semiconductor industry

SEMI’s Environment, Health Safety (EHS) Advocacy program has been helping the semiconductor manufacturing supply chain collectively address common challenges for over 20 years. Now, as national and regional governments worldwide increasingly weigh legislation that could impact the industry, SEMI continues to ensure that microelectronics industry understands the potential impact and provides an effective platform for taking collective member-led action.Olivier Corvez recently joined SEMI to focus exclusively on shaping SEMI’s EHS Advocacy program to meet escalating demands on the industry. He recently sat down with SEMI’s communications team to discuss SEMI's evolving EHS Advocacy program. SEMI Communications: As senior manager of EHS Advocacy, based at SEMI’s Milpitas, California, headquarters, what do you see as the major issues impacting EHS Advocacy for electronics manufacturing worldwide?Corvez: EHS is a vast topic that cuts across many different types of issues such as regulatory compliance obligations, management systems performances, as well as sustainability related public disclosures. SEMI’s global members are engaged on all these fronts, while creating advanced materials, sophisticated tools and managing a complicated and extensive supply chain.On the regulatory side, there has been exponential growth in the number of EHS laws considered and adopted by legislatures worldwide. Often these new regulations generate shockwaves across the globe as member companies are required to adapt to new requirements that spread across the entire manufacturing supply chain.Many new regulations are originating from Europe and demand much of my attention. We are paying especially close attention to the Stockholm Convention on eliminating persistent organic pollutants. A chemical called PFOA has been a subject of much effort at SEMI for years now and we are heartened by the reception of our position by the European Commission.SEMI Communications: What do you find most interesting about operating the EHS Advocacy program at SEMI?Corvez: The first word that comes to mind is “variety.” This role involves a blend of strategy, regulatory interpretation skills, project management, communication and even accounting. There is always something new to learn and positions and strategies to develop.SEMI, as a member-driven, collaborative platform, needs a high level of knowledge sharing and communications. I am working to establish a workspace where members can share previously-created analyses and minimize “recreating the wheel.” We have ambitious plans to deploy additional tools and a redesigned website that will improve our knowledge-sharing capabilities and best serve our members.We also plan to renew collaboration with other industry associations such as SIA and SESHA. Partnering with other associations means our voice is stronger, our messaging is reinforced, and our efforts are coordinated. Last but not least, I believe that maintaining a sense of geographical proximity for SEMI’s worldwide efforts is important. SEMI’s local advocacy efforts are facilitated by SEMI regional staff and I look forward to collaborating with them as they maintain ongoing dialogue with our local members and their local, state and national governments. SEMI Communications: What is the most challenging part of your role?Corvez: The most challenging aspect will be to reinvigorate participation in all of our EHS activities and find ways to create a state of fruitful collaboration among members worldwide. Secondly, establishing a new EHS governance structure is a significant challenge, but it is incredibly important to have a strong leadership group and decision-making mechanism that will efficiently help define our vision and priorities.Our new direction will require members to lead our activities at all levels. We believe there is a strong ROI for companies to dedicate resources to address the issues or topics we need to pursue to keep them and their products, accepted, profitable and the industry to grow. While SEMI provides the platform for collaboration, we must supplement our efforts with members providing the manpower to ensure our activities are a success.SEMI Communications: Tell us about your background. Corvez: I bring 20 years of diverse experience as a consultant, auditor and corporate EHS program management across most economic sectors on a global scale. Recently, I managed an EHS team distributed across 10 countries, dedicated to providing EHS compliance support to Cisco facilities worldwide.In addition to compliance experience, I have worked on implementing EHS Management systems at ABB or Total while in France (primarily) in the late 1990s. While at KPMG in Paris I was involved in over 400 due diligence projects for transactions services for electronics, chemicals, auto industry, aeronautics, etc. On the sustainability reporting side, I was lucky to be involved with large corporations and spent five years verifying EHS and social performances disclosed in sustainability annual reports. I received my formal training and received a Masters of Science in Environmental Sciences from Universite de Rouen, France, and my Bachelors of Science in Environmental Geology from Northeastern University in Boston. I also trained as an ISO 14001 auditor at DNV Sweden.All of these experiences have led me to this current position at SEMI, where I look forward to making effective and meaningful impact.Have questions or suggestions for Olivier? He can be reached at [email protected] or at +1.408.943.6957. To learn more about the EHS advocacy program at SEMI, please click here.Heidi Hoffman is senior director of Technology Communities Marketing at SEMI.

Last year the industry posted another remarkable double-digit revenue growth year. IC shipments eclipsed one trillion units for the first time and continued to enable an ever-expanding array of silicon intensive-applications.2018 was also a pivotal year of transformation at SEMI. Setting our sights firmly on building more value for SEMI members, we doubled down on priorities I established this time last year. We advocated intensively on global trade policies, industry talent needs, and critical environment, health and safety (EHS) concerns. To underpin our efforts around talent, we took the bold step to reinvigorate the industry’s identity with a dynamic image campaign. Above all, we targeted critical industry-wide issues to help us realize the ambition of becoming a trillion-dollar industry in the next decade. Workforce DevelopmentRedefining our approach to talent development in 2018 was and remains a top priority. A diverse, highly skilled workforce is crucial to the industry’s ability to innovate. Last year we ramped up a number of SEMI High Tech U (HTU) programs to inspire young people and attract them to careers in high-tech manufacturing. To date, more than 130,000 students have been touched by HTU – through student or teacher programs.Over the past year, we designed a new university outreach program and established partnerships with 100 institutions. We established Workforce Pavilions at SEMICON events in Southeast Asia, the U.S., Taiwan, Europe and Japan for students to explore career opportunities and meet with recruiters. We thrilled at seeing sponsors hire young talent at SEMI events. This year, all SEMICONs worldwide will feature Workforce Pavilions.SEMI also formalized its commitment to Diversity and Inclusion (D I) with the establishment of a D I council to shape new programs including the recently launched Spotlight on SEMI Women. To localize and fully optimize our D I programs, we established regional workforce councils in every region we serve. We unveiled the SEMI Mentoring Program to support students and young professionals on this journey by facilitating one-on-one mentoring relationships with industry professionals. Hundreds of mentees have enrolled. But we still need more mentors. I urge you to join the program. During the year, SEMI also expanded its workforce staff and developed a comprehensive workforce strategy with programs that engage students as early as elementary school and inspires them through high school and college. The program provides pathways to professional careers, building a pipeline to fill the short-term and long-term talent needs of the industry. Industry Image CampaignAs we developed the comprehensive workforce development program, we knew we had to refresh the industry’s image and appeal to the next generation through contemporary media and communications channels. So we recently launched a bold, innovative campaign to raise industry awareness and attract students and recent graduates to careers in semiconductor manufacturing.Our You’re Welcome campaign is a novel, creative approach that blends entertainment, media and storytelling to excite students about the industry. The campaign went viral immediately and within weeks had more than 5.5 million social media impressions and 2.3 million video views.Trade Policy AdvocacyRising trade tensions between the U.S. and China catapulted global trade policy to the forefront of industry concerns in 2018. Since the tariffs have taken force, semiconductor companies have faced higher costs, greater uncertainty, and difficulty selling products abroad. The tariffs have forced many SEMI member companies to pause or rethink their investment strategies.SEMI quickly engaged U.S. policymakers and provided resources for SEMI members. We formed a member trade task force, staged trade compliance seminars in China, and convened meetings with over 110 U.S. congressional, agency and administration officials, and provided testimony on the importance of the free trade to the industry.SEMI continues to educate policymakers about the critical importance of free and fair trade, open markets, and respect and enforcement of IP for all players in the global electronics manufacturing supply chain. As part of this initiative, we distributed “10 Principles for the Global Semiconductor Supply Chain in Modern Trade Agreements” and encouraged their adoption in various trade negotiations. These principles outline the primary considerations for balanced trade rules that benefit SEMI members around the world, strengthen innovation and perpetuate the societal benefits of affordable microelectronics.Environment, Health and SafetyEnvironmental regulations are proliferating globally even as advanced semiconductor manufacturing technology relies increasingly on a host of new materials. With dozens of new fabs and fab line upgrades, our industry must align on best practices, sensibly respond to materials restrictions, and renew efforts toward sustainable manufacturing.That’s why the revitalization of SEMI EHS efforts became another priority in 2018. Two months ago, we hosted the inaugural EHS Summit at SEMI Headquarters. Fully, 70 EHS professionals and company executives met to form the basis for the future SEMI EHS program.The Year AheadDespite a softening in the market, compounded by Apple’s first-ever announcement of a revenue decline in 16 years, a geopolitical whirlwind on trade and an extended shutdown of much of the U.S. government, the future is bright.At SEMI’s annual Industry Strategy Symposium (ISS 2019) in Half Moon Bay, Calif. in early January, the sense of optimism was palpable. In her keynote address, Dr. Ann Kelleher, Sr. VP and General Manager, Technology and Manufacturing Group, at Intel, observed that data is powering the fourth industry revolution and the expansion of compute. With customers expecting continual improvements in applications, Kelleher highlighted the tremendous opportunity for the chip industry to meet these expectations.At ISS 2019, we announced a Memorandum of Understand between SEMI and imec. The MOU will enable us to accelerate our members’ engagement in SEMI’s Smart vertical market platforms, in particular Smart MedTech and Smart Transportation. Our partnership with imec will also allow us to boost SEMI Standards activities in non-CMOS technologies, deepen technology roadmap efforts and augment our SEMI Think Tank initiative in thought leadership at a global level.Over the course of this coming year, will we begin our global rollout of key building blocks of our comprehensive workforce development program to engage schoolchildren as young as 10 and learners all the way to veterans who return to the workforce. We are now able, with the invaluable help of our Workforce Development Council and the passionate engagement of many SEMI member companies, to offer a solution to the talent crisis in our industry.We will continue to be the leading voice for our members and the end-to-end semiconductor supply chain across Talent, Trade, Tax and Technology as we work to ensure free, fair trade that protects IP while preserving vital access to markets to grow the supply chain. Vertical Market PlatformsOur vertical market platforms are an important part of this growth. For example, in Smart MedTech, SEMI looks forward to working with the Nano-Bio Materials Consortium to advance human monitoring technology for telemedicine and digital health after winning $7 million to fund the renewed program. In Smart Transportation, we will leverage the Global Automotive Advisory Council (GAAC) we formed last year to represent the full automotive supply chain and the Smart Transportation and Smart Automotive forums featured at all our SEMICON events to enable the industry to identify and seize opportunities in autonomous driving. At ISS 2019, Sujeet Chand of Rockwell Automation noted that “digitization will grow faster in the next 10 years than it did in the past 50,” a trend calling for semiconductor fab architectures that transform data into business value. We will continue to bring the industry together at our Smart Manufacturing venues to help uncover ways to deploy deep learning, edge computing and other Smart technologies to deliver this value and meet the challenges of automation as artificial intelligence’s (AI) sprawling influence reshapes industries including manufacturing.I am filled with optimism and thrilled about the opportunities I see on the horizon for our members as we build on our 2018 accomplishments to enable your prosperity in 2019 and beyond. My heartfelt thanks to all of you for your participation in our programs and events.I look forward to another successful year as we connect, collaborate and innovate together!Ajit Manocha is president and CEO of SEMI.

SEMI and imec are joining forces to drive innovation and deepen industry alignment on technology roadmaps and international standards while adding technology depth to SEMI’s five vertical application platforms including Smart Transportation, Smart MedTech and Smart Data.Under a Memorandum of Understanding announced today at ISS 2019, the two organizations have set their sights on bringing together key industry players to advance cutting-edge technologies including Internet of Things (IoT), artificial intelligence (AI) and machine learning that enable new capabilities across healthcare, automotive and semiconductor manufacturing. The partnership also aims to speed the time to better business results for SEMI and imec members and partners. SEMI brings to the partnership access to the $2 trillion global electronics manufacturing supply chain and imec its global research and development (R D) and innovation leadership in nanoelectronics and digital technologies.Under the MOU, the two organizations will co-produce SEMI Think Tanks, extend SEMI’s International Standards platform to non-CMOS technologies, identify and fill gaps in technology roadmaps, and tighten imec’s engagement with SEMI in European workforce development efforts.Bettina Weiss is Chief of Staff at SEMI.

Five young dancers bathed in a striking rainbow of colors with their silhouettes cast in the background dazzled SEMICON Japan 2018 attendees at the opening ceremony in mid-December. Gone were the standard opening keynotes and ribbon cutting, replaced by live performance and media art set against a dramatic black backdrop. There was no mistaking the wide-eyed looks of wonder in the audience.In its sheer vibrance, the opening ceremony thrilled with an excitement that seemed to embody the extraordinary growth expectations for the global semiconductor supply chain over the next five years, with the industry poised to double sales from $2 trillion to a staggering $4 trillion – a phenomena SEMI president and CEO Ajit Manocha has called The Rebirth of the Semiconductor Industry. Driving this unprecedented growth will be SMART applications that are transforming industries and applications worldwide, powered by artificial intelligence (AI) and Internet of Things (IoT) technologies.The dramatic scene at SEMICON Japan 2018 was staged by Rhizomatiks, a media arts company that produced the Rio Olympic Games closing ceremony and is famous for its pop music spectacles. The company’s CTO, Motoi Ishibashi, the event’s first keynote speaker, described his team’s development of drones and vehicles guided by motion and precision-control technologies. It was some of these SMART vehicles that maneuvered the opening ceremony performers from the dance company Elevenplay onstage. Only Rhizomatiks, Ishibashi said, has this capability. In its mission to enrich people’s lives through new media arts, Rhizomatiks uses the latest virtual and mixed-reality technologies to orchestrate not only dance performances but music videos, commercials, fashion shows and festivals.Toru Nishikawa, the second keynote speaker and CEO at Preferred Networks, a leading Japan-based developer of deep learning software programs, surprised the SEMICON Japan audience with his discussion of his company’s work to develop a specialized chip for deep learning processing, joining technology giants Apple, Google, Alibaba and Microsoft in chip design. As more IT and software companies develop specialized, differentiated chips, the devices are quickly becoming the heartbeat of SMART technologies. The company’s approach has taken hold. Only four years old, Preferred Networks is enjoying rapid growth by working with global powerhouses including Toyota, NTT, Panasonic, Fanuc, NVIDIA, Intel and Microsoft. Ishibashi’s and Nishikawa’s fresh visions and the media arts extravaganza reflected the success of SEMICON Japan, held again at Tokyo Big Sight: The event’s 1,881 booths – filled by 727 exhibitors from 14 regions – was the highest count in six years. With Japan home to companies that supply about 40 percent of semiconductor equipment and materials worldwide, top suppliers historically have occupied the largest spaces on the SEMICON Japan show floor.According to IDC, personal computers and smartphones, long the largest revenue sources for the semiconductor industry, will remain top revenue drivers in the coming years. But revenue from new SMART technologies for applications such as automotive and factory automation is growing, a trend expected to continue with a 2018-2022 CAGR of 9.5 percent for automotive and 5.2 percent for manufacturing, compared to 1.1 percent for PCs and 2.9 percent for smartphones.SEMICON Japan’s new SMART Applications zone highlighted these and other new market opportunities for semiconductor growth with product and technology exhibits from companies including Bosch, IBM, Microsoft, NEC, Preferred Networks, Sony, SAS, Siemens, Tesla and Toyota. But the zone wasn’t all work and no play. The ROBOT SQUARE and SPORTS x IOT robot exhibits took visitors back to their school days, with robot anime – from Astro Boy to Gundam and Evangelion – that they could ride and control! As the World Gets Smarter, So Must SEMICON and the IndustryWe all agree the world is getting smarter at a fast pace. New cars are easier to drive – some models are almost fully autonomous on highways and streets. Your SMART speaker has gone well beyond an audio playback device and is more like a home AI platform. Almost all storefronts are equipped with video cameras. Your workplace, whether an office or a factory, is driven by automation. The reliance of these environments and devices on semiconductors is driving exponential chip and changing the world. Businesses need to adapt and so do SEMICON events. We’re doing just that as SEMICON Japan 2018 demonstrated – from an opening ceremony enabled by technology innovation to new faces of the industry to the SMART Application zone. As the SEMICON Japan presidents’ reception concluded the first day of the show, a robot from the ROBOT SQUARE suddenly appeared in the reception hall in front of about 250 executives from the global industry. Everyone at the reception was impressed and stepped forward to the stage, reflecting the overall excitement about SEMICON Japan, which for many years showcased only chip manufacturing equipment and materials. This year, to keep pace with the changing world, it was much more than that.SEMICON Japan 2019 will again take place in December at Tokyo Big Sight. However, organizers of the Tokyo Olympics will be using the East Exhibit Hall usually occupied by SEMICON Japan to prepare for the games. As a result, SEMICON Japan will be held in the West and South Halls instead. Look for more changes to the event. I hope to see you next year!Jim Hamajima is president of SEMI Japan.

Spotlight on SEMI Women is excited to recognize Q4 2018 honoree Ellie Yieh from Applied Materials!Spotlight on SEMI Women recognizes and celebrates accomplished women working in the global microelectronics industry. Nominees include women who are beacons of knowledge, leaders of organizations and initiatives, hidden heroes and innovators in our industry. They are volunteers, protectors, intellectual disruptors and activists. SEMI’s Diversity Inclusion Board works with our member companies to shine a spotlight on these amazing women. Learn how you can nominate a woman for Spotlight on SEMI Women.Ellie Yieh has been a trailblazer at Applied Materials since she began her career with Applied in 1989 as a process engineer in the Chemical Vapor Deposition group. Ellie’s contributions have made a lasting impact on the business and she continues her path of innovation as corporate vice president for Advanced Product Technology Development. Ellie is responsible for the company’s state-of-the-art Maydan Technology Center and works closely with customers and business units to drive advanced product development and technology roadmaps. In addition, Ellie leads R D for developing new memory and logic innovations that will drive future business opportunities for Applied. In 2018 she was named an Applied Materials Fellow, the company’s highest honor for outstanding technical achievement. She is also a board member of Applied Ventures, LLC, the company’s venture capital arm.During her 30 years at Applied, she has led the development of several successful products and enabled her teams to deliver growth in profitability and market share, while building strong customer relationships and developing innovative technologies. Of note is Ellie’s leadership in developing industry-leading Gapfill technologies to address the increasingly important shallow trench isolation and inter-layer dielectric applications for denser pitches. Further, Ellie spearheaded the adoption of Applied’s low-k Producer® Black Diamond® system, helping to develop and introduce a robust, low-k film that could withstand both the newly adopted copper back end-of-line and packaging integration challenges.st honor for outstanding technical achievement. She is also a board member of Applied Ventures, LLC, the company’s venture capital arm.Ellie’s journey in technology began when she immigrated to the U.S. from Taiwan at the age of 15 with her family. She quickly stood out due to her stellar academic performance in math and science. Her academic excellence landed her at UC Berkeley’s College of Chemistry. Ellie’s adaptability as an Asian female became crucial as she navigated a field dominated by male engineers. She received a B.S. in chemical engineering from UC Berkeley and now holds more than 100 semiconductor engineering patents. In 2016 she was inducted into the Women in Technology International (WITI) Hall of Fame for outstanding contributions to the scientific and technological communities. She was also named one of the 2015 “Top 50 Most Powerful Women in Technology” by the National Diversity Council.Ellie has also been spending time championing for woman engineers. She is a member of the advisory boards for UC Berkeley’s College of Chemistry and the Silicon Valley Women in Engineering group at San Jose State University.Ellie finds working in the semiconductor industry rewarding because “the technical challenges come like clockwork so we are always on our toes working on the next problem and the next solution. I enjoy each of the challenges to put the puzzle together. It’s a team sport; we are all dependent on each other to win and when we look at a problem I am just another engineer on the team trying to solve the problem. But I am also responsible for setting higher level direction for priorities, objectives and vision. It has been very fun for me and I love what I do.”Cristina Sandoval is manager of Workforce Development at SEMI.

Environment, Health and Safety (EHS) has steadily evolved to become a key element within SEMI’s Advocacy and Standards activities. On November 29th, 2018, nearly 60 members representing equipment, materials and device manufacturers gathered at SEMI’s Milpitas headquarters for our first EHS Summit. The main agenda for the day was related to discussing the new “EHS 2.0” strategy – and priorities – to better align with the current landscape facing members in various parts of the world. “SEMI will not compromise our commitment to EHS,” said SEMI president and CEO Ajit Manocha in is kickoff speech at the Summit, calling on members to rise to the challenge. “We also understand the importance of EHS for our industry. SEMI EHS staff is here to facilitate a program that achieves the highest priorities of our members – but we need you, our members, to be clear on your priorities.” SEMI’s EHS program has had many successes globally, including a strong suite of safety standards, since it launched in the 1980’s. Since then, exponential growth of EHS regulatory requirements worldwide has intensified pressure on members to become more transparent on environmental and social issues. The pressure to disclose on EHS performances has become more visible and challenging for members to manage across the entire supply chain. During facilitated breakout sessions, members were invited to share their views on various industry issues. Some of the most pressing raised related to changes in the REACH European Regulations, or implications from the Stockholm Convention that will affect what products or hazardous chemicals can be used. Some of the topics identified throughout the day included: Circular economy/green/sustainability Global RoHS and REACH regulations Used equipment machine safety Current and future prohibited substances tracking such as Perfluorooctanoic acid (PFOA) After the summit’s success, SEMI is now planning three EHS summits in 2019 and other events to further address the various issues facing members. To receive invitations and stay abreast of SEMI’s EHS activities, please join our EHS interest list by clicking here. Olivier Corvez is senior manager of Environment, Health, Safety and Sustainability at SEMI.

Meeting Attended by More than 100 Tech Company RepresentativesOver the past decade, China has become a central market for the semiconductor industry. China is now home to more than 30 percent of semiconductor end users worldwide. All semiconductor companies, regardless of size, operate in China. The rise of China’s semiconductor market has been enabled by global commerce and a vast network of supply chains that span the globe.With China now a prominent player in the industry, it has become critically important for semiconductor companies to effectively engage with China. In order to help our member companies better understand the challenges and opportunities and navigate what can be a complex landscape, SEMI hosts annual trade compliance conferences in China for trade professionals. This year, SEMI, with CompTIA and U.S. Information Technology Office (USITO), hosted two global trade seminars in China, one in Shanghai on October 30th and the other in Beijing on November 1st.Over 120 representatives from more than two dozen technology companies attended the 2018 trade compliance seminars. Over the course of the two sessions, speakers from government, business, and law firms highlighted the most pressing trade issues in China. Speakers included thought leaders, trade practitioners and senior Chinese government officials.Sessions included a deep dive on China’s draft customs reform law, a panel discussion on U.S. export controls, and a briefing on how best to engage with China Customs and how China’s products are classified. Another well-received session focused on the status of China’s export control law, which has been in the drafting process for years.However, the overarching question for many attendees was U.S.-China economic relations, which are undergoing a sea change, with the U.S. having imposed or threatened tariffs on all imports from China – totaling more than $500 billion in goods – over the past six months. As a speaker noted during a session on the U.S.-China tensions and the surrounding broader geopolitical impacts, the environment is becoming increasingly complex and volatile. In fact, on the morning of the first session, Fujian Jinhua Integrated Circuit was added to the U.S. Commerce Department’s entity list, which effectively restricts exports to the company.As a result of the trade actions, ranging from tariffs to enhanced export controls, U.S. semiconductor companies are beginning to increase prices, reduce research and development (R D) budgets, restructure supply chains and take other mitigation actions that will ultimately slow innovation. Certain export controls and other regulations that prohibit U.S.-companies from conducting business with targeted companies will put the U.S. at a competitive disadvantage.In fact and as we speak, some companies with China-based operations have cancelled orders from U.S. companies and shifted to suppliers that are not subject to U.S. actions to reduce the associated risks of supply interruption and cost increases. Ultimately, U.S. trade policy could backfire, threatening jobs, curbing growth, cutting U.S. R D investments and compromising the competitiveness of U.S. firms.SEMI will begin planning next year’s Global Trade Seminar in the coming months. If you would like to be involved in the planning, or would simply like more information about the seminar, please contact Jay Chittooran, Public Policy Manager at SEMI, at [email protected].

With (most of) the election results in from the U.S. midterms, the expected Democratic takeover of the House and the Republican’s maintaining control of the Senate is now a reality. The day of the election, DC insiders expected that the House would go to the Democrats by a margin of +/- 20, with the Republicans gaining 2-3 seats in the Senate. Not a bad prediction, which is a far cry from what the same insiders called in advance of the 2016 Presidential election.What does that mean for our members and the tech sector in general? Will there be an ease of trade tensions or less of a chance of tighter export controls? Some believe that with the midterm elections over, President Trump will have some room to take a less aggressive stance against China, setting up a “win” that he can carry into 2020. With the recent more aggressive stance by North Korea against the U.S. regarding its nuclear program, China may well have some leverage at the trade table … and the U.S. may want to make a deal that provides a path for a “win” on both fronts. Indeed, there are the makings of a potential win-win leading into the G20 meeting in Argentina when President Xi Jinping and President Trump are scheduled to meet on Dec. 1.One can see a scenario where there is a meeting of the minds and some degree of lessening tariffs; that does not mean that the effort to enhance export controls will go away. The need for tighter restrictions on export controls is driven to a great degree by the U.S. Department of Defense (DoD) and is a follow on from the previous FIRRMA legislation and attempts to curb the loss of U.S. technology critical to global competitiveness and national security. This issue will not go away anytime soon, and cases like the recent one involving Jinhua only add fuel to the fire. In addition, given how these cases can be leveraged at the negotiating table, they will continue to surface.SEMI’s approach has been to educate governments, lawmakers and administration officials on the strategic importance of the globally connected and highly complex semiconductor supply chain, and how some of the approaches will not achieve the attended goals. This approach helps to ensure that when and if it comes time to make decisions based on merit, the principals are informed. It also helps SEMI and its members develop and maintain important relationships and positions SEMI as an industry leader and spokesperson, making it a more effective advocate. As an example, on Nov 8th SEMI released its Global Trade Principles with the intention of providing a framework to all governments to guide various trade talks. It also helps to inform member companies and others from the broader tech sector of our industry position(s) so we are able to speak with one voice. These principles are aligned with our fundamental advocacy pillars of promoting free trade and market access, respect for IP, cybersecurity and national security.Will the fact that power is now split between the two chambers of Congress help or hurt? Will the House focus on investigations limit the ability to move productive legislation? Besides taking time, it may well put them at increasingly worse odds with the Senate and the President (if that is possible), creating deadlock. Some argue that if nothing moves, no harm can be done. Some also say that it may drive the President to take independent and more aggressive actions in order to demonstrate (his) effectiveness to his base. There is another view: that with the Democrats, the President may be able to lead in the advancement of legislation that will show he can get things done when others couldn’t in areas that benefit the greater good…some of which may impact our industry…such as investments in education and infrastructure development. This would be a way that he could pull in some of the votes from the middle that he has lost in his first two years in office. They say “politics makes for strange bedfellows”; one never knows what might happen in this case.Regardless of what happens, some things will not change: the global nature of our business and the needs of our members to have access to markets…and to be able to safely and efficiently leverage their technologies in the way they see fit in order to grow their business. SEMI will continue to advance the interests in what is an extremely challenging and dynamic global policy environment today. As ruling parties and representatives change around the globe, we will continue to build new relationships and educate lawmakers so they are able to make informed decisions that benefit our members. Mike Russo is VP of Public Policy and Talent Advocacy at SEMI.

Last week, the Office of the U.S. Trade Representative (USTR), on instruction from President Trump, notified Congress that the administration intends to begin bilateral trade negotiations with Japan, the European Union (EU), and the United Kingdom.SEMI stands strong for free trade and open markets, and roundly supports efforts to increase market access and tap into more foreign economies, especially economies like Japan and the EU, both of which are central to the semiconductor industry. The semiconductor industry, which enables the $2 trillion electronics market, is built on global commerce. SEMI members rely on a vast network of supply chains that span the globe, bringing together components and tools made all around the world and assembled into a single sub-system that is then integrated into a larger tool used in the chipmaking process.These free trade agreements will reduce tariffs, which will result in cost savings and productivity gains, and allow SEMI members to expand and grow. But the benefits of modern free trade agreements extend well beyond tariff reduction. Indeed, these trade deals will establish and enhance global trade rules that enable companies to innovate and compete fairly on a level playing field. Trade agreements strengthen certainty and further business continuity.While the exact nature and negotiation timelines for the talks remain unclear, SEMI will engage the administration, urging it to maintain high standards in these agreements, such as: Maintain strong respect for intellectual property and trade secrets through robust safeguards and significant penalties for violators Remove tariffs and non-tariff barriers on semiconductor products as well as products that depend on semiconductors Simplify and harmonize the customs and trade facilitation processes Combat any attempts of forced technology transfer Prevent use of data localization measures and enable the free flow of cross-border data flows End discriminatory and/or burdensome regulatory practices Ensure standards in all forms are market-oriented Create rules for state-owned enterprises to ensure fair and non-discriminatory treatment of all companies According to Trade Promotion Authority (TPA), the U.S. law that guides trade votes in Congress, negotiations with each country can only begin 90 days after last week’s notification. During that period, there will be intensive consultation with Congress and stakeholders. This means, at the earliest, talks can start on January 14, 2019. (Bear in mind that discussions with the UK can only begin in earnest once the UK has formally left the European Union on March 29, 2019.)The Trump administration’s announcement comes after the U.S. imposed or threatened tariffs on imports on all trading partners, including the EU and China. All told, the U.S. has imposed tariffs on more than $300 billion worth of goods. SEMI has weighed in on the detrimental nature of tariffs, arguing that tariffs on China will ultimately do nothing to address the concerns with China’s trade practices. This sledgehammer approach will introduce significant uncertainty, impose greater costs, and potentially lead to a trade war, ultimately undercutting the ability of semiconductor companies to sell overseas, stifling innovation and curbing U.S. technological leadership.Elsewhere, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the multilateral trade deal that links 11 Asia-Pacific economies, is well on its way to taking force. Canada will be taking its final steps to ratify the deal, joining Mexico, Japan and Singapore. The deal, formerly known as the Trans-Pacific Partnership, should take effect by the first half of 2019.SEMI will continue tracking ongoing trade developments. Any SEMI members with questions should contact Jay Chittooran, Public Policy Manager at SEMI, at [email protected].

Last week, SEMI joined a coalition of business groups in calling for Ambassador Robert Lighthizer, U.S. Trade Representative, to enact an exclusion process for the most recent tranche of tariffs on $200 billion in goods imported from China. While an exclusion process was provided for in the previous tariff lists, which cover about $50 billion in goods, the administration has said that no similar process will be provided on the most recent tariffs on $200 billion (List 3), which took effect Monday. SEMI members will face millions of dollars in additional duties as a result of these tariffs. This action will also curb growth, stifle innovation, and introduce significant uncertainty in the semiconductor industry. Americans for Free Trade is a diverse coalition, which includes hundreds of companies across the United States, to illustrate the impacts of tariffs on American businesses, consumers and manufacturers. SEMI is a member of this coalition. The full text of the letter can be found here. Any SEMI members with questions should contact Jay Chittooran, Public Policy Manager at SEMI, at [email protected].