SEMI Global Industry Advocacy:

Perspective

Jonathan DavisGlobal Vice President, Industry Advocacy

26 May 2016

SEMI Connects

SEMI is the global industry association connecting

the electronics supply chain.

900+ SEMI Standards

4,500+ Standards Volunteers

11 Annual Industry Expositions

$35B+ Semiconductor Equipment Annual Revenue

$45B+ Semiconductor Materials Annual Revenue

For more than 40 years, SEMI has

connected its members worldwide to

achieve together what each cannot

accomplish alone.

SEMI provides the platforms for the

electronics manufacturing industry to

connect, synchronize technology,

discover new business opportunities,

and change the world.

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500,000+SEMI Member

Individuals

250,000+Global Attendees at

SEMICON Shows

1,900+SEMI Member

Companies

Worldwide

SEMI Connects the Electronics Supply Chain

LED

FPD

Photonics

Sensors

MEMS

FHE

Etc.

Automotive

Cloud

Storage

Computing

Healthcare

Industry 4.0

IoT

Mobility

Etc.SEMI global platforms, SIGs, committees,

conferences, and expositions gather the

extended electronics supply chain for

comprehension, synchronization, and action.

Semiconductors

Substrates

Materials

Components

Subassemblies

Equipment IP

Design

Fabless

Device

Manufacturing

Packaging

Test

System

Integration

Applications

R&D Consortia

Collaboration is critical to solving issues and innovating new products

Keeping pace with Moore’s Law • Industry 4.0 • Smart Manufacturing • More-than-Moore • Rise of IoT Technologies

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SEMI Connects Where Members do Business

One of the greatest strengths of

SEMI is its network of global offices

providing regional navigation and

services by local experts.

• SEMI staff and offices are located

in major regional centers of

microelectronics manufacturing.

• Global capability with local

specialty and insight.

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Regions OfficesNumber of

Members

Americas San JoseWashington DC

424

China Shanghai 315

Europe BerlinBrussels, Grenoble, Moscow

270

Japan Tokyo 314

Korea Seoul 252

India Bangalore 4

Southeast Asia Singapore 35

Taiwan Hsinchu 299

1,900+ SEMI Members

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SEMI Connects Local to Global

Government and Other Official Connections • Customer and Partner Introductions

Speed Networking • Logistics Committee in China

Local Regional Support

• Find customers, partners suppliers

• Connect with local governments and

agencies

• Data and insight on local markets

• Trade and tax insight and references

Additional SEMI benefits:

• Rich source of data for decision-making

• Information on emerging markets

(regional and adjacent technologies)

• Access to industry expertise

• Marketing opportunities

Advocacy Priorities

Insight

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Access

Visibility

Influence

Leadership

International Trade

Innovation Policy

Workforce Development

Regulatory Compliance

Industry Representation

Focus

LocationAwarded $$ Funds

Example Anchor

CompaniesAgencies Lead

Additive Mfg. & 3D

Printing

Youngstown, OHAugust 16, 2012

$30M Federal

$70M Total

Lockheed Martin, Northrop

Grumman, Boeing, Autodesk,

Siemens, 3D Systems Corp.

Dept. of

Defense

National Center for

Defense

Manufacturing and

Machining

Wide Band-Gap

Semis & Power

Electronics

North Carolina

January 15, 2014 $70M Federal Cree, ToshibaDept. of

Energy

North Carolina

State University

Lightweight Metals

& Alloys

Detroit, MI

February 25, 2014

$70M Federal

$148M Total

Alcoa, Boeing, Lockheed Martin,

NanoSteel, Optomec, PowerMet,

RTI International Metals

Dept. of

DefenseEWI

Digital Design &

Mfg.

Chicago, IL

February 25, 2014GE, Lockheed Martin, Rolls-

Royce, Siemens

Dept. of

DefenseUI Labs

Composite

Materials

Knoxville, TN

January 09, 2015$70M Federal

$250M Total

Airbus, BASF, Boeing Research,

Dassault Systemes, DowAksa,

DuPont, Evonik, Ford GE,VW

Dept. of

Energy

University of

Tennessee-

Knoxville

Integrated

Photonics

Rochester, NY

July 27, 2015

$110M Federal

$610M Total

Intel, GE, HP, Synopsys,

Cadence, Mentor

Dept. of

Defense

Research

Foundation for the

State University of

New York (RF

SUNY)

Flexible & Hybrid

Electronics

San Jose, CAAugust 28, 2015

$75M Federal

$171M Total

Applied Materials, Apple, United

Technologies, Hewlett Packard,

and Qualcomm & end users:

Boeing, GM, the Cleveland Clinic,

Corning, and Motorola

Dept. of

DefenseFlexTech Alliance

Advanced

Functional Fibers of

America

(AFFOA)

Revolutionary

Fibers & Textiles

Cambridge, MA

April 1, 2016

$75M Federal

$317M Total

Warwick Mills, DuPont, Steelcase,

Nike, and Corning, Drexel Univ.,

UofM Amherst, Univ.of Georgia,

Univ. of Tennessee, and UT Austin

Dept. of

Defense

Massachusetts

Institute of

Technology (MIT)

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Source: NATIONAL NETWORK FOR MANUFACTURING

INNOVATION PROGRAM STRATEGIC PLAN Executive Office of the

President National Science and Technology Council Advanced

Manufacturing National Program Office, February 2016

National Network for

Manufacturing Innovation

(NNMI)

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Flexible and Hybrid Electronics

San Jose, CA

7th InstituteFlexible and Hybrid Electronics

• Member participation agreements – Nov. 2015

• 3 tiers Industry Members

• 2 tiers University Members

• 1st Project Calls – December 2015

• ~150 companies in proposal “ready to start”

Established: 28 August 2015

Lead: FlexTech Alliance

Hub Location: San Jose, California

Proposal Contributors: 145+ in 27 states

Federal Funding: $75 million

Committed Matching: $96 million

Gov’t Agencies Engaged: 17 DOD and OGAs

Our Vision is A Powerful Industry Influence

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5/26/201

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Additional Membership Benefits at Regional Levels are Determined by Region

• Regional FHE SIGs will support local events at appropriate level

• Conferences, One-Day Workshop & Webinars

• Lead local advocacy efforts

• Regional offices could have a FAST START in forming local FHE SIG with FlexTech’s membership &

contact databases

FlexTech SIG

Global Executive

Council

Activities:

- Meet once a year at rotating events

- Share globalization of a healthy industry

- Sharing of in-country gov’t sponsored programs & local activity

- Coordination of standards and/or other technical activities

US FlexTech SIG

China FlexTech SIGJapan FlexTech

SIG

Taiwan FlexTech

SIGSEA FlexTech SIG

Europe FlexTech

SIGKorea FlexTech

SIG

Target is to have GEC established by

End of 2017

Target is to have Regional FlexTech

SIGs established by Mid-2017

China National Investment Policy

June 2014 - The PRC State Council

issued the "National Program to

promote the development of the

integrated circuit industry."

• Purpose: Leverage domestic

market advantages, to stimulate

development of the IC industry and

catch up to international levels.

• Reasons cited for accelerating the

development of the integrated

circuit industry:

– IC industry is the core of the

information technology industry

– Support the economic and social

development

– Protection of national security,

– Strategic, fundamental and leading

industry.

Development Goals of China IC Industry

According to “National Integrated Circuit Industry Promotion Summary”:

2015Innovation of both system and mechanism achieves significant progress; establish

financing platform and policy environment which suit the industry environment;

Sale of IC Industry exceeds 350 Billion (Yuan)

2020Reduce the gap to international top level further. IC Industry sales revenue CAGR

of exceed 20%

2030Key nodes of IC Industry chain reach to international advanced level, a group of

enterprises join into international first class and realize leaping-over

development.

Source: Ding Wenwu, President, China National IC Industry Investment Fund,

“Development of China Electronic and IC Industry,” March 2016

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China IC Policy

• “Guidelines to Promote National IC Industry Development” (June 24, 2014)

– Ministry of Industry and Information Technology (MIIT)

– Ministry of Finance (MOF)

– National Development and Reform Commission (NDRC)

– Ministry of Science and Technology (MOST)

China Market Central

A dedicated microsite to help

navigate the unfolding China

market dynamics and aggregate

information on the policy and

market developments

www.semi.org/marketcentral

• Market data

• News

• Analysis

• Presentations from recent

SEMI events

Global Regulatory Engagement

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REGULATORY ISSUES

SEMI Committees monitor issues, engage collaborative analysis

and develop consensus on appropriate response

Urgency

( 1 – 5 )

Impact

( 1 – 5 )

Korea REACH - Clarification 3 4

EU REACH – Articles Definition 4 5

EU REACH – PFOA Restriction 5 5

EU REACH – RCF Restriction 3 4

EU Conflict Minerals Legislation 3 5

EU Machinery Directive Recast 4 4

EU Market Surveillance Legislation 1 3

US TSCA – Fluorinated Restrictions 4 4

US TSCA – Nanomaterials Record Keeping 4 2

US TSCA Reform Legislation 4 3

Taiwan REACH – Substance Restrictions 2 ?

China RoHS Recast 3 5

China Conflict Minerals Regulation 2 3

… among other examples

Summary

• Increasing interdependencies with other sectors and markets.

• Complex global industry must address technological, innovation, policy and regulatory challenges.

– SEMI helps members do together what is more difficult for companies to do alone.

• Support for innovation is critical

• We don’t serve individual national interests as much as we support our members in being effective in regions globally

• SEMI Europe is a resource for member engagement in Europe as well as helping European interests connect with other regions

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Thank Youwww.semi.org