Workforce Development

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.

The march of innovation in semiconductor microfabrication technology over the past 60 years has produced electronic devices and information systems that have transformed industries and lives around the world. And while advances in chip technology continue to make it possible to collect, transmit, store and process more data for a rapidly growing universe of applications, the pace of innovation is now facing strong headwinds. Powered by chip innovation, data centers have become massive centers of information processing but, on the downside, enormous consumers of electricity. Today, the power-hungry hubs account for five percent of the world's electricity usage, a proportion that is growing every year, raising important questions about sustainability. Compounding the challenge, the pace of Moore's Law, for decades the engine of electronic device and information system innovation, has slowed. While the research and development of state-of-the-art semiconductor fine processing technology remains robust, developing the advanced manufacturing technology for mass-producing more sophisticated electronics devices is becoming harder, as is ensuring business profitability."It has become difficult for semiconductor technology to continue to evolve as it has in the past," said Akira Minamikawa, Research Director of Technology Research at IHS Markit, who moderated the Semiconductor Executive Forum – View by Top Two in the Era of Digitalization on opening day of SEMICON Japan 2019 at Tokyo Big Sight. Held at the SuperTHEATER, the forum featured Terushi Shimizu, representative director and president at Sony Semiconductor Solutions, and Atsuyoshi Koike, president at Western Digital Japan, two industry powerhouses that could figure heavily in the future of digital technology. SuperTHEATER, the main stage at SEMICON Japan 2019 Image sensors evolve to become eyes of AIImage sensors are becoming eyes of artificial intelligence (AI) and intelligent systems that monitor people and events worldwide, collecting data that one day could help puzzle out growing social challenges such as energy conservation and traffic congestion. With 51 percent market share on the strength of its industry-leading technology, Sony Semiconductor Solutions dominates the image sensor market. Despite last year’s global semiconductor industry slump, the company’s “business continues to enjoy strong growth and we are very busy,” said Shimizu, who attributed the company’s robust performance to the rising importance of the social role of image sensors and the expanding number of applications they support.The success of the company’s image sensors can also be traced to its division of the image sensor market into two application categories: "Imaging" focuses on capturing beautiful image data, while "sensing" aims to collect data that accurately describes the state of a subject and its surroundings."In 2019, sales of imaging products for smartphones grew rapidly,” Shimizu said in his market overview. “This is due to the average annual 15 percent growth rate of multi-camera smartphones, with some phones today featuring seven cameras, and an average annual growth rate of 20 percent in sensor size to produce higher image quality."But Shimizu cautioned that Sony Semiconductor Solutions doesn’t expect the smartphone sensor market to maintain that fast growth rate."The imaging market is expected to grow until 2022, but after that, the sensing market will drive market growth,” he said, adding that the company’s “capital investment plan is based on this scenario."AI will be key in catalyzing growth of the sensor market as integrations of AI processing engines and sensing images grow in sophistication to capture images undetectable by the human eye, Shimizu said. AI will extract insight from captured image data. For its part, Sony will apply its layer stacking technology to sensing products."By stacking an AI processing engine, we want a significant portion of the recognition processing done within the sensor chip," Shimizu said.One sensor the company already offers collects in-depth information for indirect time-of-flight (ITOF) 3D ranging for new user interfaces relying on autonomous or gesture control for robotics. The sensor “was first used in smartphones in 2018 and saw widespread adoption in 2019," Shimizu said.Sony Semiconductor Solutions plans to focus on developing new sensors for integration with their ultrasonic cousins. Aided by optical deflection technology, the sensors will be used for product quality inspections during manufacturing.With the company’s growing strengths in sensor technology, it hopes “to increase sales of sensors from a few percent of the company’s total sales in 2018 to 30 percent in 2025,” Shimizu said, pointing to its goal "to capture 60 percent share of the image sensor market by 2025."Data as one way to spread happinessAt the heart of consumer devices such as smartphones and computers and also cloud servers, NAND flash has made it possible to process vast troves of data anytime, anywhere. In recent years, the technology has enjoyed stronger adoption for use as the storage medium of choice for edge computing, stationed between end devices and the cloud to help streamline data utilization. But the technology isn’t merely about making smarter use of bits and bytes."We would like to promote the technology development that can support the use of data to bring happiness to people around the world," Koike of Western Digital Japan said. The company calls data that contributes to individual happiness and helps solve social issues "data for good" and, like the Sony Semiconductor Solutions bifurcated classification of the image sensor market, categorizes information into “big data” and “fast data.”For example, big data can leverage AI to drive dramatic improvements in the interpretation of test data and, ultimately, the diagnostic accuracy of mammography for breast cancer screening, aiding in early detection to help save lives, Koike said. Fast data can be harnessed to analyze data collected from a manufacturing equipment line in real time to improve production efficiency. The company’s plant in Yokkaichi, Mie Prefecture, which the company operates in cooperation with Japanese memory manufacturer Kioxia, already uses fast data to bolster production.More NAND flash innovation and greater supply capacity are critical to developing "data for good," Koike said. "It is difficult to expand clean rooms at the same pace as data usage grows. In order to continue to advance technology and enhance supply capacity, we need to adopt new ideas for building production lines. We need a smaller equipment footprint, shorter cycle time and higher throughput."Semiconductor market shows signs of recoveryIn their discussion of the short-term outlook for the semiconductor market, Shimizu and Koike pointed to the importance of strengthening the talent pool of Japan’s semiconductor industry as global competition heats up with China’s pursuit of semiconductor independence and the industry pulls out of the 2019 slowdown fueled by weak memory prices. While Sony’s business has been buoyed by strong image sensor demand for smartphones, the devices “did very well, but other applications didn't," Shimizu said. Even the image sensor market stagnated.Despite the 2019 slump, market conditions and capital investments by semiconductor manufacturers have been on the upswing."In the second half of 2019, the Chinese market showed signs of recovery triggered by 5G,” Shimizu said. “In 2020, this movement is going to be in full swing around the world and we will be busier than last year."Koike agreed: "The semiconductor market for data centers will recover with 5G. The hard disk shortage is already an indication of a recovery, a turnaround that will undoubtedly extend to solid state drives (SSDs). In addition, advances in autonomous driving technology will ensure continued growth of the automotive semiconductor industry.”Japan should embrace international competition, not fear China's pursuit of chip independenceIt's no secret that China is investing heavily in its semiconductor development capabilities to move up the microprocessor value chain. Minamikawa posed the question: How should Japanese chip companies navigate the shifting regional balance of power? "It is natural for China to strive to establish domestic procurement of semiconductors that are fundamental technologies for various industries,” Koike said, “I think the efforts of Chinese companies are outstanding in that they are not pursuing short-term results, such as improving yields in the near future, but are making efforts with an eye to achieving results in 10 years. Japan has a variety of options including working with China to create joint ventures and competing head-on. Regardless of which choice we make, however, it is imperative for the survival of domestic companies that Japan maintains its technological competitiveness to remain ahead of China."Shimizu said that Sony’s “Chinese customers are quick to take action and study extremely hard. We often have opportunities to share our roadmap with them and explore innovation opportunities together. Before, they were passive and relied on us for insights into new technologies, but now they are more assertive and I sense that they will start to drive innovation.”Koike added that "although Japanese companies often talk about business globalization, neither Chinese nor American companies say much about it. While global expansion is a major requirement for business, I think Japanese companies need to focus more on the Japanese market overall, not just when they think about the growing competitiveness of Chinese companies." L-R: Akira Minamikawa, Research Director of Technology Research at IHS Markit; Atsuyoshi Koike, president at Western Digital Japan; Terushi Shimizu, representative director and president at Sony Semiconductor Solutions Talent key to bolstering competitiveness of Japan’s semiconductor industryMinamikawa of IHS Markit didn’t mince words in describing the talent shortage in the Japanese semiconductor industry as “grave,” saying that “the workforce challenge is not endemic to the electronics industry as evidence grows that the number of people obtaining doctorates in Japan is falling and the educational level of the Japanese population as a whole is in decline.”Three years ago, Shimizu interviewed professors on Kyushu island for insights into Japan’s talent shortfall. He came away feeling that “Japanese semiconductor companies were not sufficiently communicating the industry's talent and innovation needs to professors. To help professors and students better grasp the appeal and potential of the industry, we have started to send frontline engineers to universities to educate students and instructors about their work and careers. Expecting corporate HR departments to alone solve the talent shortage won’t work.”"In Japan, if you advance to a doctoral course, you will have a hard time getting a job, which is a strange situation,” Koike said. “Companies and universities need to work together more closely to better understand how to attract and hire doctoral graduates."Minamikawa said companies must have strong leaders with clear missions to attract the right talent, but Koike pointed to the drawbacks: "The image of a company with a strong leader seems to be cool, but it also has a downside because engineers stop thinking for themselves and wait for instructions from the top. I believe it is important for company leaders to have ongoing discussions at all organizational levels and lead the way in times of confusion."Shimizu agreed, citing his own company as an example."Thankfully, our company is very busy right now,” he said. “However, some employees are starting to request more time to think about how to improve the quality of their work. To maintain and strengthen our competitiveness and continue business growth, I believe it is important to cultivate an environment that encourages each employee to take more time to think for themselves."Motoaki Ito is the CEO of Enlight, Inc. and a reporter for SEMI. Mayumi Amagai is a marketing manager at SEMI Japan.

Global and regional forces shaping the $2 trillion electronics industry have intensified more in the past few years than at any other time I can recall. The uncertainty bred by trade wars, corporate tax changes, new environmental regulations, immigration issues and STEM talent shortages is vexing the global microelectronics supply chain as companies shift investments and operational strategies to adjust to the unrelenting change and new realities with heightened urgency.In our industry, an increasingly dynamic world requires a more determined and strategic approach to advocacy. To meet the industry’s rapidly evolving needs, SEMI is transforming its global advocacy initiatives and programs. In the past 18 months, we have honed the focus of SEMI Global Advocacy to better serve member interests and needs, respond more quickly to fast-moving geopolitical developments, and deliver more value to help spur growth across the end-to-end electronics supply chain.Most importantly, SEMI Global Advocacy is now much more forward-looking and proactive. We have expanded our focus from primarily U.S. and independent regional issues to global affairs, allowing us to better leverage the power of our worldwide platforms. Organizationally, SEMI continues to add specialized staff advocates and calibrate its operational and member-driven engagement models to increase their involvement. There will be more to come, and with your continued support, we’ll be in a stronger position to meet your needs. Thank you!Strengthening the industry’s voiceThe rapid shift to a more proactive advocacy approach across all our initiatives was triggered by one disruptive action a little more than a year ago – the buildup and onset of the trade war between the United States and China. From the outset, SEMI formed strong member coalitions to intensify our lobbying efforts, met frequently with policymakers, submitted written comments to government panels, and issued public communications, all aimed at amplifying our collective voice. SEMI has taken a principled approach to advocacy, publicly stating its positions based on its trade pillars of free and fair trade/open markets, supply chain growth, respect for IP and national security.That approach was on full display as Japan tightened controls on exports to the Republic of Korea, sending shockwaves through the microelectronics industry. To minimize the industry impact, we leveraged our global reach and the counsel of our International Board of Directors to engage with both governments early on and ensure that Japan took into account our members’ interests in developing and implementing the new rules. In general, SEMI opposes the use of tariffs and limiting market access as levers to correct trade imbalances and other structural issues. Instead, we support dialogue and negotiations that lead to multilateral agreements aligned with our members’ interests and global trade principles.This year in the U.S. alone, SEMI advocates have met with more than 70 policymakers in Washington, D.C., including members of Congress and representatives from the White House, federal agencies and the Trade Representative’s office. We have also spoken with representatives from European and Asian government delegations. Since the trade war erupted, we have met with more than 220 policymakers worldwide, giving SEMI a seat at the table – a louder voice for our members – as we are increasingly seen as the voice of the end-to-end electronics manufacturing and design supply chain. SEMI Global Advocacy has also broadened its focus beyond public policy to address other areas of strategic importance to the industry such as the talent shortage.Expanding Advocacy’s global influenceSEMI’s public policy efforts now reach well beyond Washington, D.C. to all seven major manufacturing centers worldwide where we have regional offices, with SEMI advocacy staff in every location. This has created a network multiplier effect that allows us to rally our collective strength around common member interests. It’s no coincidence that our member-driven advocacy initiatives and programs have improved in parallel with expanded global participation by our member companies on our various policy and advocacy committees.Our Trade Advisory Committee, for example, has grown from 16 to 60 active members in the past year alone. This year, we have also formed working groups with SEMI members around the world to address talent pipeline challenges. The upshot is that we are now much more focused in attacking regional issues. Thank you once again.Despite changes in the strategic approach of SEMI Global Advocacy, we remain squarely focused on critical issues affecting industry growth and our members’ interests. In a nutshell, we call these the four T's: Tax – We strive to encourage rates that are fair to all companies, leveling the playing field globally Technology – We seek government investment in technology and innovation (R D) Trade – We advocate for open markets, free and fair trade as we promote our 10 Principles for the Global Semiconductor Supply Chain in Modern Trade Agreements worldwide Talent – We support education investments and immigration policies that provide opportunities and build the talent pipeline In addition, SEMI has long been a leading voice in promoting Environment, Health and Safety regulations that enable industry growth and demonstrate environmental stewardship – and we continue to make investments at this critical juncture as new technologies are driving changes in the regulatory landscape.Maintaining laser focus on member priorities amid shifting geopoliticsThe only way for SEMI Global Advocacy to navigate the cauldron of geopolitical disruption is to remain laser-focused on our members’ top priorities including trade, tax, technology and talent. And we will stick to what SEMI has done best for almost 50 years – facilitate public-private collaborations and more investment on behalf of our members.In workforce development, SEMI is taking bold steps to develop a robust talent pipeline, as much a growth and innovation driver for SEMI members and the industry as any technology. Announced earlier this year, SEMI Works™, our landmark talent development initiative, is already gaining steam with U.S. government investment and our rapid progress in laying its foundation with a database of standardized competencies for technical jobs as well as a certification and credentialing process for curriculum, education and training programs.The future for SEMI members and the industry is brimming with possibility. The strides SEMI Global Advocacy has made over the past year have only been possible through your support and involvement. As we broaden our scope beyond policy, we recognize that more progress needs to be made. We look forward to your continued participation as, together, we help our industry fulfill its great potential.Mike Russo is Vice President of Global Industry Advocacy at SEMI.

For public policy lovers, civic-minded, engaged U.S. citizens, and people around the world interested in the U.S. President’s positions and priorities, the annual State of the Union address (SOTU) is “must-see TV.” This year, the anticipation and expectations were different than with past presidents. President Trump is the first U.S. president who has used social media to the extreme that he has. President Trump’s prolific Twitter feed has had an interesting impact on the SOTU. U.S. citizens and people from around the world already know President Trump’s positions on issues, his policy priorities and what gets him excited. There is an ongoing, direct line to the President’s thoughts throughout each and every day. In the past we looked to the SOTU for insights into what the sitting president is really thinking and his future policy priorities. Now, there isn’t much we don’t already know.One looming question this year was whether President Trump would reach out in a conciliatory manner to help bridge the political divide and lay the groundwork to enable some public policy wins and avoid another government shutdown. While there were moments of conciliation, the President made it clear he would not move on areas that are most contentious with the other side of the aisle. For example, the President unequivocally reiterated his intent to build the wall. While the message plays well to his base, it is, in effect, a frontal assault and challenge to Democrats. It’s hard to image that his staunch stance will help move the two parties to work together on substantive policy issues. It may also mean that the wall issue will occupy lawmakers time for the foreseeable future, sidelining debate on other important issues.The best hope is that a bipartisan bill finds its way to the President’s desk that he can sign and use to “declare victory.” However, many political observers believe the likelihood of the President declaring a national security emergency is rising as a maneuver to ensure funding for the wall and avoid a shutdown. While such a declaration would most likely face a court challenge, the President could claim that his decision was a move of last resort and leverage the moment to position Democrats as obstructionists to his base. The scenario does not bode well for the bipartisan support necessary to address other issues.What does this mean for our industry? Were there any points raised in the SOTU that would signal a change in what we are facing regarding trade, tariffs, export controls and immigration? Were any new issues or ideas raised that could help lift the global economy? In short, no. On one hand, the President cited his good relationship with the president of China, but on the other doubled down on his attacks on China, seeming to stand firm to bolster his position at the table as the U.S. and China trade talks continue.What do these dynamics mean for SEMI Global Advocacy? In 2018 we were heavily engaged in efforts to prevent regulations that would inhibit our members' ability to develop and deploy technologies and maintain global market access. We advanced our global advocacy model, leveraging our regional presence around the world. Many of the potential issues we faced emanated from the U.S., including those focused on controlling technology development, limiting trade and enhancing export controls. We also intensified our efforts to address industry talent pipeline issues.In 2019, our public policy focus will be to continue to push back on tariffs, engage members to inform the rule-making process for export controls and to attempt to influence the immigration debate as it pertains to access to talent. In addition, while the U.S. R D tax credit was made permanent through the tax cut in 2017, some of the provisions may have unintended consequences and will need to be modified. How the law is enacted will affect how businesses can deduct qualified research and development and other expenses from their taxable income, so we anticipate activity on the tax front as well.It will also be a big year for SEMI on the workforce development front. SEMI will continue to grow its existing High Tech U (HTU), university and mentor programs. In addition, SEMI will be positioning itself as the global leader in addressing issues related to the talent pipeline by approaching the problem with a full-spectrum, holistic approach that is intended to better address more immediate needs in attracting, training and retaining qualified talent. We’ll also focus on improving the industry image and exciting students at a younger age by providing experiential learning activities throughout a defined educational pathway. Stay tuned on this front as the full program unfolds.In general, we will continue to build our relationships and stature as a leading voice for our members and the end-to-end semiconductor supply chain in the areas of talent, trade, tax and technology (SEMI’s “4 Ts”) and to ensure free and fair trade, access to markets, supply chain growth, IP protections and enhanced efforts to improve cybersecurity. Mike Russo is VP of Global Industry Advocacy 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.

Storage and memory chipmaker and SEMI China member Tsinghua Unigroup is gearing up to meet burgeoning product demand with huge investments in its manufacturing plants. But the high-tech enterprise under Tsinghua University is eyeing a much bigger prize – growth of the region’s semiconductor industry and the realization of its ambition to become a more prominent force on the global stage.Inspired by the national strategy, the Tsinghua Unigroup’s big spends include USD 24 billion in Wuhan (Yangtze Memory Technologies Co., Ltd.,) USD 30 billion in Chengdu, USD 30 billion in Nanjing and USD 100 billion in Chongqing, said Liu Hongyu, senior vice president of Tsinghua Unigroup, speaking at the SEMI China Equipment and Materials Committee meeting last month.Advanced packaging is another rich vein of opportunity the region is tapping for expansion, said Liu Hongjun, vice president of China Wafer Level CSP Co., Ltd., another SEMI China member attending the event, hosted by NAURA in Beijing. Hongjun sees strong growth for Fan-in, Fan-out, FCBGA, 2.5D and 3DIC, with Fan-out out front. Liang Sheng, administrative commission director at BDA, a business advisory firm supporting high-technology manufacturing in the E-Town economic development zone, pointed to 5G chips and smart, networked electric automobiles as drivers of the next growth phase of Beijing’s integrated circuit (IC) industry.Global tailwinds are lifting China’s semiconductor industry and the region’s hopes, with SEMI and major industry analysts raising their semiconductor industry growth projects for 2018 to between 9 percent and 16 percent. According to SEMI’s latest market report, global semiconductor industry manufacturing equipment revenue reached USD 17 billion in the first quarter of 2018, logging all-time highs after jumping 12 percent from the previous quarter and 30 percent year-over-year. Korea was the top-performing region at USD 6.26 billion, followed by China at USD 2.64 billion.Tighter integration with the rest of the global semiconductor industry is critical to the growth of China’s chip sector, and SEMI China is squarely focused on this assimilation, said SEMI China president Lung Chu. The spearhead of this effort is the SEMI Innovation Investment Platform (SIIP) China, established by SEMI China last year to help grow China’s pool of skilled workers, promote advanced technology, generate industry capital, and expand China’s semiconductor industry while developing stronger connections with chip sectors in other regions. To strengthen ties with other regions, SIIP China will stage a number of innovation and investment forums this year including Chinese Night at SEMICON West (July 10-12) and a SIIP China Forum in Silicon Valley (July 15). In August, representatives from the Korea chip industry will visit counterparts in China (August), and a China delegation will travel to Japan for meetings (October). SIIP China is also strengthening the region’s links with Germany and Israel as SEMI serves as a crucial bridge between China’s semiconductor sector and the global industry.At the invitation of Shanghai authorities and the Ministry of Commerce of the People’s Republic of China, SEMI China in November will join the China International Export Import Exposition in Shanghai, an event that will underscore China’s commitment to the openness and cooperation of its semiconductor industry with the international chip community. As part of the exposition, SEMI will work with the Ministry of Commerce and domestic chip manufacturers to begin development of a special integrated circuit (IC) zone. SEMI China members are welcome to participate.With workforce development no less vital to the future of China’s semiconductor industry, the Equipment Materials Committee offered potential solutions to the industry’s talent gap. Measures included targeting university students and engineers with industry lectures and courses in key cities, campus recruiting, talent training that members said they are willing to help SEMI coordinate and stage and, much like the push to better integrate China with the global semiconductor industry, mobilizing member resources around a campaign to polish the image of the industry to make it more attractive to students and young workers. Members of the SEMI China Equipment Material Committee gathered at NAURA in Beijing in June for a warm and lively discussion about global semiconductor industry cooperation and growing China’s semiconductor sector.Cherry Sun is a marketing manager at SEMI China.

In my first six months at SEMI, I’ve visited with many member companies and industry leaders. One theme I hear repeatedly is a concern about our most fundamental source of innovation and productivity – people.Our industry has a significant need for additional workers and several trends are working against us.For one, only 11 percent of elementary students in the U.S. indicate an interest in science, technology, engineering, and mathematics (STEM) education according to the National Science Foundation. In other regions, recruiting and retaining high-skilled workers remains a constant challenge.Ironically, the incredible electronics manufacturing technology that we create has enabled many of the new-tech industries in software, social media, internet services and applications that now directly compete for the best and brightest technical talent. Young engineers have other choices and many are lured to newer growth industries with familiar internet brands.Today, due to continued industry advancement and robust growth, capital equipment companies, device makers and materials companies collectively have thousands to tens-of-thousands of open unfilled positions. Furthermore, the representation of women in the high-tech workplace remains disproportionately low.We have long been aware of the need to support a diverse pipeline for high-skilled workers. In 2001, the SEMI Foundation was established to encourage STEM education and stimulate interest in high-tech careers. SEMI and its Foundation launched the High-Tech U (HTU) program to engage and excite high school students. HTU enlists industry volunteers to work with local high school students in a three-day interactive hands-on curriculum. Young people get a fun and inspirational exposure to binary logic, circuit making, a fab or electronics manufacturing setting and other aspects of professional development.To date, we’ve delivered 216 HTU programs and reached nearly 7,000 students in 12 states and nine countries. The results are compelling. Our 2016 survey of HTU alumni shows that they enter college at five times the national rates and 70 percent that graduated college are employed in a STEM field. By any measure, the initiative is successful and worthwhile.However, the talent problem statement has grown. Industry needs are greater and the time has come to redouble our effort to attract and retain talent for our high-skilled manufacturing sector. Therefore, SEMI is elevating workforce development as a top strategic priority.The SEMI HTU team is already engaged with key member companies to develop our enhanced roadmap for workforce development including a comprehensive study with Deloitte Consulting to underpin the key problems and solutions in areas of focus for decisive and systematic SEMI action.Belle Wei, SEMI Foundation Board member and the Carolyn Guidry Chair in Engineering Education and Innovative Learning at San Jose State University said, "It is critical that we work to prepare the future workforce. This requires a high level of collaboration between industry and higher education. We appreciate SEMI's leadership role in this collaboration to further develop the workforce pipeline."We have launched a HTU Certified Partner Program (CPP) with the goal of reaching more students through industry partners who commit to long-term participation and independent delivery of High Tech U. In addition, we are expanding outreach to universities and community colleges and preparing to launch an industry image campaign to better tell the remarkable story of opportunity in our industry.The capacity to innovate and the skills to manage complex design, engineering and manufacturing processes are essential factors that sustains our high-tech industry – and they are dependent on people.Finally, as mentioned above, we have already started some new initiatives to enhance our HTU. A SEMI workforce development roadmap and execution plan will be detailed in a future SEMI Global Update article following the upcoming SEMI International Board Meeting. SEMI welcomes any inputs in addition to your continued support.This endeavor is increasingly urgent and recruiting the industry’s future innovators is well-aligned with SEMI’s mantra to connect, collaborate, innovate, grow and prosper.