SEMI and SSIA Launch the Electronics Young Talent Outreach Program

Students encouraged to upload a “Future of Electronics” video by March 31 to win S$8,000

SINGAPORE – March 8, 2012 – To grow the future talent pool for the electronics industry, SEMI, Singapore Semiconductor Industry Association (SSIA) and EDB today jointly announced a Young Talent Outreach Program in the form of a YouTube Video Competition. The competition officially started from March 1 and the deadline is March 31. The first prize winner will receive S$8,000 in cash. The Award Ceremony will be held at Marina Bay Sands during SEMICON Singapore 2012—an ideal platform for connecting the global and local electronics companies to the students.

The Young Talent Outreach Program was developed by SEMI and SSIA to excite students about developments in the electronics industry. The YouTube Video Competition is the inaugural program and employs a creative approach to reach out to students from the junior colleges, ITEs, polytechnics and universities. Students have to produce a video using the theme of “Impact of Electronics Innovations on Future Lifestyle, Quality of Life and Development” and upload it to a YouTube channel by March 31, 2012.

“Continued innovations, especially by the younger generations, will ensure that the electronics industry evolves and stays ahead of the competition,” said Russell Tham, President, Applied Materials South East Asia. “The video competition will allow students to appreciate the importance of electronics in our lives,” he added.

Ulf Schneider, managing director of Lantiq Asia Pacific and the president of SSIA, emphasized that “Engineers in the electronics industry need to be highly curious about future developments. They need to be interested in shaping innovations of all kinds. They should strive to continuously look for new solutions which make the world a better place. Through this competition, we would like to understand what makes young talent in Singapore upbeat about future innovation. Furthermore, we would like to share their message with others in the community to enable the development of a generation of tech-savvy and inspired talent in Singapore.”

“We believe education and outreach efforts are necessary to help students make the critical connection between classroom learning and the real world. The SEMI Singapore Regional Advisory Board (RAB) is committed to continue sharing with students about the importance of the electronics industry. Through this learning journey we hope that students will develop a better understanding about the role of electronics and be inspired towards careers in Engineering,” said Tham, who is head of SEMI Singapore RAB workforce development. SEMI has reached thousands of students and teachers in the U.S., Asia, Europe and the Middle East, with its innovative workforce development program, SEMI High Tech U, which is an industry-driven math and science-based career exploration program for high school-age students and teachers.

“SSIA is chartered to utilize the close collaboration we have with industry partners, schools and universities, research institutes, as well as partners from the public sector to develop an eco-system that successfully attracts and develops talent for the electronics industry in Singapore,” Schneider added.

EDB has also been working closely with industry to offer sponsorships and training opportunities to attract and develop students for the electronics sector. The electronics industry is a major contributor to Singapore’s GDP – in 2011, it contributed to 6.1% of GDP. Of the S$13.7 billion fixed asset investment (FAI) Singapore received in 2011, electronics was the largest contributor, accounting for almost 54%. The significance of the electronics industry and its continued transformation towards higher value added activities present exciting career options in manufacturing, research and management. “Singapore remains an attractive location for competitive manufacturing, research and headquarters activities. The significant presence of these activities generates a diversity of jobs, which we hope to attract young talent to take up,” said Chong Joon Woon, Director of the Electronics Cluster, Singapore Economic Development Board.

Equipment Spending Growth Flat in 2012; Record Fab Equipment Spending Expected for 2013

SAN JOSE, Calif. — March 6, 2012 — Semiconductor fab equipment spending is expected to remain level (0 percent increase) in 2012 according to the latest SEMI World Fab Forecast report. Eight companies, including Samsung and Intel, will keep their fab equipment spending level above $2 billion in 2012. Fab equipment spending is estimated at $38.85 billion for 2012 and a record $45.50 billion for 2013.

While the outlook for fab equipment spending in 2012 was negative two months ago, key spenders like Samsung increased spending to record levels; Hynix increased spending in 2012 by 23 percent to about US$ 3.75 billion, while UMC increased spending from $1.6 billion to $2.0 billion. In addition, Intel increased spending much more than expected, to a historic high of about $12.5 billion. If macroeconomic factors improve and other companies adjust their capex plans, then equipment spending for 2012 could even cross into positive territory.

Fab Equipment Spending (new and used)

In US$ Million	2008	2009	2010	2011	2012	2013
including Discretes & LED	$25,960	$14,446	$33,568	$38,965	$38,850	$45,498
Change %	-32%	-44%	132%	23%	0%	17%
300mm only	$22,473	$12,031	$26,058	$29,986	$34,270	$40,580
Change %	-28%	-46%	117%	15%	14%	18%

Figure 1: Source: SEMI World Fab Forecast February 28, 2012 edition

The spending trend is expected to continue into 2013 especially for the Foundry, System LSI, MPU and NAND sectors. Companies continue to invest in upgrades and leading edge technologies, and few are ramping up fab capacity. SEMI’s latest World Fab Forecast (February 28, 2012) lists 192 facilities with equipment spending in 2012.

2010 was a good year for fab construction but 2011 was even better with a 24 percent increase YoY to $6.4 billion. For 2012, spending on construction is expected to decline by about 28 percent to $4.5 billion. Data of the World Fab Forecast show an even further decline in 2013.

Coming out of the downturn from 2010 on, yearly capacity growth is 5 to 10 percent and is expected to stay modest for the foreseeable future. However, SEMI’s fab data shows rapid increases in fab equipment spending for some segments leading also to an increase in installed capacity.

While installed capacity for DRAM is expected to level out, Flash capacity is growing rapidly between 2010 and 2013. The dedicated foundry sector will also undergo growth in installed capacity with the key contributors like TSMC, Globalfoundries and UMC. The recently released SEMI Fab database report enables data analysis by technology node, product type, region, company and fab by fab.

Lower construction spending compared to recent years, especially on new fabs, raises some concern about available capacity beyond 2013. Overall, the industry has tried to control installed capacity since coming out of the 2009 downturn. Now due to increasing demand, some segments, such as Flash, Foundry, and System LSI, are experiencing a boost in installed capacity.

The SEMI World Fab Forecast uses a bottom-up approach methodology, providing high-level summaries and graphs; and in-depth analyses of capital expenditures, capacities, technology and products by fab. Additionally, the database provides forecasts for the next 18 months by quarter. These tools are invaluable for understanding how the semiconductor manufacturing will look in 2011, 2012 and 2013, and learning more about capex for construction projects, fab equipping, technology levels, and products. Learn more about the SEMI fab databases at: http://www.semi.org/MarketInfo/FabDatabase and http://www.youtube.com/user/SEMImktstats

SEMI’s Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly and packaging houses. The SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment.