semiconductor manufacturing

The global economy has started down a gradual path to recovery from COVID-19 in recent months as the world continues to combat the virus. Yet one sector – semiconductors – has shown impressive growth powered by a transformation hastened by the pandemic across industries ranging from education and work-from-home to healthcare.Semiconductor sales increased 12% in September to mark a second consecutive month of double-digit growth, and year-to-date semiconductor receipts as of September jumped 5.5% compared to the same period in 2019, according to SIA/WSTS.While this upward trajectory is encouraging, it pales compared to 2020 semiconductor equipment billings growth, with results from SEMI showing worldwide global chip equipment billings in September soaring to a new high of $7.6 billion this year. During the first nine months of 2020, aggregate equipment billings logged a 23.6% rise compared to the same stretch in 2019, surpassing $51 billion. Better still, the total semiconductor equipment market in 2020 is on track to beat the previous high of $64.5 billion set in 2018.Investments in China, Taiwan and Korea are fueling the chipmaking equipment spending surge. With big domestic and international fab projects in the works, China this year is projected to become the world’s largest capital equipment market for the first time, surpassing Taiwan, which will follow at a close second. Korea will rank third in equipment investments. Taiwan and Korea growth will come on the strength of equipment spending for manufacturing leading-edge semiconductors.Equipment billings in North America and Europe declined year-over-year as the automotive and industrial sectors suffered the heaviest blows from COVID-19. Investment momentum in both regions is expected to pick up in 2021 after automotive production recovers to pre-pandemic levels while factory automation will boost industrial demand.For more information about monthly equipment billing trends by region and equipment segment, please see the SEMI Equipment Market Data Subscription.Clark Tseng is director of Industry Research and Statistics at SEMI.

As the United States government has expanded semiconductor-related export controls, companies in the global electronics manufacturing and design supply chain have had to spend considerable time and effort navigating restrictions and managing significant new uncertainties emanating from recent policies. On November 9, SEMI submitted comments to the Department of Commerce’s Bureau of Industry and Security (BIS) urging the agency to proceed cautiously and adopt regulatory best practices and microelectronics industry recommendations to ensure that its identification of foundational technologies does not restrain U.S. innovation and exports without furthering essential U.S. national security interests. The comments specifically respond to the August 27 Advance Notice of Proposed Rulemaking (ANPRM), Identification and Review of Controls for Certain Foundational Technologies. The Export Control Reform Act (ECRA) of 2018 required BIS identify certain emerging and foundational technology that is “essential” to U.S. national security and requires such technology to be controlled to China and other nations subject to a U.S. arms embargo. Congress did not provide a specific definition for emerging or foundational technology, nor the term essential, further complicating the process to identify such technology.BIS has already implemented or proposed several emerging technology controls and the ANPRM starts the process to identify potential foundational technology controls. The SEMI comments focus on the fundamental question of how to define foundational technology, and are organized into three main sections: Requirements of ECRA Guidance from ECRA Regulatory best practices and industry recommendations Applying the statutory requirements and guidance, together with best practices and recommendations, to the identification of foundational technology indicates that most semiconductor-related technology, particularly semiconductor manufacturing equipment and materials, should be outside the bounds of the foundational technology initiative. In general, most technology related to semiconductor devices, manufacturing equipment, materials and design software is not essential to U.S. national security and, in cases where such technology does present material national security issues, it is generally subject to the U.S. list review process and multilateral controls. This technology is widely available outside the United States and due to substantial foreign availability, unilateral U.S. controls on such technology are likely to be ineffective in limiting its proliferation and harm U.S. development of or threaten U.S. leadership in this technology.While the SEMI comments focus on the effort to identify foundational technology, the recommendations and best practices apply in all export control contexts. Several of the statements pertain to policy in ECRA, including its imposition of controls to further specific essential U.S. national security interests only after full consideration of their impact on the economy.Other statements derive from factors ECRA requires BIS to consider, such as not seeking to control technology that’s already available outside the U.S. and not imposing controls that would harm U.S. technological development or leadership. An additional key factor is not imposing controls before multilateral controls are agreed to, nor when it is unlikely the relevant multilateral regimes will adopt similar controls, as is likely for technology that has been decontrolled by a regime.Finally, regulatory best practices suggest that technology-based controls should not be imposed when more targeted end-use or end-user controls can address national security concerns and duplicative controls in addition to recent, significant expansions of existing controls are unnecessary.SEMI is pleased to work with the U.S. Department of Commerce and other regulatory agencies, providing industry data, trends and perspectives to ensure export controls effectively serve national security interests without undue harm to technological development and leadership in this dynamic, globally competitive industry.Ways to Stay Connected and Learn MoreSEMI is committed to serving the global electronics manufacturing and design supply chain and present the collective voice of members to governments worldwide.The SEMI Global Update weekly newsletter provides updates on advocacy issues and technology trends and is available to all.Additionally, SEMI hosts live and virtual events that offer analysis and insights of geopolitical trends by industry experts, with the next opportunity to participate coming on December 3 with the SEMI CEO Webinar: Analyzing the Impact of the U.S. Election on the Microelectronics Industry.Joe Pasetti is Vice President of Global Public Policy and Advocacy at SEMI.

Not long after STMicroelectronics opened its first semiconductor plant in Singapore more than 50 years ago, a facility chiefly focused on chip assembly and packaging, the company realized that it had constructed the site in an area with a blossoming chip ecosystem with a bright future. Before long, the company became the first to start a wafer fab facility in the so-called Little Red Dot. Today, our STMicroelectronics Singapore campus sports several buildings that dwarf the original site in the sprawling Ang Mo Kio Industrial Park 2. The facilities feature advanced 200mm manufacturing lines but still produce huge volumes of chips with more than 1,000 pieces of 150mm manufacturing equipment.Much of the wafer equipment dates back to the past century so is no longer supported by the manufacturers, if they’re still even in existence. Yet decades later the chipmaking gear continues to operate with a surprising reliability that far surpasses the longevity called for in its manufacturing specifications thanks to replacement parts and frequent upgrades with more sophisticated handling robots and chucks. Now, as smart manufacturing begins to establish a foothold in the semiconductor industry, Industry 4.0 technology is breathing new life into these aging workhorses.Despite its age, all of the equipment adheres to industry manufacturing standards. The gear is remotely controlled using the SECS/GEM interface protocol that was either originally integrated with the equipment controller or custom-made. We’ve also maximized its usage through advanced recipe management, advanced alarm and event handling, and secured lot identification.Crucially, we decided to systematically deploy a real-time fault detection and classification (FDC) solution using a third-party product based on what today is known as an edge computing architecture. Every piece of critical processing equipment is progressively paired with its dedicated FDC instance running on a virtual machine in the wafer fab data center, and the FDC solution monitors vital equipment parameters at high frequency – depending on the SECS/GEM capabilities of the equipment – and analyzes incoming manufacturing data in real time using classic SPC (statistical process control) algorithms and even AI-class protocols.Our use of the FDC edge solution as a sensor signal aggregator has given our equipment a second life. The solution processes real-time signals from sensors connected through a typical TCP-IP. Sensors have been the old equipment’s saving grace with their ability to de-multiply equipment capabilities and overcome fundamental shortcomings and design weaknesses. The STMicroelectronics Singapore plant first used off-the-shelf sensor nodes with built-in power amplifier and analog input nodes. While very practical and easy to implement, deploying the nodes can be costly. After developing more expertise in sensor integration using FDC, our wafer fab equipment experts decided to design an in-house solution based on the famed STM32 microcontroller. Leveraging Arduino – an open-source electronics platform with easy-to-use hardware and software – the equipment teams can now design and program a variety of in-house sensors for measurements including temperature, humidity, waterflow and pressure. The sensors are integrated with process equipment using the FDC solution. Integrating the sensors with the FDC engine on the edge computer extends the capabilities of old equipment without jeopardizing the integrity of the machines themselves. While the integration can be quick, it must be robust to ensure the reliability of the new measurements. Similarly, ever-increasing connectivity requirements present clear cybersecurity risks that must be managed upfront and each solution must be hardened to minimize security vulnerabilities. Even so, the challenges and risks pale in comparison to the benefits! Jean-Marc PHILIPPE is DIT Director at STMicroelectronics Pte Ltd. He oversees the deployment and support of Digital Solutions to enable STMicroelectronics front-end operations in Singapore and manages manufacturing productivity and automation programs at site level.

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

SEMI is pleased to welcome Singapore-based UTAC Holdings Ltd., formed nearly 50 years ago, as a new member. UTAC is a leading independent provider of assembly and test services for a broad range of semiconductor chips, offering a full range of semiconductor assembly and test services across analog, mixed-signal and logic, and memory. Its customers are primarily fabless companies, integrated device manufacturers and wafer foundries. The company has production facilities in Singapore, Thailand, China, Indonesia and Malaysia as well as sales offices in five regions: the United States, Japan, China, Taiwan, the rest of Asia and Europe.I recently spoke with Dr. Nathapong Suthiwongsunthorn, Vice President and General Manager of UTAC Thailand, about UTAC’s smart manufacturing advances, the company’s role in the semiconductor industry’s transformation, and the industry outlook for Thailand over the next year.Ng: How does UTAC Thailand complement your other facilities?Dr. Nathapong: As one of the world’s largest producers of quad-flat-no-leads (QFN), UTAC Thailand has significant capability in assembly and test of advanced leadframe products including power products such as Cu Clip packages as well as MEMS products. We also serve top global IDMs and have the largest share of assembly and test for the automotive market among all UTAC operations. UTAC’s other facilities have expertise in wafer-level packages and system-in-a-package and serves the communication and consumer market not only for IDMs but also for the fabless and foundry companies. The Thailand factory nicely complements the other UTAC facilities both from the standpoint of operational and marketing diversity. Ng: UTAC Holdings Ltd. announced in August this year that it has completed its sale to Wise Road Capital, a global private equity firm. Will this in any way change the operation and business strategy of UTAC Thailand?Dr. Nathapong: I don’t believe it will change the way we operate. However, the acquisition is very positive for us from a financial perspective. With the benefit of significantly reduced debt and interest expenses, we will be able to expand our business to grow with and hopefully beyond the semiconductor market. Ng: To what extent has UTAC adopted smart manufacturing?Dr. Nathapong: UTAC Thailand is leading the way in terms of automation, smart manufacturing and Industry 4.0 with our in-house automation team and unique expertise. For example, we have built our own inspection equipment that is much faster and cheaper than what is commercially available. We also working on many programs such as mobile robot, AGV, auto inspection and office automation to help drive greater production efficiency. We are replicating our manufacturing advances and fanning them out to other UTAC facilities.UTAC Thailand Ng: What are some of the challenges you face in pushing for the industrial transformation in Thailand?Dr. Nathapong: I think the key challenge is to find skilled engineers who can perform hardware- and software-related tasks critical to the industrial transformation. But frankly, we have done a good job in managing this challenge by hiring very smart people, providing them with the required in-house training, and using outside training for new recruits as necessary. We have developed partnerships with capable vendors in this regard as well.Ng: What are the key differentiating elements (e.g. talent, tax, technology, trade, EHS) in Thailand that have been instrumental in supporting the E E ecosystem?Dr. Nathapong: There are two key differentiating elements for us. Firstly, UTAC has been around for over 47 years and is very well-established in Thailand with a positive reputation as an employer. This makes hiring talented people relatively easy. Secondly, and perhaps more importantly, the nature of the Thai people and also the benefits the company provides make it relatively painless to retain key employees. I also believe that we have a significant number of engineers available in Thailand. Finally, labour costs in Thailand are still very reasonable and stable. So we are able to acquire talent at a very competitive rate compared to other countries. Ng: What is the industry outlook for E E industry in Thailand over the next year?Dr. Nathapong: Surprisingly, the current sad predicament of COVID-19 has shown no negative impact for the global semiconductor industry – people seem to be buying more electronics with the lockdown. Our outlook for the Thailand’s E E industry is similarly very positive. Most semiconductor companies including UTAC see significant growth this year and I hope it will continue.Ng: With the recent semiconductor geopolitical and trade tensions, are more customers moving their business to Thailand?Dr. Nathapong: I believe so. We do see some of our key customers move manufacturing out of China and into Thailand. The relocations help them offset or avoid any potential fallout from current geopolitical tensions.Ng: In what areas do you think SEMI Southeast Asia can play a role to help our members companies in Thailand like UTAC?Dr. Nathapong: The semiconductor industry has been in Thailand for a long time. In fact, UTAC Thailand is 47 years old this year! However, I feel that Thailand never really worked with a strong establishment organization like SEMI that can connect various companies together to help drive innovation. I think SEMI Southeast Asia can truly help Thailand to move up to the next level of providing semiconductor solutions globally. We welcome SEMI Southeast Asia’s help in this regard.About Dr. Nathapong SuthiwongsunthornDr. Nathapong Suthiwongsunthorn joined UTAC in 2009 and is currently General Manager of UTAC Thailand, UTAC’s largest operation site. Before taking over the management of Thailand operations, he was Vice President of Research and Development, running UTAC’s global R D group. Dr. Nathapong has more than 20 years of experience in the semiconductor industry. He holds more than 40 international patents and publications in wafer-level and advanced packaging.Prior to joining UTAC, Dr. Nathapong held several key leadership positions in research and development at Schott, STATS ChipPAC and Infineon. Dr. Nathapong has a Ph.D. in Electronics Engineering from Oxford Brookes University, England.Bee Bee Ng is president of SEMI Southeast Asia.

I recently spoke with Chan Pin CHONG, Executive Vice President and General Manager of Products and Solutions at Kulicke Soffa, about how smart manufacturing is driving new production efficiencies in the semiconductor industry. During our conversation, he also provided practical steps for factory operators to follow in evaluating their smart manufacturing needs in order to ensure successful implementation and discussed the potential payoffs. Based in Singapore, Kulicke Soffa is a leading global provider of ball bonding, advanced packaging, wedge bonding, and electronic assembly equipment for the semiconductor, power and automotive industries.Ng: Industry 4.0 and smart manufacturing are critical to the growth of the semiconductor industry. What does the smart manufacturing movement mean to you or Kulicke Soffa?Chong: The future of smart manufacturing is the vision of building a digital connected factory to drive new manufacturing efficiencies by combining physical and cyber technologies. Industry 4.0 integrates discrete systems and harnesses the power of large volumes of data to move towards greater automation.At K S, we define smart manufacturing across the following four key areas embedded in our roadmap for all K S products, from wire bonders and advance placement tools to pick and place machines: Interoperability – This is about machines, devices and sensors connecting to each other. In fact, the very basis of smart manufacturing is that all devices are connected. Information transparency – Through simulation, various artificial intelligence (AI) tools use contextual information to emulate the actual world. Technical assistance – Robots or machines support humans in making decisions or solving problems. Autonomous decision-making – This is our vision that robots or machines can learn from machines to make decisions on their own. Ng: Please elaborate on some of these areas and how they’re the relevant to smart manufacturing. Chong: The need for machines, devices and people to communicate with each other forms the basis of connectivity, the idea of all machines communicating with each other or a host. Connectivity protocols now in place for machine-to-machine connectivity include SEMA, SECS/GEM, SEMI-ELS and IPC-CFX. Machine technology uses various sensing technologies. For example, for a pick and place machine such as SMT platform on K S Hybrid, the algorithm to recognize and align processes is part of the sensor needed in each machine before to can process and add thousands of components to the substrate or panel. In a wire bonder, the ultrasonics or EFO signal can provide some form of sensing technology for a machine to detect process conditions. Importantly, these sensing technologies can be used to collect feedback for process improvements.One example of how K S machines are connected to the host is our use of an intermediate server or host named KNeXt to connects to all assembly equipment in the fab. The equipment can then, in turn, connect to an external secured cloud or K S Global Cloud.Ng: What are the objectives for smart manufacturing?Chong: The ultimate goal is to achieve higher factory productivity or better OEE (Overall Equipment Effectiveness) by improving machine yields, productivity and efficiency. The key is to leverage AI, 5G, the Internet of Things (Iot) and other industry 4.0 technologies to drive automation and process improvements. Ultimately, each factory must meet productivity, yield and cost goals. Smart manufacturing enables factory operators to meet these goals. That is the focus of smart manufacturing.Ng: What is the biggest potential benefit of smart manufacturing?Chong: Smart manufacturing uses data to predict outcomes of a process step or machine operation. Once data is available in the global cloud, analytics can start to build data sets to run statistical modelling and examine factory operation trends. We can also use the data to identify past machine behaviors in order anticipate outcomes, including undesirable ones that we can then prevent.In the SMT example, if we can systematically examine days or weeks of historical performance, we can plot some statistical variations in the process specifically to a pick or placer or a robot and anticipate or avoid problems. However, all sensors must be in place in the bond head or the robot so that we can detect changes or variations in the robot’s movements.Kulicke Soffa smart manufacturing facility Ng: What are some recent factory improvements smart manufacturing has enabled? Chong: Kulicke Soffa has contributed to the hierarchical architecture of the smart factory and key technologies. COVID-19 is driving demand for greater factory connectivity, and K S offers solutions that are key to remote management and full control of smart equipment from a central control and embedding Internet of Things (IoT), big data, cloud computing and sensors in manufacturing. Using these technologies, a small smart factory can be remotely operated and managed.With COVID-19 limiting air travel around the world and access to support engineers, the need has grown for remote machine access to reduce the downtime per machine. Remote factory access enables off-site engineers to remotely identify and diagnose machine problems.Ng: What are barriers to faster adoption of smart factories?Chong: While most smart factories are capable of network connectivity and data collection, a key challenge is the lack of a business model for smart factories and smart equipment. Most factories must justify major capital investments by demonstrating ROI (Return of investments) potential. Capital improvements for every factory usually take several years to implement and are based on a complex business model. Factory connectivity requires substantial investments and years to implement. The same is true of the cloud infrastructure buildouts necessary to generate big data and meaningful analytics. The executive mandate for factory management to install capability usually calls for specific business targets in the planning stage.Another longstanding barrier to entry is the lack of compatibility of existing tools with new factory protocols, raising the question of whether the cost of replacing legacy tools justifies the need for a smart factory. If new factory investment is required for the latest tools to support the production of new products, the ROI will be much easier to justify.Ng: How is AI is important in smart manufacturing?Chong: AI interprets and learn from data to perform tasks and meet specific goals. Good examples of AI implementations include Amazon’s Siri and Alexa voice-command devices and self-driving cars being developed by Google and Tesla.At K S, over the years we’ve implemented AI in our smart wire bonders to reduce human intervention in our ProCu-7, PSP-2, ProCu Loop 2, Pro Bump and overhang processes.Thanks to AI, with senses of signals from the bonder, we can reduce the amount of parameters that an engineer or technician have to do trial and error. With on bonder metrology, PBI, loop height, wire sway features, AI allows us to measure process efficiency and provide feedback.Over several years of AI development, we have leveraged the technology to monitor machines and provide real-time performance feedback in order to provide better closed loop control such as short tail recovery in our bonder process. We can also use the data to predict machine behavior, monitor its health and track maintenance. Ultimately, AI enables fabs to improve manufacturing efficiency, productivity, yields and device quality.Ng: What’s an example of how AI has solved your manufacturing equipment problems?Chong: We’ve used AI to set RPM (real time monitor) limits, identify defective P-parts and monitor various conditions such as wire size and capillaries. These types of cases can arise in any manufacturing environment as humans make process mistakes or use the wrong part for a machine. With AI, we can prevent these problems and reduce the risk of further material lost from the wire bonding process.Ng: What advice do you have for factories looking to implement smart manufacturing systems?Chong: To build a smart factory, start by focusing on a clear set of business objectives and how smart manufacturing will help minimize or eliminate current factory inefficiencies. In other words, start with the end in mind – the problems that needs to be solved and the business goals – and identify the information you need to demonstrate ROI. Do you need to resolve, automate or improve processes or just to be more efficient? Before investing millions or billions of dollars to build a smart factory, identify those clear goals upfront. Then map out the particulars of implementation to avoid major problems around standards, protocols and connectivity.Bee Bee Ng is president of SEMI Southeast Asia.

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

Semiconductor equipment spending is mounting a strong recovery on the strength of explosive chip demand for work-at-home and study-at-home electronics fueled by the COVID-19 pandemic. Despite the growth, the 2017-2018 memory boon that triggered a critical subsystems shortage is still fresh on the minds of equipment suppliers as they worry whether critical subsystem providers can keep pace with the rebounding chip industry while managing the fallout from the COVID-19 pandemic.Hideyuki Koishi, president of HORIBA STEC, Co., Ltd., a leading supplier of mass flow controllers (MFCs), one subsystem critical to semiconductor production, recently spoke with SEMI about the company’s response to the COVID-19 outbreak, the pandemic’s impact on the global supply chain and the company’s ability to meet the demand for MFCs. SEMI: What COVID-19 countermeasures has HORIBA STEC taken?Koishi: To ensure employee safety and security while maintaining a stable supply of products to our customers, we started to deploy company-wide countermeasures when the Japan government declared a nationwide state of emergency to curb COVID-19 infections on April 16.HORIBA STEC and the entire HORIBA group formed a global COVID-19 task force and centralized all local outbreak decision-making to drive a rapid and effective global response. We quickly implemented work-at-home practices for our office staff and provided a safe environment for our factory workers, who are essential to maintaining product supplies, by establishing social distancing protocols and restricting site visits to essential workers. We also distributed face masks to all employees and placed disinfectant dispensers near the door of every room so employees could wash their hands before entering.To help on-site employees follow our social distancing guidelines, we reduced seating at cafeterias and converted meeting rooms to offices to give employees ample work space. We also established invisible walls in manufacturing facilities with multiple collocated divisions to restrict workers to their assigned areas, a containment measure that helps with social distancing while minimizing the risk of an entire factory shutdown if a worker contracts the virus. SEMI: Have you experienced supply chain disruptions due to COVID-19 outbreak?Koishi: Even though our supply chain extends overseas and includes China, fortunately we have not experienced any significant disruptions thanks to the broad geographic distribution of our supply chain. In addition, because many of our critical components are sourced in Japan, pandemic-related impacts to our business have been limited.Long before the COVID-19 outbreak, we organized a community called Rakuraku-kai with our suppliers in Japan to build and maintain close relationships. Although the community name suggests it is exclusive to Kyoto-based suppliers, its reach is a nationwide. After the declaration of state of emergency in June, the supplier community gathered for an ad hoc meeting to exchange information and share perspectives on the COVID-19 crisis.SEMI: Did you have any pandemic protocols in place before the COVID-19 outbreak?Koishi: In 2014, HORIBA group launched Stained Glass, a project designed to increase workforce diversity at HORIBA group companies through initiatives such as placing more women in decision-making roles and encouraging working at home to help employees better balance job demands with their family lives. As part of Good Place, the project’s program to increase the work-at-home rate, HORIBA group deployed a web-based meeting system and encouraged workers to transition from physical to online meetings. Good Place has helped our IT team and workers smoothly implement our work-at-home practices.Working at home is a beneficial practice regardless of its effectiveness in curbing infections. Employees can reduce commute time, increasing their quality. And it’s much easier and more affordable for international participants to join meetings since they’re spared the time and cost of travel. This year HORIBA group also moved its three-day bi-annual global meeting online to make them safer and more economical. The meeting is attended by about 100 leaders of group companies and business units.SEMI: Do you have any concerns about meeting demand for mass flow controllers?Koishi: We doubled the capacity of our main mass flow controller factory in Kumamoto prefecture in 2018 and with more floor space available for further expansion, we see no major barriers to meeting the growing demand from international customers in 2021 and beyond. Nonetheless, we must sustain the best possible COVID-19 countermeasures to maintain production while ensuring the safety of our employees.SEMI: Are you make any social contributions to combat the virus?Koishi: Semiconductors are not only indispensable for the electronics behind remote work, education and healthcare but they also play a critical role in developing COVID-19 therapies and vaccines. Thus, at HORIBA STEC, we believe our most important contribution is to maintain steady a supply of our mass flow controllers and other key semiconductor equipment components.HORIBA group also participates in two important pandemic initiatives. The Open COVID-19 Declaration program calls on intellectual property owners to make their patent rights, utility model rights, design rights and copyrights freely available in the fight against COVID-19. The program’s sole purpose is to stop the spread of COVID-19. HORIBA is among the 20 founders1 of this initiative.In June, HORIBA joined a push by the National Institute of Advanced Industrial Science and Technology (AIST) to develop a simple and rapid COVID-19 antibody test chip system. We’re contributing our expertise in immunoassay analysis and clinical laboratory equipment to help develop the system. SEMI: What have you learned from the COVID-19 outbreak?Koishi: The COVID-19 crisis has posed unprecedented challenges. Everyone hopes to return to normal soon but in reality things will never be exactly the same as before the crisis.Japan might have lagged other countries in its use of IT to improve business efficiency, but as we deal with the new coronavirus, both companies and their employees have been tirelessly considering reforms to the way we work through digitalization. I believe it will be difficult for companies to survive in the new normal unless they can incorporate these types of changes into their operations.On the other hand, I've also been reminded of the importance of traditional, analog communication. While we conducted all of our hiring interviews online this year, face-to-face meetings are a much richer experience that gives the prospective employee and the hiring company a much better sense of each other. In addition, as a company we need to continue to improve our ability to supply products so we can overcome challenges like the pandemic. COVID-19 has taught us our change needs to be more robust. We also need to evolve our business continuity plan to extend well beyond countermeasures to natural disasters such as typhoons and earthquakes. What matters most is that we apply the lessons of COVID-19 to make our business more resilient.[1] Ajinomoto Co., Inc., Canon Inc., Chanel G.K., GenoConcierge Kyoto, Inc., Honda Motor Co., Ltd., Horiba, Ltd., Konica Minolta Inc., Kyoto University, LSI Medience Corporation, Mitsui Knoledge Industry Co., Ltd., NEC Solution Innovators, Ltd., Nikon Corporation, Nissan Motor Co., Ltd., Rohm Co., Ltd., SRL, Inc., Shimadzu Corporation, Teijin Limited., Toyota Motor Corporation, Tsubakimoto Chain Co., and Yahoo Japan Corporation.Yoichiro Ando is a marketing staff member at SEMI Japan.

A 500,000 ft2 (~47,000 m2) state-of-the-art cleanroom facility still towers as the largest U.S. high-technology investment in Vietnam 10 years after starting operations in Saigon High Tech Park in District 9, Ho Chi Minh City. The structure built by Intel Products Vietnam (IPV) on the back of a $1 billion investment is the largest assembly and test manufacturing facility (ATM) in the Intel assembly and test network. IPV turns out products that are helping power cutting-edge applications along with the next wave of semiconductor industry growth as it homes in on 5G, Internet of Things (IoT), desktop and mobile. And it has been a boon to the local economy, generating more than 5,000 high-skill jobs across a number of assembly and test disciplines since launching operations in 2010. It has also contributed to over US$37 billion in exports from 2010 to 2019, accounting for over 60% of Saigon High-Tech Park’s annual export values in 2019. With its vision “to create the future of Intel and Vietnam,” Intel continues to be a strong long-term partner in Vietnam. I recently spoke with Kim Huat (KH) Ooi, vice president of Manufacturing and Operations and General Manager at Intel Products Vietnam (IPV), about the facility’s vital role in Intel’s overall manufacturing operations, its support for the E E ecosystem in Ho Chi Minh City, and measures it has implemented to reduce the impact of the COVID-19 pandemic on the facility and protect employees. Ooi leads and manages the site to support Intel’s business in Vietnam. His responsibilities include overseeing factory operations and employee relations; enriching the Intel image and brand; building strategic relationships with communities, media, governments, and local authorities; and working with the industry ecosystem and government. IPV employees celebrate Intel’s 50th anniversary in 2018. Ng: How does IPV campus complement the rest of Intel manufacturing sites and be nearer your customers and supplier base?Ooi: Intel Vietnam is an important part of Intel’s manufacturing presence worldwide. IPV has been operating for nearly 14 years in Vietnam and has celebrated multiple milestones along the way. As a site, we have matured and grown over the years. In March this year, we celebrated a proud milestone – the rollout our 2 billionth unit – that reflects the value of IPV to Intel Corporation as these Made in Vietnam products support its customers worldwide. One of our philosophies is to work with and grow local ecosystems in countries where we operate. In Vietnam, Intel has been offering technical and managerial expertise to many local suppliers in Vietnam to help them expand their business and services to other foreign direct investment (FDI) customers in the industry. Over the past 10 years, Intel’s supplier list has grown 10-fold from 20 in 2010 to about 180 suppliers in 2020.In today’s world of fast-changing consumer preferences and expectations, we need to help drive development of the latest products and technologies to support strong customer demand and new product portfolios such as 5G. To support evolving customer requirements, our workforce frequently upgrades its skills to work on new products and technologies.Intel as a company is also evolving as it transforms from a PC-centric to a data-centric organization, a shift behind the more than US$70 billion in record revenue Intel posted in 2019. Intel’s data-centric business accounted for more than half of that revenue. IPV plays a key role in Intel’s expansion into new market segments.Ng: What are the key differentiating elements (talent, tax, technology, trade, EHS) in Vietnam that have been instrumental in supporting the E E ecosystem in Ho Chi Minh City?Ooi: Vietnam’s stable political environment and increasingly liberalized trade and investment policies are great for businesses. The region’s young, talented workforce is also one of many competitive advantages that enables it to attract foreign investment. Intel’s announcement to invest in Vietnam in 2006 has played a large part in helping put Vietnam on the map of the global IT and semiconductor industry. The news helped attract industry suppliers and service providers, bolstering Vietnam’s economy and creating jobs. The Vietnam government also figured prominently in sparking the boon by establishing the right policies and incentives to attract foreign investment. Since starting operations, we have seen significant improvements in infrastructure such as roads, ports, airports, broadband and power supply. Vietnam’s standing in the global business community is even stronger today after the government successfully combatted the COVID-19 pandemic early on and introduced policies to help businesses restart operations. We expect all these factors to continue to make Vietnam an attractive relocation target for companies around the world. Ho Chi Minh City People’s Committee Vice Chairman Mr. Duong Anh Duc (center) visited Intel Vietnam to tour the state-of-the-art facility. Ng: What measures have you implemented to reduce the impact of the COVID-19 pandemic and protect employees? Ooi: COVID-19 has taken the world by storm and changed the way we work and live in many ways. It has unquestionably pushed the world to build stronger partnerships among individuals, organizations, businesses and communities. Intel’s manufacturing operations have continued to run at full capacity. Since the outbreak emerged, we have strictly followed required Intel safety measures as well as the Vietnam’s health guidelines. We have also implemented a number of other safety initiatives and protocols to ensure our business runs smoothly. We’re doing everything possible to ensure the well-being of our employees and help them better respond to the pandemic.In coordination with our strategic partners, we have been donating thousands of Personal Protective Equipment (PPE) to the Fatherland Front and Department of Health (DoH) since early March. Recently, in partnership with AmCham Vietnam, Intel donated an imported ambulance with built-in essential equipment to the Ho Chi Minh City 115 Emergency Center. Intel has also teamed with Saigon Hi-Tech Park management to donate two ventilators and N95 masks to DoH.Our employees are also helping out by donating to Vietnam’s Coronavirus Donation Matching campaign. We collected US$13,000 from Intel employees and included matching funds from Intel Foundation to support three non-profit organizations (NPOs) – Saigon Children’s Charity, Kidspire Vietnam and Teach for Vietnam. All told, Intel Products Vietnam has donated US$200,000 to COVID-19 relief efforts, demonstrating our long-term commitment to communities where we operate. Intel Products Vietnam teamed with AmCham Vietnam to donate a fully equipped ambulance to Ho Chi Minh City’s 115 Emergency Center, demonstrating IPV’s long-term corporate social responsibility commitment. In early May, Intel unveiled our 2030 Corporate Strategy and goals to accelerate progress against the world’s critical challenges and help drive positive global outcomes. Part of our 2030 goals, our RISE (Responsible, Inclusive, Sustainable, Enabling) strategy focuses on the company’s commitment to its corporate social responsibility (CSR) initiatives to create a more responsible, inclusive, safe and sustainable world through technology and collective action. IPV has also committed to implementing the RISE strategy in Vietnam with local community initiatives and technology interventions. Bee Bee Ng is president of SEMI Southeast Asia.

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