The global semiconductor ecosystem continues to grow ever more exciting as chips continue to transform the way people work and live by driving innovations across smart technologies including artificial intelligence (AI), Internet of Things (IoT), 5G and quantum computing, and industries such as mobility and healthcare. At the same time, the industry is becoming much more complex, giving rise to new challenges.
At SEMI Europe, our ongoing collaboration with key European industry players and governmental authorities on legislation such as the European Chips Act and critical topics including workforce diversity, sustainability, and supply chain resilience are crucial to the region’s future technological strength. Our work with our members is helping to shape a smarter, more connected digital future for Europe’s societal and economic prosperity. In that vein, SEMI Europe focused on the following five key areas in the first half of 2023.
1. European Chips Act
Earlier this year, SEMI Europe, with the support of the regional advisory board, brought to the attention of the European authorities the priorities of the semiconductor industry for the European Chips Act trilogue negotiations between the European Commission, Parliament, and Council. Since its publication in February 2022, the European Chips Act has established itself as a strategic centerpiece of Europe’s industrial ambition.
At the heart of Europe’s green and digital twin transition, the initiative is expected to turn the tide on Europe’s talent shortage, accelerate the growth of domestic chip design, production, and packaging capabilities, and help secure the supply of critical components.
The European Chips Act has become the region’s pathway to growth by promising to make Europe a more competitively attractive investment location. With the evolving geopolitical climate, the European electronics industry needs to decrease its global production dependencies and strengthen its competencies across the entire value chain.
As a strong supporter of Europe’s industrial growth and resilience, SEMI Europe urged the co-legislators to closely liaise with relevant industry stakeholders in the coming period to ensure that the EU Chips Act is set on a competitive footing with similar initiatives across the globe. In this regard, SEMI Europe set out five priorities for the trilogue negotiations addressing critical points of importance to Europe’s electronics industry.
On May 23, the European Parliament’s Industry, Research, and Energy (ITRE) committee confirmed the provisional agreement reached on the European Chips Act during the interinstitutional negotiations on the legislation between the European Parliament, Council of the European Union, and the Commission on the European Chips Act. ITRE committee members approved the provisional agreement by a large margin. The final text will be presented for approval by the Parliament’s plenary in June. After formal approval by both the European Parliament and the Council of the EU, the EU Chips Act will take effect, a landmark in the future growth of Europe’s electronics industry.
2. Overcoming the Skills and Talent Shortage
In April 2023, SEMI Europe announced that it is leading a new 18-partner consortium to develop the European Chips Skills Academy, an initiative to help tackle the skills and talent shortage in Europe’s electronics industry and propel its long-term growth. The consortium will expand on the Microelectronics Pact for Skills and the EU Chips Act to deliver targeted European-wide training in key microelectronics fields such as automotive and additive manufacturing.
The academy is the second phase of the Microelectronics Training, Industry, and Skills (METIS) consortium. Both initiatives are designed to foster microelectronics industry collaboration with key education, training, and certification providers to address the skills shortage and European competitiveness. With its launch in autumn 2023, the European Chips Skills Academy will be the first decentralized microelectronics skills provider in Europe to help address the semiconductor skills shortage and attract new talent. The €4 million grant, provided by the European Commission’s Erasmus+ Programme, will fund the academy for four years.
In the area of workforce development, SEMI launched the global SEMI University online learning management system in February. SEMI Europe supported the platform, integrating free courses provided by the METIS consortium. SEMI Europe is planning additional talent initiatives this year in collaboration with the Pact for Skills Executive Board and the European Advisory Council on Diversity and Inclusion to strengthen the region's position in addressing talent pipeline challenges.
3. EU Climate Law and EU Chips Act: F-Gas Position Paper
On April 5, 2022, the European Commission presented a proposal to regulate fluorinated greenhouse gases and revise the European Union (EU) legislation to align with climate goals for Europe’s economy to become climate-neutral by 2050.
The European Climate Law establishes an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030. Striving to build a green future in line with the European Green Deal, the semiconductor industry places environmental sustainability as the highest priority as it continues to develop innovative components and systems to support critical industries such as automotive, medical, aerospace, defense, and energy.
To support Europe’s industrial growth, SEMI Europe published a position paper with key recommendations on the proposed amendment. The recommendations focused on six key areas aimed at supporting the industrial green transition and Europe’s semiconductor industry growth. Endorsed by SEMI Europe’s Advisory Board executives, the position paper ensures that Europe’s semiconductor industry remains at the forefront of Europe’s green and digital transition.
4. Submission of Consultation Responses to Possible PFAS Ban in Europe
On May 26, SEMI Europe submitted a response to a proposal under the Regulation for Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) to ban PFAS in Europe. The response marks a critical step in the future of strategic global regulations.
Europe's future as a key region of semiconductor manufacturing excellence is brimming with possibility. Due to the complexity of semiconductor manufacturing processes, collaborative efforts to develop and further qualify non-PFAS alternatives are critical, and funding at the EU level will be crucial.
The restrictions proposed by the European Chemical Agency (ECHA) would significantly impact the semiconductor industry and likely trigger global disruptions across the semiconductor supply and value chains and the industries they enable. SEMI Europe’s initial responses to the ECHA proposals, developed in collaboration with more than 140 semiconductor industry leaders across the entire supply chain, aim to avert the risks to technology infrastructure posed by a possible ban of PFAS in Europe. We plan to follow up with an additional response in September 2023.
SEMI thanks the SEMI PFAS and REACH Working Groups for their invaluable support.
5. Realizing Europe's Ambition by 2030: A Look Back at ISS Europe
On February 15, over 200 delegates gathered in Vienna for the Industry Strategy Symposium Europe (ISS Europe). The symposium focused on the influence of the EU Chips Act on the strategic direction of Europe’s semiconductor industry through 2030. Investments announced by Intel, Infineon Technologies, Bosch, Wolfspeed, STMicroelectronics, GlobalFoundries, as well as the Spanish government’s €12 billion investment in its domestic semiconductor industry, highlight the tremendous momentum in growing the European semiconductor industry.
Left: SEMI Europe President Laith Altimime opening remarks at ISS Europe 2023. Right: Guests at ISS Europe 2023 gala dinner at Hofburg Vienna.
ISS Europe also keyed in on the talent shortage and sustainability – two areas that present great challenges but at the same time tremendous opportunities. Representatives from industry and academia focused on the European industry’s talent challenge, and in particular the role that generational diversity and inclusion will play in overcoming the shortage of skilled workers.
Industry leaders agreed that the path to Net Zero will not be achievable without the efforts of the entire value chain – collaboration will be fundamental to success. Europe’s ambition was evident in the highly charged atmosphere of this year's event, with record attendance of more than 200. ISS Europe 2024 will be back March 7-8, in Vienna, Austria.
Upcoming SEMI Europe Events
3D & Systems Summit
Leading experts in 3D integration and systems for semiconductor manufacturing will gather at the annual SEMI 3D & Systems Summit from June 26 to 28 in Dresden to share insights into the latest heterogeneous integration innovations for semiconductor applications enabling the future of intelligent systems. Themed Smarter Systems through Heterogeneous Integration, the summit will host the most prominent names in 3D integration microelectronics manufacturing, delivering insights into cutting-edge advanced packaging solutions. The exhibition will showcase the latest 3D products and technologies. Registration is open.
MEMS & Imaging Sensors Summit
SEMI Europe is thrilled to announce the return of SEMI MEMS & Imaging Sensors Summit from September 19 to 21, 2023 in Grenoble, France at the World Trade Center. Themed Ubiquitous Sensing for a Sustainable World, the summit will bring together an extraordinary lineup of distinguished speakers from some of the most innovative and inspiring companies in the industry for unparalleled insights into how innovations in MEMS & Imaging technologies will shape future product developments and applications.
Industry speakers will delve into new business and innovation opportunities on the horizon and share their vision of how technology advancements will enable a smarter, more sustainable future. The summit will offer an extensive program including an exhibition, in-person business-to-business matchmaking opportunities, and a chance to connect with like-minded professionals to explore new collaborations and business ventures. Registration is open.
SEMICON Europa 2023
Themed Shaping a Sustainable $1 Trillion Era, SEMICON Europa, co-located with productronica, will take place from November 14 to 17 in Munich, Germany. We expect the exhibition to draw the largest attendance in a decade, with a fully booked exhibition featuring more than 300 exhibitors in more than 7,000 square meters of show floor space. Exhibitors and attendees from the U.S. as well as Asian regions such as China, Japan, and South Korea have increased since 2020, strengthening SEMICON Europa as the premier event for electronics manufacturing in Europe. Global experts will share the latest semiconductor industry trends, technology developments and market insights. Registration is open.
Laith Altimime is President of SEMI Europe.