semiconductor industry

The proliferation of chips driven by artificial intelligence and automotive will spur a record $68 billion in sales of semiconductor equipment in 2019.Building the workforce of the future is at once a challenge and opportunity for the semiconductor industry, the key to continuing the rapid pace of innovation and growth. And tariffs levied against billions of dollars of Chinese imports by the Trump administration has profound implications for SEMI members and the chip industry as a whole.Jonathan Davis, Global Vice President of Industry Advocacy at SEMI, offers insights on these key semiconductor industry issues in this interview at SEMICON West 2018. Ariana Raftopoulos is a marketing manager at SEMI.

SEMI has launched a mentoring program that pairs seasoned industry professionals with university students and professionals wanting to advance their careers. The program is designed to help tackle the semiconductor industry’s workforce shortfall and prepare the next generation of innovators. Under the program, SEMI members with years of professional experience share their knowledge with developing talent and help build their professional networks as they embark on their careers in the microelectronics industry.As the microelectronics manufacturing industry faces increasing challenges in recruiting, training and retaining a diverse pool of highly skilled talent to sustain the remarkable pace of innovation globally, SEMI has made workforce development a top strategic priority. Globally, the industry is confronted with more than 10,000 job vacancies.To help build the workforce of the future, SEMI has rolled out industry-wide programs to address a chief reason for the workforce shortage – increasing competition from other technology sectors. The initiatives include enhancing industry awareness of the industry’s critical need for talent, increasing the representation of women, and supporting young professionals and university students soon to be making important career decisions. The new SEMI Mentoring Program builds on those initiatives by guiding the next generation of innovators.With mentoring a proven method to develop talent, SEMI has contracted with Chronus – an experienced provider of a software mentoring platform tailored to support the SEMI Mentoring Program.SEMI Mentoring Program: Roles and Responsibilities This is a formal relationship in which mentors guide mentees in their professional development. The mentor will answer questions and take a personal interest in, guide, encourage, and support the mentee. The mentor will meeting monthly with the mentee and follow up as needed. The mentee will set up the first meeting to discuss professional goals, topics he or she would like to cover and timing for subsequent. Both mentor and mentee will commit to remain connected for at least six months. Frequently Asked Questions Q: How are meetings conducted?A: Mentors and mentees can meet face-to-face or virtually, but should meet for a minimum of one hour once a month for six months.Q: How are goals set?A: The mentor and the mentee agree on goals during their first meeting. The mentee is responsible for arranging meetings, preparing the agendas, and any other pre-meeting work. This will ensure that the discussions touch on the topics that matter most to the mentees.Q: What happens once the six months are up?A: You can continue an unofficial relationship if both parties agree, or you can search for a new mentor or mentee by reapplying through your mentor profile.Q: What is SEMI’s role?A: SEMI is here to help match you based off your preferences, facilitate the relationship, provide materials to guide your experience, and help resolve any program or platform related issues.Q: What are the program eligibility requirements for mentors?A: A mentor must be an employee of a SEMI member organization with a minimum of five years’ professional experience to mentor a university student, or seven years’ professional experience to mentor a developing professional.Q: What are program eligibility requirements for mentees?A: Developing Professional Program Developing professional, 0-7 years in their career Employed by a SEMI member organization University Program At minimum, a rising junior enrolled in a university program (students through PhD level accepted) Completing a STEM major Within 6 months of graduation if currently out of school and seeking employment Preferred: Interest in the microelectronics industry Q: Why be a mentee?A: Learn from an experienced industry professional and accelerate your professional development.Q: Why be a mentor?A: Being a mentor will allow you to grow as a leader while giving you the rewarding experience of guiding someone’s growth path firsthand. Join us in shaping the future of our industry by becoming a mentor or mentee. Sign up here! For more information about the program, please contact Cristina Sandoval, manager of Workforce Development, at [email protected].

U.S.-China Trade War Heats UpThe U.S. Trade Representative (USTR) yesterday released a 25 percent tariff on $16 billion in imports from China, including 29 tariff lines that represent the heart of the semiconductor industry. These tariff lines include semiconductor products such as machines and spare parts used to make, wafers, flat panel displays, masks and chips, and will cost SEMI’s 400 U.S. members an estimated more than $500 million annually in additional duties.SEMI, along with hundreds of companies, including Lam Research and KLA-Tencor, submitted written comments, requesting the removal of tariff lines from the proposed list. SEMI also testified on behalf of the semiconductor industry, joining more than 80 other companies, including Applied Materials, in opposing the duties before an U.S. government interagency panel in late July.This trade action is on top of the already imposed $34 billion U.S. tariff list, which will cost SEMI’s U.S. members tens of millions of dollars annually. In the coming days, USTR will publish details on how U.S. companies can request the exclusion of products from the $16 billion tariff list, much as it did for the first round of $34 billion.In a swift retaliation, China announced a 25 percent tariff on $16 billion in U.S. exports, including products vital to semiconductor manufacturing such as chemicals, test equipment and other parts. Both U.S. and China tariffs will take effect on August 23.The new tariffs come as China considers tariffs on $60 billion of U.S. imports, and the U.S. weighs additional duties on $200 billion of Chinese imports – a wave that would inflict even deeper damage on the U.S. semiconductor industry. This latest round of U.S. tariffs would cover goods used in microelectronics manufacturing, including chemicals, glass products and spare parts. SEMI will testify against the $200 billion tariff list later this month. If your company expects to be impacted by the proposed tariffs on $200 billion worth of goods, please contact SEMI staff.SEMI stands firm in its belief that none of the tariffs address U.S. concerns over China’s trade practices. Instead, they harm companies in the semiconductor supply chain by increasing business costs, introducing uncertainty and stifling innovation. SEMI will continue to engage with policymakers as both the U.S. and China $16 billion tariff lists are implemented. We will also be evaluating the products covered by the $200 billion U.S. list and the $60 billion Chinese list as both are further considered. We encourage members to review these lists to determine impact on their companies. For more information, please contact Jay Chittooran, Public Policy Manager at SEMI, at [email protected].

Two months after opposing $34 billion in U.S. trade tariffs on behalf of the U.S. semiconductor manufacturing industry, Jonathan Davis, global vice president of industry advocacy at SEMI, this week spoke out against an additional $16 billion in duties on Chinese goods. Testifying before the same U.S. interagency panel mulling the tariffs, Davis called for the removal of 29 tariff lines covering items critical to semiconductor manufacturing including machines and spare parts used to make, wafers, flat panel displays and masks.In his testimony to the panel, Davis stressed that while SEMI supports stronger protections against the theft of valuable intellectual property (IP), tariffs do little to address U.S. concerns over IP loss. Over the past month, SEMI has also submitted written comments and opposed the tariffs in public testimony. The panel includes representatives from the U.S. Trade Representative (USTR), Departments of Treasury, Commerce, State and Defense, and the Council of Economic Advisers.Also testifying, Joe Pon, corporate vice president at Applied Materials, explained that the proposed tariffs will harm small and midsized companies and other U.S. business interests. Describing the tariffs as a tax on exports of high-value U.S. goods, Pon said the duties give non-U.S. firms an unfair competitive advantage.In a parallel push to Davis’s testimony, SEMI, with more than 10 representatives from six member companies, met with 16 congressional offices this week to underscore the damage the tariffs would wreak on the U.S. semiconductor industry. The fallout would include higher operating costs, fewer exports and slower innovation. The tariffs would also curb industry growth and put thousands of high-paying, high-skill jobs at risk. SEMI pressed congressional leaders to reject the tariffs and support a push for congress to re-assert itself on trade policy.Tariffs to Cost U.S. SEMI Members More than $500 MillionSEMI estimates that the second list of proposed tariffs, covering about $16 billion in Chinese goods, will cost its 400 U.S. members more than $500 million annually in additional duties.The tariffs on $34 billion in Chinese goods, which took effect July 6, impact products such as test and inspection equipment as well as spare parts that enter the U.S. from China. That round of tariffs will cost SEMI member companies and estimated tens of millions of dollars annually. SEMI Public Policy Team Asks Members to Review Tariff ListLooking ahead, SEMI encourages members to review the newly released $200 billion tariff list, determine any impact to their businesses and share their findings with SEMI’s public policy team.The U.S. Trade Representative (USTR) has published the exclusion process for products subject to the China 301 tariffs. If your company’s products are subject to tariffs, you can request an exclusion.In evaluating product exclusion requests, the USTR will consider whether a product is available from a source outside of China, whether the additional duties would cause severe economic harm to the requestor or other U.S. interests, and whether the product is strategically important or related to Chinese industrial programs (such as “Made in China 2025”).The deadline for submitting product exclusion requests to USTR is October 9, 2018. Approved exclusions will be effective for one year upon approval and retroactive to July 6, 2018.More information including the process for submitting the product exclusion request can be found here.Any SEMI members with questions should contact Jay Chittooran, Public Policy Manager at SEMI, at [email protected].