Viewpoint
January 26, 2016

VIEWPOINT 2016: Denny McGuirk, President and CEO, SEMI



VIEWPOINT 2016: Denny McGuirk, President and CEO, SEMI
Denny McGuirk, President and CEO, SEMI
The pace of consolidation in 2015 was unprecedented, making the industry both narrower and deeper. Continued collaboration through the extended supply chain is seen as an enabler as we look down the road towards 2020. Worldwide semiconductor capital expenditure for 2015 is expected to decrease 0.6% to $37.3 billion (over 2014) with nominal positive growth expected in 2016 of 1.4%.

In 2015, Taiwan, Korea, and North America remain the highest spending regions. SEMI forecasts that in 2016, equipment sales in Europe will climb to $3.4 billion (63% increase over 2015). In Southeast Asia, sales will reach $2.5 billion (26% increase), China $5.3 billion (9% increase), and North America $5.9 billion (6% increase). The equipment markets in Japan, Korea, and Taiwan are expected to contract in 2016.

Materials are a key enabler of new packaging solutions, and the $18 billion semiconductor packaging materials market will see steady single-digit unit volume growth for many material segments through 2019, including laminate substrates, IC leadframes, underfill, and copper wire. Segments such as wafer-level packaging (WLP) dielectrics will experience stronger unit volume growth over the same timeframe.

Constrained industry growth and the trend towards lower-cost electronics have reshaped the packaging material supplier landscape. Changes in material sets, the emergence of new package types, and cost reduction pressures have resulted in recent consolidation in various material segments. In addition, materials consumption in some segments is declining given the changes in package form factors and the trend towards smaller, thinner packaging.

Our industry prospers when stakeholders work together. As a global trade association, SEMI continues to advance the industry by providing platforms for collaboration on major issues, such as advanced packaging, through Special Interest Group initiatives, market information, international standards, advocacy, and exhibitions and programs.

In 2015, SEMI announced FlexTech Alliance as SEMI's first Strategic Association Partner, a form of inter-industry cooperation. SEMICON expositions in the U.S., Europe, China, Japan, Korea, Malaysia, Russia, and Taiwan, continue to be key industry events.

SEMI offers market research and data on semiconductor equipment, materials, fabs/foundries, packaging, HB LEDs, and more. The SEMI International Standards program has more than 4,500 volunteer experts with 1,800+ companies represented. SEMI members have access to a "Members Only" website and many webinars and presentations files are available. For more information on SEMI, please visit http://www.semi.org.

Denny McGuirk, President and CEO
SEMI
http://www.semi.org
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