Japan

TSMC’s Kumamoto plant is a turning point. Players across the Taiwan semiconductor supply chain are sure to follow by establishing operations in Japan to develop new markets, partnerships and customers.

For the semiconductor industry to flourish, all chip ecosystems must embrace closer ties, greater openness, and more flexibility to co-innovate solutions in today’s rapidly unfolding global digital transformation.

SEMICON Europa, SEMICON West, SEMICON Japan, & SEMICON Taiwan welcome back exhibitors and visitors to show floors starting in mid-November as four of SEMI’s seven flagship events gather visionaries and industry leaders to explore the latest semiconductor trends and innovations by the end of 2021.

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

In my role as lead for the Smart Mobility initiative at SEMI, I recently spoke with Automotive Logistics Magazine about the growing importance of the semiconductor supply chain’s connection with the automotive industry and the semiconductor shortage hampering global automotive production. Following are excerpts from the interview. Automotive Logistics: Why is there a bottleneck in the global supply of semiconductors at the moment and how long is it likely to last? Weiss: The current automotive chip shortage resulted from the sharp, Covid-19-induced decrease in demand for automotive semiconductors in the second quarter of last year when vehicle production came to a near standstill. The automotive market picked up significantly in the fourth quarter and this caused the supply chain constraints we are seeing today. At the same time as the automotive standstill, the pandemic spurred an increase in demand for home computing and networking equipment, and semiconductor manufacturing plants (fabs) had to pivot to these other markets in order to maximize fab utilization and successfully navigate economic headwinds. Every minute a semiconductor fab is idle or has lines down adds up quickly to missed revenue, so their capacity is booked weeks and even months in advance. With this background, I don’t believe this is a structural shortage and expect a gradual recovery over the next two quarters, barring any major shifts in geopolitics or macroeconomics. Automotive Logistics: What needs to be done to remedy the current shortfall for the automotive industry? Weiss: The automotive industry needs to continue to strengthen its connections to the semiconductor manufacturing supply chain. In past years, auto manufacturers used to rely mainly on their tier one suppliers to interface with the semiconductor supply chain. This has changed significantly. Not only are more chips being used in vehicles (roughly 10% of all devices produced globally end up in cars), but the strategic importance of the chips as enablers for ADAS [advanced driver-assistance systems], electrification, safety, connectivity and other consumer-driven features has increased considerably. With this dynamic in play, carmakers have recognized the value of interacting and collaborating more closely with the semiconductor supply chain. This provides vehicle OEMs with access to innovation, the ability to influence technology direction and pace, along with greater visibility into global supply chain developments. The SEMI Smart Mobility initiative is evidence of this transition, with the likes of Audi, BMW, Ford, Uber, Volkswagen and other vehicle OEMs, along with tier one suppliers such as Continental and Bosch, now actively involved in our automotive electronics and mobility activities to do exactly that – influence, partner, accelerate and guide the global electronics design and manufacturing supply chain that SEMI represents. Automotive Logistics: What percentage of semiconductors manufactured for use by US-based companies are for automotive applications and how has this grown in recent years? Weiss: A little over 10% of semiconductors produced worldwide are sold into the automotive segment, but this number is expected to grow at an accelerated pace in the next few years as electrification, connectivity and autonomous driving become more prevalent. Automotive Logistics: How is SEMI working to help the automotive industry get a clearer view of sub-component supply and better manage supply chain risk? Weiss: The SEMI Smart Mobility initiative is designed to engage automotive OEMs, tier ones, semiconductor device makers, design houses, and equipment and materials companies to drive alignment across the supply chain and address shared challenges collectively. To facilitate this engagement, we created the Global Automotive Advisory Council (GAAC), which has active chapters in Europe, US, China, Japan and Taiwan. The GAAC provides an open platform for creating solutions, fostering collaboration and partnering with other industry bodies to accelerate and harmonize industry efforts that benefit the entire ecosystem. Volkswagen and Audi are already SEMI members – both are founding members of the GAAC Europe chapter – and have become vocal champions and critical contributors to our efforts. When all stakeholders work together, I have no doubt that the future of automotive and mobility will continue to be bright. Interested in learning more about this topic? Read the full interview in Automotive Logistics Magazine, A Fab Future for the Automotive Sector. Please contact me at [email protected] for more information about SEMI’s Smart Mobility Initiative, the Global Automotive Advisory Council, and how SEMI can help your organization navigate electronics in the automotive industry to drive innovation in the mobility space. Bettina Weiss is Chief of Staff and Global Smart Mobility Lead at SEMI.

As the world combats climate change, the chip industry continues to build momentum in becoming a better steward of the environment. In July, Taiwan chip giant TSMC became the world’s first semiconductor company to join RE100, the global initiative to move away from a widespread reliance on fossil fuels and toward 100% renewable electricity. Applied Materials soon followed with a commitment to expand its renewable energy capacity. For the past four years, ASE Group, the largest outsourced semiconductor assembly and test (OSAT) provider, was named an industry leader in the Dow Jones Sustainability Indices (DJSI), making clear its commitment to protecting the environment. For its part, TEL was selected to be part of the FTSE4Good, a series of ethical investment stock market indices, and FTSE Blossom Japan, an index that gauges the performance of Japanese companies demonstrating strong Environmental, Social and Governance (ESG) practices.SEMI bolsters commitment to green energySEMI has also strengthened its commitment to promoting renewable energy in the semiconductor industry by adding the Green Power Pavilion at this year’s SEMICON Taiwan and continues to support the green energy movement as a co-organizer of Energy Taiwan. The largest renewable energy event in Taiwan, Energy Taiwan features international exhibitions, forums, policy initiatives and business matching events. This year the event attracted more than 12,000 visitors from 50 countries to highlight renewable energy breakthroughs and new products. The SEMI events complement RE100, which works across a wide range of industries that include financial services and retail. The initiative connects more than 260 members that count among them the world’s most influential businesses such as Apple, Google and Facebook and their suppliers through educational events.In many respects, TSMC is becoming a beacon of green energy in the chip industry. In July, the company committed to 20-year agreement to buy offshore wind power gear made by energy firm Ørsted in Taiwan, the global leader in the wind power industry. According to the purchase agreement, TSMC will offtake full production from 920-megawatt wind farms off the coast of Changhua County in western Taiwan expected to start operations in 2025 or 2026. The agreement will by far mark the world’s largest corporate green energy order in the semiconductor manufacturing and renewable energy industries and demonstrates TSMC’s long-term commitment to environmental sustainability.In addition to sourcing renewable energy, TSMC has been working closely with its downstream and upstream suppliers to help drive supply chain improvements geared toward a greener industry by offering on-site coaching, energy audits and educational resources. But the company's focus on energy efficiency is nothing new. For years, its Supply Chain Management forum has promoted industry sustainability and corporate responsibility. Moreover, TSMC worked with SEMI at this year’s SEMICON Taiwan to generate greater awareness of the importance of green energy to the industry and encourage SEMI members to become more involved in the movement.Supply chains expand eco-friendly practicesThe drive toward greener semiconductor manufacturing is also expanding to encompass entire supply chains. One notable initiative is Green Supply Chain Management (GrSCM), an effort to integrate environmental thinking into every level of the supply chain, from product concept to distribution. GrSCM involves the retooling of product design, materials sourcing, manufacturing and processes to reduce the ecological footprint of factories. So far, the results are encouraging. More companies are factoring environmental sustainability into their purchasing decisions to urge suppliers to better manage their power usage and join the green energy movement – an important step in curbing the unavoidable consequences of climate change. Terry Tsao is Global Chief Marketing Officer at SEMI and President of SEMI Taiwan.

Never before had we expected that SEMICON SEA 2020 would go virtual.The COVID-19 crisis abruptly halted our ability to hold our premier Southeast Asia electronics manufacturing exposition as we typically do – in the physical realm. The pandemic tested our adaptability, challenged our willingness to experiment and, perhaps above all, accelerated not only our own but the world’s digital transformation. We had to change our way of doing business and learn to connect virtually like we had never had before. SEMI continues to believe that virtual interaction is no replacement for face-to-face engagement. But, like the rest of the world, we fast-tracked our digital education and staged the virtual event 20 July to 21 August 2020 to gather supply chain players and help fulfill the tremendous potential of our great industry. For all the suffering the COVID-19 has caused, the pandemic has underscored an important truth – that we need innovation through collaboration now more than ever to help solve the world’s greatest problems. We thank all our event sponsors as we turned what started as a grand experiment into a successful event that drew nearly 3,000 attendees to our webinars, business matching sessions and other online offerings designed to help them uncover new business opportunities. Following are other highlights. Southeast Asia Pavilion at Virtual SEMICON West 2020 In our first collaboration with SEMICON West, our Southeast Asia Pavilion at the event welcomed virtual visitors from around the globe to help them form new connections and grow their businesses. Business Matching Sessions Technical buyers from more than 15 multinational companies along with 141 pre-qualified suppliers attended more than 50 meetings across four online business matching sessions.Technical WebinarsCompany representatives from regions including Malaysia, Singapore, Vietnam, Taiwan, the United States, the UK, Israel, China and Japan shared their expertise and industry insights at SEMICON Southeast Asia 2020 webinars. In addition, experts from leading semiconductor companies such as Micron Semiconductor Asia Operations, ViTrox Corporation Berhad and A*STAR took part in our technical exchange by sharing the latest trends in the rapidly evolving semiconductor industry. Talent Development: Inspirational University Program Talks With building the talent pipeline critical to sustaining growth of Southeast Asia semiconductor manufacturing dynamics, talent champions from Lam Research and GLOBALFOUNDRIES highlighted career opportunities and pathways for young engineers while generating recruiting leads. More than 750 students from Malaysia and Singapore engaged panelists with questions during the sessions. The SEMICON Southeast Asia team extends its tremendous thanks to sponsors and attendees for their support. As we all navigate the pandemic and hope in the near future to awaken to a brighter day, we will continue to connect virtually and, whenever possible, in person as the semiconductor industry evolves and flourishes. The SEMICON SEA 2020 team In the meantime, we will all continue to pull together to support our resilient industry as it outperforms most other manufacturing sectors. Semiconductor capital equipment shipments were up 23% globally in the second quarter of 2020 versus the same period in 2019 and semiconductor chip growth remains in positive territory. Our team has already started planning for SEMICON SEA 2021, scheduled to take place at the Setia Spice Convention Centre in Penang, 18-20 May 2021.We look forward to seeing you again soon as we continue to strengthen the microelectronics ecosystem!Bee Bee Ng is president of SEMI Southeast Asia.

Data recently collected by SEMI points to only a moderate slowdown in the industry’s pursuit of talent, illustrating the growing and significant need for attracting workers at all levels of the organization. With COVID-19’s devastating impact on many sectors of the economy, the time is ripe to sharpen the industry’s focus on attracting and training a new wave of workers to meet the growing talent needs across our industry.To help illuminate the state of microelectronics industry hiring during the pandemic, following are three takeaways from recent workforce development data. Key Takeaway 1 – Emsi Hiring Data and Analytics ReviewIn a May 5 SEMI webinar on the Future of Work, presenter Andrew Crapuchettes, CEO at Emsi, a labor data analytics firm based in Moscow, Idaho, revealed that the U.S. semiconductor equipment and device manufacturing sectors posted 199,326 total jobs (32,022 unique positions) from March through June 2020 with an advertised median annual salary of $68,500 – the highest posting intensity for all other occupations and companies in the U.S. Crapuchettes noted that “although the job postings number was actually down from the previous quarter, some of the large companies have shown flat or growing postings during this period. At Emsi, we are evangelists for more accurately establishing the requirements for the job to more closely match the skills actually being sought.”He pointed to a gap between the skills employers list in job postings and those employees itemize in their resumes. Today’s use of algorithmic resume analysis, however, may reveal false gaps in hiring. Emsi is working with several Fortune 500 companies in the electronics sector to help them analyze their job postings. The goal: to better understand if they have identified the right skills for their business and the recipe for attracting top talent. Emsi supports programs such as the SEMI Works workforce development initiative that are out to more closely align job seekers and curriculum development with the skills needed for microelectronics design, development and manufacturing.During COVID-19, Crapuchettes sees companies across all industries doubling down on employee training. For many organizations, a business slowdown is an opportunity to identify and work to fill employee skill gaps and prepare companies to emerge stronger once the pandemic has passed. Key Takeaway 2 – SEMI COVID Impact SurveyIn March, April and June, SEMI surveyed members to evaluate the impact of COVID-19 and help inform SEMI’s response. Among the questions in the June survey was “How has COVID-19 impacted your hiring plans?” Of the more than 300 respondents, just 13% reported a hiring freeze and 55% said their hiring plans remain unchanged.Figure 2: Data from SEMI COVID-19 Impact Survey All SEMI regions show a similar pattern. Japan, Korea and China reported little to no slowdown in hiring as shown in Figure 2. Differences across regions were notable with more cautious approaches to hiring adopted by North America, Europe and Taiwan, with some companies slowing hiring for certain positions.Key Takeaway 3 – SEMI Survey of Workforce Development Advisory CouncilSEMI relies on members for industry insights we use to build, evolve and prioritize our programs. A June survey of SEMI America’s Workforce Development and Diversity Inclusion Advisory Council showed that, while some member companies have delayed hiring until the pandemic’s impact of the industry is clearer, most respondents see this period as an opportunity to attract talent to the electronics industry and maintain hiring programs to meet the growing demand for talent the digital revolution is fueling. The survey data, as shown in Figure 3, is consistent with Emsi’s results and a larger SEMI member survey. Our June survey also illustrated the strong desire by the Council for SEMI to support diverse communities and lead efforts to connect talent from these groups with career opportunities in electronics. All survey respondents urged SEMI to place the highest priority on promoting Diversity Inclusion in the workforce, with 57% ranking university outreach as a high priority. Visit the Workforce Development Pavilion at Virtual SEMICON West 2020 for More InformationThe microelectronics industry is making a huge impact in the COVID-19 era – from developing the tools to run algorithms for companies working on a vaccine, to keeping the internet humming for home workers and online ordering for homebound seniors. But these services will only continue to evolve at a rapid clip with the right talent. SEMI programs remain laser-focused on pursuing and developing that talent.Thank you to all members who responded to the surveys and Emsi for contributing to understanding of the workforce need in the current climate. We invite all members to connect with SEMI Workforce Development activities. We need your help to align skills to curriculum (SEMI Certs), presenting at our workforce development events and donating to the SEMI Foundation, which provides financial support for much of our work.Learn more about how you can help the industry grow its talent pipeline at the SMART WorkForce Pavilion at the virtual SEMICON West – July 21-23! Checking out the pavilion is free, but there’s a modest fee for the content. Register now for a discounted all-in pass to enjoy blister- and COVID-free access to the first virtual SEMICON West ever. Shari Liss is Executive Director of the SEMI Foundation. She oversees the development and success of all programs from K-12 through re-skilling for veterans.

In an important step toward resuming business as usual in Japan, Prime Minister Shinzo Abe on May 14 lifted the state of emergency originally scheduled to expire at the end of May for 39 of Japan’s 47 prefectures, marking “the real beginning of our efforts toward a new normal in the era of the coronavirus” as new cases continue to decline. But with Tokyo, Osaka and six other prefectures still under the state of emergency, Abe urged citizens to remain cautious as the nation and world continue to confront the COVID-19 threat. Among criteria the remaining prefectures must meet for a state of emergency suspension is a reduction in new infections to no more than 0.5 cases weekly for every 100,000 citizens. The eight prefectures account for nearly half of Japan’s population and GDP, with Tokyo and Osaka the two largest urban areas in the island nation. Japan expects to contain its economic losses to 38 trillion yen, 15 percent less than the 45 trillion yen hit originally projected. The Japan government has planned a May 21 progress review[1] in the eight prefectures, a timeline that Abe said could lead to the lifting of the state of emergency before the original cutoff at the end of the month, a move that would help stem the drain on the domestic economy.Strict Immigration Controls Restricts International Travel to and from Japan by Supplier EngineersAs I reported on April 21, the Japan Foreign Ministry on March 31 raised its travel advisory to level 3 for 49 regions around the world including the U.S., prohibiting travel from Japan for any purpose. SEMI Japan is urging government officials to exempt Japanese supply chain engineers from the travel ban to allow visits to semiconductor manufacturing facilities in those regions in order to install, start up and service equipment.Starting May 14, Japan blocked immigration of foreign nationals and permanent residents from 100 countries and regions worldwide, a ban applying to anyone who spent time in their home region within 14 days of their planned arrival in Japan. The areas include China, Singapore, South Korea, and Taiwan in Asia; Canada and the U.S.; and Germany, France, Italy, Netherlands, Switzerland and the U.K. in Europe. For the complete list, see the Japan Ministry of Justice’s website.Japan’s immigration ban mirrors restrictions now in place in many other regions around the world. The immigration controls are well-intended – to restrict the spread of COVID-19 – but hamstring the global microelectronics supply chain. For example, the curbs bar engineers from international travel to install new tools and software in fabs. SEMI Japan has stressed the potential chip industry impacts of the ban in ongoing talks with the Ministry of Economy, Trade and Industry and is facilitating discussions between government representatives and SEMI members to help clear the way for travel by critical supply chain workers to Japan. SEMI Supports Members with COVID-19 ResourcesSEMI international headquarters and regional offices are here to help you, our members. For more information on our webinars, surveys, best practices and other information designed to help you meet the challenges of the pandemic, please visit the SEMI Coronavirus Updates Resources page.[1] The May 21 review found three prefectures in western area – Hyogo, Kyoto and Osaka – met the criteria to lift the state of the emergency. Four other prefectures – Chiba, Hokkaido, Saitama and Tokyo – remain under the emergency order that will be reviewed again as early as May 25.Jim Hamajima is president of SEMI Japan.

Japan’s Prime Minister Shinzo Abe declared a state of emergency for Tokyo, Osaka and five other prefectures[1] on April 7 in response to a startling increase of COVID-19 infections in the region’s cities in an uneasy moment for its domestic semiconductor industry. The declaration, effective through May 6, authorized the six prefectural governors to strengthen curbs on the spread of the virus and included guidance for citizens to stay home and restrictions on operations of non-essential businesses.With Japan supplying some 40 percent of the world’s chip production equipment and materials, the declaration stirred fears among semiconductor manufacturers that their uninterrupted operations – critical to sustaining the global industry – might be at risk. Japan Government Designates Semiconductor Industry as EssentialIn April 7 and 11 revisions to its Basic Policies for Novel Coronavirus Disease Control, the Japanese government allayed those concerns by designating semiconductor manufacturers essential businesses – a stark acknowledgment of the chipmakers’ vital role in combatting the novel coronavirus. The policy stated:“Among medical and manufacturing industries, we request the continuation of the following business operators in consideration of infection prevention: operators who are difficult to stop production line due to the characteristics of the equipment (such as blast furnaces and semiconductor factories); and operators who produce essentials (including important items in supply chains) for protection of the people who need medical care and support, as well as for maintenance of social infrastructure. We also request the continuation of the business operators who sustain medical care, the lives of the people, and maintenance of the national economy.”[2]SEMI Japan Reaches Out to Prefectures to Urge Essential Business Designation Equipment and materials shortages can halt production of an entire fab line and ripple through intricately connected global supply chains to stifle the production of end devices including the electronics critical to COVID-19 treatments. Electronic devices also play a central role in containing the virus’s spread by enabling artificial intelligence (AI), data analytics, digital communications, telemedicine, robotics, remote health monitoring, telecommuting, online shopping and other digital services.The essential business designation was explicit recognition that Japan’s semiconductor supply chain is integral to the global chip production ecosystem and worthy of the same protections the government has implemented for semiconductor companies. With SEMI members operating in Japan’s 47 prefectures, I sent letters to all prefectural governors three days after the second policy revision, urging them to apply the same designation, and the SEMI Japan team is following up to secure their support.SEMI Japan Encourages Government to Exempt Members from Travel Restrictions The Japan Foreign Ministry on March 31 raised to level 3 its travel advisory for 49 regions including the U.S., China, Taiwan and South Korea, encouraging Japanese citizens to avoid travel regardless of purpose to blunt the international spread of the coronavirus. SEMI Japan is working with the Semiconductor Equipment Association of Japan to urge the government to exempt semiconductor supply chain companies from the level 3 travel restrictions if they implement measures to prevent domestic infections and contagion in the visited regions. The exemptions would allow supply chain companies to install and service equipment at fabs – one key to maintaining smooth, uninterrupted operations.SEMI Supports Members with COVID-19 ResourcesSEMI international headquarters and regional offices are here to help you, our members. For more information on our webinars, surveys, best practices and other information designed to help you meet the challenges of the pandemic, please visit the SEMI Coronavirus Updates Resources page.[1] The six prefectures are Tokyo, Kanagawa, Chiba, Saitama, Osaka, Hyogo and Fukuoka.[2] Provisional translation by Ministry of Health, Labour and Welfare. Full document is available at https://www.mhlw.go.jp/content/10900000/000620733.pdf.Jim Hamajima is president of SEMI Japan.