTT), we’re seeing renewed momentum in areas where Europe has historically been strong, like communications and photonics.To truly accelerate Europe’s position in the global semiconductor landscape, we need to focus on integration—connecting the dots between regions, institutions, and industries. From left to right: Laith Altimime, President, SEMI Europe; Benedikt Ernst, Senior Vice President and Head of Strategy Transformation, Merck KGaA, Darmstadt, Germany; Dionys van de Ven, President, Comet Yxlon; Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer, OkmeticSEMI: With the European Commission discussing a potential second Chips Act, what lessons should we carry forward from the first—and how can Poland play a stronger role?Van de Ven: The primary objective of the Chips Act should be to enable investment and industrial action. In some cases, we’ve seen frameworks become overly complex, attempting to define platforms or outcomes in ways that don’t always align with business needs. From an industry standpoint, what’s most helpful is straightforward support—mechanisms that empower companies to invest where it makes sense and move quickly. Ultimately, the private sector will determine how to build and scale the necessary infrastructure and innovation.Pudlowski: It’s true that Poland did not benefit from the first Chips Act to the extent that its assets and potential might suggest. We offer a combination of engineering talent, geographic advantage, and industrial readiness—yet, in terms of EU-level influence and visibility, we’ve been underrepresented. That is beginning to change.Poland now has a national semiconductor strategy backed by the government, and this, combined with growing engagement from organizations like SEMI, positions us for stronger inclusion going forward. At the same time, we need more bottom-up visibility. Companies in Poland should proactively present their capabilities and publish their work more widely. We have a great deal to offer, and now is the time to ensure that’s recognized in Brussels and across Europe.Altimime: Poland’s recent release of its national chip strategy is both timely and critical. From SEMI’s perspective, this is a proven model: a clear strategic roadmap, strong government backing, and industry alignment create the right environment for success. The first Chips Act delivered real progress and global attention, and with Poland’s new strategy in place, we expect to see even greater integration into the European semiconductor value chain in the next phase of the initiative.Morali-Majkut: During recent conversations with international partners, particularly in Asia, it became clear that while countries like Germany and the Czech Republic are well known within the semiconductor ecosystem, Poland has not always been equally visible—despite being geographically and industrially well-positioned. That perception is starting to shift.Poland has long played a vital role in Europe’s industrial supply chain, particularly in collaboration with Germany. We bring a strong foundation in engineering, education, cost-efficiency, and industrial land availability. These assets are highly relevant to semiconductor expansion. Rather than seeing countries in isolation, we should frame this as a collaborative regional model—linking Germany, the Czech Republic, and Poland as an integrated supply chain hub. SEMI ContactSitong He, Communications ManagerEmail: [email protected]

The semiconductor industry lies at the heart of Europe’s technological ambitions, powering breakthroughs in artificial intelligence, quantum computing, and advanced manufacturing. However, as the industry expands rapidly to meet surging global demand, the need for highly skilled workers is outpacing supply. According to the recently published ECSA Skills Strategy, Europe must train and hire tens of thousands of skilled professionals by 2030 to remain globally competitive. Without a robust and inclusive talent pipeline, the region’s independence in critical technologies might be at risk.At this year’s Industry Strategy Symposium Europe (ISS Europe) held in March, a panel discussion moderated by Maria Daniela Perez from SEMI Europe, brought together industry leaders and experts to explore solutions to this challenge. The discussion centered on how emerging technologies are reshaping the workforce, the role of education in preparing future professionals, and strategies for attracting and retaining diverse talent – all critical to ensuring sustainable workforce development in the semiconductor industry.Tackling Talent Acquisition and RetentionCatherine Le Lan, European University Program Manager from Synopsys, drew a direct connection between technological disruption and workforce challenges. “AI is driving unprecedented changes, and hardware is at the heart of the AI revolution,” said Le Lan. As the industry invests in new methodologies, leading-edge technologies, and innovative products, the demand for updated skillsets continues to outpace supply. This places a dual burden on companies – who must hire for both today’s and tomorrow’s skills – and on the education sector, which is expected to rapidly adapt.Meike Boekelmann, Chief of Human Resources at Comet, highlighted that the challenge is not just about attracting talent from within the semiconductor field – it is also about standing out in a crowded talent market. “We are not only competing within our industry for talent. We’re also competing against other industries: automotive, consumer electronics, and AI,” said Boekelmann. To succeed, companies must go beyond traditional incentives and offer meaningful, forward-looking career experiences. “Primarily what I see is that they’re really asking for creating an impact and also a sense of belonging… so they want to see what’s the outcome,” she explained. “There are more people leaving the labor market than entering the labor market,” added Thomas Kralinski from the Saxon State Secretary of Economic Affairs, Labour, Energy and Climate. “We need to think about immigration, family-work integration, and training.” His comments underscore the need for a holistic workforce strategy – one that not only fills immediate vacancies, but also strengthens the broader ecosystem through inclusive policies, targeted reskilling, and long-term demographic planning.Fostering Industry-Academia SynergyAs the industry evolves, so must its workforce. Andreas Schleicher, Director for Education and Skills at the OECD, made a stark observation. “There’s one thing worse than losing people – and that is to keep them and not upskill them.” He warned that the current pace of technological change demands far more than one-time training; it requires a culture of continuous learning. “Neither the industry nor the education sector has the capacity for upskilling and reskilling,” he noted, pointing out that while Europe performs well in early education, adult learning remains insufficient. “The incidence and intensity of upskilling and reskilling is so far out of what we will need.” Without scalable, lifelong learning systems, even experienced professionals risk being left behind.Building on this idea of future-readiness, Thomas Kralinski noted: “Do you know what kind of fab is going to be open in 10 years’ time or what startup is going to be founded in 10 years’ time? You probably don’t. But everybody who’s working there or will work there is born already – and is probably in school or at the university.” He underscored the need for steady investment in teachers, training systems, and educational infrastructure – not just to meet today’s demand but to ensure Europe’s long-term competitiveness.To truly inspire the next generation, Schleicher pointed to visibility as a vital factor. “You cannot be what you cannot see.” Without relatable role models or a clear understanding of how their interests connect to meaningful careers, young people – especially underrepresented students – often overlook STEM pathways. Schleicher described how even small actions, like industry professionals visiting schools to explain their work, can have a lasting impact. “You can bring someone from the semiconductors industry to speak to students and help them understand, for example, what’s in a mobile phone and that they can actually create tomorrow’s mobile phone.” That kind of engagement, he argued, helps “build dreams” and makes technology tangible, exciting, and inclusive.AI: An Enabler, Not a ThreatPanel moderator Maria Daniela Perez raised a critical question about the evolving role of AI in the workforce. Acknowledging the widespread concern that AI could lead to job displacement, she challenged the panel to consider a different perspective. How can AI be leveraged to broaden and accelerate the talent pipeline rather than replace it? In response, the panelists emphasized that AI is not a disruptor but an accelerator. Rather than eliminating jobs, AI-driven tools enhance productivity by automating repetitive tasks, freeing professionals to focus on innovation, problem-solving, and high-value work. Catherine Le Lan provided a compelling example, explaining how AI-powered electronic design automation (EDA) tools are enabling engineers to push the boundaries of technological advancement. She referred to a university study that compared two groups of students – one with access to AI tools and one without. “They found out that those AI tools helped to improve productivity and also helped to improve skills of the students,” she said. “The student who had used AI tools had better skills than the one who hadn’t used AI tools… because they had been able to focus on the high-level skills, and they got rid of the low-level skills.” Her remarks underscored how AI, when integrated into education, can accelerate both efficiency and learning outcomes.Collaboration: The Key to Sustainable Workforce DevelopmentAddressing the workforce challenge requires cross-sector collaboration among industry, academia, and policymakers. There is a shared responsibility to invest in long-term education strategies, develop structured training initiatives, and create an ecosystem where talent can thrive. This is precisely the mission of two SEMI Europe-led initiatives.The European Chips Skills Academy (ECSA) and the European Chips Diversity Alliance (ECDA) are playing a critical role in shaping Europe’s semiconductor workforce. ECSA is driving efforts to align education and training with industry needs, ensuring that both students and professionals are equipped with the technical expertise and practical experience required for the sector’s future. Meanwhile, ECDA focuses on building a more inclusive semiconductor workforce across the industry. By creating opportunities for underrepresented groups, ECDA is ensuring that the industry benefits from a broad talent pool.Securing Europe’s Semiconductor FutureIn her closing remarks, Maria Daniela Perez brought the discussion full circle, emphasizing that addressing the semiconductor talent gap requires collective ownership: “In the end, it ends up being all about collaboration,” said Perez. From engaging technology users to amplifying the industry’s visibility, to aligning with academia and policymakers, the path forward depends on shared action. By fostering this ecosystem-wide commitment – and investing in the people behind the progress – Europe can bridge the talent gap and shape a resilient, inclusive, and globally competitive semiconductor workforce.SEMI ContactKartikey Srivastava, Senior Specialist, CommunicationsEmail: [email protected]

The SEMI Startups for Sustainable Semiconductors Program – or S3 – connects promising climate technology startups with many of the industry’s largest Corporate Venture Capital (CVC) firms. For startups interested in applying their solutions to improving sustainable practices within the semiconductor industry, the call for applications is open until May 1. After applications have been submitted, finalists will pitch their solutions to an audience at this year’s SEMICON West, taking place from October 7-9 in Phoenix, Arizona. Solutions of Interest – 2025 S3 Categories Each year, sponsors choose priority categories for sustainability-related solutions. This year’s categories include: Sustainable and efficient solutions for data centers, including thermal management, power management, and systems and componentsGenerative AI, software, and other AI solutions for alternative materials discovery, device and physics simulation, energy-efficient chip design, and end-to-end sustainable product designMore sustainable solutions for energy and materials, including new process designs for lower energy intensity, energy tracking and management software, emissions control and abatement, water solutions, PFAS destruction, and recycling solutionsAll startups that address any of these areas are encouraged to apply. Why Apply for S3?Startups that apply for S3 can benefit from the following. Mentorship from industry experts on how to break into the semiconductor industry, even if your startup had never previously considered the semiconductor market for its products or servicesProof of concept (POC) and pilot partnership opportunitiesExposure to major semiconductor industry leadersPotential investments from both CVCs and venture capitalists (VCs) throughout the program and final pitch eventAdditional public relations opportunities as a result of the programS3 Performance ReportTo help prepare for the 2025 competition, the S3 team conducted a review of the application process to develop a report card of key performance indicators. After assessing three years’ worth of data from over 150 startup teams, notable takeaways from the report are as follows. The S3 program provides startups with a 4.1% chance of securing a scaled customer. To date, S3 has enabled eight direct VC investments, 34 first-of-their-kind proof of concepts, and seven sustainability innovations that have scaled into initial production.One in three startups reviewed by internal subject matter experts moves into a POCOne in five startups that secure a POC move into a scaled deploymentOne in two startups that move into scaled deployment receive direct investment from the CVC arm of the companyApproximately one in 30 startups are successful at a first-scaled deployment with a semiconductor customerBy providing footholds into the semiconductor ecosystem through mentoring and customer introductions, S3 offers the opportunity for startups to strategically solve pressing, real-world technological challenges. Forward Statements To achieve a more sustainable semiconductor industry, we must move faster. The longer humanity takes to resolve unsustainable practices, the more expensive solutions will become. Through collaboration and competition, we can advance development on a larger, more efficient scale. To learn more, download the full report. John Wei joined Applied Ventures in 2020. He focuses on a range of deep tech areas and industry verticals, including advanced materials, display, and Industry 4.0 technologies. He also manages Applied Ventures’ investment activities in the Greater China region.Prior to joining Applied Ventures, Wei was a key member of the SABIC Ventures investment team, where he led multiple investments in advanced materials, display, energy sustainability, and manufacturing space in North America, Europe, and China. Earlier in his career, Wei held various commercial and technical roles at The Linde Group and General Electric with domain expertise in the petrochemical, power generation, alternative energy and oil gas industries.

The semiconductor industry is at a pivotal moment, with smart manufacturing, smart mobility and workforce development as key drivers in the industry’s path to reach $1 trillion in revenue by 2030. Bringing together key stakeholders from the semiconductor ecosystem, SEMIEXPO Heartland will take place on April 1-2, 2025, in Indianapolis and explore the latest advancements and opportunities to foster growth, accelerate innovation and reinforce the Midwest as a thriving hub for semiconductor manufacturing.SEMI sat down with Purdue University President Mung Chiang who shared his insights on growing semiconductor industry in the Midwest, how Purdue is making an impact, and a sneak peek into his upcoming keynote presentation at SEMIEXPO Heartland.SEMI: How important is semiconductor industry expansion in the Midwest?Chiang: Purdue’s partnerships with industry leaders, state and federal government are essential to advancing the U.S. semiconductor industry and establishing the Midwest region as the Silicon Heartland. The Department of Defense-funded Silicon Crossroads Microelectronics Commons innovation hub is a partnership between Indiana, Illinois, and Michigan, while the Midwest Microelectronics Network is in collaboration with Ohio, Illinois, and Michigan.An event like the SEMIEXPO Heartland in Indianapolis gathers industry representatives from across the nation to see the potential and value that Indiana and the Midwest bring and provides a great forum to explore strategies for collaboration and innovation.SEMI: How important is collaboration between industry and academia to advance semiconductor innovation and address workforce challenges?Chiang: Enabled by semiconductors, artificial intelligence (AI) continues to advance rapidly. Purdue is a national academic leader in microelectronics and semiconductors in part because of industry partnerships – both nationally and internationally – that help us align our research and workforce development to the needs of our industry partners.Collaborations among industry, academia and government will be critical to strengthening America’s position in the global semiconductor landscape and securing our technological future. Two recent examples are our partnership with SK hynix to fill a critical gap in the U.S. semiconductor supply chain and our partnership with SEMI, the leading global microelectronics industry association, to create online courses aimed at bolstering the semiconductor workforce.SEMI: How are Purdue’s innovations contributing to those fronts?Chiang: World-leading research, transformational investments in infrastructure and pioneering education are all part of Purdue’s contributions to advance the semiconductor industry.Strategic initiatives like the first comprehensive, large-scale Semiconductor Degrees Program, advised by a board of industry leaders, lead the way to high-quality workforce development at scale. Experiential education, such as programs like “Summer Training, Awareness, and Readiness for Semiconductors” (STARS) for undergrads, energizes first-year students and provides a strong foundation to prepare the next generation high-tech workforce, a critical step in cultivating the talent needed to drive the industry forward.Birck Nanotechnology Center, one of the nation’s state-of-the-art academic research centers, is another prime example of Purdue driving innovation. This facility will soon become the first and only digital-twin-enabled semiconductor research lab in the world.SEMI: What are the highlights of your keynote address for the SEMIEXPO Heartland?Chiang: I’ll point out that these are exciting times in Indiana – two new semiconductor clusters are emerging, one in West Lafayette at Purdue focused on the commercial sector and one at Westgate, near the Naval Surface Warfare Center Crane, focused on the defense sector.The initiative at Purdue is led by SK hynix, the world’s leader in high-bandwidth memory for AI; MediaTek, the world’s fifth-largest fabless design company and a leader in chips for smartphones, tablets, TVs, and Internet of Things products; and by imec, the world's leading independent semiconductor research and innovation hub.Our goal is to leverage Purdue’s excellence at scale to work with our partners and create a new, thriving, vibrant, and growing semiconductor hub in the heartland and to connect this growing commercial sector to the emerging defense sector at Westgate.We look forward to working with our partners in the Midwest to make the Heartland one of the few critical regions of semiconductor manufacturing, design, innovation, and talent development in the United States.SEMI: Part of SEMIEXPO Heartland’s focus is on smart manufacturing. What strategic collaborations in smart manufacturing are driving innovation forward?Chiang: Smart manufacturing is being driven, in part, by the continuing advancement of AI and digital twins. The semiconductor industry already is partnering with computational modeling and fabrication leaders like Purdue University to develop the digital twins and play a major role in training the workforce and accelerating the pace of innovation.The NIST-funded SMART USA Manufacturing Institute for Digital Twins is a $1 billion plus program that brings industry and academia together. Purdue looks forward to playing a leading role in this important initiative.Maintaining a strong connection between academia and industry can help accelerate design and innovation of new U.S. chip development and manufacturing concepts through cost reduction, product optimization and real-time process adjustments.ResourcesHear more from academic leaders, industry executives and government officials about the semiconductor expansion and opportunities for growth in the U.S. Midwest during SEMIEXPO Heartland event, April 1-2, 2025, in Indianapolis. Visit the SEMIEXPO Heartland website to view the full agenda: https://semiexpo.semi.org/.Mung ChiangMung Chiang is the President of Purdue University, and the Roscoe H. George Distinguished Professor of Electrical and Computer Engineering. Prior to being selected university president in 2022, he was the John A. Edwardson Dean of the College of Engineering and executive vice president for strategic initiatives at Purdue University.Chiang received BS (1999), MS (2000) and PhD (2003) from Stanford University and an honorary doctorate (2024) from Dartmouth College. Before 2017, Chiang was the Arthur LeGrand Doty Professor of Electrical Engineering and an affiliated faculty in Computer Science and in Applied Mathematics at Princeton University.SEMI ContactSherrie Gutierrez, Marketing Communications ManagerEmail: [email protected]

The European semiconductor ecosystem continues to evolve, driven by the ambitions outlined in the EU Chips Act. With goals to strengthen Europe’s technological leadership and double its semiconductor manufacturing market share to 20% by 2030, collaboration across the value chain is imperative. Heterogeneous Integration for Connectivity and Sustainability (HiCONNECTS), a Horizon Europe-funded project, exemplifies this collaborative spirit. The initiative aims to develop next-generation electronic components and systems using advanced heterogeneous integration core technology solutions.The HiCONNECTS consortium, comprising 65 partners with diverse expertise, is addressing key societal and industrial challenges. These efforts focus on advancing core technology solutions for energy-efficient, high-performance wireless and wired cloud and edge computing, as well as automotive radar systems.“Collaborating with 65 partners is no small feat—it’s akin to orchestrating a complex IT network,” says Ilan Englard, Coordinator of the HiCONNECTS project. “We streamline progress by creating local networks of partners, all interconnected through a central management framework of tasks, work packages, and coordination. Such large consortia form intricate systems where complexity fosters innovation, often leading to surprising and transformative outcomes.” As the three-year project progresses, HiCONNECTS is working to establish pilot lines focused on key areas:RF Electronic Heterogeneous IntegrationPhotonic Components for Heterogeneous IntegrationAdvanced Packaging for Heterogeneous IntegrationThese pilot lines, led by organizations such as the Ferdinand Braun Institute and imec, will develop systems and modules through advanced equipment development, manufacturing optimization, and integration of electronic and photonic components. Validation of equipment in integrated process flows will further enhance the heterogeneous integration landscape.Now in its third year, HiCONNECTS continues to welcome new members. This inclusiveness underscores the project’s flexibility and its commitment to incorporating fresh perspectives as new trends and challenges emerge. At the 12-month consortium meeting in Catania last February, Arbonaut was unanimously inducted to contribute to the forest fire use case, further expanding the project’s scope.“The upcoming months are critical, as we move closer to delivering modules, systems, and demonstrators,” says Englard. “Our goal is to heterogeneously integrate the next generation of RF, electronic, and photonic components into networking, telecom, and radar systems, with support from module and equipment makers.”HiCONNECTS members at the 12-month consortium meeting in Catania, February 2024As this ambitious work progresses, sharing project results and achievements remains a top priority for the consortium to ensure meaningful social, political, and economic impact. By drawing attention to the results of the project, the consortium enhances the visibility, comprehension, and implementation of these advancements. Recently, four partners—Excillum, TNO, SANLAB, and Centria University of Applied Sciences—participated in a webinar titled “Heterogeneous Integration for Future High Speed Communication,” organized by SEMI Europe. The webinar is now available on demand for viewers worldwide.The significance of HiCONNECTS was further highlighted at SEMICON Europa 2024, where seven consortium members presented progress on topics ranging from advanced packaging to photonic integration. At the TechARENA, representatives from SEMI Europe, Excillum, Centria, Arbonaut, AT S, imec, and Applied Materials showcased the project’s contributions to the semiconductor ecosystem. “I was thrilled to present at the TECHArena and engage with the HiConnects partners,” said Julius Hållstedt, Head of segment - Semi Electronics, Excillum. “I especially appreciated the high attendance at my talk, which validated the strong interest in X-ray solutions for semiconductor applications. The insightful discussions at the SEMICON Europa exhibition and advanced packaging conference was a rewarding bonus.”HiCONNECTS Speakers at SEMICON Europa 2024By disseminating research and breakthroughs across various channels, such as publications, webinars, and conferences, HiCONNECTS is promoting knowledge sharing and fostering collaboration across the semiconductor ecosystem. This openness accelerates the adoption of new technologies, ensuring that European industry players remain at the forefront of critical advancements. Furthermore, sharing these results strengthens Europe’s position as a hub for cutting-edge research and development, driving both economic growth and technological leadership on the global stage.SEMI Europe is proud to be a consortium member of HiCONNECTS under the Chips Joint Undertaking (Chips JU), which is funded by the EU Horizon Europe program and supported by numerous countries, including Austria, Italy, Germany, and Sweden.About HiCONNECTS:HiCONNECTS (Heterogeneous Integration for Connectivity and Sustainability) is a three-year project bringing together 65 partners to develop sustainable, energy-efficient cloud and edge computing platforms. The project focuses on high-performance computing, storage infrastructure, network interfaces, and real-time analysis of IoT sensors and big data.Kartikey Srivastava is Senior Specialist – Communications at SEMI Europe.

While many individuals in leadership positions are seen as role models, only a select few have the ability to create a lasting impact on both individuals and organizations. Role models play a pivotal role in the growth of individuals, teams, and entire companies. Whether intentionally or not, role models possess the power to shape the possibilities others envision for themselves, and exceptional role models harness this power to empower and inspire.The Role Models article series shines a light on remarkable individuals who serve as inspirational leaders for their achievements, leadership, and positive influence. In each installment, we delve into the life and accomplishments of these exceptional role models, exploring their journeys, values, and the impact they've made on their organizations, communities, and across industries. Join us in celebrating these outstanding individuals and discover the valuable lessons they offer for aspiring leaders and changemakers.Role Model - Stephan HaferlIn an industry driven by innovation and high-tech advancements, Stephan Haferl stands out as a transformative leader at the helm of Comet, a globally recognized Swiss technology leader specializing in x-ray and radio frequency solutions for the semiconductor industry. As CEO, Stephan Haferl has successfully guided the company through a period of transformation, focusing on innovation, operational excellence, and customer satisfaction. With extensive experience in business management and a Ph.D. in mechanical and process engineering from the Swiss Federal Institute of Technology (ETH), Haferl has led Comet’s transformation while also contributing to the broader industry as a member of the Board of Directors at Belimed AG and the SEMI Europe Advisory Board.In this interview, Haferl shares his personal journey and leadership philosophy, offering invaluable insights into the mindset of a successful business leader and the values that drive his work. His dedication to mentorship, diversity, and cross-functional learning serves as a beacon for future generations of leaders.SEMI: Please tell us about your background and professional experience.Haferl: My father passed away from cancer when I was a young child, and though I have only faint memories of him, he left behind a remarkable legacy. He had a great library filled with books on physics, math, and engineering, as well as stories and photographs showcasing his passion for tinkering and DIY projects. In many ways, this collection became a foundation for my intellectual development. Reading his books, going through his notes from university, and exploring his projects allowed me to feel spiritually connected with him. Fortunately, his passion for the technical world was something I inherited. I became a dedicated engineer and tinkerer, and that mindset has helped me embrace every challenge I encounter. While this is a large part of “what I am”, I believe that “who I am” is even more important. That was shaped largely by my maternal grandmother. She lost her husband, my grandfather, during the war when my mother was just a baby. Despite this hardship, she remained single throughout her life, focusing on raising my mother and running my late grandfather’s little shop in post-war rural Norway. She was tougher than nails, stoic, industrious, but above all, she was humble and kind. My grandmother has been, and will always be, my role model, in both my personal and professional life. “It is my conviction and advice to aspiring leaders: If you want to be successful in business, go on a cross-functional learning journey.”– Stephan HaferlSEMI: What was your journey to becoming the CEO of Comet?Haferl: Driven by curiosity and a desire to understand as many aspects of business as possible, my journey has been one of evolution. I started in engineering and moved through various areas, including operations, R D, product management, sales, and business development. Overtime, I transitioned from being an individual contributor to a team leader, and eventually to management roles with higher levels of responsibility. There were moments when I stepped away from activities that were comfortable and familiar, like R D, in order to have new experiences and learn something new, even when it went against advice or my own judgement. I intentionally chose to become a seasoned generalist with a few areas of specialty, rather than a functional specialist. Although it may sound a bit idealistic, I never had a specific plan to end up in my current role.That said, if I could offer advice to aspiring leaders, it would be this: To succeed in business, embark on a cross-functional learning journey. Nothing prepares you more for a leadership role than hands-on experience across as many areas of business as possible.Ribbon Cutting Ceremony of the new facility in San Jose.SEMI: What has been your greatest challenge as CEO?Haferl: My greatest challenge as CEO has been and will always be, creating a healthy balance between the things I’m passionate about: the responsibilities of my job, the people around me, my family, and ultimately, myself. While a crisis or challenge in business can be overcome with the support of your entire organization and external systems, managing your time, maintaining well-being, and ensuring you’re fully present is entirely your own responsibility. The larger the role, the more demanding this balance becomes.SEMI: What has been your greatest learning as CEO?Haferl: There isn’t one single greatest learning. Instead, being a CEO offers you the opportunity to experience many truisms firsthand, such as:As a CEO, you are often alone in the spotlight and must learn to be comfortable absorbing the pressure that comes with it, entirely on your own.Your title means little unless you strive to earn it every day. If you’re a good leader, you don’t need to create followers – they will emerge naturally.A team of excellent individual contributors can be outperformed by a cohesive group – a true team of average players who stick together and go the extra miles for one another. I’ve seen this dynamic play out many times during my younger years in team sports. SEMI: What makes a great leader?Haferl: With so much literature on leadership, one might believe that there is an easy answer to this question. However, the sheer volume of attention leadership receives highlights that there isn’t a single definitive answer. I believe a great leader creates clarity and drives closure while also inspiring and motivating the team to achieve their goals while being approachable and ethical. Leadership effectiveness often depends on the team being managed, as there are various archetypal leadership styles.I’ve always aimed to build teams made up of individuals who are loyal, ambitious, disciplined, smart, honest, and kind. Within such teams, I find that a highly participative leadership style is most effective. Chinese New Year Dinner in China.SEMI: Has mentorship played a significant role in your professional success?Haferl: Mentorship has played, and continues to play, a pivotal role in my career. I have gained invaluable insights from highly experienced people who took me under their wings and showed me the ropes. Even now, as a CEO and often feeling peerless within the company, having someone to confide in and seek advice from, or get a second opinion when I am uncertain is absolutely essential.Additionally, I find it deeply rewarding to mentor two or three individuals at any given time. It is a way me to give back while continuing to learn through the process. Staying connected with younger staff is equally important – they are a valuable source of fresh insights and candid feedback.SEMI: How are you setting an example for your generation and demonstrating what you'd like to see from your generation's leaders?Haferl: Let me reframe the question by sharing the characteristics I prioritize when hiring people. As mentioned earlier, I value loyalty, ambition, discipline, intelligence, honesty, and kindness. I strive to embody these qualities in my own leadership and seek out individuals who share the same values. By consistently upholding these principles and surrounding myself with like-minded people, I aim to set a positive example and influence those around me. Townhall in Japan.SEMI: How have you helped to empower the next generation of leaders and in particular women?Haferl: I’m actively involved as mentor to a select group of high-potential employees within the company, many of whom I’ve supported for years. Even those I’ve coached who have since moved on to outside the company remain in touch, and I continue to offer guidance when needed. Interestingly, the women I have mentored have made the greatest impact, both within and beyond the company, which has been incredibly rewarding to witness. SEMI: What advice do you have for the next generation of industry leaders?Haferl: It is wise to develop a strong foundation of functional expertise in one area before expanding your knowledge. However, as a leader, you cannot rely solely on being a subject matter expert. Leadership requires understanding people, grasping the big picture, and knowing when to focus on the finer details in certain areas. To make decisive decisions, create clarity, and drive closure, you need a broad understanding of the work you’re leading. Q A with the team in South Korea.SEMI: What are the best ways to attract students and especially women to consider careers in the semiconductor industry?Haferl: Inspire them with purpose, ignite their passion, and cultivate their curiosity. Provide safe and meaningful access to the industry through internships and opportunities to work on small projects. There are many ways to pave the road for the next generation, and the semiconductor industry has the resources to make it happen. There are no excuses!SEMI: What role should diversity, equity, inclusion, and belonging play in an organization's strategy?Haferl: This is incredibly important, and I always explain to my team using this analogy: If you want to win the Champions League in football, you can’t just hire the best goalies. You need a corresponding specialist for each role to build a winning team. If you fail to treat those specialists equitably, you will lose their passion and, ultimately, their unique strength. Finally, even if you hire the best players, you’ll lose against a cohesive team of mediocre players if you don’t foster a sense of inclusion and belonging – where everyone is united as “all for one, one for all.”Groundbreaking Ceremony of Comet’s new facility in Malaysia.Through his journey and leadership philosophy, Stephan Haferl demonstrates that being a great leader is not about titles or expertise alone, but about fostering clarity and purpose, building strong teams, and nurturing those around you. His emphasis on mentorship, the importance of a diverse and inclusive environment, and the value of broadening one's knowledge to encompass all aspects of business highlights his commitment to developing well-rounded leaders. For Haferl, leadership is a dynamic balance – between personal and professional commitments, passion and discipline, and individual contributions and team success. By continuously learning, mentoring, and staying connected to the next generation of talent, he sets an inspiring example for current and future leaders in the semiconductor industry and beyond.SEMI ContactCassandra Melvin, Senior Director of Business Development and OperationsEmail: [email protected]

SEMI kicked off 2025 by hosting its annual Industry Strategy Symposium (ISS) gathering industry executives, government leaders, and research institutions to share insights on current and near-term business and market dynamics. Over the course of two and a half days, this key forum also provided valuable networking opportunities to foster collaboration.The event theme, Ready. Set. Ramp! aligns with the industry's goal of reaching $1T by 2030. While there is uncertainty due to global trade tensions, supply chain challenges, and talent shortages, AI-driven opportunities are proving to be a major growth driver. Another key highlight was the advanced packaging panel that reinforced the value of hybrid bonding and 3D device architectures playing a critical role in supporting AI and next-generation chips. The overarching sentiment from the event was that it's an exciting time to be in semiconductors, with unprecedented transformation and opportunities ahead. Collaboration across the industry is essential to overcoming technical challenges and accelerating innovation.SEMI leaders had the opportunity to speak with Francoise von Trapp of 3D InCites at the conclusion of ISS. Listen to the podcast to hear highlights from Joe Stockunas, President of SEMI Americas, along with market updates from SEMI’s Market Intelligence team members, with Inna Skvortsova covering semiconductor equipment and Christian Dieseldorff speaking on fab expansions. Looking aheadSEMI has many conferences and exhibitions scheduled throughout the year with opportunities for insights and networking. For the SEMI Americas region, don't miss the inaugural SEMIExpo Heartland on April 1-2 in Indianapolis, Indiana. SEMI is excited to host this event in the burgeoning Midwest U.S. region that is already seeing increased activity and opportunity for semiconductors, especially in areas around automotive electronics, smart manufacturing, machine learning, AI and workforce development. The expo is poised to spur collaboration among industry, government, and academia.A key change to note for Americas events this year is that SEMICON West is taking place in Phoenix, Arizona on Oct. 7-9. With over $100B in investments in motion, the greater Phoenix area is a growing manufacturing hub in the Southwest. There is already a lot of buzz and excitement with a sold-out venue and over 400 speakers lined up for the 3-day event. SEMICON West will return to San Francisco in October 2026 and will alternate between these two locations every other year through 2030.ResourcesPress Release: Eighteen New Semiconductor Fabs to Start Construction in 2025, SEMI ReportsPress Release: Global Total Semiconductor Equipment Sales Forecast to Reach a Record of $139 Billion in 2026, SEMI ReportsSEMI Market Intelligence ReportsSEMI ISS 2025: Ready, Set, Ramp! by Dean Freeman, 3D InCitesSEMI ContactSherrie Gutierrez, Marketing Communications ManagerEmail: [email protected]

As artificial intelligence (AI) continues to revolutionize industries, the technology behind AI chips is advancing at an unprecedented pace. Meeting the demands of faster processing, greater efficiency, and increased complexity requires cutting-edge solutions in semiconductor manufacturing. SEMI spoke with Kai Beckmann, Member of the Executive Board at Merck KGaA, Darmstadt, Germany and CEO of the Electronics business sector, who shared insights into Merck KGaA, Darmstadt, Germany's latest strategic move that underscores the company’s commitment to innovation in semiconductor and optics technologies. With the acquisition of Unity-SC, a leading provider of advanced measurement and inspection technology, this marks a significant milestone in the evolution of AI chip manufacturing and beyond by bridging expertise in electronics and optics to drive innovation.Strengthening AI Chip Manufacturing with Unity-SC On October 31, 2024, Merck KGaA, Darmstadt, Germany’s Electronics business acquired Unity-SC, a global leader in metrology tools for semiconductors. According to Beckmann, this acquisition not only enhances Merck KGaA, Darmstadt, Germany’s portfolio in advanced measurement and quality inspection but also bolsters its position in the development of AI chips. These chips, essential for driving AI, rely on cutting-edge manufacturing processes like advanced packaging and heterogeneous integration.“Unity-SC brings precision to the table,” Beckmann explained. “Its technology is vital for managing the complex production sequences involved in creating high-density, three-dimensional chip structures. Without this precision, the production of AI chips at the necessary scale and quality would be nearly impossible.”The expertise of Unity-SC is pivotal for ensuring reliability in semiconductor manufacturing, reducing waste, and optimizing performance. With Merck KGaA, Darmstadt, Germany’s established relationships with major chip manufacturers, the integration of Unity-SC's technology is set to create synergies that will benefit the entire industry.A New Era for Merck KGaA, Darmstadt, Germany: Electronics Meets OpticsThe acquisition of Unity-SC aligns with Merck KGaA, Darmstadt, Germany’s broader strategy of combining expertise in semiconductors and optics, a vision that includes rebranding its display business as Optronics. This move represents a transformation from a traditional display specialist to a pioneer in optical technologies that complement electronic advancements. “Integrating optics with electronics opens up vast opportunities,” Beckmann shared. He highlighted key areas of focus like silicon photonics, which is revolutionizing data transmission, and augmented reality, where lightweight, powerful headsets represent the next frontier.Merck KGaA, Darmstadt, Germany’s foray into these domains underscores the importance of merging light management and materials expertise. For instance, the precision metrology brought by Unity-SC dovetails with Merck KGaA, Darmstadt, Germany’s work in materials science, forming a foundation for advancements in next-generation technologies such as quantum computing and neuromorphic systems. Driving Innovation in AIAdvanced packaging and heterogeneous integration are at the core of today’s AI revolution. These technologies make it possible to stack chips in 3D configurations, reducing energy consumption and increasing processing power. “Unity-SC plays a crucial role in this process,” Beckmann noted, emphasizing that the precise measurement of intricate structures ensures the reliability and efficiency of these complex systems.By mastering these technologies, Merck KGaA, Darmstadt, Germany is positioning itself as a leader in both materials and metrology for semiconductor manufacturing. “Integrating metrology and inspection into our portfolio is a leap forward in aligning our expertise with the needs of the AI-driven semiconductor industry,” Beckmann said. Looking AheadMerck KGaA, Darmstadt, Germany’s combination of semiconductor and optics expertise is not just about advancing technology but about creating a stronger, more resilient organization capable of tackling future challenges. The integration of Unity-SC is a step toward achieving this vision, fostering innovation at the intersection of light and materials.“Working in the semiconductor industry has always been exciting,” Beckmann shared. “But now, with AI reshaping the landscape, the opportunities for innovation and growth are unparalleled. Together with Unity-SC, we’re not just keeping pace—we’re leading the charge.”Merck KGaA, Darmstadt, Germany’s strategic evolution signals a promising future for AI, semiconductors, and the broader field of optoelectronics, where the interplay of light and materials continues to unlock new horizons.Kai Beckmann is a Member of the Executive Board of Merck KGaA, Darmstadt, Germany and CEO of the Electronics business sector. Joining Merck KGaA, Darmstadt, Germany in 1989, he has held roles in IT, consulting, and international management, including as Merck KGaA, Darmstadt, Germany’s first CIO. Since 2017, he has led the Electronics sector (operating under the name EMD Electronics in the US and Canada), driving innovation in semiconductors and optics. Beckmann also oversees the Darmstadt site and co-determination in Germany. He holds a computer science degree from TU Darmstadt and a doctorate in economics earned in 1998.SEMI ContactMaria Daniela Perez, Communications ManagerEmail: [email protected]

Electronic Design Automation (EDA) is essential for the entire semiconductor design-to-manufacturing process. EDA tools streamline the design process, speed up development cycles, and ensure higher precision in chip design. Accellera Systems Initiative, an independent standards body, focuses on standards for system-level design, modeling and verification used extensively in the EDA ecosystem. These standards facilitate industry-wide collaboration and accelerate innovation, working closely with many members of the Electronic System Design (ESD) Alliance.Bob Smith, Executive Director of the ESD Alliance, recently talked with Lu Dai, Senior Director of Technical Standards at Qualcomm and Chair of Accellera Systems Initiative about Accellera’s new and future standards, and its successful global Design Verification Conference (DVCon) events.Smith: What’s new in Accellera’s standards effort since we last spoke?Dai: We are working on two new initiatives. The first and biggest initiative is our recently formed Federated Simulation User Group. Our members requested an end-to-end simulation environment or models that can be plugged into a system-level simulation environment. This challenge triggered industry-wide discussions among Qualcomm, NXP and many other semiconductor companies, especially those from Europe tied to auto and avionics industries.The need for this new standard effort is being driven by industries such as automotive where tiny microcontroller chips are traditionally used. The automotive industry has some existing simulation standards that include physical devices. With autonomous vehicles, systems on chips (SoCs) are replacing microcontrollers and handling system-level features that require rigorous system-level simulation. The user group is tasked with reviewing current automotive industry simulators and discovering how our traditional register transfer level (RTL) code- or emulation-based simulations could work with them via an interface.This effort has attracted new companies outside of the traditional EDA world. Ford, for example, is now an Accellera member and has a seat on our board. It’s exciting to see this collaboration.Functional safety is another initiative that we started a few years ago, also driven by the advancements in autonomous vehicles. Accellera’s focus is to define functional safety as a format that can be carried through the design stages from intellectual property (IP) to SoC, and from front-end design to back-end. Across the different stages of design and verification, an engineer can then confirm that the functional safety goal is maintained. We’ve published resources including whitepapers and are currently working on developing the language format. Smith: Where do you see Accellera’s next standards efforts?Dai: We have a mixed-signal standard coming out soon. It adds a mixed-signal interface to the SystemVerilog standard, currently under IEEE management because Accellera donated it to IEEE.A common question we’re asked is, “What are you doing with AI?” Accellera is a heavily EDA-centric standards body, and EDA tools are increasingly incorporating AI. AI consumes and outputs large amounts of data. A challenge is how to ensure the AI work output from one vendor’s EDA tool can propagate to another EDA tool. Accellera may look at defining an AI data format for EDA. It comes with a unique challenge because AI data is highly proprietary, both from the vendor’s and customer’s perspectives, so a robust security solution is needed. We may need to consider an interface standard, because companies may not be willing to share data, even with other groups that are in the same company. among their partners. They might need to hide the data and have a special interface to extract the data that they are willing to share. Accellera could investigate how to make AI deployment cross-vendor while allowing vendors and customers to protect their IP. Another area for potential new standards is around supply chain security challenges. This is a global issue driven in part by the COVID experience and geopolitical concerns. One possible approach is to use tagging. When a chip comes out of the fab, it would have a tag designating where it was designed and manufactured, and where the tooling is from. The tag would also include data about the regions or countries the design traveled through during the entire flow from design to manufacturing. Smith: Is Accellera looking into any standards or addressing any open-source design and verification flows?Lu: Accellera has been in the open-source domain for quite some time. Accellera has a language reference manual, user guides and reference implementations. Because many Accellera standards are related to language, we often work on libraries when a new language comes out and reference implementations to help our community deploy that standard. Reference implementation libraries are open source, as is our SystemC material. We have an active open-source SystemC community.Smith: I hear that the DVCon conferences are expanding globally. What’s driving that?Dai: Engineers enjoy attending conferences in person where they can reconnect with peers, build new connections and foster collaboration. We have regional DVCon events to bring information to our community and make Accellera more accessible to them. We now host several DVCon conferences in North America, Europe and Asia. Our next DVCon will be held in San Jose, Calif., from Feb. 24-27.Smith: How can readers of this blog post get more information about Accellera?Dai: For up-to-date information about Accellera’s activities, please visit our website: https://accellera.org/. Lu Dai is Senior Director of Technical Standards at Qualcomm and is a leader in semiconductor standards and industry organizations including Accellera. Dai holds a Master of Science degree in Electrical Engineering from Cornell, and a Bachelor of Science degree in Electrical Engineering and Computer Science from UC Berkeley.Robert (Bob) Smith is executive director of the ESD Alliance, a SEMI Technology Community.

In 1992, speaking in front of several fabless CEOs, AMD’s CEO, Jerry Sanders, notoriously remarked: “Now hear me and hear me well; real men have fabs!” However, by 2008, AMD had divested its manufacturing assets, becoming one of hundreds of semiconductor design firms embracing a new reality – the growing bifurcation of chip design and manufacturing.Today, this bifurcation continues to intensify. Global market intelligence firm IDC estimates that fabless revenue as a percentage of the semiconductor market is expected to reach a high of 62% in 2028, up from 30% in 2019. While foundry champions like TSMC represent a large part of this, they’re only one answer to the urgent question asked by governments and car companies alike. How do we secure chip capacity? Shocks like the COVID-19 pandemic and Russia’s invasion of Ukraine have refocused attention on the critical process of making semiconductors, forcing companies to consider how they can secure semiconductor capacity short of owning and operating a fab.Source: IDC, SEMICON West, July 2024Since Jerry Sanders’ proclamation, the risks of going fabless have drastically decreased, but they have not been eliminated entirely. Here are three models companies can implement to become less dependent on single sourcing and regain control over their supply chain at a lower cost.Option 1 – Develop a Captive Capacity CorridorMany companies have been choosing a captive capacity model to better balance risks and avoid being put on allocation. In this model, companies seek guaranteed manufacturing capacity through ownership of only part of the manufacturing process while defraying other costs to fab operators.For most companies, the supply chain risk of surrendering control over manufacturing is more than mitigated by eliminating the expense of the physical infrastructure required to make modern-day chips. According to a report from Boston Consulting Group (BCG), a brand-new greenfield fab in 2026 could carry a 10-year total cost of ownership (TCO) between $35 and $43 billion, which is 33% to 66% higher than in 2023. It’s no wonder that several companies opt to have someone else make chips for them. Source: Construction Physics, How to Build a $20 Billion Semiconductor Fab, May 3, 2024Captive capacity corridors can take many forms. For example, some companies are willing to make capital commitments for tooling early during an engagement, with the expectation of later receiving discounted wafers. This guarantees their ownership over part of the chip manufacturing process without worrying about owning the physical fab infrastructure or hiring fab operators.Such an arrangement can also be equally beneficial for foundries and integrated device manufacturers (IDMs). Companies often take full ownership of these tools over the long term, enabling them to service new customers.Option 2 – Establish a Joint-Venture Investment PartnershipInvesting in a new fab can be daunting even for major IDMs, leading to an increase in synergistic co-investment. In August 2023, TSMC announced a partnership with European IDMs, Bosch, Infineon, and NXP, to jointly construct a 300mm fab in Dresden, Germany that’s expected to cost upwards of €10 billion. In this arrangement, TSMC retains 70% ownership, and each other company has a 10% stake. A little more than a year later, NXP doubled down on its joint-venture playbook, announcing a $7.8 billion joint-venture with a different Taiwanese foundry, Vanguard International Semiconductor (VIS), to build a 300mm fab in Singapore. Partnering with proven foundries relieves potential concerns about efficacy, giving companies greater certainty that their investment will be maximized. Foundries also benefit by subsidizing construction and tooling costs for additional capacity while securing dedicated customers at the same time. Companies may also seek a capital injection without the complexity of having to share fab space with other manufacturers. Intel has been the focal point of this strategy over the last couple of years with two major announcements. First, the company signed an agreement with Brookfield Asset Management in August 2022, providing Intel with a new and expanded pool of capital for manufacturing build-outs. Under the agreement, the companies will jointly invest up to $30 billion in Intel’s manufacturing expansion at its Chandler, Arizona campus, with Intel funding 51% and Brookfield funding 49% of the total project cost. Intel will retain majority ownership and operating control of the two new leading-edge chip factories in Chandler, which will support long-term demand for Intel’s products and provide capacity for Intel Foundry Services (IFS) customers. Intel did this again recently, announcing a joint venture for Fab 34, a 300mm facility based in Leixlip, Ireland. Intel has agreed to sell a 49% stake to investment firm, Apollo Global Management, for $11 billion. Under this agreement, Intel will retain full ownership and operational control of the assets.Option 3 – Lease Third-Party Fab SpacePerhaps the least flashy option is to simply lease space at underutilized fabs. However, this path will often depend on market conditions that dictate available capacity. On the supply side, this is an appealing option for foundries and IDMs that suffer from underutilization. On the demand side, it can be a way to secure short-term capacity without the burden of long-term commitments.As part of the sale of its 200mm Dortmund wafer fab to Littelfuse, Elmos agreed to enter into a multi-year capacity-sharing arrangement, with Elmos buying defined volumes of wafers produced at the fab. Under this agreement, Elmos retains ownership of the fab while Littelfuse leases a portion of the manufacturing facility to fulfill the terms of the supply agreement. This arrangement allows Littelfuse to control its manufacturing space while Elmos maintains a presence at its headquarters.Another example occurred recently when Skorpios Technologies moved to a former Infineon 150mm fab in Temecula, California. The new facility provides Skorpios with a more modern cleanroom and space for future growth, and the company entered a 15-year lease with two 10-year options for the facility. Securing capacity is not a new problem for chip companies, but it has become more complicated as semiconductor manufacturing costs have skyrocketed. TSMC, with more than 60% of global foundry revenues, has propelled the chip industry forward and expanded capacity, enabling many companies to become fabless in the process. Despite its ubiquity, TSMC is not the full story. Plenty of companies, both fabless and IDMs, need to solve the problem of dedicated capacity in a landscape of escalated costs. Captive capacity corridors, joint ventures, and even traditional lease structures all signal that the future of securing chip capacity will likely be influenced by the creativity of corporate development and finance teams. 2025 is going to be an interesting year. I am excited to see what’s next!About Stephen M. RothrockStephen Rothrock founded ATREG in 2000 to help global 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, his firm has completed 40% of all global operational wafer fab sales in the semiconductor industry, totaling 60 transactions. Recent global acquisitions and dispositions have involved onsemi, Allegro Microsystems, Fujitsu, GLOBALFOUNDRIES, IBM, Infineon, Matsushita (Panasonic), Maxim, Micron, NXP, Sony, Qualcomm, Renesas, Texas Instruments, VIS, and more. Before founding ATREG, Stephen established Colliers International’s Global Corporate Services initiative and headed the company’s U.S. division based in Seattle. Before that, he worked as Director for Savills International commercial real estate brokerage in London, establishing their global corporate services platform that serves large multinationals and many leading technology companies. Stephen also served on the UK-listed property company’s international board and spent four years near Paris working for an international NGO. Stephen holds a master’s degree in political theology from the University of Hull, U.K., and a bachelor’s degree in business commerce from the University of Washington in Seattle.