slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Making Chips, Solar Panels and Public Policy ITC Briefing – February 15, 2011 Maggie Hershey, SEMI and William Morin, A PowerPoint Presentation
Download Presentation
Making Chips, Solar Panels and Public Policy ITC Briefing – February 15, 2011 Maggie Hershey, SEMI and William Morin, A

Loading in 2 Seconds...

play fullscreen
1 / 23

Making Chips, Solar Panels and Public Policy ITC Briefing – February 15, 2011 Maggie Hershey, SEMI and William Morin, A - PowerPoint PPT Presentation


  • 333 Views
  • Uploaded on

Making Chips, Solar Panels and Public Policy ITC Briefing – February 15, 2011 Maggie Hershey, SEMI and William Morin, Applied Materials. About SEMI. Global industry association ~1900 members Established in 1970 to serve the semiconductor supply chain

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Making Chips, Solar Panels and Public Policy ITC Briefing – February 15, 2011 Maggie Hershey, SEMI and William Morin, A' - betty_james


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Making Chips, Solar Panels

and Public Policy

ITC Briefing – February 15, 2011

Maggie Hershey, SEMI and William Morin, Applied Materials

about semi
About SEMI
  • Global industry association
  • ~1900 members
  • Established in 1970 to serve the semiconductor supply chain
  • Today serves members interests in the following market segments:
    • Semiconductor
    • Photovoltaic/Tech-Energy
    • Emerging or Adjacent Markets
      • HB-LED
      • Flat Panel Display
      • Nanotechnology
      • MEMS
the electronics ecosystem
The Electronics Ecosystem

Estimate

2010

Electronic End Equipment

$1,237B

Semiconductors

$300B

{

Semiconductor

Equipment

$38B

SEMI®

membership

Materials

$43B

Source: SIA, SEMI, and IC Insights

semiconductor industry outlook 2010 is a record year
Semiconductor Industry Outlook:2010 is a Record Year

Annual Growth % (line graph)

Global Semiconductor Revenue US $B

(bar graph)

Source: SIA/WSTS historical year end reports, SIA November 2010 Forecast

demand drivers
Demand Drivers
  • Shift from personal computers toward consumer and wireless applications; small proportion of demand from government
  • End Market Drivers for Semiconductor Demand
    • Wireless applications (cellular, Wi-Fi networks)
    • Entertainment (DVD, home FPDs, games)
    • Personal Computers
    • Automotive Electronics
capital equipment cycles
Capital Equipment Cycles

Annual Growth % (line graph)

Global Capital Equipment Revenue US $B

(bar graph)

Source: SEMI and SEMI/SEAJ year end historical reports, SEMI Mid-Year 2010 Forecast

semi 2010 year end equipment forecast by market region
SEMI® 2010 Year-end Equipment Forecast By Market Region

$42.77

$40.52

$38.95

$37.54

$29.52

$15.92

US$ Billions

Totals may not add due to rounding.

Source: SEMI Year-end 2010 Semiconductor Consensus Forecast, November 2010

semiconductor materials cycles
Semiconductor Materials Cycles

Global Materials Revenue US $B

(bar graph)

Annual Growth % (line graph)

Source: Rose Associates historical reports 1987 through 1999, SEMI 1999 through 2011, January 2011

semi 2011 materials forecast by market region
SEMI® 2011 Materials Forecast By Market Region

$46.93

$45.53

$42.67

$43.55

$42.52

$37.25

$34.83

$30.94

$28.82

US$ Billions

Source: SEMI Materials Market Data Subscription January 2011

Totals may not add due to rounding.

some industry characteristics
Some Industry Characteristics
  • R&D intensive: 10-15% of revenues reinvested into R&D
  • Export dependent: over 80% over U.S. companies’ sales are overseas
  • Global: no U.S. monopoly on this technology
making the same chip
Making the Same Chip

Etch

CVD

PVD

Implant

Lithography

Track

Mask Making

CMP

Process Control

Option 1

Option 2

Option 3, etc.

Lam, AMAT

Novellus

Applied

Varian

ASML

TEL

Nuflare

AMAT

KLA-Tencor

TEL, Hitachi HT

Jusung

Ulvac

SEN

Nikon

Sokudo

Micronic

Ebara

Vistec

TEL, HHT, AMEC

ASM

Unaxis

Nissin

Canon

Suss MicroTec

Hitachi

Tokyo Seimitsu

Nova Measuring

Substantial Foreign Availability of Technology

February 2011

slide13

SEMI PV Group

PV Group Focus - Manufacturing

  • Close to 500 SEMI member companies form PV Group, many of them with history and expertise in semiconductor manufacturing
  • 85+ PV “pure players” have joined since January 2009
  • Advisory Committees, Technology Roadmap and Industry Collaboration, Standards, Expositions and Conferences, Policy and Advocacy, Industry Research and Statistics
worldwide pv production
Worldwide PV Production
  • In 2009, China and Taiwan built 49% of PV modules
  • U.S. ranked 5th in worldwide production
worldwide pv installations
Worldwide PV Installations
  • Worldwide installed PV capacity has grown 16-fold over the past decade
  • Most of new capacity has been in Germany
  • US poised to overtake Germany in next two years
export control reform
Export Control Reform
  • Administration’s export modernization initiative seeks to create a:
    • Single list
    • Single license processing agency
    • Single IT system
    • Single enforcement agency
  • SEMI believes the system needs updating, particularly the Commerce Control List.
    • Semiconductor equipment controls not updated in 20 years.
    • Industry is highly controlled, products are widely available.
    • Emerging domestic industry within China.
  • U.S. companies need equal access to China market now to establish themselves, build their long term business, and to fund R&D and remain leaders.
u s korea free trade agreement
U.S.-Korea Free Trade Agreement
  • SEMI urges Congress to pass this agreement as soon as possible. Working with the High Tech Trade Coalition (HTTC), a group of 15 industry associations.
  • Key benefits include:
    • Tariff elimination
    • Intellectual property rights protection
    • Trade facilitation
    • Need for U.S. to regain momentum on trade liberalization
  • SEMI also supports market expansion efforts through the Colombia and Panama Free Trade Agreements and the Trans-Pacific Partnership.
ita product expansion
ITA Product Expansion
  • WTO’s Information Technology Agreement negotiated in 1996. Originally 29 participants, now 70.
  • Eliminated tariffs on wide range of IT products, including many types of semiconductor devices and equipment. Estimated cost savings in the billions.
  • Preliminary stage of considering expansion of product list:
    • New products and major changes in industry since 1996
    • Clarify coverage, avoid classification disputes
  • Several associations recently sent a letter to USTR Kirk encouraging this initiative and work is beginning to build support with key trading partners.
intellectual property
Intellectual Property
  • Mounting challenges in IP protection can undermine the incentives and rewards of innovation.
  • Developing and protecting intellectual property has become a costly global management concern:
    • Rising costs of R&D increase pressure for return on these investments
    • Escalating legal costs of IP management and litigation
    • The globalization of the semiconductor business requires a global approach to IP management
  • Increasing IP violations are driven by:
    • Weak IP protection laws, enforcement and penalties in many regions
    • Outsourcing and off-shoring from the US and Europe to Asia
    • Major pressures for cost reduction in a consumer driven market
intellectual property21
Intellectual Property

Industry Impact:

  • Equipment – many companies focus on a limited number of product areas, making it difficult to absorb IP losses since there is not a lot of room to spread out these losses
  • Materials – many companies often serve multiple industries and could focus their resources in other areas if semiconductor-related investments are no longer advantageous

Government:

  • Promote strong IP protection and enforcement provisions in free trade agreements
  • Ensure compliance by trading partners
  • Assist individual companies as possible

Industry:

  • SEMI promotes best practices by requiring all member companies to commit to an IP Statement of Principles, Board-level discussions, educational activities, etc.
  • IP White Paper: www.semi.org/ip
other policy issues
Other Policy Issues
  • PV/Solar Energy:
    • Extension of the grant-in-lieu-of investment tax credit
    • Expansion of the advanced energy manufacturing tax credit
    • Renewable energy standard or clean energy standard with solar provisions
  • R&D Tax Credit
    • Extension before December 2011 expiration, goal of permanency
  • Government Investment in Basic Research:
    • NSF, NIST, DOE Office of Science, Focus Center Research Program
  • High Skills Immigration:
    • H-1B visas are critical for highly skilled workers and shortages continue
  • Supply Chain Issues:
    • “Rare earth” minerals: restrictions from China
    • Conflict minerals: SEC reporting/disclosure
for more information
For More Information

Maggie Hershey

Senior Director, Industry Advocacy

mhershey@semi.org

202-289-0440

www.semi.org

William Morin

Director, Government Affairs

Applied Materials

William_Morin@amat.com

202-638-4434

www.appliedmaterials.com