VLSI Research

On March 1, the semiconductor industry lost a true legend with the passing of Bill Tobey, an exemplary leader and contributor to the semiconductor industry throughout his career. SEMI honored Bill with our Bob Graham Sales and Marketing Excellence Award in 2006 for his work on wafer steppers. Bill and his team had the foresight to recognize that competing solutions such as Deep Ultraviolet (DUV) projection, e-beam, and x-ray would not be able to keep up with Moore’s Law. More importantly, Bill had the passion and marketing prowess to convince customers of this, even though early wafer steppers were twice as expensive and considerably slower than the alternatives. He used that passion to also convince management at GCA Corporation that they needed to shift resources to advance steppers and drive alignment with customers. I remember the critical role he played when we worked with GCA steppers during my early years at AT T Bell Labs. The Chip History Center virtual museum has a wonderful video interview with Bill Tobey on his conceptualizing of the wafer stepper and on his winning of the Bob Graham Award. Dan Hutcheson, CEO and chairman of VLSIresearch, shared these kind words on Bill Tobey’s influence: “The world of semiconductors and the products they made possible would have been much smaller, as Moore's Law might have stopped at 2 microns, without Bill's contributions. His ability to see what others could not probably explains why he was able to continue making contributions into his nineties. Companies all over the world continued to call on him to his last days.” Bill’s contributions were limitless. He was a member of the organizing committee for the SEMI Industry Strategy Symposium (ISS) and chaired it in its early years. After completing his term serving ISS, he joined the committee for the SEMI International Trade Partners Conference (ITPC). Bill also served as a member of the SEMI East Coast advisory committee in its early years and was responsible for industry meetings in the area. And he was involved with many other SEMI activities on behalf of the industry. Bill's obituary is posted on the funeral home website. For all of us working in the semiconductor industry, we are honoring Bill Tobey’s memory by continuing to build upon the foundation that he helped to establish. I hope you are inspired by the passion he displayed in his work throughout his career and encourage those who knew him to share stories of Bill to further inspire others to follow the example he set. Ajit Manocha is president and CEO of SEMI.

The microelectronics industry entered 2020 with high hopes after a mixed 2019 that saw global semiconductor revenue fall 11 percent while innovators continued to drive impressive advances in 5G, IoT, artificial intelligence, quantum computing and other leading-edge technologies. Equipment sales were rebounding as the industry started to regain momentum. And then COVID-19 sent disruptions rippling throughout the global supply chain. Semiconductor manufacturing facilities scaled back operations. Parts shortages became a problem. Logistical challenges emerged. And, all the while, many workers retreated to their homes under lockdown.The virus forced the industry, en masse, to pivot like never before to ride out the pandemic. This is the most challenging situation that I have experienced in my nearly 40-year career. All of us in the microelectronics industry have dedicated ourselves to rise to the occasion and help others. Among our efforts, we are providing resources to support SEMI members and the industry. Today, we can take heart that manufacturing firms in China are restoring normal operations. SEMI hosted a webinar on March 26 where our colleagues at McKinsey Company shared insights on China as it begins its recovery as well as the broader impact of the pandemic on the microelectronics manufacturing and design supply chain. You can read about McKinsey’s insights in a recent SEMI blog.In my closing remarks at last month’s webinar, I asked the industry to donate masks, gloves and additional personal protective equipment (PPE) to support our overwhelmed healthcare systems. The battle against the virus rages on around the globe. These donations will help people, businesses and whole economies to heal and recover.I am proud of how generously the microelectronics industry has donated these supplies that, in ordinary times, contribute to the meticulously controlled environments of our industry’s manufacturing facilities, but today can help save lives and bring the pandemic to heel. I ask companies across the supply chain to please explore how you can contribute to this effort. Donation information is available on our Coronavirus Resources webpage under Medical Needs Supply Matching Sites. It’s great to see SEMI members help combat COVID-19, and we are highlighting some of their efforts in news stories and blogs on our Coronavirus News and Blog webpage. We encourage you to submit your story.We know our members are hungry for more COVID-19 insights to help guide their way as uncertainty persists. SEMI is offering a follow-up webinar with McKinsey Company – The Way Forward from COVID-19 – on Thursday, April 23rd from 7:30am to 8:45am Pacific Time. Then, on Thursday, April 30th from 8:30am to 10:30am Pacific Time, the SEMI Americas team will host the virtual forum Semiconductor Outlook—Navigating through Turbulent Times. Bank of America Merrill Lynch will provide an update on semiconductor stocks, IHS Markit a market outlook, and VLSI Research the latest on COVID-19’s impact on the semiconductor industry. The goal of these events is to help you, our members, make more informed business decisions. We look forward to your participation and ask that you please submit questions so that the events are more meaningful for you.We have also added more resources to our SEMI Responds webpage, which lists best practices for company policies, public communications and telecommuting from our Environment, Health and Safety (EHS) and Information Technology Leadership (ITL) groups. The page now includes member survey insights from our Fab Owners Alliance (FOA) and Electronic Materials Group (EMG) on COVID-19 impacts to those communities, along with steps members are taking to maintain business continuity and ensure that their facilities remain safe. A big thanks to members of these groups for participating and sharing learnings with the industry at large. Sustaining operations across the industry has been the focus of work by the SEMI Global Advocacy team the past few weeks. It has continued to lobby for the microelectronics industry to be classified as an essential business in the United States and for similar designations in other countries. Those efforts included a SEMI Americas request for the government of Mexico to designate the semiconductor manufacturing supply chain an essential business, consistent with U.S. guidelines, to help avoid disruptions to the North American semiconductor industry. SEMI Europe sent 22 letters to officials across the continent, three of them to the European Commission, urging governments to allow continuous operations of the semiconductor industry. SEMI Japan has been closely engaged with the central government and sent letters to many Japanese prefectures stressing the critical importance of continuing operations.I am truly proud of how the SEMI team has stepped up around the globe to proactively communicate and support our members with relevant information and best practices related to the pandemic. The outcome of our letters to governments around the globe to seek essential business status has generally been very positive.SEMI also continues to oppose unilateral U.S. export controls that will compromise the ability of the U.S. to export semiconductor manufacturing equipment and materials, as highlighted in a recent Reuters article.SEMI advocacy efforts epitomize our overarching approach to the pandemic: We remain squarely focused on supporting our members during these turbulent times while continuing to lay the groundwork for the industry’s prosperity. Ajit Manocha is President and CEO of SEMI.

Once an unpopular career destination for university graduates in Korea, the semiconductor industry has been a plum target since the rise of Samsung Electronics and SK Hynix as global leaders and key growth engines for the Korean economy. The industry’s outsize role in innovation of cutting-edge technologies and applications such as artificial intelligence (AI), Internet of Things (IoT), 5G and autonomous driving has added to the appeal.The draw of a career in chip manufacturing is even stronger when new graduates from Korean universities consider the semiconductor industry’s rapid growth of 22.2% in 2017 and 15.5% in 2018, according to VLSI Research. Yet, even before earning their degrees, many students are unclear about steps they need to take to prepare for a career in the industry and the type of work available to them.These questions and concerns were on the top of the minds of 250 students who gathered at COEX in Seoul in mid-November for SEMI Campus Outreach, a half day of career insights from global chip companies including Lam Research, Applied Materials, Tokyo Electron, and KLA along with leading semiconductor companies in Korea such as SEMES, EO technics, JUSUNG ENGINEERING, DONGJIN SEMICHEM, PSK and Wonik IPS. Keynote - Inhak Harry Suh, CEO, Lam Research Korea 250 students gathered at Campus Outreach Campus Outreach keynote speaker Inhak Harry Suh, CEO of Lam Research Korea, stressed that talented new graduates hold the key to leading the semiconductor industry into the Industry 4.0 era and the next phase of growth. He urged the students to look for a company that treats its employees with respect and fairness and to enjoy their work. Joining the executives in inspiring the students, field and service engineers highlighted the semiconductor industry’s strong growth potential, described their job responsibilities and the skills students need to develop to thrive, and offered guidance on subjects to study in school to best prepare students for jobs in the industry. On the recruiting side, human resources representatives at the event provided overviews of their companies and skills they’re looking for as they court talent. Campus Outreach sponsors At SEMICON Korea 2020 – Feb. 5-7 at COEX in Seoul – SEMI will continue to cultivate industry talent at the Workforce Development Pavilion. To help the industry solve its critical talent shortage, the pavilion will offer university students interviews with industry experts and tutorials on semiconductor production as the students explore career paths and are mentored by engineers during the Meet the Experts program. And with a diverse workforce recognized as a competitive advantage, the Women-in-Technology session will gather leaders to discuss how the industry can improve diversity.Jaegwan Shim is a marketing specialist at SEMI Korea.

As a top semiconductor manufacturing hub, Korea is poised to lead the world in fab construction spending in 2019 and 2020, accounting for 27 percent of the total market. Little wonder that Korea’s prowess in the semiconductor industry has meant steady membership growth for SEMI Korea, with HD Cho, president of SEMI Korea, putting the average annual jump at about 7 percent.But HD Cho’s focus as he returned to COEX in Seoul, home to SEMICON Korea, in late August was not on membership growth over the years but the future. Cho hosted about 400 SEMI members gathered at SEMI Korea Members Day for insights into the state of the world economy, semiconductor industry outlooks, and perspectives on how South Korean and European microelectronics companies can form stronger ties. Setting the stage with look at macroeconomics, Byung-yeon Kim, team manager of NH Investment and Securities, predicted that, as the global economy continues to falter, 25 of the 58 major countries this year will cut interest rates in a bid to boost prospects for growth. Historically, the global composite leading indicator (CLI), a bellwether for turning points in the economy, has rebounded after 20 months of decline, he said. While the CLI downtrend is now past the 20-month mark, Kim struck a bullish note, predicting that the global economy will bounce back before long.Soo-kyoum Kim, vice president at IDC, referring to the semiconductor industry’s own soft patch, said that total revenue is expected to drop from $475 billion in 2018 to $440 billion this year but should rebound to a new high of $500 billion in 2023. The memory market will be especially hard-hit, dropping more than 29 percent in 2019 and another 14 percent next year before bottoming and then staging a recovery in the second half of 2020. The strength of the rebound will hinge on server market demand, he added.Next year will also see rebounds in semiconductor equipment and materials revenue, with growth of 12 percent and 3 percent, respectively, said Clark Tseng, director of Industry Research and Statistics at SEMI. The increases will follow a 2019 equipment market drop of 18 percent to $53 billion from the previous year while materials this year is expected to remain flat at $52 billion. The semiconductor industry will expand at a modest 2.4 percent this year, jumping to 7.6 percent in 2020, Tseng reported, citing the average growth rate based on data from Gartner, WSTC, IC Insights, VLSI Research and other industry analyst firms. Despite current weak market demand and the ongoing trade war, the long-term outlook for the semiconductor industry remains upbeat, he added.In Europe, semiconductor industry growth continues on the strength of the region’s high strategic importance in the global electronics supply chain, said Laith Altimime, president of SEMI Europe. Fab construction spending in Europe continued to grow in 2018, reaching $300 million, and is expected to hit $1.2 billion in 2019 and $1.6 billion in 2020, with equipment, parts and components driving the surges.To help build stronger ties between European and Korean chip industries, Altimime introduced the SEMI Korea members to SEMI Europe business platforms including SEMICON Europe, the 3D System Summit, ISS Europe, and the MEMS Imaging Sensor Summit. He also encouraged the formation of more business partnerships between companies in the two regions by familiarizing SEMI Korea members with European players in areas such as foundry, MEMS, sensors and wafer manufacturing.And it will be MEMS and sensors that help drive the 4th Industrial Revolution, said Sung-hyuk Kim, a team leader at LG Electronics' Sensor Solution Research Institute. In his presentation Architecting Sensor Solutions for the Next Revolution, he noted that sensors are finding their way into devices where they have never been used before. In household refrigerators, gas sensors help deodorize the inside while distance sensors detect the approach of people. Air conditioners equipped with a camera sensor can pinpoint the location of humans and steer the airflow in their direction. Of course, all these smarts will come in form of data-devouring artificial intelligence (AI), and that data will be generated in massive amounts by MEMS and sensors – placing them at the epicenter of the 4th Industrial Revolution.Jaegwan Shim is a marketing specialist at SEMI Korea.