Leaders in the semiconductor industry are finding ways to balance rapid demand growth with strategies to mitigate the risks of geopolitical uncertainty and a complex supply chain.At the CxO Summit during SEMICON Europa, industry leaders gathered to share insights into the immense opportunities ahead for the semiconductor sector, as well as the challenges that could impede growth. Laith Altimime, President of SEMI Europe, highlighted how discussions last year centered on reaching $1 trillion in global sales by 2030. “The conversation today is about how far above $1 trillion we will be in 2030,” said Altimime. “Artificial intelligence is an amazing and exciting technology, and the semiconductor industry is at the heart of it.”Laith Altimime, President, SEMI EuropeAjit Manocha, President and CEO of SEMI, described the current state of the semiconductor industry with one word – “unprecedented.” Emphasizing quantum computing as the next growth driver after AI, Manocha urged leaders to prepare for the next landmark - $4 trillion in global sales by 2040. However, the challenges facing the industry are equally unprecedented. Manocha identified four key obstacles: geopolitical volatility, the Net Zero challenge, the competition for top talent, and supply chain disruptions. “We need to work together to solve these challenges – we need unprecedented collaboration,” he explained. Ajit Manocha, President and CEO, SEMIA European Perspective on the Industry’s ChallengesWith the CHIPS Act in the US and the European Union (EU) Chips Act, the industry is also seeing unprecedented governmental engagement. Gustav Kolbe, Acting Director of Enabling and Emerging Technologies at Directorate-General for Communications Networks, Content and Technology of the European Commission, explained that Europe had been deeply impacted by the effect of trade tensions and supply chain disruptions. “In the field of semiconductors, we realized that we cannot keep doing business as usual and expect to achieve more resilience and reduced dependence on non-European supply chains,” Kolbe said. Gustav Kolbe, Acting Director of Enabling and Emerging Technologies, DG CONNECT, European CommissionJari Kinaret, Executive Director of the Chips Joint Undertaking (Chips JU), which is responsible for implementing EU Chips Act programs, described how its projects amplify the effect of EU funding by leveraging matching contributions from member states and participating companies. “This means that our budget of €4 billion actually produces investments in the semiconductor industry of about €11 billion,” he noted. Jari Kinaret, Executive Director, Chips JUThe Chips JU funded projects are designed to position Europe at the forefront of advanced semiconductor technology. Belgium’s imec, for example, is operating a Chips JU pilot line focused on leading-edge semiconductor innovation. Luc Van den hove, President and CEO of imec, highlighted the potential for 3D integration, “We can now combine multiple chips through silicon interposers with very fast connectivity between them. This allows us to build compute platforms which are far larger than what can be made with a single silicon chip,” he explained referring to this approach as “CMOS 2.0.” However, Van den hove warned that Europe cannot achieve its goals alone, emphasizing the complex semiconductor value chain and the need for collaboration. “Self-sufficiency leads to mediocrity,” he warned, advocating for a global approach that leverages the “best of the best.”Luc Van den hove, President and CEO, imecStephan Haferl, Chief Executive Officer of Comet Group, introduced the CA20, a tool designed to improve efficiency and quality in semiconductor manufacturing. The CA20 uses advanced imaging and AI to quickly identify and address production challenges, such as defects in solder bumps, without damaging components. Now fully automated, it integrates smoothly into factory workflows, providing real-time information to help manufacturers maintain high standards and increase production yields. This innovation highlights the role of new technologies in overcoming key obstacles and driving progress in the semiconductor industry.Left to right: Isabella Drolz, Vice President Marketing Product Strategy, Comet Yxlon; Laith Altimime, President, SEMI Europe; Stephan Haferl, Chief Executive Officer, Comet Group; and Dionys van de Ven, President, Comet YxlonCarlos Mazure, Chief Strategy Officer at Institute of Microelectronics – A*STAR in Singapore, illustrated this point by highlighting the institute’s focus on advanced packaging, a key Singaporean strength. “We have built a state-of-the-art 300mm prototyping line, enabling companies to implement wafer-to-wafer and chip-to-wafer bonding as well as fanout chip packaging,” Mazure said. Carlos Mazure, Chief Strategy Officer, Institute of Microelectronics – A*STARTurning back to Europe, Pierre Barnabé, CEO of Soitec, highlighted materials science as a regional strength. Soitec’s engineered substrates are driving energy efficiency breakthroughs in electronic, acoustic, and photonic applications. “We can bond anything to anything, creating advanced substrates for any active layer,” Barnabé explained. Pierre Barnabé, CEO, SoitecKai Beckmann, Member of the Executive Board and CEO Electronics at Merck KGaA, Darmstadt, Germany, also emphasized the role of materials in enabling sustainable growth. “The semiconductor industry faces a challenge with the contribution of process gases to its total greenhouse gas emissions. We hope to solve the problem by using AI to support materials research, and to design new molecules – an approach we have learned from the pharmaceuticals industry,” Beckmann shared. Kai Beckmann, Member of the Executive Board and CEO Electronics, Merck KGaA, Darmstadt, GermanyCollaboration Strengthens the Semiconductor Supply Chain Despite the breadth of enabling technologies emerging from Europe, the rapid growth in semiconductor demand has not always been matched by a secure supply. Barbara Frenkel, Member of the Executive Board Purchase at Porsche, shared that the company is collaborating with the industry to improve its access to the chips needed for automotive electrification. This includes joining industry groups such as the SEMI Global Automotive Advisory Council (GAAC) and, as she said, “learning your language.” Frenkel added, “Porsche aims to emulate Apple’s approach with Intel and Motorola to drive innovation – we will do the same with suppliers of automotive chips.”Barbara Frenkel, Member of the Executive Board Purchase, PorscheAnother solution to supply constraints is to widen the supply pipeline. John Behnke, General Manager for Smart Manufacturing at Inficon, described how smart technology can significantly improve efficiency and output. “A semiconductor fab is 100 times more complicated than anything else in the world – it is a mathematical nightmare to model it. That gives massive opportunities for improved productivity if we can implement smart control technologies,” Behnke explained. John Behnke, General Manager for Smart Manufacturing, InficonThe Challenge of Achieving Sustainable GrowthWhile the prospect of exceeding $1 trillion in annual sales energizes the industry, there is widespread recognition that growth must not come at the expense of environmental responsibility. As the industry doubles in size in the 2020s, it cannot afford to double its use of resources, such as energy or greenhouse gas emissions. Frédéric Godemel, Executive Vice President for Power Systems and Services at Schneider Electric, shared that the biggest impact on sustainability could come from “energy frugality” – using energy more efficiently. He explained that implementing data fusion in a semiconductor fab – combining detailed analysis of the operation of chillers with external data sets, such as weather conditions to allow for more efficient use – results in energy savings of 10%. “This approach saved costs, reduced CO2 emissions, and provided a financial payback in less than one year,” Godemel said.Frédéric Godemel, Executive Vice President for Power Systems and Services, Schneider ElectricThe value of smart control in fab operations was also highlighted by Katharina Westrich, Global Vice President of Electronics, Semiconductors Simulation Digital Industries at Siemens. She described how Siemens makes digital twins of factories before they are built. “This is an approach that the semiconductor industry can also adopt,” Westrich said. “A digital twin enables more efficient allocation of resources to the fab and sub-fab, allowing simulation of fab operation and optimization of processes and resources.”Katharina Westrich, Global Vice President of Electronics, Semiconductors Simulation Digital Industries, SiemensThe semiconductor industry faces a future full of opportunity, yet also marked by significant obstacles—ones that delegates at the CxO Summit are now better equipped to tackle head-on.On behalf of SEMI, the SEMI Europe team would like to express appreciation to the industry leaders for sharing their visions and readiness to collaborate during the CxO Summit.SEMI ContactCassandra Melvin, Senior Director of Business Development and OperationsEmail: [email protected]