president, semiconductor industry association (sia)

JOHN

PRESIDENT, SEMICONDUCTOR

NEUFFER

INDUSTRY ASSOCIATION (SIA)

www.semiconductors.org

semiconductors.org

An Industry Perspective on the Need for

Government Action

ERI Summit 2019July 15, 2019


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Semiconductor industry creates U.S. jobs

direct jobs in the U.S. semiconductor industry

jobs in other parts of the U.S. economy…

241,825

ONEU.S. semiconductor job supports

4.89


About HALF OF GLOBALMARKET share with salesof more than $209 BILLION

America’s #4 EXPORT after airplanes, refined oil and crude oil

BRAINS OF MODERN ELECTRONICS,strategic to America’s innovation infrastructure

U.S. industry impact

Invests about ONE-FIFTH OF REVENUE in R&D, among the highest of any industry, concentrated in the U.S.

Among the world’s MOST ADVANCED MANUFACTURERS, with about HALF ofU.S. companies’ manufacturing base in theU.S. across 19 STATES

In 2018, the United States exported $44 BILLION in semiconductors and maintains a consistent trade surplus in semiconductors


Semiconductors are critical to the key technologies of the future

• AI

• Quantum Computing

• Advanced wireless networks

The U.S. needs a robust plan of action to drive the semiconductor innovations to lead in these technologies


Semiconductors are critical to the key technologies of the future

• AI

• Quantum Computing

• Advanced wireless networks

The U.S. needs a robust plan of action to drive the semiconductor innovations to lead in these technologies

Global market – buckle up

• 2018: Record sales of $469 billion • 2019: Projected decrease of 12%• Long-term outlook bright


Policy Recommendations

• Reform the high-skilled immigration system by eliminating caps on STEM graduates

• Increase investment in STEM education to double the number of STEM graduates



• Approve modernized free trade agreements that eliminate market barriers, protect IP, and enable fair competition

• Increase resources for law enforcement and intelligence agencies to prevent and prosecute semiconductor intellectual property theft

Less than 20% of U.S. semiconductor industry sales go to domestic customers, while overseas markets account for more than 80% of sales.


R&D is increasingly expensive

Advanced5G chip =

$250 milliondesign costs

7nmadvanced

logic chip =$500 milliondesign costs

One Circuit is 10,000 TimesSmaller than a Human Hair

IC Design Increasing in Complexity and Cost$ Million

25.8 37.7 51.370.3

106.3

174.4

297.8

542.2

0

100

200

300

400

500

600

65nm 40nm 28nm 22nm 16nm 10nm 7nm 5nmChip Design Costs by Node Source: IBS



• Triple investment in semiconductor specific research

• Double investment in key fields (e.g., materials science, computer science, applied mathematics)


U.S. government semiconductor R&D

Department of Defense National Science FoundationDepartment of Energy National Institute of

Standards and Technology

• DARPA – Joint University Microelectronics Program (JUMP)

• DARPA – Electronics Resurgence Initiative

• Microelectronics Innovation for National Security (MINSEC)

• Joint AI Center

• Computer and Information Science and Engineering (CISE)

• Mathematical and Physical Sciences (MPS)

• Engineering (ENG)

• Office of Science Basic Research Needs

• Exascale Computing Project • Power America • Quantum Information

Science Initiatives

• Nanoelectronic Computing Research (nCORE)

www.semiconductors.orgwww.semiconductors.org

Semiconductor Industry Association

The Voice of the Semiconductor Industry

president, semiconductor industry association (sia)

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