downloadGroupGroupnoun_press release_995423_000000 copyGroupnoun_Feed_96767_000000Group 19noun_pictures_1817522_000000Member company iconResource item iconStore item iconGroup 19Group 19noun_Photo_2085192_000000 Copynoun_presentation_2096081_000000Group 19Group Copy 7noun_webinar_692730_000000Path
Skip to main content
Default Banner Image

China

If you think the world is flooded with a mind-boggling volume of digital content, then you might be just a amazed to learn about the sheer wealth of information and business opportunities that will be uncovered at this year’s SEMICON Japan as the event goes full digital.To start, more than 160 companies will exhibit their semiconductor manufacturing gear and services on the virtual show floor of Japan’s premier event for the semiconductor manufacturing and design supply chain. Add to that over 80 presentations and panels that feature global industry executives, visionaries and experts offering insights into the latest microelectronics developments, trends and technologies, and it’s easy to see how SEMICON Japan 2020 Virtual is designed to help attendees grow their businesses and the industry drive the next wave of innovations that promise to address some of the world’s greatest challenges across healthcare, the environment, transportation and other industries.Best of all, it will all be available at your convenience from your office or home 24 hours a day, making it safe and easy for you and others from all over the world to attend. Following is what’s in store at SEMICON Japan 2020 Virtual to help lead you into the future.Leading Japanese Securities Analysts to Weigh in What’s Ahead for the Chip Equipment Sector in 2021 For the first time, SEMICON Japan will feature Bulls Bears as Japan’s’ five top securities analysts focus on the 2021 outlook for the global semiconductor equipment sector. The December 17th event will include discussions on the COVID-19 pandemic’s impact on the semiconductor industry, the continuing geopolitical tensions that are forcing the industry to reconfigure its supply chains, the fast-growing China market and cutting-edge applications that are powering industry growth. The perspectives from Japan’s investment community are sure to be compelling as the region supplies one-third of the global semiconductor industry’s chip manufacturing equipment.Moderated by Akira Minamikawa of OMDIA, the panel will include these experts:Three Visionaries to Explore the Digital TransformationPowered by semiconductors, the fourth industrial revolution is driving digitalization globally, remaking societies to bring more efficiencies and conveniences to our work and home lives and help more people prosper. But the flip side of those tremendous benefits is the risk that wealth will be concentrated in the hands of people in positions of power, companies and nations. Democratizing economic development remains a serious challenge worldwide.Addressing this pressing issue, the Opening Panel on December 11 will feature prominent visionaries from political, academic and industrial communities including the following:Sony’s Leading-Edge Electric Car and Nissan’s Driver Assistance System to Highlight Automotive InnovationsCars are becoming more like smartphones on wheels, rapidly filling with more and more semiconductor chips every year with electrification and electronic driver-assisted systems to key drivers of this growth. At the SMART Mobility 1 session on December 14, two pioneering companies – Sony and Nissan Motor – will focus on both areas of semiconductor innovation.Sony’s Vision-S concept car, exhibited at CES 2020, astonished many in the electronics ecosystem and the automotive industry. What is Sony’s vision behind the vehicle? Izumi Kawanishi, Senior Vice President, AI Robotics Business at Sony will share the latest on the initiative.Nissan, maker of the pioneering LEAF electric vehicle, is the first Japanese carmaker to equip a car – its new Skyline – with the ProPILOT 2.0 driver assistance system for hands-off highway driving. Nissan Executive Vice President Asako Hoshino will provide an update on the company’s driver assistance system strategy and plans.Quantum Computing Meets Chip Manufacturing for the First Time at SEMICON Japan In contrast with current computer systems that use bits (binary 0 or 1 state) for computing, quantum computers leverage quantum superposition (0 and 1 states exist at once) to quickly solve highly complex problems that might take traditional supercomputers hundreds or even thousands of years to tease out. American physicist Richard Feynman promoted quantum computer as early as 1982, but it wasn’t until nearly two decades later and long after his death that quantum bit circuits emerged for use in superconductive materials.With quantum circuits and devices requiring state-of-art semiconductor processing technology, The Era of Quantum session on December 15 at SEMICON Japan 2020 Virtual will discuss necessary advances in chip manufacturing technology to enable the next generation quantum computing. The session will be the first time SEMICON Japan connects the semiconductor manufacturing and quantum computing communities.The program will feature the following experts:Strategies for Sustainable Semiconductor Industry GrowthSemiconductors are giving rise to a hyper-connected world that is fueling demand for staggering volumes of chips, pressuring the electronics industry to uncover new ways to increase manufacturing efficiency while reducing power consumption in a bid to help combat climate change. The Grand Finale Panel composed of executives from Japan’s semiconductor supply chain and a supervising ministry will gather for the Grand Finale Panel on December 18 to discuss ways the industry can achieve sustainable growth through innovation with a focus on energy savings and an new process technologies such as extreme ultraviolet lithography (EUV), which promises to enable electronics devices that are more power powerful, cheaper and more energy-efficient.Panelists include the following:Register TodayThe SEMICON Japan 2020 Virtual All-In Pass provides online access to all 80 presentations and panels, which will be available on-demand for replay until January 15, 2021. What’s more, all eight keynote programs will feature English subtitles. For complete information of the exposition, programs and registration, visit the SEMICON Japan website.I look forward to seeing you virtually at the event!Jim Hamajima is president of SEMI Japan.
Read More
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.
Read More
While the full contours of the next normal are still unclear, semiconductor companies largely acted decisively at the beginning of the crisis to build resilience and position the sector for future growth. To plan ahead, now is the time to think about the next normal and set the strategic direction needed to emerge even stronger from this humanitarian and economic crisis.Global GDP recoveryMcKinsey has developed nine GDP recovery scenarios, and as the economic situation has developed, we surveyed more than 2,000 global executives to discover that two of those scenarios are most likely. Both of those scenarios assume that the spread of coronavirus is eventually controlled and catastrophic economic damage is avoided. In the first scenario, global GDP is expected to recover in the first quarter of 2021; in the second, recovery is forecasted to be delayed until late 2022. The geographies of recovery will vary, as some industries and regions will recover faster than others.Semiconductor Demand Forecast for 2020 and 2021The COVID-19 crisis has created an unprecedented challenge for the semiconductor industry. During the 2007/2008 recession, consumer demand stagnated. This crisis, however, has affected both demand and supply, creating dual pressures. Our demand forecast is based on the two most likely McKinsey GDP recovery scenarios as well as on extensive surveys, expert interviews and research on the recovery in China. Charts 1 and 2 (below) show that the semiconductor market as a whole is expected to decline by up to 10% in 2020 due to the COVID-19 outbreak and the resulting slowdown in the global economy. In 2021, however, most segments are expected to grow, with total market size surpassing 2019 value in the more positive scenario. The PC market segments will see the least growth, while the wireless communication and automotive segments should expect to be hit hardest by this crisis with a decline of as much as 21% and 27% respectively in 2020. However, they are expected to bounce back in 2021 with growth of up to 19% and 36% in the positive outlook scenario.It might take some time for the semiconductor market to fully recover. The timing of the industry’s recovery depends largely on the containment of the virus, government economic stabilization efforts, and the global economic recovery.1. Products include memory, micro components, logic, analog, discrete, optoelectronics, and sensors/actuators.2. 2020 estimates were calculated using 2019 baseline and percentages have been rounded.3. Gray values indicate 2020 growth forecast; blue values indicate growth forecast for 2021 only. Sources: IHS, Expert Interviews 1. Products include memory, micro components, logic, analog, discrete, optoelectronics, and sensors/actuators.2. 2020 estimates were calculated using 2019 baseline and percentages have been rounded.3. Gray values indicate 2020 growth forecast; blue values indicate growth forecast for 2021 only.Sources: IHS, Expert Interviews Emerging stronger from this crisisSemiconductor companies had already developed effective crisis-management strategies during past crisis and industry downturns. However, this situation is unique. Overall, we see three main activities that can help semiconductor players with through-cycle resilience and growth: Define the starting position: Creating a baseline can help inform future strategic decisions by providing a holistic view of the current strategy, internal capabilities and external position. Develop economic and political recovery scenarios: Developing and deciding which economic and political recovery scenarios to focus on will enable companies to create company specific scenarios. Therefore, it is important to analyze demand in the short and long terms, along with the effects of subsidies, stimulus packages and industry dynamics. Prepare for the next normal: To prepare for the next normal and emerge even stronger from this crisis, companies should focus on how to gain market share during the downturn. As competitors focus on resilience, companies who see themselves in a financially stable position can focus on increasing their company’s growth and market share. This mindset, however, is most effective when established across the entire organization. Opportunities to emerge even stronger include defining a strategic, systematic approach to investment and divestment as appropriate. This means that several smaller deals that accrue to a meaningful amount of market capitalization over the years often have a more positive impact than one large transaction. History tells us that finding pockets of growth and revising capex, R D and M A strategies are the building block to emerge stronger from a crisis. As Gordon Moore, co-founder of Intel once said, "You can't save your way out of a recession." This translates into moderate capex and R D budget cuts with the focus on future growth drivers. These approaches are supported by insights from previous crises.Although the crisis has presented a major challenge, it also offers the chance for companies to set themselves apart from competitors. The semiconductor industry as a whole has been more resilient than many other industries. The global push toward digitization has also been a major tailwind that will likely be a key element of the global economic recovery.Ondrej Burkacky is a partner with McKinsey Company based in its Munich office. He leads McKinsey’s semiconductor and software work in Europe, as well as its global COVID-19 semiconductor task force. For McKinsey’s latest insights on the business implications of the coronavirus pandemic, visit its website, which is updated daily.
Read More
Linx Consulting and Hilltop Economics continue to monitor how the global economy impacts the electronic materials supply chain. Amidst the recent economic and revenue results releases, we have generated a series of potential scenarios for the next few years. These scenarios are based around sales of silicon wafers expressed in millions of square inches (MSI). Our work develops a multiyear forecast from the historic record of the SEMI-reported MSI demand by developing an econometric relationship with underlying demand drivers. Using this methodology, Linx Consulting and Hilltop Economics have introduced the following three silicon demand forecast scenarios: V-shaped global recession consistent with severe COVID-19 impact followed by a sharp economic rebound. Probability of approximately 40%. V-shaped global recession but with business and consumer behavior differing from the past recession in that there is much more aggressive spending on technology goods that softens the impact for semiconductors in 2020. Probability of approximately 25%. An extended COVID-19 impact developing into a U- or L-shaped global recession with an economic rebound delayed for several years. Probability of approximately 35%. In the few months since coronavirus hit the world, the economic prognosis for all major economies has worsened dramatically, although forecasts remain speculative given the rapid rate of change in the political and economic environment. The forecast changes in GDP since February 2020 of the G7 nations vary from -5.9% for Japan to -10.2% for Italy. These changes are closely linked to unprecedented declines in employment, consumer demand and industrial investment – all key drivers for wafer area demand. This leads us to believe there will be a significant reduction in wafer demand as these economic factors feed through the supply chain.Other leading indicators show dramatic drops in the global and regional economies taking effect at an unprecedented pace. These indicators have a loose predictive relationship for silicon wafer consumption and portend a rapid drop in demand.The demand picture for the semiconductor supply chain (be it wafers, materials, consumables or devices) is thus gloomy, and our models are currently showing Q2 to Q3 2020 reductions in MSI demand of between -11% and -28% depending on the scenario.In marked contrast to this depressing economic picture, the indications from the end-to-end semiconductor supply chain continue to be much more positive. Demand for silicon reported by SEMI increased in Q1 2020 by close to 3% from Q4 2019, while results from materials supply companies vary from slightly negative to record-breaking growth rates through the first three to four months of 2020. Added to this, reported revenues from WSTS for Q1 2020 ticked up 6.2% versus the prior year and the three large foundries in Taiwan and China showed continued growth of Q1 wafer area shipments and a 32.3% growth versus Q1 2019.Revenue and demand reports from leading device manufacturers remain on trend from 2019 with no indication of a precipitous change. Anecdotal reports of strong technology equipment demand to support people working from home and demand for medical devices in response to the pandemic can be substantiated somewhat by demand data although not convincingly.Reports from materials supply companies indicate that factories continue to be fully utilized, having been designated essential businesses, and that safety measures implemented against infection are largely effective.There are some indications of caution, however. The major public silicon wafer suppliers saw a 4% drop in revenues in Q1 over Q4, despite the reported strength in silicon area shipments from SEMI, indicating either ASP declines or some inventory effects.We are advising clients supplying materials into the wafer fabs and packaging supply chains to develop contingency plans for a sharp decline in product demand of as much as 28%, which may bounce back rapidly to 2019 levels or higher in early 2021. However, companies should also be vigilant of a slower than hoped for return to previous activity levels if the effects of the pandemic continue for an extended period.For further information please contact Mark Thirsk at +1 774-245-0959 or on [email protected] in engaging with the electronic materials supply chain? The Electronic Materials Group (EMG) is a SEMI technology community representing SEMI member companies that provide substrates, polymers, metals, organic and inorganic materials, chemicals, and gases developed for electronics manufacturing. Linx Consulting is a longtime member and supporter of the SEMI Electronic Materials Group.Mark Thirsk is managing partner at Linx Consulting. Duncan Meldrum is president of Hilltop Economics.
Read More
By many measures, South Korea is swiftly restoring life as usual after suffering a heavy COVID-19 caseload in March. The region has logged an average of about 10 new COVID-19 cases per day since mid-April, it enjoys an ample supply of facial masks and sanitizer, and the Korean government on May 6 lifted social distancing orders and now encourages routine distancing to keep the coronavirus at bay. South Korea is also making progress on the business front as regions including China, Vietnam, Poland, Hungary and Kuwait have started to crack open the doors for travel by Korean businesspeople. As of mid-May, more than 5,500 Korean workers had received permits to travel to the five nations. For several months, South Korea was subjected to international travel bans to stem the spread of the coronavirus. Then, as its COVID-19 case count dropped, other nations started to loosen their bans on business visits to South Korea. In mid-May, the Korean government won work-related travel privileges to Vietnam for 186 Samsung Display engineers, while some LG engineers were also granted the travel permits.Other steps forward for the Korean microelectronics supply chain include the following: About 1,150 workers from Samsung, LG group and affiliates subject to a 14-day quarantine were granted entry to Vietnam 340 employees from 143 small and midsize Korean companies traveled to Vietnam under a 14-days quarantine 252 LG Group workers won fast-track entry to Nanjing, China 215 Samsung Display, Samsung SDI and Samsung Electro-Mechanics engineers were permitted entry to Tianjin, China under the region’s fast-track program 170 LG Display workers with fast-track privileges flew to Guangzhou, China 300 Samsung Electronics workers arrived in Xian, China via fast track Shanghai, Tianjin, and Shandong are among 10 provinces in China that have implemented the fast-track entry program. South Korea businesspeople are required to follow a number of protocols to help ensure the safety of China’s citizens such as: Submitting to temperature checks at least 14 days before departure and COVID-19 tests within 24 hours of leaving South Korea Showing health certificates that they have tested negative for COVID-19 Undergoing COVID-19 testing once they arrive in China. Workers testing negative for the virus can start work within three days. Other regions are also weighing a loosening of travel restrictions to South Korea. For example, the Japan government is considering issuing business travel permits to 10 countries including Korea, China, and the United States. The start to re-opening international borders to business travel is a promising step toward restoring the global collaboration and connection at the heart of the microelectronics industry. Jaegwan Shim is a marketing specialist at SEMI Korea.
Read More
Thanks to developments in science and technology, artificial intelligence (AI), cloud computing, big data and other technologies have been used to establish smart healthcare systems that helps societies respond more effectively to disease outbreaks. The spread of novel coronavirus starting in late 2019 has revealed how not only traditional medicine but also Smart MedTech applications can be instrumental on the anti-epidemic front lines.To give updates on the development of Smart MedTech and how it shines during the fight against COVID-19, SEMI invited Dr. Pei-Yuan Lee, Honorary Superintendent of Show Chwan Memorial Hospital, to share with MSIG (MEMS Sensors Industry Group) and Flex-Tech members how the international community and Taiwan are bringing their best in Smart MedTech to the table and how their collective efforts are helping tackle COVID-19 challenges.Taiwan’s COVID-19 rapid screening reagents and antibody testing help curb coronavirus transmissions Taiwan’s medical community has demonstrated its prowess in responding to the COVID-19 outbreak. Using its nucleic acid extraction reagent, Taiwan Advanced Nanotech Inc. tested 128 specimens from passengers aboard the SuperStar Aquarius cruise ship in only eight hours in early February. Taiwan’s leading research institute Academia Sinica successfully synthesized the first group of monoclonal antibodies capable of recognizing the new coronavirus protein on March 8, enabling testing to be completed in 15 minutes. The College of Medicine of National Taiwan University announced on March 27 that its 30-second screening device had helped identify asymptomatic carriers. The devices detect COVID-19 in people with no symptoms if they have pulmonary infiltration and edema. It took only 14 days for Academia Sinica to successfully synthesized the first group of monoclonal antibodies capable of recognizing the new coronavirus protein. On April 22, three biomedical companies in Taiwan launched a COVID-19 test that produces results from samples of patient mucus in less than 10 minutes to greatly enhance testing speed. Once the test method is approved by the Taiwan government, it will take Taiwan’s medical strategy against COVID-19 to the next level.Artificial Intelligence: the key to upgrading traditional healthcare practicesAI is a key enabler of the transition from traditional medical practice to Smart MedTech. To help fight the COVID-19 outbreak, a National Cheng Kung University medical team developed a 30-minute coronavirus testing procedure that uses AI to read pulmonary X-ray images and automate medical records. Taiwan AI Labs leveraged AI to simulate how drug molecules combine with viruses to reduce research time by three to four years. AI ​​diagnostic technology from the Alibaba DAMO Academy (Academy for Discovery, Adventure, Momentum and Outlook) and Alibaba Cloud interprets CT images of COVID-19 patients with 96 percent accuracy in 20 seconds. AI-powered algorithms improve diagnostic test accuracy, allowing clinicians to quickly analyze scans of pulmonary lesions and quantify the severity of lung damage.Startups have also joined the fight against COVID-19. Taiwan's Internet of Things (IoT) startup iWEECARE invented the world's smallest smart thermometer patch. Heroic-Faith Medical Science launched a device that uses IoT and AI to monitor lung sounds. With Smart MedTech expected to be fertile ground for future venture investments, enterprises must find their niches in establishing new technologies in a much more systemic way. Taiwan startup Health-Faith Medical Science developed a respiratory diagnostics device that uses IoT and AI technology to monitor chest sounds in real time. Anti-epidemic technology to help fulfill smart medtech vision Many AI and big data technologies previously deployed in hospitals and healthcare systems are helping regions around the world speed their pandemic response. The United States and China have started to develop facial mask recognition systems powered by AI, while a team in the Department of Bioinformatics and Medical Engineering at Asia University has devised a facial recognition system combining IoT and AI technology with infrared thermal imaging cameras. At Johns Hopkins University, the Center for Systems Science and Engineering is using AI to create big data models that track global cases, people and traffic flow, and other variables for real-time data analysis that enables epidemiologists to more accurately predict COVID-19 transmission paths. Graphen, Inc., a New York-based provider of next-generation AI platforms, launched the world's first AI COVID-19 genetic evolutionary path analysis systems to gauge the virus’s transmission route and accelerate pandemic response. Both the United States and China are also using robots and drones to improve epidemic research and patient treatment. For the first confirmed case in the United States, robots were used to assist with medical care. In China, robots facilitate deliveries of disinfectants to makeshift hospitals built to expand the nation’s capacity to treat COVID-19 patients. While Taiwan’s robots are traditionally used for hospitality, transportation and disinfection purposes, future robotics research and development will focus more on medical applications that shift more work from medical staff to technology. With abundant technological resources and expertise, Taiwan can join hands with the rest of the world to combat the COVID-19 pandemic. Emerging technologies are pointing the way toward a new paradigm for healthcare community. Biotech, artificial intelligence, and robotics have given rise to new applications that increase virus screening accuracy and efficiency. This growing wave of technological defenses against the pandemic will become a long-term force for stability and strength in healthcare systems across the world.To get involved in SEMI Taiwan Smart MedTech Community, please contact Helen Chen, Outreach Manager, at [email protected] Huang and Winnie Chang are marketing and public relations specialists at SEMI Taiwan.
Read More
In much of post-lockdown China, urban life is humming. The streets of Beijing and Shanghai are bustling with traffic, smog again shrouds city skylines with the resurgence of economic activity, property sales are bouncing back and a revival in consumer confidence is taking hold. Emerging from monthslong shelter-in-place orders, the nation has seized a large measure of control in containing COVID-19 as it breaks fertile new ground in pandemic response and recovery. In Wuhan, Hubei, the fountainhead of the novel coronavirus, one company offers a striking example of China’s muscular COVID-19 containment efforts, carefully continuing to operate through January and February as the virus set root, said Karel Eloot, a Shenzhen-based senior partner and Asia leader of Transformation and Operations practices at McKinsey Company, speaking at a recent webinar presented with SEMI. Soon, COVID-19 spread to eight other provinces that suffered serious outbreaks and forced the nationwide lockdown that sent China’s GDP plunging 7 percent, its first contraction in 28 years. An impressive array of safety protocols, many designed to reduce people density as a bulwark against the virus, animates China’s fight against COVID-19, a return-to-work movement that is laying a path forward for companies around the world. It is these measures, Eloot said, that have kept the Wuhan company afloat and helped other businesses across China restore operations with unusual speed. Community and Social Distancing – The Heart of China’s COVID-19 Response In establishing safeguards, many companies started by assessing staffing requirements, identifying workers essential to sustaining on-site operations while allowing others, such as white-collar staff, to work from home, though some have since returned to their offices. Seen as non-essential, some factory maintenance workers have been instructed to stay home. To fill staffing gaps, business have turned to multi-skilling practices, such as having on-site supervisors and engineers step out of their daily roles to handle lower-level operations activities. Much of the focus has been on community distancing, with businesses quickly identifying workers suffering even minor COVID-19 symptoms and using contact tracing to prevent sick or vulnerable employees from entering offices and factories and turning them into hot zones for community spread, Eloot said. Manufacturing facilities are staggering work shifts to reduce people density, closely monitoring workers’ body temperatures with an eye toward other symptoms, and following up with medical tests and quarantines as needs dictates. QR codes, long a staple of e-commerce, have been a particularly effective weapon in combatting COVID-19. Companies are deployed the scanning technology to identify workers by color code – green, yellow or red – and assign various levels of site access depending on who they’ve been in contact with. Some factory workstations are now walled off by transparent plastic sheeting to prevent COVID-19 infection through aerosol drift. In business meetings and lunchrooms, staffers sit spaced a safe distance apart and facing the same direction to avoid crosscurrents of the microscopic respiratory droplets that can carry the virus. Others eat in isolation. Meeting room windows are opened, weather permitting, to admit fresh air. And elevators – perfect petri dishes for contagion – are shuttered to ward off human clusters, shifting all floor-to-floor movement to staircases. Companies united by the common goal to keep goods flowing through supply chains are providing masks and other personal protective devices to smaller players most vulnerable to the economic shock of COVID-19. The aim: Shield the companies from the potentially crippling effects of the virus to avoid supply chain breakdowns that can undercut the performance of the whole. Even competitors have formed unexpected alliances, sharing parts and components that are in short supply. “Some sectors have maintained steady production throughout the crisis” thanks to these practices, Eloot said. “China has been able to create safe communities where people can operate as normal.” Executive Uncertainty Reigns, Hope Springs Eternal with Innovation The objective of China’s fast, forceful response to the COVID-19 outbreak is economic: A V-shaped rebound after the 7 percent wallop to its GDP in the first quarter of the year. The trajectory is among nine economic recovery scenarios McKinsey Company presented to more than 2,000 executives worldwide in a recent survey seeking their views on the likelihood of each. The business leaders coalesced around two – a full restoration of global GDP growth that could materialize this year or extend into next, or a two- to three-year recovery following the initial economic tsunami, Sven Smit, an Amsterdam-based senior partner with McKinsey and global leader of the McKinsey Global Institute and global COVID-19 response team, said at the webinar. The executives see the multi-year recovery as the most likely. The shorter rebound ranked second on a scale of probabilities. Notably, the business leaders found the V-shaped bounceback China is attempting – returning to GDP growth in one quarter – the least likely outcome. But the biggest surprise from the survey, Smit said, was executives’ view that of the two major global interventions for restoring GDP growth – viral and economic – one will be ineffective, reflecting their deep uncertainty about what lies ahead. A growing body of knowledge about COVID-19 tempers that doubt. It’s established fact that the virus is highly contagious, more lethal than the flu, and spread by means including aerosols and touching contaminated surfaces. But only recently has more insight emerged about human immunity. Broad-based blood testing in the Netherlands has discovered that only 3 percent to 4 percent of the people screened are immune to the coronavirus, leaving the vast majority of the population without natural biological protection – a sweeping vulnerability evident in Asian countries hit early by the virus only to see fresh flare-ups after initial containment. Smit warned of the pandemic’s potential resurgence. Testing has revealed that coronavirus cases are underreported by a staggering 10- to 15-fold, a clarion call that countries “need to be very careful about how they re-open economies.” That means in order to keep COVID-19 at bay until a vaccine is developed, the best defenses will remain temperature monitoring, contact tracing, quarantining, social distancing, mask wearing, frequent hand-washing and other proven protective measures. And while the relative contribution of each safeguard to slowing COVID-19’s spread is unknown, Japan, Korea, China, Taiwan and other Asian countries have shown that “if you apply them all, you are likely to keep this virus under control,” Smit said. It remains to be seen whether protections the U.S. and European countries have put in place will stave off the virus as effectively as the rigorous measures implemented by Asian countries and, if the Western regions deploy a different cocktail of safety protocols, how well they will work. The re-opening of their economies promises to reveal the answers – and the McKinsey recovery scenario they’ll face. These and other open questions help explain the uncertainty of the executives McKinsey polled. Pandemic Supercharges, Adds New Urgency to Long-Term Trends What is known is that, far from upending the way all organizations operate, COVID-19 is supercharging secular trends and showing that people can react with dizzying velocity when confronting global mortal threats. That speed, Smit said, “is not determined by the potential of technology, but by events." For decades, doctors and technologists have teamed to develop ways to examine and treat people from afar, yet telemedicine managed to eke out only small, incremental gains in adoption. Since the COVID-19 outbreak, patients have flocked online, with virtual doctor’s visits accounting for more than 70 percent of all physician-patient interactions. “People like it, and we can reach many more patients as a result. It happened in a few weeks,” Smit said. Similarly, teachers and unions have only inched toward digital communications for years, fearing job losses in education at the hands of technology. When schools closed recently under shelter-in-place orders, teachers quickly switched to online lessons. The transition, Smit said, took one weekend. Meanwhile, as office workers holed up at home, usage of teleconferencing applications skyrocketed. “We’re collectively learning at unprecedented speed,” Smit said. “We’re sharing. We’re learning about supply chains. We’re learning about collaboration. We’re learning about masks. We’re learning about contact tracing. We’re learning how to work more efficiently. We’re learning from real-time data about the behavior of people. And we’re investing collectively enormous sums in finding cures and treatments and expanding hospital capacity.” While the coronavirus’s blistering spread caught many countries off-guard, Smit expects scientists to spare no effort to innovate. Expressing hope that new medical interventions will be available by summer, Smit said the world needs to buttress its key lines of defense against the coronavirus until a vaccine is developed – a shield that will quicken the global economic recovery. “The race is on," he said. Related blog COVID-19: Economic and Microelectronics Industry Impacts – Insights from McKinsey Company For McKinsey’s latest insights on the coronavirus pandemic, visit its website, which is updated daily. For the latest COVID-19 information and SEMI event updates SEMI is providing members, visit Coronavirus Resources. Michael Hall is a marketing communications manager at SEMI.
Read More
For five days in the latter half of March, the pall of the heavy human and economic toll COVID-19 has exacted in China appeared to be lifting. The epicenter of Wuhan reported no new coronavirus infections through domestic transmission. And in an initial step to loosen its nationwide lockdown, China began reversing restrictions on travel within its borders.Now, in another sign of progress, the region’s idled factory workforce is preparing to return to the production lines. Outside of Hubei province, home to Wuhan, most manufacturing workers are expected to be back on the job by the end of this month, with the proportion of manufacturing employees returning to work in Hubei cities except Wuhan reaching 70 percent by then, said Didier Chenneveau, Partner, Supply Chain Practice, McKinsey Company, in a late-March webinar presented by the business consultancy and SEMI.McKinsey is also “seeing evidence of a rebound in demand led by China’s online sales” as rising consumer confidence and a surge in the popularity of work-from-home policies spur strong spending on laptop computers, Chenneveau said.The turnaround stands in stark contrast to the unprecedented drop in demand McKinsey saw across retail and durable goods in China early in the year. Over the first two months, passenger car sales plunged 90 percent, smart phone receipts 40 percent and retail sales 21 percent, leading to what Chenneveau calls a whiplash effect that could disrupt supply chains as manufacturers and shipping companies scramble to meet pent-up demand once a recovery takes hold. As the outlook for China’s factories and suppliers brightens, concerns are shifting to the ripple effect of its deep manufacturing pullback on demand for goods in the United States and Europe. Sharp disruptions to global supply chains caused by labor shortages and knotty logistics challenges have also become worrisome. And while China is buoyed by the prospect of normalizing its workforce and manufacturing capabilities, parts shortages are bottlenecking production. In the United States and Europe, where 60 percent of air freight is carried in cargo holds of passenger aircraft, logistics concerns loom large with the widespread flight groundings. “Logistics must be a priority in any crisis war room because it’s a big challenge,” Chenneveau said.Asia Semiconductor Supply Chain ImpactsIn Asia, the semiconductor supply chain is working to overcome intractable challenges caused by COVID-19 including sourcing raw materials for chip manufacturing and maintaining assembly and test operations, Mark Patel, Sr. Partner Semiconductor Practice Lead, McKinsey Company, said at the webinar. Those problems cascade to foundries and IDMs even as they confront the compounding issue of a shortage of fab operators and engineers. Downstream, the inability to package, test and qualify products risks exacerbating the supply constraints.Patel said another acute challenge is that most semiconductor manufacturers and suppliers are operating under restricted practices, making it harder to sustain engineering activities vital to new product introductions, new process development and capital equipment expansion. In the longer term, the supply chain fallout hold implications for product life cycles and investments in capacity and next-generation technology – factors that analysts will need to monitor in evaluating the economic impact.Returning Workers Key to Economic RecoveryIssuing shelter-in-place orders have been an effective antidote to the spread of COVID-19 but a double-edged sword as nations worldwide sustain the economic blowback. Discretionary consumer spending on items such as automobiles has dropped by 45 percent globally so far this year, business investment has fallen and trade has seen a sharp slowdown, said Sven Smit, Chairman and Director at the McKinsey Global Institute, speaking at the webinar.A lockdown for as little as a month can slash aggregate global GDP by as much as 10 percent, a scenario McKinsey expects to play out in the second quarter of 2020. The drop would be the deepest since World War II and larger than the plunge in the first quarter of the Great Depression, raising the question of how long governments can afford to keep workers holed up at home.“The economic shock is unprecedented,” Smit said. “We’ve never sent people home to not work. Even in World War II, next to the front lines, people were harvesting food.”China offers a potential blueprint for economic recovery. McKinsey estimates that China’s rigorous containment efforts could help its economy bounce back in as little as six months – a V-shaped rebound. Western nations generally have not been as forceful with their containment measures. For them, the fight against the pathogen could be prolonged, deepening the economic damage.Yet even with the best protective lockdowns, a new challenge arises: The longer shelter-in-place orders remain in effect to contain the spread of the virus, the longer the economic impact drags on. “Until the path to return to work becomes clearer, people will not be confident to spend,” Smit said.Confronted with that reality, governments worldwide must strike the delicate balance between safeguarding the lives of people – critical forces of economic growth through consumer spending – and limiting the economic shock. The faster the virus can be brought to heel, the softer the impact to economies around the world. And the stronger the return-to-work protocols in place once COVID-19 has been brought under control, the faster workers can get back to their jobs. Smit believes resolving both issues simultaneously is not only possible but necessary for a return to normalcy.“That’s the imperative of our time,” he said. Related blog COVID-19: The Way Forward – Insights from McKinsey Company For McKinsey’s latest insights on the coronavirus pandemic, visit its website, which is updated daily.For the latest COVID-19 information and SEMI event updates SEMI is providing members, visit Coronavirus Resources.Michael Hall is a marketing communications manager at SEMI.
Read More
In the two months since the COVID-19 outbreak in January, the Chinese economy has shifted from shock to ongoing recovery under the guidance of the Chinese government. China has worked tirelessly to restore production at its chip manufacturing facilities, a core strategic industry in the region, and the effort is paying off. Operations at several fabs and OSATs – the domestic semiconductor industry’s chief growth engines – have begun to stabilize.As of mid-March, SMIC had restored its manufacturing lines to over 90% of production capacity and expects to be operating at full bore in the next few weeks, while the company’s R D line has returned to full operation. Huahong Grace reestablished normal supplies of various equipment parts and production raw materials. At Huahong Fab2, 12 new pieces of equipment went online to help increase production capacity, and production at Huahong Fab1 and Huahong Fab3 is now stable. JCET said the company's overall return rate has exceeded 90%. Meanwhile, IDM maker Silan Microelectronics' 6-inch and 8-inch lines maintained 90% production.Production lines at Huahong Group, SMIC, CanSemi, GTA Semiconductor, Samsung (Xi'an) and other mainland China chip manufacturers have been generally operating at normal capacity since the Spring Festival. Lines at YMTC, Tianma, CSOT, and BOE, all in the Coronavirus epicenter of Wuhan, have also returned to normal operations. China’s chip industry is finding its footing, and an impressive host of semiconductor companies are gearing up to participate at SEMICON China 2020, rescheduled to June 27-29. The list includes the major domestic wafer foundries such as Huahong, the major packaging and testing companies such as JCET, TFME, Huatian, and large domestic and foreign equipment companies, among them TEL, ASMPT, DISCO, ULVAC, VAT, ASML, KLA, NAURA, AMEC, Anji, CETC, Sinyang, SMEE, CAS, CANON and SPIROX.DigiTimes, a daily newspaper covering the semiconductor, electronics, computer and communications industries in Asia, interviewed SEMI China President Lung Chu in mid-March about what’s ahead for China’s semiconductor industry. Following is an English translation of the interview. DigiTimes InterviewAs China continues to ramp back up to normal activity, SEMI China is making every effort to hold SEMICON China 2020, a leading international semiconductor industry platform for promoting growth and innovation in China's semiconductor industry supply chain. SEMI China president Chu emphasized that the strong support of SEMICON China 2020 exhibitors and the Chinese government made rescheduling the event to June possible.Chu, a semiconductor industry veteran who has experienced numerous economic and industry upheavals over his career including the SARS shock in 2003, said current global economic uncertainty stems from two black swans – the global COVID-19 pandemic and how long it will take to contain it, and the sharp drop in oil prices triggered by the recent geopolitical dispute between Russia and Saudi Arabia. In China, the government responded with strict containment actions and promoted public awareness of self-isolation, resulting in effective domestic containment as of mid-March. As a major oil consumer, China sees the lower prices as relatively favorable to its economy. Those dynamics should allow China to recover sooner than many other regions, and it could emerge even stronger once the pandemic is contained, despite the current slump in global semiconductor demand, Chu said. Once the epidemic has passed, China is in a position of "turning crisis into opportunity," and the semiconductor industry will recover from the trough, he said. Companies in semiconductor supply-chain sectors face various challenges in restoring normal operations. IC design companies experienced relatively low impact since employees can work from home and most companies are located in major cities in China, where epidemic prevention control is strict. For most chip manufacturers, production has not stopped but is hampered by manpower shortages from restrictions on employees returning to work. IC packaging and testing companies are suffering bigger impacts because of the more labor-intensive nature of their operations. However, all companies in the supply chain will be affected by the decline in demand for electronic products and ICs in 2020. As the COVID-19 threat recedes in China, the region remains unwavering in its commitment to semiconductors as a strategic industry with its continuing efforts to evolve sustainable and reliable localized supply chains, Chu said. Investments in “new Infrastructure” for 5G, the Internet of Things (IoT), data centers, as well as public health services should help drive semiconductor demand for smart applications and devices associated with the new infrastructures as are all powered by ICs, benefiting companies in the global supply chain. The COVID-19 outbreak triggered a slowdown in new factory construction after the Chinese government implemented restrictions on the flow of people resulting in a worker shortage. SEMI has revised downward its forecast of wafer equipment spending in China to just a 3% increase this year.Market analysts revised downward forecasts for 2020 annual global semiconductor revenue growth from 7-10% to 0-5%, while some expect negative growth. The recent COVID-19 outbreaks in Europe, the United States and other regions have created more uncertainty. Declining end-user demand for electronics will drive down spending on upstream equipment for both memory and logic IC device makers. For Chu and his SEMI China staff, the postponement of SEMICON China 2020 has been a “major challenge,” he said. “It is a huge project to communicate and coordinate with the government and to reconfirm with exhibitors and industry leaders.”As a leading industry platform, SEMICON China attracts a large number of global customers and suppliers each year. The major China domestic suppliers, leading foundries and OSATs have confirmed their attendance in SEMICON China 2020. Most key foreign suppliers are planning to staff the event with local teams in case some executives are unable to enter China by June due to travel restrictions if the COVID-19 virus has not been brought under control in the United States, Europe and other regions. To assure the success of the concurrent Forums, SEMI has prepared multiple contingency plans, including live broadcast, video and slide presentations. SEMI will also hold the grand opening session at a larger venue than last year’s event to accommodate more attendees with more sitting distance apart. SEMI will follow government guidelines to implement appropriate public health and safety measures during SEMICON China. "Ensuring the welfare of all exhibitors and guests and providing a safe exhibition environment is SEMI’s top priority," Chu said.Cherry Sun is a marketing manager at SEMI China.
Read More
The ESG MarketElectronic Gases represents the largest percentage of the spend on chemicals and materials by semiconductor producers. Taken altogether, the spend on Electronic Gases was almost $6 billion worldwide in 2018. Recent critical shortages of key gases have impacted the industry tremendously and, in some cases, has also limited output. The Electronic Specialty Gas (ESG) market, while a small segment of the global gas market, is one of the most complex and least understood market segments of the electronic chemicals and materials landscape. Linx Consulting estimates that the ESG market totaled nearly $3.4 billion in 2018, up from roughly $3.1 billion in 2017 with a growth rate of 10 percent last year. Growth was driven by rising demand and the increasing use of higher-value products in applications such as etch and specialized deposition. ESGs are used in the manufacture of electronic devices that are subsequently assembled in systems and in a variety of processes such as film deposition, film etching, substrate doping and chamber cleaning. The devices – semiconductors, LEDs, and displays – are processed on larger substrates, and then separated before assembly.Key differentiators for ESGs are not only the technical complexity of the gases and mixtures supplied, but the purity and consistency demands placed on the gas supply. Product purity and consistency, often at the limits of analytical capability, must go hand in hand with rigorous application of statistical process control in manufacturing and absolute delivery reliability. ESGs include fluorocarbons, hydrocarbons, deposition precursors, dopants, corrosives (halides/hydrates) and rare gas mixtures.The key end-use markets for ESGs include semiconductor wafer fabrication, flat panel display (FPD) manufacture, compound semiconductors / LEDs production and Photovoltaics cell manufacture, as illustrated below in Figure 1. Figure 1 - ESG Market by End-Use Applications Source: Linx Consulting The semiconductor industry is the largest user of ESGs and has the most diverse ESG requirements in terms of products, package sizes and purity requirements. The semiconductor industry uses all the different specialty gases produced. Purities are typically 4N and above and the packages can range from small cylinders to tonner/Y packages to tube trailers. The ESG market is global, with key demand centers in China, Europe, Japan, Korea, Southeast Asia, Taiwan and the United States. The Flat Panel Display (FPD) community is the second largest user group for ESGs. However, the breadth of ESG products used in FPD fabs is much more limited than in the semiconductor industry. Key product applications include silicon sources, dopants, oxidation and nitridation sources, chamber cleans, and etchants. ESG use has grown with the development of the FPD industry across both TFT-LCD segment and AMOLED segment, with many large end users in Korea, China, Taiwan, and Japan. Korea and China boast large ESG supply infrastructures geared towards serving the FPD industry. Early on, these countries targeted the development of the FPD industry and the associated value chain, so there has been large-scale development of required ESG products such as NF3 and silicon precursors. When we review the markets in aggregate, coupled with the geographic intensity of the electronics industry in Asia, it is unsurprising that a vast majority of the ESG market would be in Asia, as illustrated in Figure 2, below.Figure 2 - ESG Market by Key RegionSource: Linx Consulting Key ApplicationsThe applications for ESGs can be readily tied to major thin film fab processes that are commonly used in the microelectronics industry. The processes include dielectric and metal etch, dielectric deposition, metal deposition such as titanium or tungsten, deposition of non-silicon materials such as hard masks etc., dopants for thermal diffusion methods and ion implantation, reactor chamber cleaning; as well as some other specialty applications. This is illustrated in Figure 3 below. Figure 3 - Applications for ESGsSource: Linx Consulting Clearly there is a close tie-in for ESGs into thin film deposition (CVD and chamber cleaning) and etch processing. In the future, the industry will increase its use of ESGs with novel deposition and etch processes. New applications may include lower temperature deposition, high deposition rate processes, flowable CVD films for high aspect ratio structures, and high selectivity deep etching with greater uniformity. All these processes improve device performance and will rely on ESGs and rare gases as enablers. Outlook for ESGsOverall, we believe that the ESG market will grow at a compound rate of about 6 percent over the next five years. Currently the largest six suppliers – Versum Materials, SK Materials, MTG/TNS, Air Liquide, Linde/Praxair, and KDK – control about half of the overall market, with about 50 suppliers accounting for the other half of the market. We anticipate that as the industry continues to grow, we will continue to see changes in the supplier base with both continuing consolidation and new regional suppliers emerging as unique technologies and value-added capabilities enter the market.For More InformationThis article is based on insights and analysis from Linx Consulting’s Electronic Specialty Gas report. The annual report is considered the leading industry source for comprehensive information about demand for specialty gases used in the electronics industry. We track more than 60 different ESG products used across the global semiconductor, flat panel display, solar and compound semiconductor industries.For more information, please contact [email protected], or Mike Corbett at +1 973 698 2331, Mark Thirsk at +617 273 8837, or Andy Tuan + 886 952 111222, or visit Linx Consulting.Interested in engaging with the electronic materials supply chain? The Electronic Materials Group (EMG) is a SEMI technology community representing SEMI member companies that provide substrates, polymers, metals, organic and inorganic materials, chemicals, and gases developed for electronics manufacturing. Linx Consulting has been a longtime member and supporter of the SEMI Electronic Materials Group.Mike Corbett is managing partner and Andy Tuan is managing director, Asia, at Linx Consulting.
Read More