Malaysia

As the semiconductor industry continues to evolve, successful workforce development initiatives are becoming increasingly essential. In Malaysia, around 60,000 new engineers are needed to support the country’s plans for industry growth. However, despite the rising need for new engineering talent, student interest for STEM in Malaysia is declining. Women in particular, are even less likely to consider careers in engineering fields than their male counterparts, and this holds true worldwide. One reason is due to gender biases that form around STEM in early childhood. The Journal of Applied Developmental Psychology found that boys are more likely to consider themselves “good” at STEM, and this stereotype is later reinforced by male dominance within STEM classes. To mitigate the talent shortage, and to encourage more young women to consider STEM careers, STMicroelectronics created its "STEM your way" initiative. This program supports STEM education throughout Malaysia, as well as all other countries that STMicroelectronics operates in. Through STEM your way, STMicroelectronics shares its passion for science and electronics with today’s primary and high school students. Over the last three years, STEM your way has reached nearly 70,000 students globally. To address the STEM gender disparity in Malaysia, SEMI Southeast Asia (SEA) has been proudly collaborating with STMicroelectronics since 2023 on its ST Maur GEMS program, as part of STEM your way. The girls in engineering, mathematics, and science (GEMS) program is foundational for developing future engineering talent and sparking STEM interest among female students. One of SEMI SEA’s first GEMS program initiatives was a “train-the-trainers” session, where SEMI SEA representatives shared creative approaches for teaching STEM-focused course material. This involved the use of Circuit Scribe and Micro:bit Smart Science IoT kits to make lessons tactile, engaging, and memorable. These interactive teaching aids form the basis of a “STEM kit,” and as of today, SEMI SEA and STMicroelectronics have sponsored roughly 200 kits. These efforts culminated in December 2024 during the GEMS IoT Challenge at Universiti Technikal Malaysia Melaka, where 68 students from 17 primary schools showcased their innovative projects. Students demonstrated their technical knowledge and creativity by coupling Micro:bit IoT kits with AI cameras, Wi-Fi modules, servomotors, and more, with the intention of solving day-to-day problems. Posters of students’ solutions at the IoT ChallengeWith the collaborative success of the ST Maur GEMS program, SEMI SEA is excited to help scale the challenge to include additional countries. To partner with SEMI SEA to bring STEM education opportunities to Southeast Asia, please contact Cecelia Fong at [email protected]. SEMI Southeast Asia ContactCecelia Fong, Technology Programs ManagerEmail: [email protected]

Jens Fabrowsky, executive VP of Automotive Electronics at Robert Bosch GmbH, spoke about changes in the European electronics industry necessary for the region to become more resilient, sharing his views during the panel discussion at SEMI ISS Europe on May 30 2022 in Brussels, Belgium.

AEM Holdings Ltd, a Singapore-based multinational corporation, is listed in Forbes Asia’s 200 Best Under A Billion 2019 and 2020 spotlighting small and midsized companies in the Asia-Pacific region with sales under $1 billion. AEM clinched the Singapore Business Review Technology Excellence Award 2020 for Analytics-Semiconductor and the Singapore Business Awards Enterprise Award 2019/2020. These achievements are testament to AEM’s vision and innovation and the company’s contributions to the increasingly complex testing of chips in a rapidly evolving technological world. I spoke with AEM CEO Chandran Nair, a new Regional Advisory Board (RAB) member of SEMI Southeast Asia, about the company’s intelligent test and handling solutions, its role in digital transformation, the company’s key role in the smart manufacturing movement and the growth prospects for Singapore’s electronics sector. SEMI: AEM’s application-specific, intelligent system test and handling solutions for semiconductor and electronics companies serve the advanced computing, 5G and AI markets. How do you differentiate your solutions from those offered by competitors? Nair: A key differentiation for AEM is that we work closely with our customers to develop application-specific integrated test and handling solutions that meet their needs in a scalable manner from lab to production. We offer our customers customized, full-stack test and handling solutions that give them the agility to accelerate their delivery cycles and enhance product quality. Over the years, AEM has developed and acquired world-class technologies in instrumentation, test, automation, robotics, optical inspection, high-end thermal control, and software. These technology pillars, along with our deep know-how to customize test and handling solutions using the technology pillars as a platform, enable AEM to meet the fast-changing needs of our customers faced with the challenges of testing heterogeneous and complex devices. In addition to investing in technology, AEM has also invested in delivering application-specific solutions to meet customer demand. Our recently announced acquisition of CEI with its manufacturing capabilities in Vietnam and its specialization in low-volume, high-mix manufacturing increases our geographical reach and our ability to quickly turn application-specific test and handling solutions to be deployed. We have a unique and differentiated approach that enables our customers to test high-performance computing devices, automotive devices, and mobility devices with maximum test coverage, cost-effectively, in a manufacturing environment. Our experience in serving the high-performance computing market that traditionally drives advancements in thermal control also puts us at the forefront of delivering comprehensive thermal management, vision, and deep automation and test solutions for the computing, automotive, and mobility markets. AEM also has a strong instrumentation portfolio, including high-density digital instruments and mixed-signal and protocol-aware instrumentation that is well-suited for ATE solutions for SoC, high-power devices, and CMOS image sensors. Over the last few years, we have also established leadership positions in developing and deploying application-specific test solutions for MEMS devices and offering wafer and frame probing stations suitable for R D, wafer sort, and final test. We form strong partnerships with our customers, provide them with end-to-end support in product development, and take them through the entire life cycle process from concept to mass production. Chandran Nair and Goh Meng Klang, vice president of operations, at the AEM manufacturing site in Singapore. (Photo credit: AEM) SEMI: Digital transformation is powering strong growth of advanced computing, 5G and AI. Will AEM be expanding its AEM manufacturing plants in China, Malaysia and Singapore to meet rising demand for these technologies in the coming years? Nair: In regards to manufacturing, AEM currently has manufacturing facilities in Singapore, Malaysia, the U.S., Finland, and China. With our recently announced acquisition of CEI, we will add manufacturing capability in Vietnam and Indonesia. AEM will continue to expand manufacturing appropriately to give our customers cost-effective solutions while maintaining our proven track record of delivering on time and scaling rapidly in times of crises like the pandemic or geopolitical disruptions. As for advanced technologies, the three key factors that will bring the full potential of 5G to fruition are 1) cost-effective, high-powered processing devices at the edge, 2) easy access to high-bandwidth communications, and 3) cost-effective sensor technology. Semiconductors are the primary drivers of these three key success factors. As devices become more complex and our reliance on semiconductor-powered devices in all aspects of our lives deepens exponentially to include mission-critical applications, AEM’s role is to ensure that our customers' electronic and semiconductor devices are shipped thoroughly tested, safe to use, and highly reliable. It is imperative that, as a testing company, we find innovative ways to help our customers test their products with maximum coverage and minimum cost. To do this, we are focusing our R D efforts and investments to continue building on our key technology pillars to ensure that we stay ahead of the curve when it comes to test and handling solutions. We prepare our customers to test increasingly complex devices manufactured on the latest process node. SEMI: During your career you’ve driven projects in test and automation and more recently robotics solutions for ports, logistics warehouses and transport. With robotics and automation a key part of Industry 4.0, what role do AEM solutions play in powering the smart manufacturing movement? Nair: The smart manufacturing movement is powered by semiconductors, software and increasingly by artificial intelligence (AI). Test is at the heart of the process of ensuring that semiconductor and electronics devices reach the consumer well-tested for reliability. With our vision of enabling A Zero Failure World, AEM addresses the necessity for safe, highly reliable devices. The semiconductor companies themselves are adopting smart manufacturing methods. AEM’s tools are Industry 4.0-ready, and we continue to invest in machine learning and data analytics, which are integral to the future of test. Our tools are automated and feature embedded sensors to provide our customers with data about tool usage, the state of a machine’s health, and more. Our tools are connected to our customers’ manufacturing automation platforms. Additionally, we continue to invest in our ability to better slice and dice test data to understand trends and patterns to help our customers analyze data and make decisions faster. SEMI: You also have experience heading autonomous vehicle projects. With the COVID-19 pandemic hastening digital transformation, do you see an acceleration in the development of fully autonomous vehicles and smart manufacturing? Research and development efforts for autonomous vehicles (AV) continue at a fast pace worldwide. With shutdowns and restricted movement rules globally, the pandemic has hastened digital transformation in many ways. The delivery of goods and services is transforming, and AV will surely play a part, especially in secure environments for autonomous transport. The pandemic has accelerated the development of autonomous vehicles and smart manufacturing technology in automation-friendly environments like factories and ports. SEMI: At the recent Global Technology Summit hosted by SEMI, you spoke about testing innovations to meet the demands of highly complex devices. Please elaborate on innovative testing solutions versus traditional testing? Nair: AEM offers a disruptive and differentiated solution, one that is driving a paradigm shift to asynchronous, modular, highly parallel, smart testing solutions. ​ The traditional approach of ATEs to test increasingly complex devices on advanced nodes has reached a point of diminishing returns as it gets exponentially more expensive to increase test coverage to acceptable levels. Additionally, as devices get more complex and companies are rapidly adopting heterogeneous packaging technologies, the realization that System Level Test (SLT) is necessary is forcing a rethink of the entire test process. AEM’s provides asynchronous, modular, highly parallel test cell solutions that enable each test cell to run SLT, final test, or burn-in all in one system and its ability to handle hundreds of test cells independently with each test cell testing multiple devices. Our solutions suddenly make comprehensive testing of every complex device cost-effective. Freeing us from legacy ATE allows AEM to provide these innovative solutions to our customers. AEM engineering and manufacturing teams in Singapore at work on semiconductor test and handling systems for global deployment at world-class semiconductor facilities. (Photo credit: AEM) SEMI: Singapore seems to be in the sweet spot of digital transformation. Singapore’s industrial production grew 8.6% year-over-year in January 2021, an expansion driven mainly by a surge in sectors including electronics, and more growth is seen in the year ahead. Digital technologies such as 5G technology and cloud computing together with continued demand for work-from-home equipment is behind this growth. What are the growth prospects for the region’s electronics sector? Nair: Singapore is well-poised to benefit from the current digital transformation accelerated by the adoption of these technologies during the pandemic. Being a safe, well-governed country with strong IP protection, excellent infrastructure, and the rule of law, Singapore is in a great position to play a central role in cloud-based services, 5G, and the semiconductor industry. Singapore’s semiconductor sector output is at a record high, and the prospects for renewed growth in the region are very good. SEMI: As a new Regional Advisory Board member of SEMI Southeast Asia, how is your industry experience relevant to the scope of this role? What opportunities lie ahead for the region? Nair: I am honored to represent AEM in the SEMI’s Southeast Asia RAB. The SEMI RAB can influence policymakers with ideas and information on the current and future needs of the industry. I also believe that SEMI Southeast Asia can cultivate a strong innovative semiconductor ecosystem that helps regional and global growth. I look forward to working with other very experienced and accomplished board members. Bee Bee Ng is president of SEMI Southeast Asia.

The state of Penang, nestled along the northwest coast of Peninsular Malaysia, needs no introduction in the global electronics manufacturing sector. Despite its diminutive stature with just over 1,000 square kilometers of land area and a 1.8 million-strong population, Penang commanded an estimated 5% of global semiconductor exports in 2019, according to data compiled from the Department of Statistics Malaysia (DOSM) and UN Comtrade. The State’s transformation, from a traditional seaport economy into the Silicon Valley of the East, began in the 1970s, when the establishment of Malaysia’s first free trade zone in the State drew key investments from eight Multinational Corporations (MNCs). These pioneering investors – Intel Corporation, Hewlett Packard (now Keysight Technologies and Agilent Technologies), Robert Bosch, AMD, Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas), Clarion and National Semiconductor[1] – sparked the development of a robust ecosystem of ancillary industries, which formed a foundation for the State’s rise as a prominent, offsite manufacturing hub. Today, Penang houses more than 350 MNCs that are supported by over 3,000 manufacturing-related SMEs. As Penang flourished as a vibrant, regional E E manufacturing hub, the local talent pool steadily accumulated a wealth of business intelligence and technical experience, enabling the robust supply chain to evolve in tandem with technology megatrends. This, in turn, enabled the State to focus on pursuing investments that have propelled the industry up the value chain, away from its beginnings as a low-cost manufacturing hub. Consequently, Penang has seen a proliferation of upstream technology-related investments in high value-added functions in recent years, ranging from research and development (R D), design and knowledge-based solutions, and downstream advanced manufacturing and testing to global business service (GBS) and Centre of Excellence (CoE) activities. Penang’s growing significance in the global E E value chain is demonstrated by its steady and resilient export performance in recent years. From 2014 to 2019, the State’s E E exports grew at a compounded annual rate (CAGR) of 12% to reach RM210 billion (US$51 billion). It has emerged as a hub for professional, scientific and controlling instruments (including medical technology), with exports of these products growing at a 5-year CAGR of 15% to reach RM23 billion (US$6 billion) in 2019. E E products, alongside professional, scientific and controlling instruments, collectively contributed between 77% and 82% of Penang’s total annual exports since 2014, and accounted for 50% of Malaysia’s exports in these two segments during the period. More impressively, despite the disruptions from the COVID-19 pandemic, Penang’s total exports continued to rise in 2020, growing 7% year-on-year to RM310 billion (US$75 billion), and a further 14% year-on-year in January and February 2021, driven by strong global demand for semiconductors. Shaping up as the destination of choice for advanced manufacturing investments As part of efforts to move Penang’s industry up the value chain, the State government has placed emphasis on attracting companies with strong commitments in implementing Industry 4.0 and sustainable investing. These efforts have yielded positive results, with the state having gained traction as a hub for advanced manufacturing investments. This is evidenced by the rising trend in investments per new job creation, which saw a six-fold jump from 2012 to 2020, as well as the number of global heavyweights announcing new investments as well as expansions of existing facilities in the State in 2019 and 2020. Penang attracted RM31 billion (US$7.5 billion) in approved direct manufacturing investment inflows in 2019 and 2020, 88% of which involved investments into the E E, equipment and medical technology industries. Prominent new investments included those from Lam Research, Bosch Group, Ultra Clean Holdings, Dexcom as well as Smith+Nephew. Together with planned expansions by a number of existing MNCs in Penang, these new investments, which are on track to commence operations between 2021 and 2023, are poised to bring Penang’s industry to greater heights and further integrate the State into the global value chain. Recent Notable Direct Manufacturing Investments in Penang Source: InvestPenang and respective companies Penang’s conducive business environment nurtures successful homegrown technology companies Penang’s conducive business environment has not only proven successful in attracting foreign direct investments (FDIs), but also successfully nurtured local E E success stories of locally employed engineers turned technopreneurs, who have founded and built companies that have successfully grown to become internationally renowned in their own right. These homegrown E E companies play crucial roles in the ecosystem, particularly in the areas of automated test equipment (ATE), automation, outsourced semiconductor assembly and testing (OSAT) services, electronics manufacturing services (EMS), precision engineering and tooling. The past five years have also seen the emergence of young, fast-growing Penang-based companies such as Experior, Oppstar Technology and Skyechip, which provide IC design and IC test design services to MNC clients globally. Public-private partnerships cultivate Penang’s talent development roadmap The state is cognisant that the development of a robust and skilled talent pool is imperative to support the growth of strategic industries in Penang. Strong public-private partnerships with concerted efforts in supporting talent development are key to Penang’s continued success. Toward this end, the State government has backed Penang Skills Development Centre’s (PSDC) industry-led training and education efforts, which have helped train over 200,000 of workers to support the industry’s needs since 1989. The State has also coordinated collaboration for industries to provide input to local institutions of higher learning on the relevance of the institutions’ courses, and rallied the industry to support State-run scholarships (Penang Future Foundation) and STEM initiatives. Holistic initiatives to make Penang a world-class investment destination for global frontier companies The dynamics of the global value chain, especially for the technology sector, have evolved rapidly since 2018, particularly amid the complex confluence of trade protectionism, COVID-19 pandemic-driven issues and disruptive technologies. The State government believes that strong, geographically localised industry clusters could help companies mitigate the risks of supply chain disruptions, in addition to improving companies’ time-to-market at a lower cost. To further increase Penang’s attractiveness for high quality investments, the State is focusing on three key strategies: Extending its competitive edge in advanced manufacturing, further strengthening Penang’s industry clusters, which include expediting SMEs’ Industry 4.0 transformation journey, and nurturing more homegrown companies to penetrate the global supply chain Embarking on a continuous drive to develop and recruit talent to the State, as well as cultivate the younger generation’s interest in STEM Enhancing Penang’s liveability with a strong focus on making Penang a smart and green city The State government is committed to continue developing Penang in a holistic manner, with the aim of creating a vibrant business and investment destination with a robust and sustainable economy and high standard of living, creating a conducive environment to “work, live, learn, play and invest.” About InvestPenang InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centres. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Centre (providing assistance to SMEs), Penang CAT Centre (for talent attraction and retention) and i4.0 seed fund (a catalyst for the start-up ecosystem). For more information, contact [email protected]. InvestPenang also works closely with various industry associations, including SEMI, to promote Penang’s supply chain and E E ecosystem. InvestPenang is delighted to have collaborated with SEMI on numerous occasions since 2015 and endeavours to sustain the partnership in the years to come, including for the SEMICON SEA 2022 exposition to be held in Penang. [1] No longer present in Penang following a corporate M A exercise.

If you look at your clothes or shoes, there is a growing chance you will see the words Made in Vietnam printed on the tag. Since the United States lifted its trade embargo against Vietnam in 1994, the country has become the second largest exporter of apparel and shoes to the U.S. What may be less evident is the source of that new electronic gadget you received for Christmas, with its numerous parts, chips, and intricate supply chain. While light manufacturing has dominated Vietnam’s economic growth since the Đổi Mới economic reforms implemented in the 1980s, over the last decade the country has been repositioning itself to become a dominant player in the global microelectronics industry, a trend that has gained momentum in the wake of the U.S.-China trade war. In 2019, Vietnam ranked as the fourth largest exporter of electrical goods and components to the U.S. With exports doubling over the last four years and now exceeding $19 billion, surpassing Taiwan, Japan, and Korea (based on goods exported under chapter 85 of the Harmonized Tariff Schedule). Vietnam’s global electronics industry now accounts for about 40% of its exports, and the country seems to be just getting started. Early Entrants Though Vietnam owes its growing success in attracting foreign direct investment (FDI) in the semiconductor and microelectronics industries to the advent of China plus one – the business strategy to diversify business investments geographically – it was the few early entrants that gambled on this emerging market a decade ago that put Vietnam on the global stage. Of these early players, no other firm comes close to having the impact that Samsung has. It’s initial $670 million mobile phone manufacturing plant in the northern province of Bac Ninh in 2008 grew to a country-wide investment of $17.3 billion within a decade. Samsung is now Vietnam’s largest FDI contributor and accounts for more than 25 percent of its exports. Because of Samsung, Vietnam has become the second largest exporter of smartphones in the world. Around the same time, Intel opened its $1 billion semiconductor assembly and testing facility in Ho Chi Minh City, putting Vietnam firmly on the global technology map. More investors, like LG, Panasonic and Foxconn soon followed. Within a few years of these initial investments the industry was taking notice, illustrated by SEMI’s role in co-organizing the Vietnam Semiconductor Strategy Summits in 2013 and 2014. With SEMI SEA’s increased efforts to promote Vietnam as an important ecosystem in the electronics supply chain, more will be done to positively influence the growth and prosperity of its member companies in Vietnam. These early investors found Vietnam attractive for several reasons. Key among these are the country’s low wage rates combined with its favorable demographic structure – what the UN refers to as the golden population structure, which provides “Vietnam with a unique socio-economic development opportunity.” Companies are also attracted to the growing number of Free Trade Agreements (FTAs) that Vietnam belongs to, including the ASEAN Free Trade Area, CPTPP, the EU-Vietnam FTA, and, most recently, RCEP. Though the U.S. has yet to ink a trade agreement, the Singapore AmCham’s annual regional survey has consistently identified Vietnam as the most attractive country in ASEAN for a potential bilateral FTA partner with the U.S. Leveraging the Trade War If the plus one strategy was the catalyst that started this wave of electronics manufacturing in Vietnam, then the U.S.-China trade war was the enzyme that supercharged it. A common quip in Southeast Asia is that the U.S.-China trade war is over and Vietnam is the winner, and this is apparent in both trade and investment trends. According to the Asia Development Bank (ADB), the riff between the U.S. and China has caused a redirection in trade, as U.S. imports from the PRC fell by 12% in the first six months of 2019 while U.S. imports from Vietnam increased by 33%, with electronics and machinery accounting for the bulk of this jump. The ADB further reported that in a prolonged and intensified trade conflict, the worse-case scenario would result in Vietnam, Malaysia, and Thailand being the biggest winners, “in that order.” On the investment side, a March 2020 Gartner, Inc. survey of global supply chain leaders revealed that 33% had “moved sourcing and manufacturing activities out of China or plan to do so in the next two to three years.” While this survey did not mention specific winners, the ADB reported that “newly registered FDI in Vietnam from the PRC and Hong Kong rose by 200% year on year in the first seven months of 2019,” indicating the move of Chinese suppliers to Vietnam. Additionally, a review of recent press reports indicate firms like Apple, Nintendo and Dell are encouraging suppliers to move parts of their supply chains to Vietnam. These suppliers are complying, with Compal Electronics, GoerTek, HZO, Inventec, Luxshare Precision Industry, Pegatron, USI and Wistron all reportedly announcing plans for new investments in Vietnam. Manufacturing Hubs Within Vietnam, microelectronic facilities have concentrated in a few geographic hubs. In the south, the Saigon High Tech Park in Ho Chi Minh City attracted early entrants Intel and Samsung, with firms like Nidec and Jabil soon following. The largest investment capital, however, developed in the northern provinces that ring Hanoi. Bắc Ninh, an hour’s drive from Hanoi, was the site of Samsung’s first investment and has since attracted Foxconn and Canon. More recently, firms have been drawn to the port city of Hải Phòng, the country’s third largest city, which is already home to Samsung and LG. The city’s close proximity to other manufacturing clusters, its new deep-water port, and its expressway that provides a 12-hour trucking route to China’s electronics epicenter in Shenzhen are helping make the city Vietnam’s new high-tech production center. In 2019, LG Electronics moved its entire smartphone production line from South Korea to Hải Phòng, and in 2020 Pegatron reportedly chose the city for its $1 billion investment plan. Local phone manufacturer VinSmart is also producing the country’s first 5G smartphones in Hải Phòng. In November, USI, a subsidiary of Taiwan-based ASE Holding, broke ground on its first production base in Southeast Asia, a $200 million phase-one investment in the production and assembly of chips for wearable electronic devices. USI’s investment, which is moving into the internationally managed DEEP C Industrial Zones in Hải Phòng, is “intended to move us closer to our overseas customers and accommodate their ever-increasing demand,” according to Mr. Kuei Chun Chi, the firm’s Manufacturing Service Director. “North Vietnam, with its strategic geographical position and an extended infrastructure in place, offers USI an optimal way to facilitate fast and flexible response to customers' orders.” Though the Covid-19 pandemic has dampened the pace of new investments in Vietnam’s microelectronics industry, it has also amplified the country’s attractiveness to investors. Vietnam was successful in containing the outbreak through aggressive quarantine and contact tracing measures, and as a result its economy has the brightest outlook in the region. The ADB forecasts the country will be one of the fastest-growing economies in SEA in 2021, with GDP estimated at 6.8%. The Ministry of Industry and Trade is also reporting that several of the world's largest technology corporations plan to shift their production chains to Vietnam post-Covid-19, an indication that technology firms will accelerate relocation plans in 2021. Vietnam’s successful response to the pandemic, combined with its strategic location, low wage rates and foreign trade agreements, will ensure that the region continues to benefit from the shift in supply chains in Asia, making it the new destination for electronics manufacturing. About the Author Stuart Schaag is Principal at E-Ward Trade Consulting LLC, which assists firms that are expanding their presence in the global marketplace by creating strategies combining market analysis, business development, commercial diplomacy, and relationship building. He previously spent 25 years in various domestic and overseas positions in the U.S. Department of Commerce’s International Trade Administration. Stuart served as the Commercial Counselor at the U.S. Embassy in Hanoi from 2014-2018 and resided in Vietnam until 2020.

Never before had we expected that SEMICON SEA 2020 would go virtual.The COVID-19 crisis abruptly halted our ability to hold our premier Southeast Asia electronics manufacturing exposition as we typically do – in the physical realm. The pandemic tested our adaptability, challenged our willingness to experiment and, perhaps above all, accelerated not only our own but the world’s digital transformation. We had to change our way of doing business and learn to connect virtually like we had never had before. SEMI continues to believe that virtual interaction is no replacement for face-to-face engagement. But, like the rest of the world, we fast-tracked our digital education and staged the virtual event 20 July to 21 August 2020 to gather supply chain players and help fulfill the tremendous potential of our great industry. For all the suffering the COVID-19 has caused, the pandemic has underscored an important truth – that we need innovation through collaboration now more than ever to help solve the world’s greatest problems. We thank all our event sponsors as we turned what started as a grand experiment into a successful event that drew nearly 3,000 attendees to our webinars, business matching sessions and other online offerings designed to help them uncover new business opportunities. Following are other highlights. Southeast Asia Pavilion at Virtual SEMICON West 2020 In our first collaboration with SEMICON West, our Southeast Asia Pavilion at the event welcomed virtual visitors from around the globe to help them form new connections and grow their businesses. Business Matching Sessions Technical buyers from more than 15 multinational companies along with 141 pre-qualified suppliers attended more than 50 meetings across four online business matching sessions.Technical WebinarsCompany representatives from regions including Malaysia, Singapore, Vietnam, Taiwan, the United States, the UK, Israel, China and Japan shared their expertise and industry insights at SEMICON Southeast Asia 2020 webinars. In addition, experts from leading semiconductor companies such as Micron Semiconductor Asia Operations, ViTrox Corporation Berhad and A*STAR took part in our technical exchange by sharing the latest trends in the rapidly evolving semiconductor industry. Talent Development: Inspirational University Program Talks With building the talent pipeline critical to sustaining growth of Southeast Asia semiconductor manufacturing dynamics, talent champions from Lam Research and GLOBALFOUNDRIES highlighted career opportunities and pathways for young engineers while generating recruiting leads. More than 750 students from Malaysia and Singapore engaged panelists with questions during the sessions. The SEMICON Southeast Asia team extends its tremendous thanks to sponsors and attendees for their support. As we all navigate the pandemic and hope in the near future to awaken to a brighter day, we will continue to connect virtually and, whenever possible, in person as the semiconductor industry evolves and flourishes. The SEMICON SEA 2020 team In the meantime, we will all continue to pull together to support our resilient industry as it outperforms most other manufacturing sectors. Semiconductor capital equipment shipments were up 23% globally in the second quarter of 2020 versus the same period in 2019 and semiconductor chip growth remains in positive territory. Our team has already started planning for SEMICON SEA 2021, scheduled to take place at the Setia Spice Convention Centre in Penang, 18-20 May 2021.We look forward to seeing you again soon as we continue to strengthen the microelectronics ecosystem!Bee Bee Ng is president of SEMI Southeast Asia.

I recently spoke with Andrew Goh, Vice President at General Manager at Lam Research Southeast Asia, about the importance of the company's new production facility in Penang and its COVID-19 relief efforts. Ng: Before we delve into details, please provide a quick introduction to Lam Research Southeast Asia for our readers who aren't as familiar with your work. Goh: As you know, Lam Research is a leading supplier of wafer fabrication equipment and services to the global semiconductor industry. Since we were established in 1980, Lam has played a key role in contributing to the extraordinary pace of innovation in the semiconductor industry. We have always developed innovative solutions that help our customers build smaller, faster, more powerful, and more power-efficient electronic devices – the kind that are driving the proliferation of technology in our everyday lives.Further to this, we established Lam Research Southeast Asia in 1992 to better serve our customers in this region. We have about 260 employees in both Malaysia and Singapore, with more than two-thirds of them in engineering or technical roles.Ng: Early this year, Lam Research announced a new advanced technology production facility in Malaysia. Please tell us about it.Goh: Yes, Lam Research and the Malaysian Investment Development Authority jointly announced in February 2020 that Lam selected Batu Kawan Industrial Park in Penang, Malaysia as the location for a new advanced technology production facility.Our new state-of-the-art manufacturing site in Penang’s Batu Kawan will open in May 2021 and be the largest in our network. The current plan envisions a 700,000 square-foot facility with expansions already anticipated to serve current and future customers. Construction started in May 2020, and we aim to have our first shipment by 2021. We are currently at our temporary site in Bayan Lepas.Ng: As Lam’s manufacturing site, what role does it play in the larger organisation?Goh: The semiconductor industry is expanding and so are we. To help our customers move the world forward, we need a dynamic, energized team with initiative and focus to help establish our footprint in Malaysia. This has led to the expansion of our existing global production footprint with locations in the United States, South Korea, and Austria. As the industry moves forward, we at Lam Manufacturing Malaysia will work on the entire portfolio of our leading-edge products, collaborating closely with customers to create some of the world’s most sophisticated processes and fabrication equipment. We chose Penang for its talented workforce with experience in aerospace, health sciences manufacturing and other high-tech fields. We are currently hiring now for our site in Penang. Anyone interested in exploring job opportunities at the site can send learn more and apply at www.MakeAtLamPenang.com. Artist's rendering of new Lam Research production facility at the Batu Kawan Industrial Park in Penang. Ng: With the world now thrown into an unprecedented situation, do you expect any delay in the construction schedule?Goh: Despite the COVID-19 pandemic, construction began in May 2020. We still expect to make our first shipment from the Batu Kawan factory around mid 2021, in line with our initial estimates. Close cooperation with and timely support from MIDA and Invest Penang have allowed us to stay on track.Ng: How has Lam done supported COVID-19 relief or recovery efforts during this pandemic?Goh: Just as with any other business, this pandemic indeed is a trying time for all of us around the world. We announced on April 8 that we are donating $25 million to global COVID-19 relief and recovery efforts, which includes relief funds to employees, employee benefit resources, and additional support for the areas in which we operate. This support includes supplies for hospitals, both short-term and long-term community assistance, and our 2-for-1 gift matching for eligible COVID-19 relief programmes.In addition to the fund, we have also donated our surplus inventory of masks for immediate relief to local hospitals. At the same time, our innovative engineers and others with 3D printers at home have begun developing prototypes and printing protective face shields.Consistent with current guidance from the U.S. as well as the region’s respective Centers for Disease Control (CDC) and World Health Organization (WHO), we have activated our business continuity plan (BCP) to safeguard the health and well-being of our employees and their families, as well as to mitigate business disruptions to our customers. Measures we've implemented include strict social distancing, quarantine measures and travel restrictions.Bee Bee Ng is president of SEMI Southeast Asia.

The COVID-19 pandemic has inflicted major impacts on manufacturing operations worldwide including in the semiconductor industry. The virus has left millions of people confined to their homes, resulting in a massive shift to virtual work and online engagement. In Singapore, where AEM is headquartered, our management team took proactive measures to protect our workers by implementing best practices ahead of the Singapore Circuit Breakers.AEM is globally deemed an essential service, requiring us to maintain operations and minimize impact to our customers. Business continuity plans that include work-from-home and safe-distancing guidelines are in place. As of the time of this writing, we are very fortunate that all of our employees are safe and that we’ve seen only minimal impacts to our customer commitments. AEM has confined this impact by spreading operational risks across our facilities in Asia, Europe, the U.S. and divisions in Singapore, Malaysia, China, North America, Central America, Finland, France and Vietnam. All told, these facilities employ more than 550 people (Figure 1).Figure 1 – AEM Global Presence As a global leader, AEM offers application-specific intelligent system-level test and handling solutions for semiconductor and electronics companies that serve the advanced computing, 5G communications and artificial intelligence (AI) markets.Leveraging our decade of experience, the latest AMPS solutions provide asynchronous, modular, massively parallel and smart system-level testing to meet the new test challenges of complex ICs. The modularity and scalability of these systems enables customers to scale their existing engineering device validation solutions into high-volume, massively parallel production solutions that increase faults coverage, reduces time to market, and decreases cost of test and ownership (Figure 2).Figure 2 – AMPS System-Level Test Solution In meeting 5G infrastructure test needs, AEM developed a field-deployable fiber optics tester. Called WideOptix SR4, the system was initially developed in collaboration with a world leader to support the 5G fiber infrastructure deployment in China and has now been adopted for some Ethernet standards testing. With our WideOptix SR4 development, we cultivated Silicon Photonics (SiPh) testing expertise that complements our AMPS system-level test capability. As part of our business continuation and risk diversifications plan, we had also set up factories in Penang (5,200m2) and Suzhou (3,600m2). Penang’s rising influence in the Southeast Asia semiconductor industry has prompted AMM (AEM Malaysia) to expand its scope to include value-added services with a Center of SSD Excellence and Center of Photonic Excellence.ASZ (AEM Suzhou) will continue to focus on the domestic market in China for further expansion and penetration with products ranging from cost-sensitive testers to state-of-the-art test measurement instruments. In Europe, AEM is focused on wafer-level test and cost-effective ATE test solutions. Finland-based AFORE specializes in MEMS and application-specific wafer testing with the ability to add physical stimulus. The company's state-of-the-art instruments enable the testing of devices such as diced IMU’s (Inertia and Motion Units) in continuous rotation on a wafer mounting ring. Our process increased test throughput by 3X compared to the traditional pick-and-place methods (Figure 3).Figure 3 – Wafer-Level Test Throughput Advantage A specialist in application-specific wafer handling, AFORE developed its latest design to support quantum computing in collaboration with its partner BLUE FORS. The company’s probing equipment features a handling solution with temperature tolerances to 2K (-270’C) to support cryogenic testing (Figure 4).Figure 4 – Cryogenic Quantum Computing Probing Solution AFORE also gained critical insights into creating total darkness, enabling us to further explore opportunities for dark matter testing. AFORE is currently in talks with a member of the LUX Photonics Consortium funded by the National Research Foundation (Singapore) to provide a dark body testing environment and handling for its IR detectors.In Europe, our acquisition of Mu-TEST in France helps diversify our product and service offerings while spreading our business continuity risks. Mu-TEST enjoys collective test-development experience of more than 320 man-years thanks to various ATE suppliers including Schlumberger and Credence. To help combat rising costs of traditional ATE, Mu-TEST developed cost-effective solutions using FPGA-based instruments supported by a full suite of test development, debug and production test software with links to EDA and standard interfaces. This provides Mu-TEST an agile platform that can be easily re-configured for different customer needs.This Mu-Test acquisition expands AEM’s system-level testing capability to include Functional Test, allowing BIST, SCAN, JTAG to test structural failures and perform other application-level test that interface directly with the DUT using the EVM (Electronics Validation) boards to increase fault coverage within the same test environment. Mu-TEST has also enabled AEM to form the recent partnership with UTAC to develop a cost-effective CIS test solution that addresses UTAC’s test needs and complements its CIS advanced packaging solutions. Our U.S. headquarters based in Chandler, Arizona has expanded its capabilities to provide application engineering.In summary, AEM has been expanding its global footprint while managing risk and has been fortunate to be positioned to manage the recent COVID-19 excursions. While each geographical location specializes in core technologies, all sites have access to one another’s manufacturing facilities in times of need and a pool of IP available to address new opportunities. We believe this risk diversification positions us well to serve the needs and interests of our customers worldwide.Lo Wee Tick is Director, Business Development, and Stuart Pearce is Senior Director, Field Marketing, at AEM Holdings Ltd.

As the COVID-19 quarantine-related restrictions for commerce and transportation are lifted in the Philippines, companies are dusting off desks, cleaning coffee mugs, warming up equipment and gradually bringing back staff to resume full operations. Of primary interest to manufacturing companies like Microchip Technology Philippines are the restrictions on the allowable workforce, the movement of personnel, transportation, and health and safety protocols affecting factory staffing, materials availability, and the ability to ship products. In the Philippines, these restrictions started to scale back in mid-May and are staged to continue in a series of continuing reductions every two weeks through the end of June. As business operations recover, challenges remain in managing the workforce, negotiating the supply chain and understanding the expenses required to operate under the “new norm” while Business Continuity Plans continue to be reviewed and revised.Here are some of the more important business-related elements of the quarantine levels enacted by the Philippines:Enhanced Community Quarantine (ECQ): In effect from March 17 through May 15, 2020, this was the initial lockdown with the strictest requirements, most notably requiring the general population to stay at home, imposing curfews, prohibiting all public gatherings including schools, halting public transportation and banning air travel while allowing cargo flights, skeletal workforces (~15%) for essential businesses (BPOs, IT and exporters, for example) and travel using some private vehicles with varying types of passes required to clear checkpoints.Modified Enhanced Community Quarantine (MECQ): In effect from May 16 through May 31, 2020, this was the first stage to ease control to allow up to 50% of employees to return to work at essential businesses. The easing also allowed gatherings of up to five people while maintaining most other restrictions.General Community Quarantine (GCQ): In effect from June 1 through June 15, 2020, essential businesses are allowed to resume full operations within health and safety protocols in place for physical distancing, disinfection and the wearing of Personal Protection equipment (PPE). Air travel is allowed to resume while public transportation remains restricted until June 21, 2020. Company shuttles are allowed for point-to-point services.Modified General Community Quarantine (MGCQ): Planned for June 16 through June 30, 2020, this is the transition phase to the “new normal,” which will continue easing the restrictions for contact-related businesses such as barbershops, salons, restaurants and the like. Movement and public transportation will remain restricted until June 22, at which point the last obstacle for businesses to fully resume operations will fall.While some larger companies during the most restrictive ECQ were able to house staff on site or nearby in skeletal crews, some smaller companies were unable to do so and may never recover from the loss in revenue or from the loss of employees. The majority of companies in the technoparks shut down under the ECQ and were rendered powerless to return workers to factories. For factories allowed to house employees on site, a huge effort was required to provide emergency transportation, accommodations, food and drinking water, toiletries, Wi-Fi, and even entertainment for the sequestered staff – all while maintaining health and safety protocols for physical distancing and disinfection. For example, Microchip Technology Philippines was able to build temporary sleeping cubicles and showers; to buy tents, foam mattresses, bedding and personal hygiene kits; to provide canteen and laundry services; and to allow Wi-Fi access for employees to stay connected to family and friends.Microchip Technology’s 11 Guiding Values help to define our corporate culture and guide our decision-making. One key Guiding Value on display as we’ve transitioned through the levels of quarantine due to the COVID-19 pandemic has been that Employees Are Our Greatest Strength. Exercising this Guiding Value has supported the expenses necessary to provide the safest, most comfortable living accommodations in the factory conference rooms, hallways, basement, and even in office cubicles.While many larger companies in the Philippines provide company shuttles at pre-established pick-up points, limited public transportation strands many workers at home with no way to reach to their assigned shuttle. To address this challenge, solutions including van brigades that can navigate narrow village streets to pick up workers should be considered though at an additional, unplanned expense. The physical distancing rules effectively halves the number of riders, which in turn requires a doubling of the shuttle buses, most of which are under lease. If shuttle bus leasing companies cannot provide more buses, employees who can work from home should continue to do so or drive to shuttle stops if they have personal vehicles. Leasing these additional shuttle buses was in no company’s budget as we began 2020.Additional measures under the new norm will be expensive – perhaps prohibitively so – for smaller companies that cannot afford to double the number of company transports due to physical spacing rules requiring them to halve workplace capacity, whose workplace environments cannot support physical distancing, and whose treasuries cannot afford to buy rapid test kits for employees and their families. If these smaller companies produce items critical to the supply chain, larger companies will feel the sting – and cease producing specific products during the qualification of an alternate supplier. Until the Bureau of Customs and staffing of third-party logistic providers is back to normal, and until ports are running at full force, materials and exports will continue to be delayed, potentially limiting the number of employees needed to return to work to run production.It has been very expensive for companies to survive through these levels of quarantine while keeping factories and employees in a state of readiness to return to work. Additional expenses will be borne for compliance to the new norm. As many businesses recover under the new norm, they’ll undoubtedly take a closer look at their business continuity planning, if any such plans exist, and if not, they should be created without hesitation.The problem with a typical business continuity plan is it tends to focus on one or a few concurrent major events – say, flooding or a power failure due to a typhoon – but it’s doubtful any plan took into account a global pandemic that affected so many factors simultaneously including workforces, supply chains, transportation, logistics and food supplies. As we return to work, we’ll have to adjust to the new workplace and embed the lessons learned during the COVID-19 pandemic into our business continuity plans. And, hopefully, we’ll never have to exercise those measures again.Greg Fisher is Managing Director at Microchip Technology Philippines.

Many companies are applying Fourth Industrial Revolution initiatives in manufacturing, though only a few have managed to successfully integrate the smart manufacturing technologies at a scale that allows them to realise significant economic and financial benefits.Known as lighthouse companies, these organisations have taken their smart manufacturing journeys from pilot to integration at scale, serving as beacons to others in overcoming challenges in their production systems through the adoption of leading-edge technologies such as artificial intelligence, additive manufacturing and advanced analytics.At the recent SEMI Southeast Asia webinar Journey to Recovery of the E E Industry, Dato' Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA), spoke about building Malaysia’s very own Lighthouse Project comprising multinational corporations that will act as anchors to help guide local players into this new venture.During the webinar, Dato' Azman elaborated about Malaysia’s competitive edge – its diversified economic structure and government support. He said the key to sustaining this competitive edge, however, is that the Malaysian economy must be digitally empowered. The Lighthouse Project is one programme that will help achieve this objective. We are inspired and encouraged by this initiative. As firm believers in connecting and collaborating, SEMI Southeast Asia supports programmes that advance the entire microelectronics ecosystem. We look forward to seeing MIDA drive this project, and we encourage Malaysian E E companies to tap MIDA’s expertise in this field. Ultimately, we are confident that through this initiative and the adoption of Industry 4.0 technologies, Malaysia will be repositioned as a top global manufacturing nation. Bee Bee Ng is president of SEMI Southeast Asia.