electronics manufacturing

Europe is facing an acute shortage of skilled microelectronics workers that undermines the growth potential of not only the electronics industry but the European economy as a whole. Nearly 1.1 million job advertisements for electro-engineering workers were placed in the EU between mid-2018 and the end of 2019 (CEDEFOP, 2020). The shortfall looms large as a skilled and diverse workforce that can continuously innovate is the oxygen of microelectronics. In light of the critical importance of microelectronics to Europe’s ability to fulfill its growth potential, SEMI Europe participated in the high-level roundtable hosted by Commissioner Nicolas Schmit and Commissioner Thierry Breton on October 5. The discussion’s key takeaway: The skills challenge facing the microelectronics industry is too complex for one organization to tackle, and reskilling and upskilling its workforce should be a common priority for Europe. Only with a diverse, substantial and skilled microelectronics workforce can Europe achieve its R D, design and manufacturing ambitions while ensuring its sovereignty in the digital age. The roundtable highlighted the EU Pact for Skills as a key means to narrow the industry’s skills gap.An ever-growing part of our lives, microelectronics, with their ability to run billions of computations per second and store vast quantities of data, are the brains of modern technology. The digital sovereignty of nations around the world today relies on advanced microprocessors to collect, transfer, analyze and store immense amounts of data used in key end-user sectors such as mobility, telecommunications, energy, security and healthcare. Information and communication technologies (ICT) enabled by microelectronics are helping much of the world’s population to work and study from home and remain safe during the COVID-19 pandemic.According to the Smarter2030 Report, further deployment of ICT, including electronic components in critical sectors such as transportation, manufacturing, agriculture, construction and energy, could eliminate the equivalent of 12.1 billion tons of CO2 per year globally. These are some of the reasons why nations worldwide are making large-scale investments to advance a homegrown microelectronics R D, design and manufacturing base. It is no surprise, then, that semiconductors are now at the center of the so-called global techno-trade wars.Clearly, Europe urgently needs to mobilize and pool resources to develop effective lifelong learning programs for all workers and continue investing in microelectronics innovation. We need to instill the passion for creating technology among current and future workforce, in particular women and people with challenged backgrounds, and build a highly diverse talent pool. Working together, we can better demonstrate how computing technologies, including quantum, high-performance and edge AI, provide solutions to grand societal challenges and attract talented people to the fascinating world of electronic components and systems.Against this backdrop, the microelectronics industry finds the Pact for Skills very timely and crucial to advancing the talent pool underpinning Europe’s deep digital ecosystem. The Pact will play an instrumental role in improving the scope and the quality of training partnerships at regional, national and European levels, sharing best practices and helping the microelectronics industry and workforce adapt to the effects of COVID-19.The microelectronics industry is committed to building on the momentum created by the METIS Erasmus+ collaborative project and to mobilizing our ecosystem and education partners for a successful Pact for Skills in Microelectronics starting this year.The High-Level Roundtable: Skills for Microelectronics was hosted by Commissioner Thierry Breton and Commissioner Nicolas Schmit. Participants included Paul Boudre, CEO, SOITEC; Lars Reger, CEO Germany and CTO, NXP; Frits van Hout, Executive Vice-President and Chief Strategy Officer, ASML; Françoise Chombar, CEO, Melexis; Emmanuel Sabonnadiere, CEO, CEA-Leti; Luc Van den hove, President and CEO, imec; Sabine Nietzsche, Board member, Silicon Saxony and Vice President, GlobalFoundries; Laith Altimime, President, SEMI Europe (coordinator of METIS); Yolande Berbers, President, European Society for Engineering Education (SEFI); James Calleja, President, European Forum for Technical Vocational Education and Training (EFVET); Ludovic Voet, Confederal Secretary, European Trade Union Confederation (ETUC).Emir Demircan is director of Advocacy and Public Policy at SEMI Europe. To learn more about SEMI Europe advocacy, contact Emir at [email protected].

On 21 September, SEMI and a coalition of 40 industry organisations sent a letter to European Commission President Ursula von der Leyen calling for decisive action to solve implementation issues within the European Union Waste Framework Directive, specifically the Substances of Concern in Products (SCIP) database.The signatories, who represent a very significant part of the European economy, are requesting urgent resolution of implementation issues for the SCIP database, which is designed to support the circular economy as defined in the European Green Deal. The database is required under Article 9.1 of the updated Waste Framework Directive.In the letter, the signatories ask President von der Leyen to take immediate action to: Postpone the SCIP notification deadline of 5 January 2021 to at least one year after finalization of the database; Conduct a study on the usefulness, feasibility, proportionality and impact of the database; Instruct the European Chemicals Agency (ECHA) to adapt the SCIP database according to the outcome of the proposed study. ECHA failed to complete development of the database by the January 2020 deadline required by the Waste Framework Directive, leaving companies insufficient time to develop, test and adapt their own systems to meet the January 2021 SCIP notification deadline.Over the last two years, the signatories have repeatedly shared their serious concerns regarding the viability, proportionality and value of the SCIP database with the European Commission and the ECHA, yet those concerns remain unresolved.Contrary to the EU Better Regulation principles that call for open and transparent decision making, Article 9.1 was added to the revised Waste Framework Directive during the final stage of the co-decision process without any prior stakeholder consultation or impact assessment. A proper impact study should help shape the way forward to deliver on the EU ambition of driving a circular European economy.Coalition PartnersEmir Demircan is director of Advocacy and Public Policy at SEMI Europe.

On July 1st, Japan’s Ministry of Economy, Trade and Industry (METI) announced updated licensing policies and procedures on the export and transfer of controlled items and their relevant technologies to the Republic of Korea (ROK). METI’s stated purpose for the actions were “in order to ensure appropriate implementation of export control.”In particular, METI will tighten controls on certain items and their relevant technologies as follows: Remove the ROK from its “white list” of trusted partners, limiting the ROK’s preferential treatment for exports Mandate individual licenses for exports of certain chemicals including fluorinated polyimide, photoresist, and hydrogen fluoride – all used in semiconductor and electronics manufacturing – and technology transferred with exports of manufacturing equipment to the ROK. Bulk licenses for the chemicals will no longer be available. METI has indicated that its actions were not intended as punitive, but rather as necessary to ensure proper management of the export control system and the effective tracking of chemicals, materials and technologies that could be used to develop weapons of mass destruction (WMDs). Nevertheless, the trade actions are cause for concern as they could have a negative impact on our members operating in Korea and Japan and the global supply chain in general.After the METI announcement, SEMI immediately consulted its International Board of Directors and assembled a global advocacy response team comprised of SEMI member companies and SEMI regional presidents in both Japan and Korea to assess risks to SEMI members operating in both regions and to the industry’s global supply chain. Additionally, SEMI conveyed its concerns to Japan and ROK trade officials, stressing that the semiconductor industry will bear the brunt of the new measures if the trade dispute escalates.SEMI president and CEO Ajit Manocha said: “We informed both governments of potential impacts of an escalation to SEMI members, their economies and the global supply chain and are encouraging them to resolve their differences. SEMI’s focus is to ensure the global microelectronics supply chain remains strong and intact.”SEMI member companies have stated that METI and the Japan government have provided assurances that trade with the ROK will not be encumbered and that semiconductor companies will see minimal impact regarding export license approvals. To this end, SEMI will continue to engage our members in Korea and Japan, monitor the dispute as it continues to unfold, and facilitate regular meetings between industry and the involved governments to ensure that industry impacts are identified and risks are mitigated. In the event the dispute escalates, SEMI is prepared to take action in accordance with its Global Trade Principles.SEMI released its Global Trade Principles last year to provide guidance to governments around the world in developing policies that benefit both regional economies and the industry. These trade principles are based on SEMI’s four trade pillars of free and fair trade, open markets, supply chain growth, and respect for IP and national security.Member companies negatively impacted by any changes in Japan’s regulatory policies or with any questions should contact their regional SEMI office or Jay Chittooran, Public Policy Manager, SEMI Global Advocacy, at [email protected] Russo is Vice President of Global Industry Advocacy at SEMI.