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 If we did not know before, now we are all aware: microLEDs for display applications is a very hot topic and Apple is strongly commited to the development of its own technology. Las Vegas Consumer Electronics Show 2018 (1) and now Bloomberg, the high tech planet is revolving around microLED technologies. Indeed, last week, the financial news media giant published an article highlighting microLED which generated substantial interest and debate from Wall Street . According to Mark Gurman from Bloomberg (2), despite some ups and downs since it acquired the microLED start up Luxvue in 2014, Apple is still committed to the technology and hoping to begin mass production within the next few years.

illus_microled_ip_apple-luxvue_yole_jan2018

The recent report, “MicroLED Displays: Intellectual Property Landscape” released by Yole Développement (Yole) and its partner, Knowmade beginning of 2018, confirms substantial microLED IP development has been underway at Apple. In this patent landscape analysis, Apple ranks first in term of the size, strength and depth of its portfolio with more than 60 patent families.

“Apple has been working on IP development to master all key elements of a new microLED display technology”, asserts Dr. Eric Virey, Technology & Market Analyst from Yole. And he adds “If successful, the expectation is that they will rapidly move on to establish a supply chain, possibly handling some aspects of design and manufacturing internally”

Apple’s portfolio covers many thrust areas and shows a strong commitment to tackle all the major technology bottlenecks that have so far prevented the technology from reaching the market.
The bulk of the development effort, however, is focused on transfer, assembly and interconnects, with more than 40 patents. The emphasis is on the company’s MEMS-based microchip transfer technology that was at the core of Luxvue effort.

Other key patents cover multiple aspects of microLED technologies such as improving the efficiency of microLED chips, another challenge that has been vexing companies trying to leverage the large efficiency gains that microLED display could offers. Color conversion, light management, pixel and display architectures, testing, and integration of sensors are other key aspects which Apple is addressing in its portfolio.

“A detailed analysis of Apple’s portfolio is a good indication of its technology advancement”, explains Dr. Nicolas Baron, CEO & Founder of Knowmade, partner of Yole.“Because of its strong and broad patent portfolio, Apple is showing a clear positioning in this domain and announces its strategy to become a leader in this up and coming industry”.

However, it’s not enough to guaranty exclusivity and full freedom of exploitation.. While the bulk of the microLED display research effort started around 2010, digging deeper into the global microLED IP landscape reveals some important patents filed by companies like Sony, Sharp and various research organizations all the way back to the early 2000’s.

Enabling microLED displays requires bringing together three major levels of expertise: LED, transistor backplanes (glass or Si-CMOS based) and chip transfer. The supply chain is complex and lengthy compared to that of traditional displays. Each process is critical and managing every aspect effectively will be challenging. No one company appears today positioned to execute across these multiple technologies and be able to vertically integrate all of the components. Today the IP landscape reflects those challenges through the variety of players involved. Only a few companies including Apple, have a broad microLED IP portfolio, but enough have patents on key technology bricks to predict that complex licensing and legal battles will arise if and when microLED displays enter volume manufacturing.

MicroLED technology could be the holy grail of display companies. Therefore, it could represent an opportunity to strongly differentiate from the crowded LCD and soon-to-be-crowded OLED display industries. Recent investments by Facebook, Sharp/Foxconn, Google, Intel and Samsung confirm the growing interest and point toward a challenging but exciting future for microLEDs.

“It remains to be seen who will be first to market”, asks Dr. Eric Virey from Yole. “With more than 120 companies involved and the efforts accelerating at all major companies, there is no doubt that the buzz will keep increasing and the industry landscape evolve at an accelerating pace.”

Yole Group of Companies including Yole and Knowmade keeps its fingers on the pulse of this promising technology. The full article is available on i-micronews.com.
And the Group will keep delivering up to date analysis. Dr Virey and Pars Mukish from Yole is also part of the key microLEDs conferences all year long. Next presentations will take place during the following conferences:

CS International Conference (April 10-11, Brussels, Belgium)
• “Revolutionising displays with MicroLEDs” on April 11 at 9:20AM
Pars Mukish, Business Unit Manager, Solid State Lighting & Displays

Display Week (May 21-25 – Los Angeles, CA, USA):
•  “Economic Health of the Display Supply Chain/Where Is the Growth and Profits/Best Investment Outlook”on May 21 at 8:10AM
•  “Status and Prospects of microLED Displays” on May 24 at 9:00AM
Dr. Eric Virey, Senior Technology & Market Analyst, MicroLED

Combined sales for optoelectronics, sensors and actuators, and discrete semiconductors (known collectively as O-S-D) increased 11% in 2017—more than 1.5 times the average annual growth rate in the past 20 years—to reach an eighth consecutive record-high level of $75.3 billion, according to IC Insights’ new 2018 O-S-D Report—A Market Analysis and Forecast for Optoelectronics, Sensors/Actuators, and Discretes. Total O-S-D sales growth is expected to ease back in 2018 but still rise by an above average rate of 8% in 2018 to $81.1 billion, based on the five-year forecast of the new 375-page annual report, which became available this week.

In 2017, optoelectronics sales recovered from a rare decline of 4% in 2016, rising 9% to $36.9 billion, while the sensors/actuators market segment registered its second year in a row of 16% growth with revenues climbing to $13.8 billion, and discretes strengthened significantly, increasing 12% to $24.6 billion.  The new O-S-D Report forecast shows optoelectronics sales growing 8% in 2018, sensors/actuators rising 10%, and discretes growing 5% this year (Figure 1).

Figure 1

Figure 1

Between 2017 and 2022, sales in optoelectronics are projected to increase by a compound annual growth rate (CAGR) of 7.3% to $52.4 billion, while sensors/actuators revenues are expected to expand by a CAGR of 8.9% to $21.2 billion, and the discretes segment is seen as rising by an annual rate of 3.1% to $28.7 billion in the final year of the report’s forecast.  In the five-year forecast period, O-S-D growth will continue to be driven by strong demand for laser transmitters in optical networks and CMOS image sensors in embedded cameras, image recognition, machine vision, and automotive applications as well as the proliferation of other sensors and actuators in intelligent control systems and connections to the Internet of Things (IoT).  Power discretes (transistors and other devices) are expected to get a steady lift from the growth in mobile and battery-operated systems as well as good-to-modest global economic growth in most of the forecast years through 2022, the report says.

Combined sales of O-S-D products accounted for about 17% of the world’s $444.7 billion in total semiconductor sales compared to less than 15% in 2007 and under 13% in 1997.  Since the mid-1990s, total O-S-D sales growth has outpaced the much larger IC market segment because of strong and relatively steady increases in optoelectronics and sensors. However, this trend was reversed recently mostly due to a 77% surge in sales of DRAMs and 54% jump in NAND flash memory in 2017.

The 2017 increase for total O-S-D sales was the highest growth rate in the market group since the 37% surge in the strong 2010 recovery year from the 2009 semiconductor downturn.  In addition, 2017 was the first year since 2011 when all three O-S-D market segments reached individual record-high sales, says IC Insights’ new report.  The 2018 O-S-D Report also shows that sales of sensor and actuator products made with microelectromechanical systems (MEMS) technology grew 18% in 2017 to a record-high $11.5 billion.

NVIDIA and Arm today announced that they are partnering to bring deep learning inferencing to the billions of mobile, consumer electronics and Internet of Things devices that will enter the global marketplace.

Under this partnership, NVIDIA and Arm will integrate the open-source NVIDIA Deep Learning Accelerator (NVDLA) architecture into Arm’s Project Trillium platform for machine learning. The collaboration will make it simple for IoT chip companies to integrate AI into their designs and help put intelligent, affordable products into the hands of billions of consumers worldwide.

“Inferencing will become a core capability of every IoT device in the future,” said Deepu Talla, vice president and general manager of Autonomous Machines at NVIDIA. “Our partnership with Arm will help drive this wave of adoption by making it easy for hundreds of chip companies to incorporate deep learning technology.”

“Accelerating AI at the edge is critical in enabling Arm’s vision of connecting a trillion IoT devices,” said Rene Haas, executive vice president, and president of the IP Group, at Arm. “Today we are one step closer to that vision by incorporating NVDLA into the Arm Project Trillium platform, as our entire ecosystem will immediately benefit from the expertise and capabilities our two companies bring in AI and IoT.”

Based on NVIDIA® Xavier™, an autonomous machine system on a chip, NVDLA is a free, open architecture to promote a standard way to design deep learning inference accelerators. NVDLA’s modular architecture is scalable, highly configurable and designed to simplify integration and portability.

NVDLA brings a host of benefits that speed the adoption of deep learning inference. It is supported by NVIDIA’s suite of powerful developer tools, including upcoming versions of TensorRT, a programmable deep learning accelerator. The open-source design allows for cutting-edge features to be added regularly, including contributions from the research community.

The integration of NVDLA with Project Trillium will give deep learning developers the highest levels of performance as they leverage Arm’s flexibility and scalability across the wide range of IoT devices.

“This is a win/win for IoT, mobile and embedded chip companies looking to design accelerated AI inferencing solutions,” said Karl Freund, lead analyst for deep learning at Moor Insights & Strategy. “NVIDIA is the clear leader in ML training and Arm is the leader in IoT end points, so it makes a lot of sense for them to partner on IP.”

The ConFab — an executive invitation-only conference now in its 14th year — brings together influential decision-makers from all parts of the semiconductor supply chain for three days of thought-provoking talks and panel discussions, networking events and select, pre-arranged breakout business meetings.

In the 2018 program, we will take a close look at the new applications driving the semiconductor industry, the technology that will be required at the device and process level to meet new demands, and the kind of strategic collaboration that will be required. It is this combination of business, technology and social interactions that make the conference so unique and so valuable. Browse this slideshow for a look at this year’s speakers, keynotes, panel discussions, and special guests.

Visit The ConFab’s website for a look at the full, three-day agenda for this year’s event.

KEYNOTE: How AI is Driving the New Semiconductor Era

Rama Divakaruni_June_2014presented by Rama Divakaruni, Advanced Process Technology Research Lead, IBM

The exciting results of AI have been fueled by the exponential growth in data, the widespread availability of increased compute power, and advances in algorithms. Continued progress in AI – now in its infancy – will require major innovation across the computing stack, dramatically affecting logic, memory, storage, and communication. Already the influence of AI is apparent at the system-level by trends such as heterogeneous processing with GPUs and accelerators, and memories with very high bandwidth connectivity to the processor. The next stages will involve elements which exploit characteristics that benefit AI workloads, such as reduced precision and in-memory computation. Further in time, analog devices that can combine memory and computation, and thus minimize the latency and energy expenditure of data movement, offer the promise of orders of magnitude power-performance improvements for AI workloads. Thus, the future of AI will depend instrumentally on advances in devices and packaging, which in turn will rely fundamentally on materials innovations.

Each year, Solid State Technology turns to industry leaders to hear viewpoints on the technological and economic outlook for the upcoming year. Read through these expert opinions on what to expect in 2018.

Enabling the AI Era with Materials Engineering

Screen Shot 2018-03-05 at 12.24.49 PMPrabu Raja, Senior Vice President, Semiconductor Products Group, Applied Materials

A broad set of emerging market trends such as IoT, Big Data, Industry 4.0, VR/AR/MR, and autonomous vehicles is accelerating the transformative era of Artificial Intelligence (AI). AI, when employed in the cloud and in the edge, will usher in the age of “Smart Everything” from automobiles, to planes, factories, buildings, and our homes, bringing fundamental changes to the way we live

Semiconductors and semiconductor processing technol- ogies will play a key enabling role in the AI revolution. The increasing need for greater computing perfor- mance to handle Deep Learning/Machine Learning workloads requires new processor architectures beyond traditional CPUs, such as GPUs, FPGAs and TPUs, along with new packaging solutions that employ high-density DRAM for higher memory bandwidth and reduced latency. Edge AI computing will require processors that balance the performance and power equation given their dependency on battery life. The exploding demand for data storage is driving adoption of 3D NAND SSDs in cloud servers with the roadmap for continued storage density increase every year.

In 2018, we will see the volume ramp of 10nm/7nm devices in Logic/Foundry to address the higher performance needs. Interconnect and patterning areas present a myriad of challenges best addressed by new materials and materials engineering technologies. In Inter- connect, cobalt is being used as a copper replacement metal in the lower level wiring layers to address the ever growing resistance problem. The introduction of Cobalt constitutes the biggest material change in the back-end-of-line in the past 15 years. In addition to its role as the conductor metal, cobalt serves two other critical functions – as a metal capping film for electro- migration control and as a seed layer for enhancing gapfill inside the narrow vias and trenches.

In patterning, spacer-based double patterning and quad patterning approaches are enabling the continued shrink of device features. These schemes require advanced precision deposition and etch technologies for reduced variability and greater pattern fidelity. Besides conventional Etch, new selective materials removal technologies are being increasingly adopted for their unique capabilities to deliver damage- and residue-free extreme selective processing. New e-beam inspection and metrology capabilities are also needed to analyze the fine pitch patterned structures. Looking ahead to the 5nm and 3nm nodes, placement or layer-to-layer vertical alignment of features will become a major industry challenge that can be primarily solved through materials engineering and self-aligned structures. EUV lithography is on the horizon for industry adoption in 2019 and beyond, and we expect 20 percent of layers to make the migration to EUV while the remaining 80 percent will use spacer multi- patterning approaches. EUV patterning also requires new materials in hardmasks/underlayer films and new etch solutions for line-edge-roughness problems.

Packaging is a key enabler for AI performance and is poised for strong growth in the coming years. Stacking DRAM chips together in a 3D TSV scheme helps bring High Bandwidth Memory (HBM) to market; these chips are further packaged with the GPU in a 2.5D interposer design to bring compute and memory together for a big increase in performance.

In 2018, we expect DRAM chipmakers to continue their device scaling to the 1Xnm node for volume production. We also see adoption of higher perfor- mance logic technologies on the horizon for the periphery transistors to enable advanced perfor- mance at lower power.

3D NAND manufacturers continue to pursue multiple approaches for vertical scaling, including more pairs, multi-tiers or new schemes such as CMOS under array for increased storage density. The industry migration from 64 pairs to 96 pairs is expected in 2018. Etch (high aspect ratio), dielectric films (for gate stacks and hardmasks) along with integrated etch and CVD solutions (for high aspect ratio processing) will be critical enabling technologies.

In summary, we see incredible inflections in new processor architectures, next-generation devices, and packaging schemes to enable the AI era. New materials and materials engineering solutions are at the very heart of it and will play a critical role across all device segments.

Entering 2018 on solid ground


February 22, 2018

By Walt Custer, Custer Consulting Group

2017 finished on an upturn – both in the USA and globally.  Based on consolidated fourth-quarter actual and estimated revenues of 213 large, global electronic manufactures, sales rose in excess of 7 percent in 4Q’17 vs. 4Q’16 (Chart 1).  This was the highest global electronic equipment sales growth rate since the third quarter of 2011. Because some companies in our sample didn’t close their financial quarter until the end of January, final results will take a few more weeks – but all evidence points to a very strong fourth quarter of last year.

Custer1-Electronic-Equipment

 

Using regional (country specific) data (Chart 2), the normal, consumer electronics driven seasonal downturn began again in January.  However the recent year-over-year growth is still substantial.  On a total electronic equipment revenue basis, January 2018 was up almost 19.5 percent over January 2017.

Custer2-World-Electronic

Because this regional data in local currencies was converted to U.S. dollars at fluctuating exchange, the dollar denominated-growth was amplified by currency exchange effects.  At constant exchange the January growth was only 14 percent.   That is, when the stronger non-U.S. currencies were converted to weakening dollars, the dollar-denominated January 2018 fluctuating exchange growth was amplified by 5.5 percent.

Chart 3 shows 4Q’17/4Q’16 growth of the domestic electronic supply chain.  U.S. electronic equipment shipments were up 9.1 percent.  Only computer equipment and non-defense aircraft sales declined in the fourth quarter.  And of note, SEMI equipment shipments to North America rose almost 31 percent!

Custer3-US-Electronic-Supply

 

Chart 4 shows estimated fourth-quarter growth for the world electronic supply chain.  Only “Business & Office” equipment revenues declined in 4Q’17 vs. 4Q’16.

Custer4-Global-Electronic

Total global electronic equipment sales increased more than 7 percent in the fourth quarter and SEMI equipment revenues rose 32 percent.

2017 was a strong year and 2018 is off to a good start!  The 2017 lofty growth rates will temper, but this current expansion will likely continue.  Watch the monthly numbers!

Originally published on the SEMI blog.

CEA-Leti’s chief scientist today issued a forward-looking call to action for the microelectronics industry to create a radically new, digital-communication architecture for the Internet of Things in which “a great deal of analytics processing occurs at the edge and at the end devices instead of in the Cloud”.

Delivering a keynote presentation at the kickoff of ISSCC 2018, Barbara De Salvo said this architecture will include human-brain inspired hardware coupled to new computing paradigms and algorithms that “will allow for distributed intelligence over the whole IoT network, all-the-way down to ultralow-power end-devices.”

“We are entering a new era where artificial-intelligence systems are … shaping the future world,” said De Salvo, who also is Leti’s scientific director. “With the end of Moore’s Law in sight, transformative approaches are needed to address the enduring power-efficiency issues of traditional computing architectures.”

The potential efficiencies of processing data at the edge of networks – e.g. by small computers located near IoT-connected devices – rather than at distant data centers or the Cloud are increasingly cited as long-term goals for the Internet of Things. But the challenges to realizing this vision are formidable. For example, IoT battery-powered devices lack both processing power to analyze the data they receive and a power source that would support data processing.

To break through these barriers, De Salvo called for a “holistic research approach to the development of low-power architectures inspired by the human brain, where process development and integration, circuit design, system architecture and learning algorithms are simultaneously optimized.” She envisions a future in which optimized neuromorphic hardware will be implemented as a highly promising solution for future ultralow-power cognitive systems that extend well beyond the IoT.

“Emerging technologies such as advanced CMOS, 3D technologies, emerging resistive memories, and silicon photonics, coupled with novel brain-inspired paradigms, such as spike-coding and spike-time-dependent-plasticity, have extraordinary potential to provide intelligent features in hardware, approaching the way knowledge is created and processed in the human brain,” she said.

De Salvo’s presentation, “Brain-Inspired Technologies: Towards Chips that Think”, included summaries of key research findings in a variety of fields that will play a role in developing brain-inspired technologies for computing and data-handling requirements of a “hyperconnected” world.

When it comes to biometric sensors, human skin isn’t an ally.

It’s an obstacle.

The University of Cincinnati is developing cutting-edge methods to overcome this barrier without compromising the skin and its ability to prevent infection and dehydration. By making better noninvasive tests, researchers can open up enormous opportunities in medicine and the fitness industry.

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UC engineering student Adam Hauke holds up the latest generation of wearable sensor in UC’s Novel Devices Lab. Credit: Joseph Fuqua II/UC Creative Services

“You think of the skin as an opportunity because you can measure things through it optically, chemically, electrically and mechanically,” said Jason Heikenfeld, assistant vice president in UC’s College of Engineering and Applied Science. “But it’s actually the opposite. The body has evolved to preserve all of these chemical analytes. So the skin actually isn’t very good at giving them up.”

Heikenfeld, director of UC’s Novel Devices Lab, co-authored a critical review of sensor research this month with his students and colleagues for the nanotechnology journal Lab on a Chip, outlining both scientific accomplishments to date and challenges ahead.

“We wanted to have all of the current progress and future directions and needs consolidated in one article,” said Andrew Jajack, co-author and a UC engineering student. Jajack designed the image and graphic that appears on the journal’s cover depicting the four ways that sensors can read biometrics in a track athlete.

The article, co-authored by international leaders in biosensors, discussed the growing popularity of wearable devices such as Fitbit and explored the limitations of current technology.

The skin can provide misleading data to biosensors since it harbors bacteria and tends to collect salt and other minerals from dried sweat. An effective sensor has to bend and stretch like human skin, even as it adheres to the surface when the subject is moving. Electrical sensors that track your heartbeat have to account for noise both from within the body or the environment such as from power lines or nearby electronics.

Heikenfeld said biosensors in most wearable devices use technology that has been available for years.

“The latest trend has not been driven by technological breakthroughs,” he said. “When you think of Fitbit, these capabilities have been around a long time. What’s driven it is the proliferation of smartphones and miniaturization of electronics and a growing desire for health awareness.”

UC has a long history with biosensors. The late Leland Clark Jr., sometimes called “the father of biosensors,” conducted research at the UC College of Medicine and Cincinnati Children’s Hospital Research Foundation. Among his many feats, he developed the modern blood glucose monitor that diabetics use today and the first sensors to measure a patient’s blood oxygen levels.

“Sensors are a big deal here,” Heikenfeld said. “It’s something we’ve had historical strength in with pioneers in the field.”

UC’s research in sensors continues to be a pipeline for industry. Heikenfeld is co-founder and chief science officer for Eccrine Systems Inc., a Cincinnati company that specializes in sweat biosensors.

Eccrine Systems announced this month that it won a $750,000 contract with the U.S. Air Force to study biomarkers from human sweat in real time. It marks the second phase of an initial research contract with the military.

“We try to know other people’s business better than they do. You can’t innovate unless you are willing to dig way deeper than the competition,” he said.

Jajack said Eccrine Systems, Inc. is working on new ways to track biometric information continuously over time.

“A lot of the way we diagnose disease is based on single-moment-in-time markers. But the promise of wearable sensors is real-time health monitoring,” he said. “You can see a more complex picture of what’s going on in the body. That alone will lead to more diagnostic techniques across a spectrum of diseases.”

Students in UC’s Novel Devices Lab, located in the College of Engineering and Applied Science, are coming up with innovative ways to glean information from human sweat. These devices are the size of a Band-Aid and are worn on the skin like one, too.

Students Adam Hauke and Phillip Simmers are working on UC’s next generation of sweat-stimulating sensors. These devices generate sweat on a tiny patch of skin, even when the subject is resting and comfortable, and wick it away to sensors that measure substances like glucose. The biosensors collect and concentrate the faintest amounts of sweat into samples that sensors can read.

“We’ll stimulate sweating in this area and then this will start to pick up sweat off the skin, pulling it from the pores and moving it up across these electrodes here,” Hauke said. “That’s where we do the sensing.”

Among its other capabilities, the device measures the galvanic skin response, an indication of how much someone is sweating, he said.

“The more you sweat, the wetter your skin is and the electrical resistance goes down,” he said.

The Society for Chemistry and Micro-Nano Systems recognized Hauke and Simmers with its Young Researcher Award last year for their collaborative study in continuous sweat sampling and sensing.

In a different part of the Novel Devices Lab, engineering student Laura Stegner worked with a milling machine to customize flow-rate sensors. Across from her, classmate Amy Drexelius worked on the part of the device that can separate and concentrate the analytes they want to test in sweat or blood.

“We want to concentrate the sample. So you can stick this on the front of your sensor and it does a lot of previously hard chemistry lab work for you,” she said.

This technique could apply to other trace chemicals scientists want to measure, Jajack said.

“A big issue today is the amount of pharmaceuticals found in our drinking water,” Jajack said. “They’re hard to measure because they’re so diluted. Even at diluted concentrations, they might be having an effect on us.”

Heikenfeld said his lab’s success stems from its talented students, who apply their diverse interests and experiences to their lab work. Developing new sensors and applications takes problem solving that draws from many academic disciplines.

“How often are you going to find someone who’s deep into biology and chemistry who also does hack-athons and is a big maker, too?” Heikenfeld said of Jajack. “But that’s what it’s going to take. We need to innovate in disciplines that are not our traditional areas of expertise so we’re not relying on others to move at speeds at which our own creative minds want to sprint. We’re doing that now because of the quality of people we have here.”

Moving sensor applications from the lab bench to the store shelf remains a big challenge, UC chemistry professor William Connick said. He serves as director of UC’s Center for Biosensors & Chemical Sensors.

“Groups like Dr. Heikenfeld’s are making remarkable strides in developing technologies that provide information on biomarkers at exceedingly low levels from very small quantities of fluid like sweat,” Connick said.

“To go from the lab to a practical device is a challenge when you’re working with real-world samples. Every person is a little different. Every circumstance is a little different,” he said. “Making something that’s robust enough to accurately perform under a wide variety of conditions is challenging.”

Connick said demand for biosensors is only going to grow as labs like UC’s develop better ways to collect information. And home testing and continuous monitoring of drugs over time could lead to better health outcomes, he said.

“The market is wide open now. The potential is gigantic, just in cost savings and being able to provide rapid screening without taking blood and having to send samples off to a laboratory,” Connick said.

Heikenfeld’s journal article noted that biosensors of the future will measure multiple aspects of a person’s physiology. And new wearable sensors will need a mix of disposable and reusable parts to address the wear and tear that come with daily life.

Now UC’s Novel Devices Lab is developing a new noninvasive technique to make sweat glands more permeable so sensors can record even more detailed data. Heikenfeld and Jajack are not ready to talk about how it works but they are very excited about the possibilities.

“Let’s just say it’s safe and super awesome,” Heikenfeld said. “There are a lot of great things coming up.”

By Jamie Girard and Jay Chittooran, SEMI Public Policy

With much pride, President Donald Trump, in his State of the Union address last week, touted the signature legislative achievement of his first year in office – passage of the Tax Cuts and Jobs Act.  As companies doing business globally, SEMI members have long stressed their concern that the US business tax code was putting them at a disadvantage.  SEMI has worked for many years to voice its position that the US code needed to be reformed to lower the overall tax rate on businesses while also retaining incentives for innovation, like the research and development (R&D) and tax credits.  SEMI also pushed for the US to move to a territorial tax system to bring the US into alignment with the rest of the world.

President Donald Trump, State of the Union speech. Photo credit: CNN

President Donald Trump, State of the Union speech. Photo credit: CNN

The Tax Cuts and Jobs Act implements all the of principle that SEMI members have advocated for, and included other industry priorities like repatriation of foreign held assets at a lower rate.  The new structure promises to allow for a more competitive business environment for companies doing business from the US, and greater growth for them globally.

“As tax cuts create new jobs, let us invest in workforce development and job training,” Trump noted in his State of the Union speech, addressing another major industry priority. “Let us open great vocational schools so our future workers can learn a craft and realize their full potential.”

Workforce development (Talent) is a critical issue for the industry, and SEMI recognizes the pressing need on multiple fronts to find the workers, both technical and highly-educated, to continue the work of driving innovation in the semiconductor industry.  While SEMI works with industry partners to boost the industry talent pool, we also recognize that the federal government has a role to play in ensuring that the US is doing its share to help address the problem. That’s why SEMI supports legislation like H.R. 4023, the Developing Tomorrow’s Engineering and Technical Workforce Act, aimed at providing federal dollars to promote engineering education at all levels of learning. The bill has bipartisan support in Congress, and SEMI will continue to work to see the bill travel to President Trump’s desk for his signature.

Facilitating trade and lowering barriers for good and services to move across borders is key to SEMI’s mission to support its members. The semiconductor industry has catalyzed growth across the global economy – growth that relies heavily on trade.

“America has also finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs, and our nation’s wealth,” Trump noted last Tuesday. “The era of economic surrender is over. From now on, we expect trading relationships to be fair and to be reciprocal. We will work to fix bad trade deals and negotiate new ones.”

Unfortunately, trade has been turned into a hot-button political issue, raising many new trade challenges to companies throughout the semiconductor industry. The Trump Administration has levied intense criticism of China, launched a number of trade investigations citing foreign overproduction, and has threatened to withdraw from the Korea-U.S. Free Trade Agreement (KORUS). The United States has also levied tariffs on a number of products, including solar cells. This is all on top of the North American Free Trade Agreement (NAFTA) modernization talks, which have seen slow and shallow progress.

While the United States “reexamines” and stands still, other countries are filling the leadership void. China, Canada, Korea, and the European Union, among others, are negotiating or have concluded trade deals in the last year. Indeed, the updated Trans-Pacific Partnership, which now excludes the US but covers many of the fastest-growing Asian markets, is on track to be enacted by the end of the year. SEMI will continue to work on behalf of its members around the globe to open up new markets and lessen the burden of regulations on cross-border trade and commerce.

Additionally, although President Trump devoted much his address to immigration, he overlooked the opportunity to address the need for immigration reform for high-skilled workers.  This important aspect of the immigration debate, which also has major implications for economic growth, will fall to Congress to sort out in any immigration package it considers in the coming weeks.

Fortunately, Sen. Orrin Hatch (R-UT) recently reintroduced his Immigration Innovation Act, also known as “I-Squared,” which would implement a number of reforms to the H1-B visa and green card system for highly-skilled workers.  The bill would raise the cap for H1-B visas from the current 65,000 to allow for as many as 190,000 in good economic times, while also lifting the cap on greed card holders with STEM degrees from US institutions.  SEMI has long supported these efforts and will continue to work with policymakers to see reforms implemented to improve the system.

While partisanship in Washington remains high, SEMI continues to work on behalf of its members to advance crucial public policy matters for its members with policymakers in Washington, DC. In particular, SEMI focuses on how these issues impact the four 4T’s – Trade, Taxes, Technology and Talent. The path forward on many of these issues will be complicated by midterm election year politics, but the opportunity remains to see real positive changes enacted, even in such a challenging environment.

If you’d like more information on SEMI’s public policy work, or how you can be involved, please contact Jamie Girard at [email protected].

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced the global semiconductor industry posted sales totaling $412.2 billion in 2017, the industry’s highest-ever annual sales and an increase of 21.6 percent compared to the 2016 total. Global sales for the month of December 2017 reached $38.0 billion, an increase of 22.5 percent over the December 2016 total and 0.8 percent more than the previous month’s total. Fourth-quarter sales of $114.0 billion were 22.5 percent higher than the total from the fourth quarter of 2016 and 5.7 percent more than the third quarter of 2017. Global sales during the fourth quarter of 2017 and during December 2017 were the industry’s highest-ever quarterly and monthly sales, respectively. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

Worldwide semiconductor revenues, year-to-year percent change

Worldwide semiconductor revenues, year-to-year percent change

“As semiconductors have become more heavily embedded in an ever-increasing number of products – from cars to coffee makers – and nascent technologies like artificial intelligence, virtual reality, and the Internet of Things have emerged, global demand for semiconductors has increased, leading to landmark sales in 2017 and a bright outlook for the long term,” said John Neuffer, SIA president and CEO. “The global market experienced across-the-board growth in 2017, with double-digit sales increases in every regional market and nearly all major product categories. We expect the market to grow more modestly in 2018.”

Several semiconductor product segments stood out in 2017. Memory was the largest semiconductor category by sales with $124.0 billion in 2017, and the fastest growing, with sales increasing 61.5 percent. Within the memory category, sales of DRAM products increased 76.8 percent and sales of NAND flash products increased 47.5 percent. Logic ($102.2 billion) and micro-ICs ($63.9 billion) – a category that includes microprocessors – rounded out the top three product categories in terms of total sales. Other fast-growing product categories in 2017 included rectifiers (18.3 percent), diodes (16.4 percent), and sensors and actuators (16.2 percent). Even without sales of memory products, sales of all other products combined increased by nearly 10 percent in 2017.

Annual sales increased substantially across all regions: the Americas (35.0 percent), China (22.2 percent), Europe (17.1 percent), Asia Pacific/All Other (16.4 percent), and Japan (13.3 percent). The Americas market also led the way in growth for the month of December 2017, with sales up 41.4 percent year-to-year and 2.1 percent month-to-month. Next were Europe (20.2 percent/-1.6 percent), China (18.1 percent/1.0 percent), Asia Pacific/All Other (17.4 percent/0.2 percent), and Japan (14.0 percent/0.9 percent).

“A strong semiconductor industry is foundational to America’s economic strength, national security, and global technology leadership,” said Neuffer. “We urge Congress and the Trump Administration to enact polices in 2018 that promote U.S. innovation and allow American businesses to compete on a more level playing field with our counterparts overseas. We look forward to working with policymakers in the year ahead to further strengthen the semiconductor industry, the broader tech sector, and our economy.”