Global Semiconductor Industry Outlook: SEMI Discusses the Future

In a recent discussion with Bloomberg's Daybreak Asia, Ajit Manocha, President and CEO at SEMI, shared his insights on the future of the global semiconductor manufacturing and supply chain sector. Manocha highlighted the strategic importance of the semiconductor industry to every nation, especially amid rising geopolitical tensions. 

He stressed that this is not an effort that can be tackled by one country alone, but rather it requires a multilateral approach. Manocha expressed his lack of surprise over China's efforts to close the technology gap, stating that China has been working on this for years. He also pointed out that the U.S. has historically tried to keep China two generations away from the leading edge, and with the current constraints and restrictions, China is doing what is best for its own interests. 

When asked about the impact of China's efforts on SEMI's members, Manocha noted a mixed response. Companies affected by export control restrictions are generally unhappy, while those that see the actions as multilateral are generally content. He emphasized that if these restrictions ensure national security, companies will not complain. However, the connection between these restrictions and national security is not always clear to many. 

Manocha also touched on the future of chipmaking, stating that while it may not move away from Taiwan, other countries will also need to strengthen their capabilities. He noted that the semiconductor industry took over 60 years to reach $600 billion in sales, but with new disruptions and applications, this could double in the next six or seven years. 

Finally, Manocha discussed the challenges of supply chain disruptions due to geopolitical tensions, climate issues, and other factors. He revealed that SEMI is working closely with its members to redesign the supply chain, moving from a 'just in time' philosophy to a 'just in case' philosophy. While this may result in more costs, it is less expensive than dealing with supply chain disruptions.