5G

The electronics markets (and global economies in general) remain fragile, but there is some glimmer of hope on the horizon.

Despite market saturation and stagnation saddling many business sectors, MEMS remains a shining star in the semiconductor industry. Opportunities in automotive, consumer electronics, mobile, medical are rising. What is supporting this industry growth? Who are the big players on the horizon?SEMI spoke with Dimitrios Damianos, Technology Market Analyst, Photonics, Sensing and Display division at Yole Développement, about MEMS market dynamics and future trends. Damianos shared his views ahead of his presentation at SEMI MEMS Imaging Sensors Summit, 25-27 September, 2019, at the WTC in Grenoble, France. Join us at the event to meet experts from Yole and many other key industry influencers. Registration is open.SEMI: MEMS and sensors is one of the healthiest industries not only in Europe but globally. Despite a global economic slowdown, the MEMS and sensors is still growing. What is fueling this growth?Damianos: The value of the global MEMS and sensor market will almost double from $48 billion in 2018 to $93 billion in 2024. In 2018 the MEMS and sensor market represented more than 10% of the total IC market, as more and more MEMS devices and sensors, such as MEMS, image sensors, and RF filters, are integrated in end products in consumer and automotive. In particular, the value of the MEMS-only market reached $11.6 billion in 2018, with consumer applications accounting for more than 60% of the total market. From 2019 to 2024 the MEMS market will grow 8.3% annually in value driven by pressure (for TPMS), RF (for V2X 5G communications), inertial (for ADAS) and future MEMS (such as pMUT for ultrasonic fingerprint) (Source: Status of the MEMS Industry report, Yole Développement, 2019). SEMI: How are MEMS shaping the semiconductor industry today? Damianos: MEMS have a make-smarter enabling capability. They are providing context for new applications and services in transportation, mobility, health, and security. Large companies such as Alibaba and Google are considering MEMS as a critical element in their business solution domains covering the upcoming smart home, smart campus, smart city and smart industry applications. MEMS have key features that correspond to these companies’ criteria for accuracy, small size (without performance degradation), low power and always on (e.g. microphones). Furthermore, with the advent of sensor fusion and edge computing, more sensor data can be processed, maximizing the qualitative and useful information about us and our surroundings. This has a huge impact in all markets, especially consumer.SEMI: MEMS foundries performed well thanks to the boom in industrial and medical applications. Who are the big players right now?Damianos: During 2018, all foundries saw their revenue increase. STMicroelectronics, Teledyne Dalsa, Silex, IMT, Micralyne and Philips Innovation Service are important MEMS foundry players that offer services for various MEMS devices used in medical and industrial markets, among others. On one hand, medical applications were driven mostly by microfluidics, flowmeters, pressure and inertial MEMS. On the other hand, industrial applications were driven by inkjet heads, microbolometers and pressure MEMS. The market prospect, however, is huge for RF MEMS and oscillators that will be used in next-generation 5G infrastructure. SEMI: What is the current status of MEMS for automotive applications? What are the related market drivers? Damianos: In automotive applications, accelerometers and pressure sensors still account for the lion’s share in units. Pressure sensors will grow at more than 8% with Tire Pressure Monitoring System (TPMS) implemented in Chinese vehicles in the near future. After 2019 and 2020, with the new Chinese standard, GB 2614, TPMS will become compulsory: 100% of all new vehicles will have TPMS. Also, automotive MEMS could grow quicker than the corresponding car market (currently at approximately 3%). The reason is a higher number of many different MEMS devices that are being integrated in cars, such as MEMS inertial measurement units (IMUs), TPMS, environmental MEMS for gas and particle monitoring in-cabin and microphones for hands-free voice commands.SEMI: After years of decline, the inkjet heads industry is growing again. What other segments are benefiting from MEMS technology applications? Can you name two examples?Damianos: RF MEMS (BAW filters) is also benefiting from applications in smartphones and will continue to benefit with the arrival of 5G. 5G means additional high frequency sub-6 GHz bands that can only be addressed by BAW filters. Moreover, new infrastructure approach using active antennas will create an expanding market for BAW.Another segment is inertial sensors. Inertial MEMS already have a high potential in wellness and fitness wearables and are gaining support for medical wearable applications to monitor patient activity, with the aim to prevent seizure in cases of epilepsy and other mental disorders. Compared to other types of sensors, MEMS is the golden technology for inertial sensors integrated into medical wearables. They are used for rehabilitation systems, activity trackers and assistance living/fall detection. Specifically, the IMU market will continue to grow for consumer and automotive applications as their price and form factor continue to shrink and they replace traditional standalone MEMS accelerometers and gyroscopes. However, the inertial sensor market will mostly grow for smartphone applications (mostly 6DOF, with 9DOF volumes being comparatively low).SEMI: Give us one prediction about the opportunities offered by the MEMS technology. Damianos: Sensor fusion is becoming more and more relevant since billions of MEMS sensors are made every year. The upcoming 5G revolution will make connectivity easier than ever, creating exponentially more data. To make these data meaningful, data processing is mandatory. Big data is an industry born of recent advancements in AI and machine learning, built upon and fueled by a wealth of new data from ever-expanding sensor applications. An upcoming trend is edge computing, with sensors and MEMS driving a new age of technology. Sensors are digitizing the human experience, and as the real and virtual worlds move closer together, it will be sensors that bind them, enabling new experiences for users everywhere. Running AI at the edge, coupled with sensor fusion, will open new applications for MEMS in audio, motion, olfactometry, and imaging. We also expect that new MEMS devices (microspeakers, ultrasonic fingerprint, pMUT) and piezoelectric MEMS technology could rejuvenate the MEMS market. SEMI: What are your expectations for SEMI MEMS Imaging Sensors Summit and why would you invite your peers to attend? Damianos: SEMI is organizing another very successful event, gathering experts from the Imaging and MEMS industries. We are at a turning point of innovation, with many technological advancements in AI, IoT, AR/VR, biometrics, and other areas where Imaging and MEMS technologies are paramount. Yole is excited to hear the thoughts of many high-profile experts on existing activities and future prospects within their organizations. If you are too, then it is an event that you shouldn’t miss!Dimitrios Damianos, Ph.D. is a Technology and Market Analyst in the Photonics, Sensing and Display division at Yole Développement (Yole). Damianos is a member of a Yole team that produces technology and market reports on the imaging industry including photonics and sensors. Damianos holds a MSc degree in Photonics from the University of Patras (Greece). After his research on theoretical and experimental quantum optics and laser light generation, Dimitrios pursued a Ph.D. in optical and electrical characterization of dielectric materials on silicon with applications in photovoltaics and image sensors, as well as SOI for microelectronics at Grenoble’s university (France). He has also authored and co-authored several scientific papers in international peer-reviewed journals. Learn more! Join the webinar on 5th September 2019. Registration is open! Serena Brischetto is a marketing and communications manager at SEMI Europe.

The world of work is transforming. I believe digitalization can be a force for better quality work, unleashing higher productivity and opening up new opportunities to work in different ways. For this to happen, we must set the right framework. We must set the right conditions to enable everyone to reap the benefits from the digital era.One crucial condition is that people have the right skills. That's why the European Commission launched a "Skills Agenda for Europe" in 2016. It sets out 10 actions to make the most of Europe’s human capital, which is crucial to keep Europe on a competitive edge and growing. One of its focus areas for example is better skills intelligence – understanding skills bottlenecks and anticipating needs, including through stronger business-education partnerships. Education needs to be more responsive to labour market needs.The microelectronics industry is one such area in Europe that faces an acute talent shortage. But this technology is crucial for Europe’s competitiveness. Microelectronics enable many of the key technologies and innovations required for advancing a secure, sustainable and digital economy. Data centers, online platforms, autonomous spacecrafts, blockchain algorithms and 5G infrastructure may serve different purposes but share one vital element: microelectronics. The deepening penetration of electronics in the digital economy and new applications is giving rise to industry requirements for a workforce pool with soft skills and expertise in production technologies, software and data science.This is why the European Commission encourages new collaboration models between the worlds of education and industry across all business sectors, including in microelectronics. I welcome the fact that SEMI, the industry association representing the electronics manufacturing supply chain, is fully committed to building and maintaining the needed talent pipeline in Europe. I wish you best of luck in your endeavors. Marianne Thyssen is European Commissioner for Employment, Social Affairs, Skills and Labour Mobility.

On the day I joined SEMI in March of 2017, I was filled with excitement to be on-boarding at a time when great, leaping strides in innovation were driving the rapid expansion of our ecosystem. In my many conversations with members that followed, I was not surprised that a vast majority ranked among their top concerns the persistent challenge of attracting, training and retaining the talent needed to grow their businesses. Later that year, I raised the global talent shortage issue in my article Securing Talent to Connect, Collaborate and Innovate. As an industry veteran I knew that the decades-long workforce development challenge will only worsen with the proliferation and increasing complexity of technology.Innovation has never been more technology-intensive. Developing the technology and producing the components required for applications powering next-generation communications (5G), artificial intelligence (AI) and machine learning, autonomous vehicles, and the Internet of Things (IoT) require bright minds in diverse fields of science to fill critical positions in the global electronics manufacturing industry. Today, that talent struggle is acute, threatening to undermine our industry’s potential to grow to $1 trillion by 2030.The electronics industry needs a comprehensive, integrated program to build the talent pipeline. The program should inspire school-age children to adult learners to pursue careers in this great but underrecognized industry. It needs to shine a spotlight on career opportunities. It must prepare workers with standardized skills sets transferable across the industry. And it must connect trained workers with hiring companies.SEMI is uniquely positioned to deliver this solution. Launched almost two years to the day after I joined SEMI, SEMI Works is SEMI’s branded workforce development initiative. We realize that trade associations don’t create jobs. Their members do. Think of SEMI Works as SEMI’s commitment to build and maintain the needed infrastructure – the talent pipeline. SEMI Works is comprehensive. The program, supported by SEMI members, is a wide-ranging effort by our Global Advocacy team to ensure education is demand-driven, training programs better meet the needs of the industry, more people pursue careers in electronics and our members have access to the talent pool that we are cultivating. With SEMI Works, SEMI is developing scalable solutions to improve connections among training and education providers, prospective workers and the industry. Key features of SEMI Works will include SEMI-certified education courses and training programs linked to industry requirements and skills credentialing for workers.SEMI Works starts with raising awareness of SEMI-certified programs as a key bridge connecting prospective talent, the industry and applicable training and education programs. Growing awareness of the programs will enable SEMI to build an extensive database of employers and qualified talent and link both to the right training. SEMI will continue to drive and endorse programs that help meet member needs throughout the education continuum – from K-4 to higher education and adult training. But the infrastructure and ecosystem required to support and scale these programs is the key for all of us to win together. At a high level, SEMI Works consists of several important components: Linking the required industry competencies to education and training course curriculum – Similar to the establishment of SEMI standards, SEMI will certify education and training programs that dovetail with the industry competency model. Initial certification and annual re-certification ensure continued updates, relevance and sustainability of the programs. SEMI will raise awareness of SEMI Works certified programs as the standard for meeting the industry’s talent requirements. Developing and maintaining the electronics industry competency model – Through established working groups and ongoing dialogue with our members, we are developing a competency model – a tiered matrix of required competencies used to link course curriculum to the talent needs of employers. The competency model consists of interpersonal and individual skills, academic and general industry requirements, advanced manufacturing competencies, and competencies by job. SEMI will establish and maintain the model with regular updates. Improving access to talent – Through SEMI Works, SEMI will build an extensive database that brings together programs, talent and employers. People and organizations opting into a SEMI-certified program or acquiring a SEMI program certification will be part of the SEMI database. Job seekers will be able to set up a profile and resume and search for training and employment opportunities, and employers will search the talent pool – much as job-search sites work today – assured of a skills match based on the SEMI certification. I am passionate about education and proud of all of SEMI’s efforts. I am especially proud of the work we are doing to help provide a pathway to meaningful careers for children and adults all around the world. We no longer have the luxury of a piecemeal approach to training and education.It is my hope and belief that SEMI Works, together with our efforts to improve diversity and inclusion in the workforce, will be SEMI’s lasting mark on the global electronics industry.Ajit Manocha is president and CEO of SEMI.

MedTech, autonomous driving and other disruptive technologies will be in focus at the SEMI Industry Strategy Symposium (ISS Europe), 31 March - 2 April 2019 in Milan, Italy, as top European executives, researchers and academics gather to explore solutions to the region’s most pressing strategic, economic and social challenges. Ahead of ISS Europe, SEMI spoke with Mark Purdy, managing director and chief economist at Accenture Research, about Accenture’s Business Futures – four different future worlds set in 2025 based on the collision of trends across demographics, geopolitics, technology, and economics – and what these futures will mean for markets, workforces, operating models and industry value chains. SEMI: At ISS Europe in Milan, you will kick off the symposium highlighting market opportunities of the digital economy and how companies must adapt to competitive challenges. What inspired Accenture’s Business Futures four world scenarios?Purdy: The impetus for our Business Futures really stemmed from a certain dissatisfaction with current approaches to thinking about the future. We were struck by the following puzzle. First, there is no shortage of techniques for looking at the future, from forecasting to trends analysis to conventional scenarios. Second, most decision-makers have more or less the same access to information on global trends. Yet, time and again, we hear stories of businesses going bust or facing major challenges precisely because they failed to anticipate major changes in their industry.The paradox is that we have so much information, but so little real understanding of how the future actually unfolds. So that set us thinking about how to develop a new approach, based on a combination of detailed trend analysis, expert input and creative storytelling – which is what we call “Business Futures.” SEMI: Of demographics, geopolitics, technology, and economics, which trend do you see as particularly critical?Purdy: Actually, the essence of our Business Futures thinking is that it is the collision or combination of different trends – across economics, technology, demography, etc. – that shapes future outcomes, rather than individual trends per se. To a certain extent we tend to become fixated on specific trends and this can lead us astray or cause bad decision-making. For example, in the early 2000s many people saw very favorable trends in the U.S. economy – strong capital inflows, rapidly rising consumer spending, surging stock markets, and rising home ownership rates. Each trend in isolation looked strong and sustainable. But we failed to see how the combination of these trends was fueling risky financial innovation that would eventually lead to the financial crisis and great recession.Technology of course is a key trend. We are seeing tremendous advances in next-wave technologies such as robotics, machine learning, intelligent objects, 5G and virtualization. But we can only truly understand the impact of the technologies – and the business opportunities and challenges they create – by viewing them against a wider backdrop of changes in society, demography, geopolitics and economics. That is what Business Futures strives to do.SEMI: What will these different futures mean for markets, workforce, operating models and industry value chains?Purdy: There will be profound changes in how we think about all of these areas. Markets will become much more personalized and interactive. Technology will be increasingly integrated with humans, fueling innovation in areas such as personalized healthcare and preventative medicine. Our notions of distance and capacity will be upended, as new virtualized services enable new ways of reaching underserved customers. Consumers will become increasingly involved in the creation and design of products and services. New methods of innovation, powered by AI and virtualization, will come to the fore. New entrants will come from unexpected quarters, enabled by new technology. The upshot will be massive disruption and disintermediation of value chains across many sectors.SEMI: What can Europe do to prepare?Purdy: There are no simple answers, and the correct course will vary by country, but there are some basic things to get right. First, different countries need to understand their comparative advantage – for example, whether it is in services, new technologies, advanced manufacturing or resources – and work with the grain of these different futures. Second, countries need to ensure that they have the basic conditions – regulation, organizational adaptability, workforce flexibility, skills, and innovation infrastructure – to capitalize on the productive potential of new technologies such as AI, virtual reality, and the Internet of Things (IoT). Third, we need to create educational systems and workforce learning methods that emphasize creativity, problem solving and innovation – precisely the skills that will be most needed in an age of intelligent machines. SEMI: What are your expectations for the summit in Milan and for the future?Purdy: I’m very much looking forward to the ISS Europe Summit in Milan. As an economist, I believe we are at a pivotal moment in the semi-conductor industry, driven by waves of technological change and rising geopolitical frictions and uncertainty. With so many industry leaders and experts coming together at the Summit, I’m confident that our discussions will help point a way forward!Mark Purdy is managing director of economic research at Accenture Research. His research examines issues at the intersection of economics, technology and business. He has published widely in tier-1 media and specialised publications on topics such as China’s economy, emerging-market geographic strategy, inclusive economic growth, business futures and the economic impact of new technologies such as the Internet of Things and artificial intelligence. A graduate of Trinity College Dublin, he speaks on these topics at conferences and seminars around the world.Serena Brischetto is a marketing and communications manager at SEMI Europe.

For nearly two decades, Sean Ding, CTO and chief scientist of Alibaba Cloud IoT, has worked in software and algorithm architectures, sensing, semiconductors, systems and cloud computing – all areas that have contributed to the rise of the Internet of Things (IoT). It’s no surprise, then, that Alibaba is leading next-generation innovation for the IoT. Ding will bring his expertise to his role as moderator of Brave New World - MSIG Conference on AI+IoT 2019, a half-day forum March 20, 2019, at SEMICON China in Shanghai, China. Maria Vetrano of SEMI spoke with Ding about technologies key to the IoT era including MEMS, sensors, artificial intelligence (AI), edge gateways and cloud computing. SEMI: MEMS sensors are widely used in IoT devices. What is the relationship between AI and MEMS sensors?DING: While MEMS sensors and AI will increasingly co-reside in end-user devices, I do not recommend adding AI next to the sensor (in the same package). That’s because designers continue to use the ASIC for signal conditioning, so A/D converters are still required. Rather, we should look to edge gateways to carry the majority of the workload, including deep learning, because this reduces system complexity and power consumption.SEMI: Why are smarter sensors shifting data processing and analytics to the edge of IoT devices?DING: Data processing and analytics are very important for IoT devices, but we need to focus on understanding the data, parameter calibration and more. The MEMS sensor industry should leave big data analytics to edge computing and cloud computing because AI requires deep learning, demanding a huge amount of data.The challenge is to find the sweet spot for data processing right next to the sensor element.SEMI: What is China’s evolving role in innovation in MEMS sensors for IoT devices?DING: At present, the MEMS community in China needs to figure out how to innovate instead of copying existing technologies, a low-margin business that will not help to grow the industry. One reason why I am so pleased to see the MSIG Conference on AI+IoT in China is that it will encourage greater creativity in the MEMS community in China, and this will ultimately lead to Chinese companies and R D institutions leading innovation rather than copying it.SEMI: What is the right approach to combining smart MEMS sensors with AI in IoT devices? Why is this important for both domestic Chinese and international markets?DING: Combining data from sensors with cloud-edge computing is the right approach. As sensor companies increasingly provide end-to-end solutions, such as “sensor+ firmware + SaaS + app,” we will realize easier and faster integration of sensors in IoT applications.This is incredibly important because China today is the world’s biggest market for IoT hardware. China has 2,000-plus design houses, 200-plus OEMs and thousands of distributors. That said, we still see a highly fragmented market that will benefit from a faster integration methodology.Faster integration of MEMS sensors and AI/machine learning for IoT hardware will benefit designers in international markets as well.SEMI: What do you hope MISG Conference on AI+IoT attendees will take away from the forum? DING: MEMS sensors are highly fragmented, reflecting the highly fragmented applications in which they play. The MEMS sensors industry should figure out how to provide one-stop-shopping solutions for vertical markets. This will speed the scalability of applications and expedite the growth of sensor production. Sean Ding (柯镇) will moderate Brave New World - MSIG Conference on AI+IoT 2019 at SEMICON China on Wednesday, March 20, 2019, at Kerry Hotel Pudong in Shanghai, China.This conference has been organized by the MEMS Sensors Industry Group (MSIG). Register today to connect with Sean Ding and featured speakers at the event.Speakers at the MSIG Conference on AI+IoT 2019 at SEMICON China include: Welcome and Introduction / 欢迎辞Carmelo Sansone, Director, MEMS Sensors Industry Group (MSIG), a SEMI technology community AI Needs Accurate Data – MEMS Sensors Can Provide It / MEMS传感器为人工智能提供真实数据Andrea Onetti, Group VP of Analog MEMS Group, GM of MEMS Sensor Division, STMicroelectronics Enhanced IoT Edge by Smart Sensors / 智能传感器助力IoT边缘智Bennini Fouad, Regional President Asia Pacific, Bosch Sensortec Horizon AI Processor Solution, Enable Industries in AI Time / 地平线AI芯片解决方案，赋能千万业Carl Zhang 张永谦, General Manager/VP, Smart Chip Solutions Division, Horizon Robotics Inertial Sensors in AI Applications / 运动传感器AI应用案例Ben Lee 李彬 , CEO, mCube Ultra-Low-Power Solutions: an Ecosystem Approach / 超低功耗的生态链解决方案Carlos Mazure, IEEE Fellow, Chairman Executive Director, SOI Industry Consortium High-Integrity, Fault-Tolerant Open Inertial Measurement Platform for AI-based Vehicle Automation / 适用于人工智能车辆自动控制的高集成及容错的惯性测量开放平台Dan Dempsey, Senior Director of Automotive, ACEINNA Maria Vetrano is a public relations consultant at SEMI.

The more than 53,000 people who flocked to SEMICON Korea last month were treated to a motherlode of insight into the future of the semiconductor industry as 470 companies exhibited innovative technologies in more than 2,000 booths. But the annual event’s most arresting numbers came in keynotes and other presentations pointing to the extraordinary industry growth that lies ahead.“It is no exaggeration to say that 90 percent of the world’s data has been generated in the last few years,” said Jim Feldhan, president of Semico Research. “This explosive growth of data is expected to continue. That's why server shipments will grow by 20.3 percent, or 30 million units, this year alone.”Feldhan said that the Internet of Things (IoT) will be a chief driver of semiconductor industry growth, with IoT expected to be applied in areas as varied as automotive, smart cities, edge computers, finance, architecture, agriculture and healthcare. For its part, artificial intelligence (AI) will start to exercise human-like judgment. Feldhan noted that in many instances in these fields, “it is more accurate to apply AI and vision systems than to rely on traditional decision-making.”Yoon Jong Lee, senior vice president of DB HiTek, predicted that the Internet, AI and 5G will drive market growth. “Looking back over the past 30 years, semiconductor market growth was powered by PCs, the Internet and cell phones, yet last year memory accounted for 35 percent of total semiconductor sales, more than double the figure in 2016,” he said. He predicted that, in 2019, the foundry sector will outstrip the semiconductor market in growth, noting that the average growth rate of the semiconductor industry is expected to be 4.1 percent, compared to 7.1 percent for the foundry market. Clark Tseng, director of SEMI, reported that the strong semiconductor growth in 2018 is unlikely to continue in 2019 due to the decline in memory pricing, as well as mobile and PC demand. “Demand for semiconductors is likely to decline in the first half as the industry is still digesting inventory and rebound in the second,” Tseng said. Semiconductor industry growth headwinds include decreases in high-end smartphone purchases, PC demand and demand for DRAMs for servers in data centers, Tseng said. Declines in economic growth and consumption in China and the U.S.-China trade war will also contribute to a slowdown. However, Tseng noted that, over the long term, technology innovation will continue and that the semiconductor industry’s prospects remain bright.One key innovation will be the elimination of AI’s reliance on Internet connections in the future. In his opening day keynote, Eunsoo Shim, senior vice president at Samsung Electronics, emphasized that AI technology that operates without the Internet in the future is essential. “We are developing 'on-device AI' technology that incorporates AI algorithms in products such as smartphones and autonomous vehicles,” he said. "When on-device AI technology is implemented, it reduces reliance on the Internet, battery consumption, and data latency.” Reducing latency will significantly improve device response time.Walden C. Rhines, CEO Emeritus of Mentor, a Siemens business, predicted that AI will fuel rapid memory growth. The memory semiconductor (DRAM, NAND flash) market is expected to see a temporary slowdown this year, with the market expected to rebound in 2020. Rhines said that memory could be seen as an early market with rapid future growth, citing memory market super-booms in 1995 and 2000.“Memory production has not decreased since 1995 or 2000,” he said. “Although memory prices will temporarily fall this year after significant market growth in 2017 to 2018, the market will continue to grow as memory production increases,” he said. Rhines added that “although memory prices will drop by about 10 percent this year, he believes prices will increase 6 percent next year.” He also predicted the steady growth of the non-memory semiconductor market as AI technology matures and China’s investment in fabless companies continues.Indeed, SEMICON Korea speakers made it clear that concerns about the growth of the semiconductor industry are expected to be short-lived. While overall growth is likely to slow in 2019, the industry is expected to rebound steadily – powered by the semiconductor industry paradigm shift led by AI, IOT, and autonomous driving – and reach a new high of nearly $541 billion in 2020.Jaegwan Shim is a marketing specialist at SEMI Korea.

This year, SEMI ISS covered it all – from a high-level semiconductor market and global geopolitical overview down to the neuro morphic and quantum level. Here are key takeaways from the Day 1 keynote and Economic Trends and Market Perspectives presentations.In the opening keynote, Anne Kelleher from Intel pointed to the huge growth of data, with fabs collecting more than 5 billion sensor data points each day. The challenge, Kelleher noted, is to turn massive amounts of data into valuable information. Moore’s law is not dead. New models of computing benefit still from Moore’s law and advances in Si/CMOS technologies for conventional, deep learning, neuro morphic and quantum computing.With customers expecting continual improvements in applications, the question is whether the chip industry is moving fast enough to meet these expectations, Kelleher said. A broad supply chain, equipment and materials innovations, and attracting the “best of the best” college graduates to fuel innovation is key, she said.In the economic trends session, Nicholas Burns (ambassador ret.) from Harvard University pointed out that we will see a major shift in power. The U.S. will remain the major world power over the next 10 years, but we will see a major shift in power in the next coming decades as the gap with countries like China, Russia and India continues to narrow.Duncan Meldrum from Hilltop Economics said that we are passing the peak growth of economic cycle. He warns that a more likely outlook is that a global growth recession is developing. Although semiconductor MSI growth will see a noticeable slowdown in 2019 and 2020, the semiconductor industry is still healthy over the longer term.Bob Johnson from Gartner sees demand shifting from consumer to commercial applications with higher ROIs and budgets. AI, IoT and 5D are the major enablers. He sees structural changes in the semiconductor industry especially for memory but also for Moore’s law with increasing costs and fewer players.The DRAM markets shows volatility and NAND market may be negative in 2019 but non-memory are expected to accelerate mainly because of increasing content and some price hikes.Overall Gartner expects good long-term growth with a CAGR (2017 to 2022) of 5.1%, outpacing 2011 to 2016 CAGR of 2.6%. After a strong 2018 with 13.4% revenue, he forecasts a slower 2019 with 2.6% growth followed by a 8% growth in 2020 and negative growth rate in 2021.Andrea Lati of VLSI went “Back to fundamentals” in his presentation about the industry. VLSI sees a downside bias due to slowing global economy, tariffs, and trade wars. Future drivers are data economy, cloud, AI and automotive.As memory leads the 2019 slowdown, analog, power, logic and other sectors remain in positive territory. VLSI lowered its semiconductor equipment forecast for 2018 from 20% (Jan. 2018) to 14% (Dec. 2018) but increased its sales outlook from 8% to 15% in 2018. VLSI expects revenue to slow into the first half of 2019 but increase to over 4% in the second half of the year, resulting in total 2019 drop of 2.7%. Semiconductor equipment sales are expected to drop from 14% in 2018 to -10% in 2019.Michael Corbett of Linz Consulting, covering wafer fab materials in the years of 3D scaling, sees these as good times for the industry. His outlook for wafer fab materials is bullish based on strong MSI and because wafer fab materials suppliers are getting bigger because of M As.In the Market Perspective session, Sujeet Chand of Rockwell Automation pointed out that as more and more data is generated, the problem is how to get value of all the data collected. There is a need to create the right architecture for machine learning and AI and big data is increasingly being replaced by contextual/structured data. He expects Industry 4.0 to drive foundries to become smaller, more flexible and more productive.In the Technology and Manufacturing session, Aki Sekiguchi of TEL addressed process challenges in the age of co-optimization. The semiconductor industry continues to expand, driven by massive growth of interconnected devices, with heavy demand for processing power and storage. He expects an exponential increase of data from about 40ZB in 2018 to 50ZB in 2020 to 163 ZB in 2026.Major technologies such as DRAM, 3D NAND and logic are dealing with scaling challenges. The density of DRAM (Mb/chip) is plateauing according to 2015 to 2020 trend data, with DRAM is in need of EUV. Memory capacity demand is leading to increasing layers and higher aspect ratios that is concern for 3D NAND and mainly for plasma etch. With Logic already implementing 3D structures, it appears to be in a solid position. Buddy Nicoson of Micron talked about his 50 years in the industry and looked ahead to the next 50. The anchors – quality, cost, scale and speed – won’t change. It has been a great journey so far with unprecedented opportunities and challenges ahead of us. We are getting into a convergence (specialization, integration) and solution-based phase. We will see some inflection points in the coming years, with the best yet to come.Christian G. Dieseldorff is senior principal analyst in the Industry Research and Analysis group at SEMI in Milpitas, California.

When developing industry forecasts, market analysts gather data from hundreds of companies to provide actionable insights on established technologies and to identify near-term business opportunities. As a developer of new MEMS and sensor technologies for a range of commercial applications, clients often ask us, “What’s going to be hot?” Gauging the promise of emerging technologies that are five to 10 years from commercialization requires taking a different tack.History tells us that most of today’s blockbuster MEMS products were born as academic research projects. Years of hard work by entrepreneurs, funded by millions of dollars, have turned proof-of-concept research into new commercial products. To identify up-and-coming technologies, we gather information straight from the source: academic conferences and articles.Chirp Microsystems is a good proof point of our research methodology: In my 2012 report on emerging technologies, I highlighted research from UC Berkeley and UC Davis on “In-Air Ultrasonic Rangefinding and Angle Estimation Using an Array of AlN Micromachined Transducers.” Soon after publication, the authors incorporated Chirp Microsystems to commercialize their technology for gesture- and fingerprint-recognition applications.After five years of development work, Chirp’s products are entering the marketplace. In February 2018, the global supplier TDK InvenSense acquired Chirp, underscoring the company’s commercial potential. At October’s SEMI-MSIG MEMS Sensors Executive Congress in Napa, Calif., Chirp’s CEO, Dr. Michelle Kiang, held attendees rapt as she described her company’s journey from startup to wholly owned subsidiary.There’s a methodThis year, I reviewed over 100 papers from top researchers presenting noteworthy technologies at the Hilton Head Workshop on Solid-State Sensors, Actuators and Microsystems. My criteria for selection were: commercial relevance; offers a solution to a known or anticipated problem; and technology game-changers. The following caught my eye: Event-driven sensors: Cleverly designed silicon MEMS that consume no power while standing by. A triggering mechanical or thermal event closes a contact within the sensor to activate its circuitry and telemetry. These sensors leverage existing fabrication methods, so they could become commercial products within five years for event monitoring and security applications. (UT Dallas, Northeastern University). Figure: 5-bit accelerometer having zero standby power. The device is open circuit until a threshold acceleration closes a mechanical contact. Source: University of Texas at Dallas. Thin film piezoelectric resonators: Advances in PZT deposition methods and process integration with CMOS were used to create monolithic acoustic waveguides for RF filtering in 5G applications. This new filter design, using existing scalable processes, is ripe for commercialization. (Purdue University, Texas Instruments) Intra-body communications: MEMS ultrasound transceivers, made from aluminum nitride, can send data directly through flesh at Mbit/s data rate. With trends toward networks of multiple implanted or wearable medical devices, this innovation would enable medically safe, secure, intra-body wireless communication. This early-stage work still needs in vivo validation and would likely require 10 or more years for development and regulatory approval. (Northeastern University) Screen- and 3D-printed sensors: One example of many exciting innovations using screen- and 3D-printing are potentiometric nitrate soil sensors. Low-cost and biodegradable, these sensors could be spread over huge areas to monitor a farm’s soil quality. Table-top and hobbyist tools are currently used to make screen- and 3D-printed devices, so new manufacturing equipment and infrastructure must be developed before commercial production could occur. (Purdue University) Biodegradable batteries: A paper-based battery that can deliver 0.5 uW of power, ingeniously using bacterial metabolism as the electrolyte. These batteries dissolve in water and could one day be used to power temporary medical implants or biodegradable sensors. This exciting proof-of-concept prototype will require significant process development and new manufacturing infrastructure for commercialization. (SUNY Binghamton) Figure: Paper-based battery dissolves in 60 minutes after immersion in water. Source: SUNY Binghamton To read more about these technologies, please download my presentation from SEMI-MSIG’s MEMS Sensors TechXpot at SEMICON West 2018.Alissa M. Fitzgerald, Ph.D., is the founder and managing member of A.M. Fitzgerald Associates, LLC, a MEMS and sensors development company in Burlingame, CA. She has over 20 years of engineering experience in MEMS design, fabrication and product development and now advises clients on the entire cycle of product development, from business and IP strategy to manufacturing operations. She is a frequent speaker at industry conferences and currently serves as a director of the Transducer Research Foundation, sponsor of the Hilton Head Workshop. She received her bachelor’s and master’s degrees from MIT and her doctorate from Stanford University in Aeronautics and Astronautics.For more information, visit: www.amfitzgerald.com

Kyushu, the third largest island in Japan, is home to the semiconductor production bases of integrated device manufacturers (IDMs) with world-class cutting-edge technology. SONY, Toshiba, Hitachi, Mitsubishi, Fujitsu and Nissan are among the sector’s shining stars, though a host of other IDMs tied to the supply chains of other major enterprises have also set root in Kyushu. Collectively, the companies earned Kyushu the name Silicon Island of Japan.Kyushu’s flourishing IDM industry sprouted from favorable tax and other government policies that reduced semiconductor production costs to levels lower than elsewhere in Japan. Once the IC producers had established bases, equipment and materials companies naturally followed, leading to the influx of many parts manufacturers. Together, they came to Kyushu, one after another, to make the island a magnet for manufacturing. And so it was to Kyushu that a SEMI China delegation travelled for a meeting at TEL’s factory in Kumamoto to learn more about the secrets to the rapid growth of the island’s semiconductor industry and promote cooperation between Chinese and Japanese enterprises. Underscoring the rise of the Silicon Island of Japan, China will soon become TEL’s largest market, said Masami Akimoto, Chairman of Tokyo Electron Kyushu Limited, speaking at the event. Masami Akimoto hopes for support from SEMI China.The island of 12 million people contributes to the growth of the global semiconductor industry, expected to reach USD 500 billion in size in 2019 as China’s semiconductor sector, fueled in part by government-backed investment funds, continues its rapid expansion. Despite the gains, China still lags other regions in advanced manufacturing, said Lung Chu, president of SEMI China, which is doing its part to draw more advanced manufacturing to the region through its SIIP platform. The initiative encourages pan-regional cooperation with China’s semiconductor industry to promote free trade, open markets, technology innovation and IP protection – all to help China better integrate with the global semiconductor industry. SEMI China President Lung Chu(L) issues visit memorial to Masami Akimoto(R), Chairman of Tokyo Electron Kyushu Limited. Chicken shall be led by the HenUnlike other regions with comprehensive semiconductor industries, Kyushu’s is primarily focused on production and assembly, with more than 200 manufacturers of semiconductor equipment and parts.SEMI China Delegation at Tokyo Electron Kyushu LimitedTEL built its first factory in Kumamoto, a city covered by volcanic ash in the center of Kyushu, 34 years ago. Today, TEL every month produces 80 to 90 sets of equipment, each consisting of, on average, over 400 thousand parts that must be certified and authorized by TEL before delivery to its module manufacturers and assembly into complete machines. Having blossomed over the past few decades, the island’s supply chain now supplies TEL with all its equipment parts. SEMI China Delegation at Fajita WorksTEL supplier Fajita Works, a high-precision plate metal manufacturer founded in 1945, is emblematic of other companies in the Kyushu supply chain. It keeps a low public profile as it serves several longtime customers and earns ardent loyalty from its workers, an ethos reflected in the change next January of its slog from “Only One” to “Great company, Great life.”Quality is the life of the enterpriseLong before the rise of its legendary automobile and consumer electronics companies, Japan was known for inferior, counterfeited products, labeled “Made In USA” and shipped to the United States by more than 100 factories. The net effect was to shrink and commoditize American markets. The tide in Japan’s product quality and stained reputation began to turn in the 1980s, when Japan’s semiconductor industry began to produce memory with an error rate 27 times lower than its U.S. competitors, giving Japan an upper hand in quality that it would never relinquish. SEMI China Delegation at HORIBAKyushu-based flowmeter supplier HORIBA, among the many Japanese companies famous for their product quality, ships 38 percent of its products into the automotive market and 27 percent into the semiconductor sector. Cleanliness is as vital a part of the company’s culture as quality. Each depends on the other, with fine detail held to the highest importance. On its visit to HORIBA, the SEMI China delegation, passing by an office area before entering the factory, sighed at the sight of the spotless, neatly kept furniture and workspace: They had never seen an office so sparkling clean. HORIBA’s success is rooted in immaculate offices, factories and the company’s motto “Enjoy innovation and pay close attention to product quality.”After Kumamoto sustained heavy damage during a 2016 earthquake, HORIBA workers returned rocks scattered by temblor to their original position, knowing that order is critical to lean, efficient manufacturing and that, indeed, “the devil is in the details.” SEMI China Delegation in Kumamoto City Full confidence in the exploration of Chinese marketConsumer electronics stalwarts Sony and Panasonic feature semiconductor factories in Kagoshima, the southernmost city in Kyushu and Japan, though rumor had it two years ago that Panasonic planned to pull out. The Panasonic plant, which provides batteries for Tesla, remains. The Sony facility produces image sensors for the iPhone.Semiconductor equipment maker ULVAC, SEMI China’s most important strategic partner, is also based in Kagoshima. During the delegation’s visit to the company, Lung Chu noted that while China is the world’s largest semiconductor market, the region meets just 13 percent of domestic chip demand. Stressing that ULVAC can play a crucial role in helping China become a bigger player, he expressed admiration for ULVAC’s professionalism along with hope that it will maintain its rapid growth and leverage SEMI resources to catalyze rapid development of Internet of Things (IoT), artificial intelligence (AI), and 5G technologies in China and rise into the top 10 of global equipment manufacturers. SEMI China President Lung Chu (L) issues visit memorial to ULVAC Kyushu President and CEO Kenji Yamaguchi ULVAC Kyushu president and CEO Kenji Yamaguchi made clear the company’s interest in Lung Chu’s insights into Chinese semiconductor industry while underscoring its core competency of producing semiconductors for flat panel displays. The Kyushu Factory of ULVAC is full of vitality and market competitiveness. SEMI China Delegation at ULVAC EBARA, a precision machinery company located in Kumamoto, has manufactured chemical-mechanical planarization (CMP) equipment for over 20 years and delivered nearly 2,400 mechanical polishing machines worldwide. While the company expects to ship 50 sets per year to China starting next year, it has the capacity to deliver 20 sets per month, enough to meet demand of Chinese semiconductor makers. SEMI China Delegation at EBARAThe most telling takeaway from the SEMI China delegation’s visit to the Kyushu: Japan ranks number one worldwide in research and development (R D) investment as a proportion of GDP and is also at the top in the percentage of R D funds controlled by private enterprises. The outsize investment strategy has enabled Japan to maintain its hold as one of the world’s top technology innovators.Like Sakurajima, the famed Kyushu volcano, the SEMI China delegation will continue to harness its forces to build relationships with the island’s semiconductor supply chain as it works to develop win-win pan-regional relationships and foster the growth of China’s semiconductor industry. Best view of Sakurai volcano Gang Yao is a marketing director at SEMI China.