MySemiconDaily interviewed Jonathan Davis, President, Global Semiconductor Business at SEMI, and asked for his perspective on the state of the global semiconductor business today.
MSD: “What’s defining the semiconductor business today?”
JD: “The industry is going great – this is the first time the industry has crossed the $300 billion mark. We expect to see continued growth for the next three years, and we see investments not just in foundries for flash memory, but for the new technologies that are driving advanced devices.”
MSD: “What are the biggest issues facing the industry today, and how are they being addressed?”
JD: “There is a plethora of issues facing the industry. There’s 3D – not only the movement to 3D device structures, but also the challenges of 3D packaging as it becomes critical to multilevel stacking and smaller die footprints. Both of these areas demand investment in R&D and innovation to bring this technology to market, but like most significant changes in the industry, 3D should result in smaller, faster, and cheaper devices. Of course, next-generation lithography – EUV – is a hot topic, and has been for a while. The engineering that has kept current lithography techniques advancing far beyond what was expected is nearing its limit, so EUV investment is rising – but it’s a significant amount of investment. And then there’s also the transition to 450mm diameter wafers. Discussions on this topic began a number of years ago, but we’ve seen that this transition will be a very expensive one that needs a lot of forethought and planning in order to happen efficiently.”
MSD: “How big an impact is there from new personal computing and communicating devices, and have these offset the general worldwide slowdown in PC unit growth?”
JD: “I think the fascinating inflection point here is the development and adoption of tablets, pads and their technology. These products, with their global, local, and social capabilities, are changing the markets for computing products, and it’s another growth area for the industry. The demand for semiconductor devices of all kinds and in all form factors continues to rise worldwide, as any slowing of growth in one region or area is usually offset by a rise in another area. We’re seeing the prospect of continued growth – even improved growth – in emerging markets, and we expect the number of transistors sold each year to continue to increase. The world consumes transistors, and there’s no indication that this will change.”
MSD: “What lasting effect has the earthquake and subsequent tsunami that struck Japan of March 11, 2011 had on the semiconductor manufacturing industry?”
JD: “First, the earthquake and tsunami that devastated the TÅhoku area of Japan in March was a terrible human tragedy. We’re proud that SEMI staff, SEMI members, and friends raised over $50,000 for the SEMI Japan earthquake relief fund, all of which went directly to help those afflicted.”
“The semiconductor industry has recovered well from this unfortunate event. The majority of the semiconductor processing facilities in Japan were unaffected, but supply chains did get adjusted as manufacturers worked though inventory, relied on second sources, and spread their production and mixes across their global facilities. Remember that Japan is the world’s largest producer of chips, and is the world’s largest market for semiconductor manufacturing equipment, so there was the risk of serious global disruption. That has not come to pass, and companies are moving ahead.”
“And importantly, the semiconductor is one that learns – and spreads information – very quickly. Companies have learned much from this tragedy, and the lessons have already been implemented in many areas – from preparedness, to infrastructure rethinking, to second sourcing optimization, and beyond. Companies have been more than willing to share knowledge, advice, and best practices information around the world to ensure that they are prepared as possible when – not if, when – another natural event happens.”
“Again, this was a serious human tragedy, with great loss of life and deep impacts on many people. The semiconductor industry was of course affected, but now it’s clear the industry continues.”
MSD: “Thank you, Jonathan Davis.”