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As competition within the semiconductor industry continues to intensify, the need for Europe to strengthen its current position within the global supply chain and develop new partnerships are more important than ever. How can Europe forge a unified semiconductor strategy amidst geopolitical tensions, fast‑moving technological change, and ongoing supply‑chain challenges? These dynamics set the stage for the 2026 Industry Strategy Symposium (ISS) Europe taking place in March in Sopot, Poland for the second consecutive year, bringing together leaders from across the semiconductor ecosystem to assess a rapidly shifting global landscape and define Europe’s path toward greater competitiveness and resilience.The symposium opened with a welcome speech featuring Lech Wałęsa, Nobel Peace Prize Laureate and former leader of the Solidarnosc movement which led Poland’ s resistance to its authoritarian Communist regime in the 1980s. Wałęsa shared a strong message on the importance of collaboration: “Old geopolitical structures and the bipolar world order have reached their limits, and as we transition toward a new global order, it is essential to rebuilding a system better suited to today’s realities”. In this uncertain moment, the Nobel Peace Prize called for peaceful dialogue and collective action to shape a new, more suitable world order rather than relying on conflict.Lech Wałęsa, Nobel Peace Prize LaureateAmidst geopolitical tensions, accelerating technological change, and intensifying global competition, a clear message emerged: semiconductors are now foundational to European economic security and technological leadership. As Laith Altimime, President of SEMI Europe, emphasized, “Semiconductors are the infrastructure of the modern world, and only through close collaboration can we master the challenges ahead and strengthen Europe’s technological leadership.”Laith Altimime, President, SEMI EuropeEurope plays a vital role in this industry, with global revenues expected to reach $2 trillion by 2035. As Altimime noted, “Europe has strong foundations, leading in manufacturing equipment and innovation. We must maintain this leadership while reducing dependencies.”A central theme throughout the symposium was how Europe can build on its leadership positions while strengthening its role across the value chain. As Leonard Hobbs, Director of Government Affairs at Intel Ireland, said, “No region controls the entire supply chain. Europe has to figure out how to differentiate itself within the various parts of the supply chain.” Marc Hijink, author of the book Focus – The ASML Way highlighted Europe’s deep supplier ecosystem, and explained that “more than 80% of the value in the products that ASML makes comes from suppliers who are mostly based in Europe.” Marc Hijink, Author of Focus – The ASML WayAt the same time, significant investments are reshaping Europe’s manufacturing footprint. Joerg Recklies, Executive Vice President Frontend at Infineon, drew the audience’s attention to Infineon’s upcoming Smart Power fab opening in summer 2026 “six months ahead of schedule.” Recklies added, “The new ESMC facility in Dresden is expected to produce 40,000 300mm wafers per month, and will provide the first FinFET capability in Europe.” Joerg Recklies, Executive Vice President Frontend, Infineon TechnologiesLooking at opportunities in advanced semiconductors, Cesc Guim, CEO of Open Chip, said, “25 years ago, the only way to learn how to do advanced chip design was in one of the large US companies. That’s no longer the case. Europe now has the capabilities, supported by RISC-V and a full supply chain backed by the wealth of hardware and software engineering talent in regions such as Pomerania.” Left to Right: Mikołaj Trunin, Deputy Director, Invest in Pomerania and Cesc Guim, CEO, Open ChipTo reinforce the sense of opportunity in a changing world, futurist Christian Kromme gave a whirlwind tour through the revolutions to come in technology and society. He described how each wave of technological change, from the internet to AI to autonomous machines, is arriving faster than the one before. “The internet wave commoditized media and knowledge. In the AI wave, we will see the same value compression, but this time squeezing out human skills such as problem-solving and system design,” said Kromme.Kromme urged delegates to “shift from hard skills to heart skills: imagination, empathy, curiosity and integrity, this is where the value of humans lies, because machines cannot do these things.”Christian Kromme, FuturistTrade tensions and international conflictGeopolitics and supply chain dynamics were central to the discussions. Martin Zech, Senior Director at FTI Consulting, described how the US’s approach to the semiconductor industry had shifted from incentives to restrictions. Zech warned that “a new section 301 investigation into the European semiconductor industry could lead to new tariffs.” Johan Rauer, Partner at McKinsey, added that the threat extends beyond tariffs. “Regions will apply a range of measures, including export controls and IP protection.”Martin Zech, Senior Director, FTI ConsultingJohan Rauer, Partner, McKinsey CompanyChristopher Frieling, Director of Advocacy and Public Policy at SEMI Europe, outlined the EU’s response, including its evolving economic security framework and the concept of “trusted chips,” reflecting a preference for products with strong European involvement.Christopher Frieling, Director of Advocacy and Public Policy, SEMI EuropeThe question of technological leadership was addressed by Carlos Pardo, CEO of KD, who stated, “If Europe wants a relevant position in semiconductors, it needs to invest more.” He added that even in automotive semiconductors, European players hold relatively limited shares. Carlos Pardo, CEO, KDProviding another perspective, Dr. Rafał Bugyi, CEO of TRUMPF Huettinger said, “We don’t need to cover the entire supply chain, but we must be indispensable.” Dr. Rafał Bugyi, CEO, TRUMPF Hüttinger GmbH Co. KGSpeakers also addressed how Europe could adapt to the new reality of supply chain dependency. Benoit Chassagne, End-to-End Supply Chain Manager at Edwards, presented a model of a systems response which his company has implemented to mitigate its exposure to supply chain volatility, while David Forrest, Director of Sustainability and Criticality at Vital Materials, emphasized the role of waste materials recovery, saying that “circularity is an industrial mechanism for supply chain resilience, not an environmental add-on.”Benoit Chassagne, End-to-End Supply Chain Manager, EdwardsDavid Forrest, Director of Sustainability and Criticality, Vital MaterialsCarl van Vugt Luning, Chief Commercial Officer at Resilicon, highlighted the need for greater resilience in polysilicon supply, noting Europe lacks dual sourcing. “Polysilicon is often seen as a commodity, but it is critical. Sovereign chips require a resilient polysilicon supply chain,” said van Vugt Luning.Carl van Vugt Luning, Chief Commercial Officer, ResiliconTurning innovation into commercial revenueIn the session ‘From lab to fab’, speakers examined how Europe can improve its track record in converting innovation into commercial success, for example, by companies such as NVIDIA and Qualcomm.An important part of the EU’s strategy was the creation of technology pilot lines. Jari Kinaret, Executive Director of the Chips Joint Undertaking (Chips JU), told the symposium that the pilot lines are an example of successful collaboration between the state and the private sector. Kinaret said, “The total cost of the NanoIC pilot line (for advanced semiconductor fabrication) is €2.5 billion, but this includes €1 billion of funding from ASML.”Jari Kinaret, Executive Director, Chips Joint Undertaking (Chips JU)The role and value of the pilot lines was the subject of a panel discussion at the symposium. Panelist Anne Van den Bosch, Vice President of Public R D Policies and Programs at imec, said the pilot lines “give the European semiconductor ecosystem faster access to advanced process technology.” Patrick Bressler, Director of Fraunhofer Mikroelektronik, agreed. “Pilot lines are a lab-to-industry scheme to give access to prototype manufacturing for SMEs, start-ups and fabless companies which would not otherwise be able to afford advanced manufacturing,” he said.Moderating the discussion, Laith Altimime asked, “How do we ensure that the products which emerge from innovations developed thanks to the pilot lines get manufactured in Europe? Are boutique fabs the answer?” Kevin Williams, Deputy Director of the PIXEurope pilot line, responded: “There are certainly opportunities in building new types of chips and new types of fabs. We have the know-how in the pilot lines, and the equipment for them is made in Europe.” Bruno Paing, Vice President Europe at CEA-Léti, added, “We need to aim for indispensability, replicating what we have with ASML in the EUV field. For instance, the world needs better memories and better interconnects. There are many opportunities in AI. It is not just about the GPU.”Left to Right: Moderator, Laith Altimime, President, SEMI Europe; Panelists: Anne Van den Bosch, Vice President of Public R D Policies and Programs, imec; Bruno Paing, Vice President Europe, CEA-Léti; Patrick Bressler, Director, Fraunhofer Mikroelektronik; Kevin Williams, Deputy Director, PIXEurope.The symposium also highlighted examples of European innovation from two startups developing new technologies. Antonio Mesquida Küsters, Strategic Advisor to Euclyd, presented a processor system combining 16,384 cores with ultra-high bandwidth memory using advanced 2.5D and 3D packaging, offering an alternative to GPUs for AI inference. As he said, “We want to break the hyperscaler/cloud model of AI to build sovereign AI capability for Europe by 2030.”Antonio Mesquida Küsters, Strategic Advisor, EuclydJekaterina Viktorova, Founder and CEO of Syenta, introduced additive manufacturing technology enabling denser interconnects for advanced AI systems, noting, “Our roadmap is set to produce a 20x increase in bandwidth over the next 10 years.”Jekaterina Viktorova, Founder and CEO, SyentaNew strategies for competitiveness in semiconductor manufacturingIf these types of innovative products are to be manufactured in Europe, the region’s fab operations will need to combat the growing competition from China and elsewhere. Giovanni Notarnicola, Partner at Porsche Consulting, said, “Our position in Europe is under attack. The next threat is not from a new product, but from how chips are designed and produced.”Giovanni Notarnicola, Partner, Porsche ConsultingThomas Altenmüller, Vice President of Manufacturing Analytics at Infineon, highlighted the role of automation: “We get more automation in the transition from 8” to 12” wafers, which gives us an advantage in Europe because of our higher labor cost compared to China. But to compete, we still need more AI smart workflows to increase the automation.” Carina Lainer, Principal at Roland Berger, added, “Today we optimize operations with tools built for a human-centric process, which has reached its limit. We can instead use digitalization and AI to fundamentally change the way that semiconductor innovation takes place.”Thomas Altenmüller, Vice President of Manufacturing Analytics, InfineonLeft to Right: Carina Lainer, Principal, and Thomas Kirschstein, Partner, Roland BergerOded Tal, CEO of MAX Group, cautioned that the barrier to increased implementation of automation was not technical but social. “Humans can be very flexible, but leadership is crucial. “You have to give training and clear instructions. It’s about structure, making people’s roles and responsibilities crystal-clear,” he said.Oded Tal, CEO, MAX GroupThe symposium closed with a panel discussion about the implementation of AI and automation in the fab. Moderator Cassandra Melvin, Senior Director of Business Development and Operations at SEMI Europe, pointed out that “intelligence is moving beyond the tool to the control room, a development which is powered by AI.” The panelists were quick to acknowledge the radical impact that AI is having on fab operations. Dirk Drescher, Plant Manager at Bosch Semiconductor, said, “We built the Bosch fab in Dresden around a standardized data architecture, which is what enables us to implement AI. That is a contrast to a 20 year old fab, which can only see a patchwork of different data systems.”Thomas Richter, Senior Vice President and Managing Director at Infineon, added, “digitalization is about much more than just AI. We have had great success in getting rid of boring, routine tasks through digitalization. This makes a huge difference, and helps our fabs to stay competitive.”The panel also debated the potential impact of humanoid robots on the scale and impact of automation. Richter said, “In our fabs, I can see rooms in which it has never been possible to automate before, but humanoid robots give me hope that we can automate more in future.”Matthias Bonkass, Vice President of Advanced Manufacturing Engineering at GlobalFoundries, agreed. “By 2035, we will see collaboration between humans and humanoids. This wave is coming!” Going even further, Dirk Drescher looked forward to an era of total automation. He said, “We will see a lights-out fab by 2035. This is definitely a tailwind for the European semiconductor industry, making it faster, reducing cost, and giving us more opportunity to build semiconductors in Europe.”Thomas Morgenstern, Executive Vice President of Manufacturing at STMicroelectronics, concluded, “We must not let culture be a barrier to AI. Technical strategies to implement AI are all very well, but you need people to buy in. Morgenstern added, “The name of the game is productivity. The most advanced fabs have to be dark, with remote operating centers somewhere in the world, running clusters of fabs. I am extremely confident that by 2035, if not before, the first dark fab will be in operation.”Left to Right: Moderator, Cassandra Melvin, Senior Director of Business Development and Operations, SEMI Europe; Panelists, Dirk Drescher, Plant Manager, Bosch Semiconductor; Matthias Bonkass, Vice President of Advanced Manufacturing Engineering, GlobalFoundries; Thomas Morgenstern, Executive Vice President of Manufacturing, STMicroelectronics; Thomas Richter, Senior Vice President and Managing Director, Infineon.During the event, SEMI Europe announced recipients of the SEMI European Award and Special Service Award for 2025. Dr Peter O’Brien, Head of Research in Photonics Packaging and Systems Integration at Tyndall National Institute, was honored with the SEMI European Award and, Eric Beyne, Senior Fellow at imec, with the Special Service Award. Peter O’Brien, Head of Research in Photonics Packaging and Systems Integration, Tyndall National InstituteAnne Van den Bosch, Vice President Public R D Policies and Programs, imec receiving the award on behalf of Eric Beyne, Senior Fellow, imecOn behalf of SEMI, the SEMI Europe team and ISS Europe committee, we would like to thank all speakers, sponsors, and attendees for making the event a great success. ISS Europe 2027 will take place in Dresden, Germany from March 8-10.Serena Brischetto is Director, Marketing and Digital Engagement at SEMI Europe.

The semiconductor industry is expanding at an unprecedented pace. Global semiconductor revenues are now forecast to exceed $1 trillion annually by 2030, yet recruitment is struggling to keep pace with the demand for new workers. This is why talent development is a critical focus for SEMI and the SEMI Foundation.Young professionals and students are crucial stakeholders of future talent. Held during SEMICON Europa, Building the Talent Pipeline event provided a showcase for some of Europe’s most enthusiastic promoters of careers in the industry: the Student Ambassadors of the European Chip Skills Academy (ECSA). The session opened with Andra Bornea, a Master’s student of electrical engineering at the Technical University of Cluj-Napoca in Romania, who shared the inspiring story of her journey towards a career in electronics. “For me, it started when I attended the ECS Summer School in 2023 along with 39 other students. It was a life-changing experience,” Bornea shared.The Summer School is a week-long programme jointly organised by AENEAS, ECSA, EPoSS and Inside, bringing together lectures, demonstrations and interactive sessions that give students a first-hand glimpse into what a career in semiconductors can look like. For Bornea, the impact was immediate and decisive. “Attending the Summer School convinced me to shift the focus of my studies from telecommunications and pursue a Master’s in electrical engineering,” she added. Today, Bornea is one of 70 students across Europe who form the ECSA Student Ambassador Programme, a community she describes as “a vibrant network of motivated students working towards the goal of keeping Europe at the forefront of the global semiconductor industry.”Andra Bornea, Technical University of Cluj-Napoca The event also featured other ECSA student ambassadors who are actively promoting the semiconductor industry within their own academic communities. One of them was András Bálint Mészáros, an electrical engineering student at the Budapest University of Technology and Economics, who spoke about his determination to build a student electronics club despite facing administrative hurdles along the way. Reflecting on the process, Mészáros said, “ECSA provided good opportunities to start a community of students interested in observing how the microelectronics industry works.”András Mészáros, Budapest University of Technology and Economics A similar spirit of initiative was shared by Nassim Beladel, a Master’s student at ETH Zurich, who described founding Young Neuromorphs which is a student association focused on computational hardware design inspired by the structure of the human brain. Beladel outlined ambitious plans for the group, including an FPGA hackathon in 2026 supported by the Edge AI Foundation, as well as a proposal to present the association’s work at an IEEE event in Shanghai. Nassim Beladel, ETH Zürich These new initiatives supplement a vibrant network of clubs and events around Europe. Octavian-Constantin Axinte, a Master’s student at the Technical University of Cluj-Napoca, told the forum of a Romanian competition for electronics students which has its roots way back in 1992. The Technologies of Interconnections in Electronics (TIE) contest attracted 1,500 students to its final stage in 2025. Axinte said that the benefits of participation included “hands-on experience of professional work, interaction with teachers, and, if all goes well, a job offer!” Octavian Axinte, Technical University of Cluj-Napoca Pioneering Research Efforts of the Next Generation of Students The Building the Talent Pipeline event also gave ECSA student ambassadors an opportunity to describe the findings of research projects that they have undertaken. Laura Sondakh, a Master’s student at Ghent University, presented her research into the environmental and social impacts of tantalum and cobalt which are critical minerals used in electronic components such as capacitors. “These minerals mostly come from the Democratic Republic of Congo, a country which ranks very low on development indices,” she explained, noting that many mines are located in conflict-affected regions in the east of the country. Laura Sondakh, Ghent University Vuk Vulević, a Bachelor’s student of telecommunications and IT at the University of Belgrade, shared his work on the applications of quantum computing, highlighting its potential beyond classic engineering uses such as machine learning. He explained how quantum technologies could also be applied “in pharmacology, for simulating complex molecules and testing compounds virtually, and in finance, for performing risk analyses and Monte Carlo simulations at high speed.” Vuk Vulević, University of Belgrade Z Zainab, a Research Assistant at Hochschule Anhalt, shared insights from her research into how mechanical strain can be introduced during the wafer saw-dicing process which is a critical step in turning wafers into individual chips. Using Raman spectroscopy, her work helps identify how key process parameters influence wafer integrity, enabling manufacturers to better optimise dicing conditions and reduce hidden damage that can affect chip reliability and manufacturing efficiency.Z Zainab, Research Assistant, Hochschule Anhalt Future Plans for Building the Talent Pipeline The event concluded by looking ahead at how SEMI and its partners are scaling up programmes to support talent development worldwide. Victoria Cummings, Senior Manager for Workforce Development and EU Projects at SEMI Europe, introduced Reinforcing Skills in Chips Design for Europe (RESCHIP4EU), a Master’s program for training the next generation of semiconductor designers supported by SEMI Europe and STMicroelectronics. Outlining the project’s ambition, Cummings said, “The program has a broad curriculum, covering everything from silicon chips and SoCs to safety-critical software, how to run a team, and how to start a semiconductor business.” Victoria Cummings, Senior Manager, Workforce Development and EU Projects, SEMI Europe The focus then shifted towards engaging younger learners. Marco van Schagen and Tijl Bouman, co-founders of JuniorIOT, unveiled their newest workshop, Chips in Schools, which builds on their work to spark interest in electronics among younger students. During a hands-on demonstration, audience members of all ages were invited to examine LEDs under a microscope, learning how different chips can be identified and classified by function.The Chips in Schools workshop will soon be available on the ECSA e-learning platform as part of the ongoing collaboration between ECSA and JuniorIOT. Reflecting on the importance of early engagement, van Schagen noted: “When we talk about the talent pipeline, we need to ask where this pipeline really begins. For us, it’s so important that we reach out to children early to foster their sense of curiosity and discovery.”Marco van Schagen, Co-founder of JuniorIOT, demonstrating the Chips in Schools workshop with Victoria Cummings.Rounding off the session, Mike Glavin, Program Director for Workforce Development at the SEMI Foundation, spoke about efforts to significantly scale the foundation’s impact. He described how, despite hundreds of individual microelectronics education initiatives across schools and colleges in the United States, their collective impact has often been limited by fragmentation and a lack of coordinated promotion. To address this, Glavin introduced the National Network for Microelectronics Education (NNME), an initiative designed to unify and amplify existing programmes by connecting educators, students and regional partners. The goal, he explained, is to build scalable, sustainable talent pipelines: “We want to answer the questions, how do we train teachers to educate students about semiconductors? How do we connect to networks through which we can train educators at scale? And how do we develop resources so that a university can host its own semiconductor day, rather than requiring the SEMI Foundation to put it on?” Mike Glavin, Program Director for Workforce Development, SEMI Foundation From university labs to industry-aligned Master’s programs, the message at SEMICON Europa 2025 was clear: talent development is critical to sustaining Europe’s semiconductor ambitions. SEMI would like to thank its partners across academia and industry, as well as the vibrant community of ECSA Student Ambassadors, whose collaboration, commitment and creativity are helping to build a diverse, resilient talent pipeline and shaping the future of the global microelectronics ecosystem.SEMI Contact Jatin Mendiratta, Communications Coordinator, European Projects Email: [email protected]

At SEMICON Europa 2025, the Executive Forum programs brought together experts from across the semiconductor value chain to address two critical challenges shaping the industry’s future in Europe: the transformation of the automotive sector and the pursuit of smarter, more competitive manufacturing.Smart Mobility in a Changing MarketKnut Krümmel, Senior Partner Automotive at Porsche Consulting, set the tone with a stark question, “Are we facing a Detroit scenario in Europe, especially in Germany?” – a reference to the decline since the 1990s of the famous “Motor City.” He pointed out that all three of Germany’s giant OEMs, Volkswagen, Mercedes-Benz and BMW, are rapidly losing market share in China in the face of a destructive price war, and have suffered large declines in reported earnings. Krümmel outlined four strategic imperatives for Europe’s auto industry: reduce complexity and increase standardization, become software-defined, design regulation that supports innovation, and build stronger partnerships across the ecosystem. He emphasized, “A new mindset is needed—people need to be hungry to win and prepared to suffer in pursuit of victory.”Knut Krümmel, Senior Partner Automotive, Porsche Consulting GmbHAndreas Aal, Head of Semiconductor Strategy at Volkswagen AG and Chair of Europe at SEMI Smart Mobility Global Automotive Advisory Council (GAAC), introduced a proactive approach to redefine the market. He shared Volkswagen’s vision for mobility-as-a-service, exemplified by its roboshuttle pilot in Hamburg. “It is very difficult for a traditional OEM to go into the full digital services world. But this is what we want to do,” said Aal.Andreas Aal, Semiconductor Strategy Volkswagen AG and Chair of Europe GAAC, VolkswagenJan-Philipp Gerhmann, Vice President of Marketing and Strategy for Automotive at NXP Semiconductors, added that the traditional value chain is being upended. The industry is shifting from a hierarchical supply chain to vertical integration, with companies like Tesla designing their own chips. Gehrmann introduced NXP’s CoreRide platform, a modular “skateboard” architecture enabling plug-and-play Advanced Driver Assistance Systems (ADAS) and infotainment features for future vehicles.Jan-Philipp Gehrmann, Vice President of Marketing Strategy, NXPA perspective on the future of semiconductors in autonomous vehicles was provided by Dieter Hoffend, Business Director for Automotive at imec: “For autonomous vehicles, you need a higher-end compute capability, which needs a transition to smaller nodes – and that is very costly. In fact, semiconductor companies will not want to commit volume to automotive customers for their most expensive leading-edge ICs. This means that a chiplet architecture will be the most cost-effective approach for vehicles, and will provide the greatest supply chain resilience. To support this, imec’s vision is of an open chiplet marketplace of heterogeneous chiplets which are interoperable.”Dieter Hoffend, Business Director Automotive Sector, imecAchieving End-to-end Manufacturing ExcellenceThe Executive Forum then shifted to a discussion of smart semiconductor manufacturing. Giovanni Notarnicola, Partner at Porsche Consulting, highlighted the untapped potential of AI in fabs. “AI requires massive amounts of data—but fabs often don’t own or control their data. And second, AI talent doesn’t typically reside in semiconductor companies,” said Notarnicola. His recommendation: “AI is not an IT issue—it’s a cross-functional technology. Isolating AI in the IT department is an old-fashioned view which will deter AI talent from joining the industry.”And Notarnicola encouraged the industry to leverage the new white paper, From Hype to Impact—Realizing AI's Potential in Semiconductors Manufacturing, produced by SEMI End-to-End Smart Manufacturing Group, which provides an in-depth report on the application of AI in semiconductor fabrication. Giovanni Notarnicola, Partner, Porsche ConsultingOliver Aubel, Corporate Lead for Automotive Solutions at GlobalFoundries, echoed the opportunity. “We have 1 billion sensors in a fab, but 30% of the signals are statistical noise. AI could help us make better sense of the data.”Oliver Aubel, Corporate Lead for Automotive Solutions at GlobalFoundriesA session on smart manufacturing brought to light other proven methods for improving the performance of fabs. Dr. Holland Smith, Director of Data Science at INFICON, described fab control technology that INFICON had helped STMicroelectronics to deploy. As Thomas Gimmig, Director for Industry 4.0 at STMicroelectronics, said, “Our model was a highway control room – a place where a single person controls 220km of road monitored by 400 cameras, and handles one alert every three minutes on average. This is only possible with a huge amount of automation.”Left: Thomas Gimmig, Director for Industry 4.0 at STMicroelectronics; Right: Dr. Holland Smith, Director of Data Science at INFICONAt STMicroelectronics, the new fab control room mimics this model, automating anomaly detection and problem solving. Smith described how the system will not be limited to detecting and handling anomalies which have already occurred. “There is a plan to look ahead at problems which could emerge in future, and to configure it to make proactive suggestions which will prevent anomalies from occurring in the first place,” said Smith. Jamie Potter, co-founder and CEO of Flexciton, showcased how intelligent scheduling tools based on real-time fab capacity are transforming operations. “In the modern fab decisions must be made more frequently, with more intelligence and with fewer people. And that is why fabs need to be made more autonomous,” said Potter.Jamie Potter, CEO Cofounder, Flexciton Ltd“Our tool is based on a dynamic capacity model of the fab, so WIP optimization is based on knowledge of what the fab can actually do now, rather than – as is normally the case in fabs today – on an abstract algorithm which is derived from operational results observed in the past.” Potter said. Robert Wallace, Solutions Architect at Seagate, which has deployed the Flexciton technology, confirmed the impact: “We increased throughput without increasing cycle times, and saw a 30% drop in deviations from forecast completion times.” Robert Wallace, Solutions Architect at SeagateAntoine Amade, President (EMEA) of Entegris, emphasized the importance of benchmarking to guide performance improvements: “We have a robust library of fab case studies. These benchmarks can become the foundation for best practices.” Antoine Amade, President (EMEA) of EntegrisRegulatory Burdens and Regional Challenges In a panel session, the discussion turned to the issues that European semiconductor manufacturing faces in particular. Herbert Blaschitz, Executive Vice President of Advanced Technology Facilities at Exyte, put a strong emphasis on the drag that European regulation imposes on the construction of new fabrication plants: “There is three times more paperwork to complete in Europe than in Asia.” Blaschitz made the contrast with Taiwan, “where they have standard codes of regulation specifically for a wafer fab. In Europe, we have regulations for skyscrapers, we have regulations for building family homes. But we have nothing for wafer fabs.”It could be worse for companies building all new fabs. According to Stephen Rothrock, President and CEO of ATREG, “We are affected by permits and politics most of all when trying to push through the repurposing of fabs.”From Left to Right: Mark Puttock, Sr. Director - Technology and Innovation, Entegris; Giovanni Notarnicola, Partner, Porsche Consulting; Stephen Rothrock, President/CEO, ATREG; Jean-René Lèquepeys, Deputy Director and Chief Technology Officer, CEA-Leti; Herbert Blaschitz, Executive VP of Advanced Technology Facilities, Exyte; Oliver Aubel, Corporate Lead Automotive Solutions, GlobalFoundriesSustainable Manufacturing Practices: A Source of Competitive Advantage?The forum ended with a debate on the value of and problems with Europe’s commitment to sustainability. As Mark Puttock, Senior Director for Technology and Innovation at Entegris, acknowledged concerns that sustainability practices could raise costs and reduce process efficiency. But Jean-René Lèquepeys, Deputy Director and Chief Technology Officer at CEA-Leti, countered: “sustainability can be a competitive advantage. For instance, the industry is under pressure to eliminate PFAS from its processes. CEA-Leti is working on this problem, and the whole world is looking for a solution.”The event concluded with a moment of celebration: Ilya Zabelinsky, Co-founder of the International Subfab Research Labs (ISRL), won a diamond prize sponsored by Nanores Lab,Left: Jakub GawczyńskiJakub Gawczyński, Head of Nanores Lab; Right: Ilya Zabelinsky, Co-founder of the International Subfab Research Labs (ISRL)On behalf of SEMI, we extend our sincere gratitude to the speakers, sponsors, and participants who contributed their expertise and vision to the programs at SEMICON Europa 2025.SEMI ContactAna Bernardo, Senior Manager of Technology Programs SalesEmail: [email protected]

The GENESIS EU project is reshaping how Europe thinks about semiconductor manufacturing. Its goal is simple but ambitious: reduce usage of harmful chemicals from chip production, cut emissions and waste, and make the industry more circular and resilient.Launched on 1 May 2025, GENESIS – GENerate in Europe a Sustainable Industry for Semiconductor – is a research and innovation project co-funded by the European Union through Chips JU and its participating member states. In addition, Swiss partners are supported by the Swiss State Secretariat for Education, Research and Innovation (SERI).Coordinated by CEA-Leti in Grenoble, GENESIS brings together 58 partners from across the semiconductor value chain: materials and chemistry suppliers, equipment manufacturers, semiconductor fabs, research and technology organisations (RTOs), universities, small and medium-sized enterprises (SMEs), recycling specialists and communication experts. Together, they are working to build a resilient, circular and environmentally responsible microelectronics sector aligned with the European Green Deal and the European Chips Act.Mission and VisionGENESIS exists to future-proof the European semiconductor industry. The project focuses on:Eliminating or replacing per- and polyfluoroalkyl substances (PFAS) and other hazardous substances used in manufacturing processes;Reducing waste and greenhouse gas emissions throughout the production chain;Securing access to critical materials through smarter use, reuse and circular strategies;Deploying advanced monitoring and sensing solutions for gas and liquid environments in fabs.Six Work Packages, One Integrated ApproachTo reach its objectives, GENESIS is structured into six work packages.Work Package 1 – Management, Specifications, and MethodsLead: CEA-LetiWP1 keeps the project on track. It manages the technical, administrative and financial coordination of GENESIS and defines common specifications and methodologies. This includes setting technical recommendations and carrying out environmental impact assessments so that shared targets and consistent methods guide all subsequent work.Work Package 2 – Process, Monitoring Sensing Hardware and SolutionLead: CSEMWP2 develops real-time monitoring technologies capable of detecting and quantifying emissions from process gases such as NF₃, CF₄ or SF₆. By improving transparency and enabling process feedback, GENESIS contributes to the transition toward low-emission semiconductor fabs aligned with EU climate goals.Work Package 3 – Environmentally Friendly Materials AlternativesLead: imecWith global PFAS restrictions tightening, the semiconductor sector urgently needs high-performance, safe alternatives. GENESIS in WP3, is designing and qualifying materials for key manufacturing steps including lithography, etching, cleaning, deposition, and packaging, that reduce industry dependence on PFAS and higher GWP gases while ensuring compatibility with industry performance requirements.Work Package 4 – Minimisation of Waste and EmissionsLead: FraunhoferWP4 addresses the complexity of semiconductor waste streams and explores innovations to enhance abatement efficiency. GENESIS develops recycling, recovery, and closed-loop solutions for gases, slurries, and solvents, with the aim of significantly reducing waste across fabs.Work Package 5 – Materials Scarcity Impact MitigationLead: Università degli Studi di Roma Tor VergataEurope’s dependence on critical raw materials—including gallium, indium, and rare earth elements—represents both an environmental and strategic challenge. GENESIS in WP5 focuses on reducing CRM usage through process innovation and strengthening circularity to enhance supply chain resilience.Work Package 6 – Regulations, Dissemination, Communication and ExploitationLead: SEMI EuropeWP 6 is dedicated to ensuring that GENESIS creates meaningful and lasting impact beyond its technical achievements. It integrates regulatory monitoring, dissemination, communication, and exploitation activities to connect the project’s innovations with industry needs, European policy developments, and wider society. WP6 is coordinated by SEMI Europe, supported by expert partners across the consortium, and serves as the bridge between GENESIS’s scientific work and its real-world influence.Long-term strategyGENESIS is built with one goal in mind: making sure the work happening inside the project translates into real change across Europe’s semiconductor ecosystem. To support this, the project focuses on four key impact areas that help move ideas from research into industry, policy and long-term community engagement.Helping Industry Put Results to WorkA core part of GENESIS is understanding how each partner can use the project’s results in their own environment. Whether it’s new materials, smarter monitoring solutions or better waste-reduction approaches, partners define clear pathways for adoption so GENESIS innovations can move naturally into real industrial use.Staying Connected to Europe’s Policy AgendaSustainability and chemical regulations in Europe are evolving fast, and GENESIS stays close to these developments. The project brings technical insights to discussions around the Green Deal, PFAS regulation, and critical raw materials. This makes sure GENESIS is not only aligned with policy trends, but also contributes to shaping them.Making Knowledge Accessible and Future-FocusedOpen access is an essential part of GENESIS. The project shares its research outputs publicly and supports the creation of educational material for universities and training programmes. This helps the next generation of engineers and specialists build on GENESIS knowledge and carry it forward.Keeping GENESIS Visible and RelevantGENESIS maintains a strong presence across events, conferences, publications and expert discussions. This ongoing engagement ensures that project results remain visible, understood and connected to wider conversations on sustainable semiconductor manufacturing—helping extend the project’s influence well beyond its duration.Towards a Sustainable Semiconductor FutureGENESIS shows that high-performance chips and environmental responsibility can coexist. By uniting materials science, process engineering, monitoring technologies, environmental assessment and policy insight, GENESIS is helping define what responsible, future-ready semiconductor manufacturing will look like tomorrow.Jatin Mendiratta, Communications CoordinatorSEMI Europe Phone: +49 160 402 8899Email: [email protected]

The CxO Summit at SEMICON Europa 2025 spotlighted Europe’s ongoing efforts to build a resilient and globally competitive semiconductor industry, while calling for greater ambition, speed, and unity in execution. Following global disruptions with the automotive supply chain crisis, the European Union launched a continent-wide strategy through the EU Chips Act. While the Act has already spurred significant developments, including construction of the new ESMC fab in Dresden, Europe remains far from its goal of achieving a 20% share of global semiconductor production by 2030. The CxO Summit, part of the SEMICON Europa event in Munich, provided an opportunity for industry leaders to share ideas about how to catalyze the next phase of the European industry’s growth.Ajit Manocha, President and CEO of SEMI opened the summit by describing today’s industry landscape with one word: “unprecedented.” Manocha said, “The global growth of the industry is unprecedented, with 107 new fabs set to come online by 2028, but the uncertainties are unprecedented, from geopolitics to the talent shortage to environmental concerns. So we need unprecedented solutions.” Ajit Manocha, President and CEO, SEMILaith Altimime, President of SEMI Europe echoed the mood of uncertainty, describing Europe as caught “in a perfect storm.” Altimime said, “As we face a combination of internal challenges and intensifying external competition, collaboration is not optional — it is mission critical.” Laith Altimime, President, SEMI EuropePierre Chastenet, Head of the Unit for Microelectronics and Photonics, European Commission, highlighted the tangible progress made under the EU Chips Act. “We now have a proper toolbox to handle a future crisis in the supply chain. The Chips for Europe initiative has led to the creation of five pilot lines for advanced technologies such as FD-SOI and wide bandgap semiconductors.” Chastenet added, “Europe must now capitalize on its strengths, from materials and equipment to design tools and cutting-edge research emerging from our RTOs.”Pierre Chastanet, Head of the Unit for Microelectronics and Photonics, European CommissionEchoing the call for action, Oliver Schenk, Member of the European Parliament, urged stronger regional unity. “Europe must act together, act faster, and act with much bigger ambition,” Schenk said, reinforcing the need for cross-border commitment to strengthen the continent’s semiconductor position.Oliver Schenk, Member of the European Parliament, European ParliamentHighlighting Europe’s most critical technology gap, Luc Van den hove, President and CEO of imec, unveiled plans for a new advanced fab backed by €2.5 billion in investment from the EU, the Flemish government, and ASML. Van den hove urged Europe to commit wholeheartedly to advanced technologies: “We must be more ambitious, and focus on disruptive breakthroughs rather than incremental change if we want to ensure a prosperous future.”Luc Van den hove, President CEO, imecAt the CxO Summit, CEA-Leti and ASML signed a memorandum of understanding (MoU) to deepen their collaboration and accelerate innovation in mainstream semiconductor technologies. Building on promising results in hybrid bonding, the partnership will now target 'More-than-Moore' innovations, including heterogeneous integration and novel substrates like SiC and GaN. “We aim to combine ASML’s world-class lithography expertise with CEA-Leti’s system-level innovation,” said Sébastien Dauvé, CEO of CEA-Leti. The collaboration is set to strengthen Europe’s ecosystem by shortening the path from early research to industrial impact.Left: Anne Hidma, Senior Vice President EUR US, ASML; Right: Sébastien Dauvé, CEO, CEA-LetiTurning to Europe’s industrial base, Christian Senger, CEO of Volkswagen Autonomous Mobility, emphasized the need to shift from risk-aversion to opportunity. While the region’s automotive sector faces intense global competition, particularly from China, Senger highlighted that Europe has the potential to lead in new mobility markets. “The market for autonomous roboshuttles for people transport in large cities is forecast to be worth €400 billion in the US and Europe alone,” he said. With American firms like Waymo and Uber leading the robotaxi space, Senger stressed that Europe must “act swiftly to create an environment that supports an autonomous mobility industry here.”Christian Senger, Member of the Board for Fully Autonomous Mobility and Transport CEO of ADMT GmbH, VolkswagenEurope’s Potential to Create Advanced TechnologyOne of these RTOs, CEA-Leti, is responsible for the FAMES pilot line for FD-SOI technology. Sébastien Dauvé, CEO of CEA-Leti, agreed with Pierre Chastenet that the pilot lines show great promise. He said, “FD-SOI is a big trend in semiconductors, because it enables very low power consumption in embedded devices. We think that adoption of the technology will grow in the coming years, and that is good, because most of the technology is produced in Europe.”Sébastien Dauvé, CEO, CEA-LetiEurope is also widely recognized to be the leading global voice on sustainability – a huge issue of concern to the semiconductor industry. Henri Berthe, President of the Semiconductor and Battery Segment at Scheider Electric, told the summit that 500 million tonnes of CO2 emissions per year are attributable to the semiconductor industry – “more than the whole of Mexico emits!” he said. “We need to make fabs more efficient, and that is why Schneider Electric has launched a new playbook with Applied Materials for sustainable energy abundance for the industry.”Henri Berthe, President of the Semiconductor Segment, Schneider ElectricAnother aspect of Europe’s playbook is support for new fabs. The flagship is ESMC, the joint venture between TSMC, NXP Semiconductors, Bosch, and Infineon. Christian Koitzsch, president and managing director of ESMC, reported to the summit that the project to build in Dresden a 12nm FinFET foundry and a 28nm CMOS line, requiring a total investment of €10bn, is on schedule. “We are now developing local supply chains, hosting a series of ESMC Supplier Days which are open not only to German but generally to European suppliers,” said Koitzsch.Christian Koitzsch, President and Managing Director, European Semiconductor Manufacturing Company (ESMC)As Manfred Horstmann, General Manager and Senior Vice President of Global Foundries, pointed out, the building of the ESMC fab means that Dresden is established as the center of a cluster of semiconductor industry companies. “Global Foundries has its Fab 1 and a mask center in Dresden. In fact, one-third of the chips produced throughout the whole of Europe now comes from Dresden.”Manfred Horstmann, General Manager and Senior Vice President, GlobalFoundriesAn example of ambition was given by Terence Gan, Executive Director of the Institute of Microelectronics of Singapore. Gan told the summit how Singapore has used pilot lines to stimulate research and development in new technologies. He said: “We started research into advanced packaging as long ago as 2011. Most people thought we were mad! But today, there is strong demand for our advanced packaging capabilities because of the rise of AI and its need for high-performance computing.”Terence Gan, Executive Director, Institute of MicroelectronicsBreaking Barriers to ProgressDespite momentum, bureaucratic inefficiencies continue to hamper progress. Narjiss Haddaoui, Managing Director of European Economics called for faster decision-making: “In global competition, speed is a decisive factor. To act fast enough, the EU must change its ‘software’ - the processes by which it considers and makes decisions.” Narjiss Haddaoui, Managing Director, European economicsThe stifling character of European bureaucracy is reflected in the region’s approach to building fabs. Herbert Blaschitz, Executive Vice President of Advanced Technology Facilities at Exyte, compared fab construction timelines: 20 months in Taiwan, 34 in Europe, and 38 in the U.S., attributing delays in Europe to paperwork bottlenecks.Herbert Blaschitz, Executive VP of Advanced Technology Facilities, ExyteFabio Gualandris, President for Quality, Manufacturing and Technology at STMicroelectronics raised another concern — 100% of raw materials used in European fabs come from outside the region. Christophe Frey, Vice-President for EU Engagements at Arm France, added that geopolitical tensions are clouding the path forward: “We are a bit lost in the smoke from the big fire in the world’s semiconductor industry.” Fabio Gualandris, President Quality, Manufacturing Technology, STMicroelectronics Christophe Frey, Vice-President of EU Engagements, Arm FrancePlaybooks For Future SuccessSo amid the uncertainty and global tension, what lessons can the industry learn from successful regional examples? Tuomas Korpela, Business Development Senior Manager at Nokia, credited Finland’s strategic procurement and policy tools with enabling a vibrant semiconductor ecosystem: “Finland creates demand for advanced chips using industrial policy tools, alongside strategic procurement in sectors such as defense and aerospace, and connectivity.” Tuomas Korpela, Business Development Senior Manager - Corporate Development Organization, NokiaAt a regional level, Joerg Schulze, Director of the Bavarian Chips Alliance, said that his organization was supported by the Bavarian State Ministry of Economic Affairs, as well as by companies and universities. “We help semiconductor companies to establish themselves and grow here through help with site searches, networking and contacts, funding and support, and talent acquisition,” said Schulze.Joerg Schulze, Spokesperson for the Bavarian Chips Alliance, Director of the Fraunhofer IISB, Bayern Innovativ GmbHCompanies in the European semiconductor supply chain also provided the summit with their insights into the roots of global success. André Grede, Chief Technology Officer of Comet, described how his company’s strategy is not to wait for customers to tell it what they need, but to be “ahead of the curve.” Grede said: “Is staying in sync with the customer enough? Not for us - we are deeply embedded with our customers, and constantly looking to broaden our relevance to them.”André Grede, CTO, CometChristophe Maleville, Chief Technology Officer of Soitec, provided a real-world example of how this is done. He said: “Our engineered substrates using RF-SOI technology reduce the drain on a mobile phone’s battery power, and cut our customers’ board footprint thanks to RF front end integration. As a result, our products are now in 100% of 5G smartphones.”Christophe Maleville, CTO, SoitecAnne Hidma, Senior Vice-President for Europe and the US at ASML, shared the company’s success formula: “The reasons for ASML’s success include customer focus – decide which markets you are going to be in, and which you are not. We are also all-in on innovation. We nurture an ecosystem, which for us includes imec and CEA-Leti, as well as partnerships with academia. And lastly, we have a strong supply base, which is a core strength of Europe.” In a time marked by both uncertainty and opportunity, the example of ASML shows how the European semiconductor supply chain can survive and thrive.Anne Hidma, Senior Vice President EUR US, ASMLEurope’s Path ForwardThe CxO Summit made one thing clear: Europe has world-class innovation, policy momentum, and industrial commitment. What’s needed now is faster execution, deeper collaboration, and the courage to invest in the technologies of tomorrow. As the industry heads toward the $1 trillion milestone, the decisions made today will shape Europe’s place in the semiconductor world for decades to come.On behalf of SEMI, the SEMI Europe team would like to express appreciation to the industry leaders for sharing their visions and readiness to collaborate during the CxO Summit.SEMI ContactLaith Altimime, President SEMI [email protected]

On September 16, 2025, the Inclusive Chips Forum organized by Platform Talent voor Technologie at the High Tech Campus Eindhoven convened changemakers from across Europe’s semiconductor ecosystem to share insights and strategies for building a more inclusive industry.This full-day program was designed to showcase practical strategies, inspiring case studies, and collaborative solutions aimed at strengthening inclusion, innovation, and resilience in the semiconductor industry. With Europe’s role in the global semiconductor landscape under intense focus, the forum highlighted why building a workforce culture rooted in equity and belonging is not just the right thing to do, it’s a strategic imperative.A Thought-Provoking Panel on Inclusive LeadershipA central question resonated throughout the conversation: What if inclusivity were treated as a core component of leadership development, as fundamental as financial management or strategic planning, rather than an optional module or one-off seminar?The discussion surfaced several critical insights for the industry and beyond:Awareness alone is not enough. While raising awareness about bias and stereotypes is important, research and experience show it rarely leads to behavioral change on its own. Lasting change comes from setting clear norms, leaders must define and model what is acceptable, expected, and celebrated in organizational culture. As Sahar Yadegari, Executive Director of Expertisecentrum voor haar technische ontwikkeling, emphasized:“Awareness is a starting point, not the finish line. Real change happens when inclusion is built into systems — not treated as an add-on.” – VHTOLeadership as connection. True leaders don’t just focus on profits or processes. They bring all perspectives into the room, connect diverse groups, and create conditions for others to thrive.Structural support matters. To avoid symbolic gestures, organizations must embed inclusivity into their leadership practices and accountability systems.Competitiveness through inclusion. By embracing diversity and inclusion, Europe can future-proof its semiconductor workforce, strengthening innovation capacity and securing its position in an increasingly competitive global market.Looking AheadThe Inclusive Chips Forum underscored a powerful message: embedding inclusion into leadership is not optional, it is essential for the sustainable success of Europe’s semiconductor industry.As participants engaged in lively discussions and networking throughout the day, one thing became clear: building a resilient, innovative, and inclusive semiconductor ecosystem will require collaborative effort, courageous leadership, and a commitment to turning awareness into action.A heartfelt thank you to all speakers, participants, and partners who made this event possible.For more information, contact Ana Isabel Billingslea at [email protected] or Kartikey Srivastava at [email protected] Isabel Billingslea is Communications Coordinator at SEMI Europe.

On October 03, 2025, as part of the European Chips Diversity Alliance, the recent "Why Inclusion Fuels Better Chips" panel discussion, hosted by Kartikey Srivastava, Senior Specialist, Communications at SEMI Europe, brought together three leaders from across the ecosystem to explore how inclusion is not just a social imperative but a strategic advantage.Martina Wolfgruber, Head of Talent Skills Funding at Infineon Technologies Austria: With over 15 years of experience in HR, Wolfgruber is responsible for funded projects aimed at promoting careers and cultivating talent within the microelectronics industry.Catherine Le Lan de Franssu at Synopsys: Le Lan de Franssu brings a wealth of experience in customer success management, training, and team management from her time at companies like LSI-Logic, Synopsys, and Texas Instruments. She now focuses on fostering collaborations for workforce development.Dr. Suzanne Lesecq, Research Director and European Programs Manager at CEA- Leti: A research director and former university professor, Dr. Lesecq focuses on data fusion and advanced control. She currently manages European programs at CEA-Leti/DSYS.The semiconductor industry is the backbone of Europe's digital transformation, but achieving excellence goes beyond technology alone. It's about bringing every perspective and every talent to the table.Inclusion as a Strategic ImperativeThe panelists all agreed that a commitment to diversity, equity, and inclusion (DEI) is essential for Europe to lead in the semiconductor sector. Wolfgruber posed a compelling question: can Europe truly afford to leave half of its talent pool untapped? She pointed to data from a Boston Consulting Group study showing that companies with diverse leadership are nearly 40% more likely to achieve above-average profitability, and diverse teams are almost twice as likely to be innovative. For Infineon, she noted, "inclusion is not just a value... it's a strategic advantage."Echoing this sentiment, Le Lan de Franssu emphasized that innovation depends on collaboration across institutions, disciplines, regions, and cultures. She believes that "breakthrough moments happen when talented people of every background feel valued, supported to their best self at work." Dr. Lesecq added that inclusion is "a matter of society" that goes beyond a single company's benefit.Fostering a Culture of InclusionThe conversation then moved to practical steps for building a truly inclusive environment. Dr. Lesecq, coming from the academic sector, highlighted the significant gender imbalance and the lack of inclusion for people with special needs. She stressed the need for a major effort to attract untapped talent to the emerging semiconductor domain.One effective solution discussed was mentoring. Le Lan de Franssu shared how a mentoring program can help make diverse talent more visible. She noted that companies working together, such as the collaboration between Synopsys and Infineon on a summer school, helps not only with their own hiring needs but for the broader semiconductor industry. Wolfgruber agreed, stating that a wide range of communities already exists to help companies widen their scope and influence culture; it's simply a matter of companies leveraging them.The Future of a Diverse EcosystemThe panel concluded with a shared vision for the future. The moderator, Srivastava, summarized the key takeaways: a need for greater collaboration between industry and academia, the importance of mentoring, and a continued focus on leveraging research that proves diverse teams produce the best results.Dr. Lesecq shared her hope that Europe will continue to keep this mindset and implement it, seeing inclusion as a societal change that everyone must push for to create a "place for everyone."This panel discussion, along with initiatives like the Spark Excellence Award, serves as a powerful reminder that while technology is at the heart of the semiconductor industry, its true strength lies in the diversity of its people.Learn more about the European Chips Diversity Alliance. For more information, contact Ana Isabel Billingslea at [email protected] or Kartikey Srivastava at [email protected] Isabel Billingslea is Communications Coordinator at SEMI Europe.

The semiconductor industry faces an uncomfortable contradiction. Markets are expanding and demand continues rising, but the talent pool is shrinking.By 2030, the industry will need to add 1 million skilled workers globally, with shortages of over 100,000 engineers in Europe and more than 200,000 engineers in Asia-Pacific. This expansion requires at least 100,000 second-line leaders and 10,000 third-line leaders—many of whom must come from outside the industry.Markets Keep Growing, Leadership Doesn'tThe industry's outlook remains optimistic. Nearly one in five (19%) semiconductor executives anticipate continued demand growth without inventory excess in the next four years. Global sales hit $627.6 billion in 2024—a 19.1% increase driven by AI advancements, consumer electronics demand, 5G adoption, and automotive innovation.Governments are backing this growth with large investments too. The European Chips Act aims to double the EU's production share to 20% by 2030 with €43 billion. Companies like NXP Semiconductors, Infineon Technologies, and STMicroelectronics are expanding. Taiwan Semiconductor Manufacturing Company (TSMC) remains the world's largest contract chipmaker. The UK government unveiled a £1 billion strategy over 10 years, while the CHIPS and Science Act allocated $52.7 billion for US manufacturing and research.But there aren't enough semiconductor leaders to manage this growth.The Education CrisisThe talent shortage begins in universities. Electrical engineering and computer science enrollment has been declining for years. Germany saw 6.5% fewer STEM students in 2021 than the previous year.An analysis of recent data shows concerning patterns. While Germany had 81,934 electrical engineering students in 2018, Ireland had only 742 new electrical engineering students in 2017. The United States awarded just 13,767 bachelor's degrees in electrical engineering in 2018.Retirement and Skills GapsWhile universities produce fewer graduates, experienced leaders are retiring. One-third of US semiconductor employees are 55 or older. In Germany, one-third of the workforce will retire within the next decade.The job itself is also changing. Artificial intelligence and machine learning have surpassed systems architecture as the most sought-after skills in European markets. Software engineers specializing in embedded programming are becoming more important than traditional design engineers.Competition and TurnoverThe semiconductor industry competes with other tech sectors for talent, and ninety-two percent of tech leaders report challenges finding skilled workers.Employee turnover is accelerating as well. Fifty-three percent of semiconductor workers were expected to resign in early 2024, compared to 40% in 2021. Top reasons include lack of career development (34%) and insufficient workplace flexibility (33%).Geographic ChallengesManufacturing concentration creates additional problems. Taiwan handles 65% of global manufacturing, China 15%, South Korea 12%, and the US 12%. Despite this, U.S.-based companies hold roughly 46.3% of global market share.Each region has developed different skill sets, making it difficult to move leaders across markets.What Companies Are DoingAbout 60% of senior executives believe semiconductor companies have weak employer brands compared to higher-profile tech companies. Many are working to change this through competitive compensation, improved work-life balance, and better career opportunities.Some companies are expanding their search beyond traditional candidates, too. Seventy-three percent now use skills-based hiring, focusing on capability rather than traditional backgrounds. Others target adjacent tech sectors for executives with transferable skills.Retention has become more important as well. With the tech industry's 13.2% attrition rate, companies are investing in career progression and workplace flexibility.Diversity initiatives are also still gaining traction worldwide. Women represent only 17% of semiconductor tech roles, compared to 23% in the industrial sector.The semiconductor industry's future depends on solving this talent paradox. Companies that act decisively to attract, develop, and retain leadership talent will be best positioned to capitalize on market opportunities.About the AuthorJan-Bart Smits is Managing Partner at Stanton Chase Amsterdam and Global Subsector Leader for the Semiconductor industry.

As geopolitical dynamics continue to influence global industries, the semiconductor sector finds itself at a pivotal crossroad. During the SEMI Industry Strategy Symposium (ISS Europe) held in Sopot, Poland, a high-level panel on the Geopolitics of Semiconductors brought together leaders from across the ecosystem to explore Europe’s role in an increasingly fragmented world shaped by strategic dependencies and evolving alliances.Moderated by Stefano Ramundo Orlando, Advocacy Manager at SEMI Europe, the panel convened industry executives, strategic advisors, and policy experts for a forward-looking dialogue on the challenges and opportunities shaping Europe’s semiconductor future.The session opened by acknowledging the rapidly changing geopolitical landscape and its impact on the global semiconductor supply chain. Export controls, investment screening mechanisms, and economic security strategies are no longer abstract policy discussions — they are reshaping investment decisions, manufacturing strategies, and even workforce planning across the globe. While these disruptions present undeniable challenges, panellists underscore that they also mark a pivotal opportunity. For Europe, this is not a moment to retreat but a call to adapt with purpose.Closing the Gaps: Building on Europe’s Strategic AdvantagesGiulietta Poltronieri, Partner at McKinsey Company, mapped out Europe’s strategic position in the global value chain. While Europe boasts global leadership in intellectual property (IP), lithography, and research and development (R D), key gaps remain in foundry capabilities and backend manufacturing. The solution lies not only in plugging these gaps but in securing Europe’s existing strengths — a balancing act between resilience and competitiveness.Giulietta Poltronieri, Partner, McKinsey Company’s Global Semiconductor PracticeMalcolm Penn, Founder CEO of Future Horizons, echoed this sentiment and emphasized that success in semiconductors requires long-term vision and a global mindset. Penn argued that Europe must look beyond its local market, citing Taiwan’s TSMC as a model of how small domestic markets need not constrain global leadership, “The excuse of having no end market in Europe is just an excuse.” Europe, Penn contended, must have the courage to think big and act boldly.Malcolm Penn, Founder Chief Executive Officer, Future Horizons Corporate Strategy Amid UncertaintyHendrik Bourgeois, Vice President of European Government Affairs at Intel, offered insight into how geopolitical risk has become an embedded factor in corporate strategy. Intel’s decision to expand manufacturing in both the U.S. and Europe was directly influenced by a recognition of over-reliance on certain global regions.Bourgeois stressed that while business can adapt to restrictive policy, uncertainty remains the greatest challenge to long-term decision-making. Consistency, trust, and engagement with governments are crucial — and businesses must invest in building political capital just as they do in infrastructure or talent.Hendrik Bourgeois, Vice President, European Government Affairs, Intel China: Partner, Competitor, and Geopolitical PuzzleBoris Metodiev, Director at TechInsights offered a balanced view of China’s role — acknowledging it as both a vital market and a strategic competitor. With nearly 40% of global semiconductor demand and significant state backing, China presents both irresistible opportunity and real systemic risks.Key concerns include technology transfer, the impact of heavy subsidization, and growing market concentration. Addressing these issues, Metodiev suggested, will require a balanced approach focused on diversifying supply chains, protecting intellectual property, and reinforcing trade enforcement — all while maintaining open channels for cooperation and avoiding the pitfalls of full decoupling.Boris Metodiev, Director, Manufacturing Analysis, TechInsights Talent: The Silent BottleneckPanellists identified talent shortages as one of the most yet under-discussed threats to Europe’s semiconductor future. Europe lacks the scale of skilled STEM graduates to meet current and projected demand.Companies like Intel are investing heavily in partnerships with universities and training institutions. However, regulatory obstacles — especially for intra-European mobility of non-EU nationals — remain significant. The call to action was clear: Europe must rethink migration and education policy through the lens of economic strategy, not just under traditional policy frameworks, aligning policy with industrial goals and scaling efforts to match future workforce needs.Central and Eastern Europe: Emerging Pillars of European StrategyThe panel explored how Central and Eastern Europe are increasingly integral to Europe’s semiconductor strategy. Mikołaj Trunin, Deputy Director at Invest in Pomerania, noted that despite geopolitical headwinds, the region continues to attract strong foreign direct investment (FDI). Poland has emerged as a trusted investment destination and a budding semiconductor hub, with Pomerania positioned as a key region for advanced packaging.With nations like Poland taking on higher political and industrial profiles—such as upcoming leadership of the EU Council— the region is positioned to serve as a strategic bridge between Europe’s industrial core and frontier markets. This momentum underscores the importance of embedding these regions more fully into the broader semiconductor ecosystem.Mikołaj Trunin, Deputy Director, Invest in Pomerania A Call for Coordinated ActionThe panel concluded on a note of clarity: geopolitical disruption is not a temporary deviation, but a defining characteristic of the coming industrial era. With semiconductors positioned at the intersection of technology, security, and sovereignty, Europe must act decisively. Companies must continue to evolve, engage politically, and remain agile. To ensure long-term competitiveness and resilience, policymakers and industry leaders must work hand in hand to shape an integrated European semiconductor ecosystem. The stakes are high — but so is the potential.SEMI ContactIranda Chaki, Senior Policy CoordinatorEmail: [email protected]

Geopolitical shifts, rapid technological advancement, and supply chain pressures continue to redefine the global semiconductor landscape. These forces framed the discussions at the 2025 SEMI Industry Strategy Symposium Europe (ISS Europe), held in Sopot, Poland. Over two days, industry leaders, and policymakers examined how Europe can boost resilience amid growing uncertainty.Artificial intelligence (AI) stood out as a key driver—powering global chip demand and transforming industry operations. In the past year, AI applications like generative models and edge computing helped push chip sales to new highs. The EU Chips Act, effective since September 2023, also fueled change. It has drawn tens of billions of euros into European semiconductor infrastructure, including major investments in Pomerania, the host region for this year’s symposium. “With AI expected to drive exponential growth in the semiconductor industry—projected to reach $1 trillion by 2030—Europe must act collectively to remain competitive,” said Laith Altimime, President of SEMI Europe. “We encourage collaboration across all countries to strengthen supply chain resilience, mitigate geopolitical risks, and harness the full potential of our diverse talent base.”Laith Altimime, President, SEMI EuropeSo what has the EU’s investment in the semiconductor industry achieved, and how much more remains to be done? Gustav Kalbe, Acting Director of Enabling and Emerging Technologies at the European Commission, cited €80 billion in public and private investment in European fabs as clear progress toward introducing "advanced technology that has not before been deployed on the continent of Europe." However, Kalbe emphasized a new urgency driven by AI’s rise. “We need in Europe a secure supply chain for AI chips in key sectors—particularly automotive,” said Kalbe. “That’s why we are really pushing for accelerated development of AI chips here.”Gustav Kalbe, Acting Director of Enabling and emerging technologies,DG CNECT, European CommissionPoland is a prime example of the EU Chips Act’s impact—driven by consistent government support. Dariusz Standerski, Secretary of State in the Ministry of Digital Affairs, highlighted Poland’s seven-pillar national semiconductor strategy, which includes expanding infrastructure and increasing engineering talent by 20% by 2030. “We need to build our production capacity to meet the strategic needs of Poland,” said Standerski. “Semiconductors are important not only because of market size, but because of their role in national security.”Dariusz Standerski, Secretary of State, Ministry of Digital Affairs, PolandRisks to the Industry from a World in Political TurmoilGeopolitical shifts and market volatility dominated the opening session of ISS Europe 2025. Malcolm Penn, CEO of Future Horizons, warned that despite strong 2024 revenues, industry fundamentals remain fragile. “All of the growth is in graphics processing units (GPUs) for AI and high-bandwidth memory (HBM) for AI servers—every other product sector is currently in recession,” said Penn. He forecast 12% industry growth in 2025 but cautioned against overcapacity and price pressures from China. “We are not seeing unit growth, and without unit growth, you don’t have sustainable market growth,” explained Penn. “If momentum in AI slows, the industry could face a significant retrenchment.”Malcolm Penn, CEO of Future HorizonsLooking beyond the immediate outlook for semiconductors, Hendrik Bourgeois, Vice President for European Governmental Affairs at Intel, turned the spotlight onbroader economic and security challenges facing the region. Bourgeois outlined four strategic policy priorities for Europe: Build internal strength to ensure external (global) relevance;Deepen alliances beyond the United States—such as with the UK, Canada, Japan, and South Korea;Be open to a stronger economic relationship with China;Recognize that the U.S. is more than its federal government: states, cities, people and corporations all have a role to play in bringing stability and certainty.Hendrik Bourgeois, Vice President for European Governmental Affairs, IntelBenedikt Ernst, Senior Vice President and Head of Strategy Transformation at Merck KGaA, Darmstadt, Germany, emphasized the strategic importance of strengthening Europe’s domestic semiconductor ecosystem. “No country or region can be fully self-sufficient,” said Ernst. “But Europe is particularly strong in domains like advanced materials, fabrication equipment, and semiconductor manufacturing. We have leading players in these fields – let’s bet on them.”Benedikt Ernst, Senior Vice President and Head of Strategy Transformation, Merck KGaA, Darmstadt, GermanyMikolaj Trunin, Deputy Director of the Invest in Pomerania, and its Strategic Investment Manager Radoslaw Bojarczuk, highlighted the region’s rising profile among global investors. Despite a global downturn in foreign direct investment (FDI) since 2015, the region stretching from Gdansk and Warsaw to Dresden and Magdeburg is emerging as a vibrant semiconductor hub. “The environment is becoming increasingly attractive to outside investors drawn by the region’s large talent pool, robust venture capital activity, and strong and stable economic growth,” said Trunin.Left: Mikołaj Trunin, Deputy Director, Invest in PomeraniaRight: Radosław Bojarczuk, Strategic Investment Manager, Invest in PomeraniaAdvancing on the Roadmap to Net ZeroThe symposium’s second session tackled sustainability—how to grow the industry beyond $1 trillion in revenue while cutting emissions. AI emerged as a key enabler of sustainable innovation. Bill Lussier, Managing Director of Tokyo Electron Europe, highlighted recycled aluminum which has a much lower carbon footprint, but noted that semiconductor equipment requires ultra-pure aluminum, which is not available off-the-shelf in recycled form. “The solution is to create a new circular economy for ultra-pure aluminum—a supply chain so complex that it cannot be managed without the aid of AI,” explained Lussier.Bill Lussier, Managing Director, Tokyo Electron EuropeAI is also helping decarbonize logistics, a critical yet often overlooked part of the semiconductor ecosystem. Rainer Kiefer, Executive Vice President and Global Head of Sales at Schenker AG, underscored the environmental cost of air cargo: “We need smart supply chain design to reduce the air miles of chips.” AI supports this by optimizing routing, loads, predictive maintenance, and demand forecasting. Rainer Kiefer, Executive Vice President and Global Head of Sales, Schenker AGHowever, AI brings new energy demands. Malgorzata Kasperska, Vice President of Secure Power at Schneider Electric, urged greater efficiency in AI data centers: “We need to optimize both power capacity and efficiency, and deploy high-density infrastructure, all while enhancing sustainability practices.” Malgorzata Kasperska, Vice President of Secure Power, Schneider ElectricEnergy-intensive fab operations remain a major challenge. Charles Vaillant, Chief Technology Officer at MANN+HUMMEL, noted that heating and ventilation account for up to 50% of a fab’s energy use. To improve efficiency, the company introduced a filtration system using activated carbon ceramic technology. The innovation reduces pressure drop, cutting fan energy use and delivering up to 41% energy savings in cleanroom environments.Charles Vaillant, Chief Technology Officer at MANN+HUMMELFinding the Talent to Fuel the Industry’s GrowthAttracting and developing talent remains a critical challenge for the semiconductor industry. Andreas Schleicher, Director for Education and Skills at the OECD, cited a visibility gap: “Young people don’t see these engineering and IT jobs. You cannot be what you do not see.” Meike Boekelmann, Chief Human Resources Officer at Comet, echoed the sentiment. “Face-to-face, we can get people excited about joining our industry,” said Boekelmann. “The challenge is getting them in front of us in the first place.” Andreas Schleicher, Director for Education and Skills,Organization for Economic Co-operation and Development (OECD)In a panel discussion on Bridging the Talent Gap for Sustainable Growth, moderated by SEMI Europe’s Maria Daniela Perez, speakers explored how industry and academia can better collaborate to meet evolving workforce demands. Thomas Kralinski, Saxon State Secretary of Economic Affairs, Labor, Energy and Climate, emphasized the importance of future-ready education. “Do we know which fab is going to be built in 2035, or which start-up will be founded? No—but all the people who will work there are already alive. We need education to prepare these people for this unknown future.Thomas Kralinski, Saxon State Secretary of Economic Affairs, Labor, Energy and ClimatePanel Discussion on Bridging the Talent Gap for Sustainable GrowthAI Intensifies Scale of Innovation in Semiconductor FabricationDay two of ISS Europe 2025 spotlighted AI’s transformative impact on semiconductor innovation, from materials to manufacturing and chip design. John Behnke, General Manager for Smart Manufacturing at INFICON, emphasized AI’s growing role in managing fab complexity. “You need a lot of highly knowledgeable people to run a fab today,” said Behnke. “They must analyze huge amounts of data, and balance priorities like quality, on-time delivery, cycle time, and profitability.” In the future, he explained, AI-powered optimization engines will shoulder that burden by making autonomous decisions.John Behnke, General Manager for Smart Manufacturing, INFICONJean-Christophe Eloy, CEO of Yole Group, pointed to the rapid growth of data centers as a catalyst for architectural transformation, predicting a shift from monolithic AI ASICs to chiplet-based designs. “In the future, we can expect to see much of the value in the semiconductor business transfer from the front-end chip to the advanced packaging that integrates chiplets,” said Eloy. Jean-Christophe Eloy, CEO, Yole GroupThis sentiment was echoed by Christophe Frey, Vice President of EU Engagement at Arm, who described the industry’s shift from systems-on-chip to systems-of-chips. “Chiplets represents a unique opportunity for Europe to re-enter the game of high-end chips,” said Frey. He emphasized the need for an open chiplet marketplace, an effort Arm supports, but warned, “There is a long road ahead of us,” citing the need for silicon qualification, profiling, test and debug infrastructure, software standards, and specifications for mechanical and thermal integration.Christophe Frey, Vice President of EU Engagement, ArmThat transition is already taking shape in manufacturing. Volker Herbig, Vice President of the Microsystems Business Unit at X-FAB, noted that capabilities developed for CMOS+MEMS sensor in the early 2000s are now enabling heterogeneous integration (HI) at scale. “We are now an open HI foundry,” said Herbig, adding that X-FAB is building a dedicated HI facility with support from the EU Chips Act. “This technology is propagating down from the high-performance computing (HPC) world to medical and industrial applications — It’s happening as we speak.”An Industry Changing Faster Than Ever Volker Herbig captured the industry’s rapid evolution with the “Red Queen” theory from Alice in Wonderland: “You need to run as fast as you can just to stay in the same place.”Volker Herbig, Vice-President, BU MEMS, X-FABClosing the symposium, Leonard Hobbs, Director for Government Affairs at Intel Ireland, cited Charles Darwin: “The species which can best adapt to changes in its environment is the one which survives,” Hobbs added, “Over the past two days we have learned much that can help Europe’s semiconductor industry to adapt successfully to a rapidly changed world.” Leonard Hobbs, Director for Government Affairs, Intel IrelandAt the symposium’s gala dinner, delegates celebrated leaders driving the industry forward. SEMI presented the 2024 SEMI European Award to Kurt Sievers, President and CEO of NXP Semiconductors, and honored Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer of Okmetic, with the Special Service Award.Kurt Sievers, President and CEO, NXP Semiconductors (Middle)Anna-Riikka Vuorikari-Antikainen, Chief Commercial Officer, OkmeticOn behalf of SEMI, the SEMI Europe team and ISS Europe committee would like to thank all speakers, sponsors, and attendees for making the event a great success.SEMI Contact Cassandra Melvin, Senior Director of Business Development and Operations Email: [email protected]