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INTRODUCTION�TO SEMICONDUCTORS

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Logo Trivia – Name these companies

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Without this…

None of these

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2021 Semiconductor Sales in BILLIONS

The industry continues to grow in the US
Hundreds of billions in investment in US facilities

84,000 job openings for SEMI member companies in the U.S.
70,000 to 90,000 workers or more will have to be added by 2025

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The pace of innovation is increasing

Internet�“The Web”

1990s

Mainframe

Computers

1970s

Personal

Computers

1980s

Mobile & Social �Networking

2000s

Smart World

2020s

This is the most exciting time to be in the

electronics industry

IoT
Wearables
Big Data
Virtual and Augmented Reality
Quantum Computing

IoT, Apps, Cloud Computing

2010s

New Memory/Server Farms
Autonomous Vehicles
Artificial Intelligence
Smart Manufacturing
Digital Medicine

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4 Generations of Silicon Wafer Standards

Generations of wafer standards

450mm

Another reason why your phone does not cost $1m is the invisible work of standardization and supply chain streamlining

These innovations are also sometimes spurred by non-technical changes that enable brilliant people to innovate on the things that matter.

For example, half a century ago, all of the chips suppliers (at the time there were fewer) had not agreed that they would all manufacture on the same size silicon wafer… All up and down the supply chain, people would be working on non-standardized wafers, and suppliers would make ingots of different sizes.

However, once SEMI, the industry association, helped standardize the equipment and companies all agreed to make their machines fit that wafer…. The innovations on things that mattered came to be, like how to lay down layers of chemical one atom at a time, removing parts of that and building another layer on top, driving down the cost/performance curve

This progress on the hardware end has truly enabled the impact of technology on everyone around the world

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4 Generations of Silicon Wafer Standards

Why is it called “Silicon Valley?”

450mm

Semiconductor:

Materials with an electrical conductance that behaves as an insulator at very low temperature, and has a significant electrical conductance at room temperature.

Wafer:

A thin round slice of semiconductor material, typically germanium or silicon. This is the base for the semiconductor.

What are wafers made of?

Crystalline silicon

Why are they important?

They are what microchips are built on

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Digital Disruption Continues to Accelerate

Streaming Audio �& Video

Sharing Economy

Genome

Sequencing

News & Thought �Leadership

Navigation &�“Nearby”

AR/VR�&Visualization

AI

And…What’s Next?

Let’s take a deeper look at how this impacts us today

You are all aware that the disruption by advancements in Digital Products is accelerating at a tremendous pace. Data is flying around faster and faster. In your lifetimes, you have experienced the greatest advancements in humankind most of it due to the advancement of digital processing and application to every part of our lives. You are smarter, healthier, safer, and more productive -- and likely those behind you will be even more smarter, healthier, safer, and productive.

One of our leaders likes to say….”change has never come this fast…… (dramatic pause)….and it will never be this slow again”

Everything mentioned here on this slide, is completely dependent on creating more data, displaying that date, and then manipulating the data further.

So what is enabling the data revolution.? The software and app companies are creating their tools and apps upon a foundation of chips, incredible manufacturing equipment, materials, and processes that provide the processing and telecommunications power to move that data. It is this HARDWARE infrastructure that supports the all of these disruptions.

With the news being dominated by what Twitter, Facebook, TikTok and YouTube do -- and how they manage their data -- one would think that the hardware industry is just turning out the same old stuff day and day out.

But, …most of you are probably more aware than that…. so join me as we take a look at the hardware supply chain enabling the digital disruption – because to understand SEMI, you need to understand that.

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SEMI Foundation

Semiconductors�$625B

Electronics Systems �$1.9T

Total Equipment $115B �Assembly & Test Services $40B

Design

Automation $16B

Materials $68B� & Sub-Components $18B

2022 Market Data Estimates Sources: SEMI, IC Insights and VLSIresearch

The $2T Electronics Supply Chain Segments

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THE GLOBAL SEMICONDUCTOR INDUSTRY

Sources: Congressional Research Service, US Department of Defense

Sample Semiconductor Production Pattern

Typical semiconductor production process span multiple countries:

4+ countries, 4+ US states, 3+ trips around the world, 25,000 miles travelled, 12 days in transit

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https://vimeo.com/250225675

View video>>

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Fabs

300mm

200mm

=<150mm

SEMICONDUCTOR FABS, EQUIPMENT, MATERIALS & SOFTWARE SUPPLIERS

Equipment

Materials

Software and Services

Indicates unmarked satellite �offices – some very large

0-100 employees

100-1000 employees

>1000 employees

Hawaii

30

22

5

38

31

3

7

30

5

GREATER�BOSTON

SOUTHERN

CALIFORNIA

NORTHERN

CALIFORNIA

4

Data Sources: SEMI Fab Database©, SEMI Membership Data, D&B, company websites, Wikipedia

Fab locations include all full production, epitaxial fabs, pilot and R&D lines

HQ offices only. Note that all 300mm & 200mm fabs are supported by satellite offices of the equipment, spares and material suppliers

* Infrastructure & Service companies included in Equipment count if Semiconductor Industry makes up substantial portion of sales

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COLLABORATIVE ALLIANCE FOR SEMICONDUCTOR TEST

INFORMATION LEADERSHIP TECHNOLOGY

SEMICONDUCTOR COMPONENTS, INTRUMENTS & SUBSYSTEM

ELECTRONICS MATERIAL GROUP

STANDARDS

STRATEGIC INNOVATION PLATFORM

SEM I INTEGRATED PACKAGING, ASSEMBLY & TESTING

NANO-BIO

MATERIALS

CONSORTIUM

FAB OWNERS �ALLIANCE

FLEXTECH

MEMS & �SENSORS �INDUSTRY GROUP

ELECTRONIC SYSTEMS DESIGN ALLIANCE

SMART

MEDTECH

SMART DATA

SMART

MANUFACTURING

SMART

MOBILITY

TECHNOLOGY COMMUNITIES FOCUS ON �SPECIFIC TECHNOLOGIES

ENVIRONMENT, HEALTH, SAFETY & SUSTAINABILITY

PARTICIPATE

ENGAGE

CONNECT

LEARN

CONTRIBUTE

TEACH

DISCUSS

LEAD

LISTEN

COLLABORATE

ATTEND

CHALLENGE

NETWORK

SOI CONSORTIUM

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ENVIRONMENTAL

MONITORS

BIO-MONITORS

SOFT ROBOTICS

FLEXIBLE �DISPLAYS

IoT DEVICES

SMART TEXTILES

Enabled By� Flexible Hybrid

Electronics (FHE)� & Printed Electronics (PE) �Technologies

We believe that tomorrow will be healthier, safer, simpler, and smarter because of advancements in flexible and printed electronics.

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WHAT IS MEMS?

Micro Electro-Mechanical System

Made using same nano techniques chips are made of,�but has electro-mechanical parts

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WHAT PROBLEMS COULD YOU BE SOLVING?

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WHAT PROBLEMS COULD YOU BE SOLVING?

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Advancements Made Possible by Semiconductors & Microelectronics

Streaming for

Everything

Digital-Powered �Sharing Economy

Genome

Sequencing

Social Media

Navigation & “Nearby”

AR/VR Assistant�&Visualization

Realtime�Configuration

Robots

3D Printing

Adaptive�Manufacturing

A.I.

Blockchain

Quantum�Computing

Machine Learning

Bitcoin Mining

Smart �Infrastructure

Human Performance�Monitoring

Dosage Monitoring

Digital Health

Biometrics

CRISPR

Smart City

AR/VR

Wearables

Fitness Tracking

Autonomous�Vehicles

Driver Assistance

Electric Vehicles

Zero Emissions

Near-zero fatalities

Digital Economy

5G to 6G

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Semiconductor Manufacturing is Vital to National

and Economic Security

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Without this…

None of these