Semiconductor Summit Report

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

MACQUARIE PARK SEMICONDUCTOR SUMMIT2024

COMMERCIALISATION & INNOVATION

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

On Wednesday 14th November 2024, a summit was held at Macquarie University, co-organised

by Connect Macquarie Park Innovation District (CMPID), Semiconductor Sector Service Bureau (S3B), Macquarie University and CSIRO. The summit brought together national research and industry leaders to discuss the opportunities and threats to the Semiconductor industry, with a specific lens on Macquarie Park Innovation District. This report summarises the Semiconductor industry current state, as discussed by speakers and panellists at the summit event.

MACQUARIE PARK SEMICONDUCTOR SUMMIT2024

INTRODUCTION The semiconductor industry, a cornerstone of modern technology and innovation, is rapidly evolving, with advancements such as hybrid wafer bonding and the integration of various semiconductors, photonics, MEMS, and other technologies such as synthetic biology.

Despite Australia’s reliance on overseas manufacturing, it has the potential to make a significant impact, in the international supply chain. The global shift towards advanced packaging technology in the global semiconductor industry presents an opportunity for Australia to leverage its resources and capabilities.

This will require a deep understanding of the complex and expensive process of creating silicon wafers, which involves significant investment and the use of advanced integrated circuits and sensors.

We also must focus on the importance of education, innovation, and commercialisation in Australia’s future in the semiconductor industry.

The current landscape of electronics engineering education in Australia, is a declining trend in the number of universities offering electronics engineering degrees. This poses a significant challenge for the future of the semiconductor industry within the country.

As semiconductors play a crucial role in daily life and innovation across various fields, the lack of local talent being educated in this area could hinder Australia’s ability to contribute significantly to global advancements. This educational gap could further exacerbate Australia’s reliance on overseas production due to the lack of local expertise.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

SEMICONDUCTOR OVERVIEW Semiconductors are essential components in electronic devices and systems that our society depends on for modern life.

Primary uses:

Impact of Semiconductor Shortage

1. Healthcare: Medical devices such as MRI machines, pacemakers, and diagnostic equipment use semiconductors for their operation

If we couldn’t source semiconductors, the impact would be significant and widespread:

2. Energy: Semiconductors are crucial in renewable energy technologies, including solar panels and wind turbines

1. Economic Disruption: Industries that rely heavily on semiconductors, such as automotive, consumer electronics, and telecommunications, would face production halts, leading to economic losses

3. Communication: Semiconductors enable wireless communication through devices like smartphones, tablets, and Wi-Fi routers

2. National Security: Many defence systems rely on semiconductors, so a shortage could pose risks to national security

4. Computing and Data Storage: Semiconductors are used in microprocessors, memory chips, and storage devices, forming the backbone of computers, smartphones, and servers

3. Healthcare Challenges: The availability of critical medical devices and diagnostic tools would be compromised, potentially impacting patient care

5. Consumer Electronics: They are integral to the functioning of televisions, gaming consoles, cameras, and household appliances 6. Automotive: Modern vehicles rely on semiconductors for various functions, including engine control units, infotainment systems, and advanced driver-assistance systems (ADAS) 7. Industrial Applications: They are used in automation, robotics, and various industrial control systems

4. Product Shortages: There would be a shortage of electronic devices, including smartphones, computers, and gaming consoles, leading to increased prices and long wait times for consumers 5. Technological Stagnation: Innovation in fields like AI, IoT, and 5G would slow down, affecting technological progress and competitiveness 6. Automotive Industry: Car manufacturers would struggle to produce vehicles, leading to delays and increased costs for consumers Overall, semiconductors are vital to modern life, and their shortage would have farreaching consequences across multiple sectors.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

RECENT SUPPLY CHAIN IMPACTS Disruption of the Semiconductor Supply Chain Due to COVID-19 and Recent Wars Background The semiconductor industry is crucial for various sectors, including automotive, consumer electronics, and telecommunications. However, the COVID-19 pandemic and recent geopolitical conflicts have significantly disrupted the semiconductor supply chain, leading to widespread impacts across multiple industries.

Disruption Factors 1. COVID-19 Pandemic: • Factory Shutdowns: The pandemic led to the temporary closure of semiconductor manufacturing plants, particularly in key regions like East Asia.

This caused a significant reduction in production capacity

1. Automotive Industry:

• Supply Chain Bottlenecks: Lockdowns and restrictions disrupted the transportation and logistics networks, leading to delays in the delivery of raw materials and finished products

• Production Delays: Automakers faced significant production delays due to the shortage of semiconductors, leading to reduced output and extended delivery times for new vehicles.

• Increased Demand: The shift to remote work and increased demand for consumer electronics, such as laptops and smartphones, exacerbated the supply-demand imbalance

Impact on Industries

• Financial Losses: The disruption resulted in substantial financial losses for automotive companies, with some manufacturers reporting billions in lost revenue.

2. Consumer Electronics: •

Product Shortages: Companies like Apple and Samsung experienced delays in product launches and shortages of popular devices, impacting sales and market share.

•

Price Increases: The scarcity of semiconductors led to increased production costs, which were often passed on to consumers in the form of higher prices.

3. Telecommunications: •

etwork Expansion Delays: The rollout of 5G N networks was slowed down due to the unavailability of necessary semiconductor components, affecting the pace of technological advancement.

2. Geopolitical Conflicts: • War in Ukraine: The conflict has disrupted the supply of critical raw materials, such as neon gas, which is essential for semiconductor manufacturing • Trade Restrictions: Sanctions and trade restrictions imposed on certain countries have further strained the supply chain, limiting access to essential components and technologies

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

INDUSTRY VALUE The global semiconductor industry is expected to experience significant growth over the next decade, potentially becoming a trillion-dollar industry by 2030.

This growth is driven by increasing demand across various sectors, including automotive, computation and data storage, and wireless communication.

Current Market and Growth Projections • 2024 Market Size: The semiconductor market reached approximately $600 billion in 2024.

• 2025 Forecast: Garner predicts a 14% growth in semiconductor revenue in 2025 – totally $717 billion • Projected Growth: The industry is projected to grow at an annual rate of 6-8%, potentially reaching $1 trillion by 2030.

• Key Drivers: The main drivers of this growth include advancements in AI, and the rise of electric vehicles, boot demand for advanced semiconductors.

Semiconductors Revenue Forecast, Worldwide, 2023-2025 (U.S. Dollars) 2024 2023 $530 Billion

$630 Billion

2025 $717 Billion

Challenges and Opportunities • Supply Chain: Geopolitical tensions and supply chain disruptions remain challenges, but companies are diversifying their supply chains to mitigate risks • Talent Shortage: The industry faces a persistent talent shortage, which is a top concern for executives and an opportunity for universities to build educational capacity in this space.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

Key Drivers for the Growth of the Semiconductor Industry in Australia The importance of upskilling the workforce, fostering entrepreneurship, and attracting global talent for the growth of the semiconductor industry in Australia.

The semiconductor industry in Australia is poised for significant growth, provided there is a focus on upskilling the workforce, fostering entrepreneurship, and attracting global talent.

The industry’s growth is heavily reliant on the availability of a skilled workforce, capable of competing with low labour costs in Asia, particularly in areas like automation and robotics.

This necessitates industry training programs, such as those offered by Macquarie University, which prepare PhD and master’s students for industry settings.

The industry also requires entrepreneurial ventures, as exemplified by Morse Micro, Silanna Group, and BluGlass, a spin-out from Macquarie University.

The potential for Australia to participate meaningfully in the global semiconductor supply chain, lies within a focus on next generation materials (highlighted by the above companies), and design.

Moreover, attracting global talent is crucial for the industry’s growth, as it can bring in fresh perspectives, innovative ideas, and specialized skills.

This is particularly important in emerging areas like compound semiconductors, microfluidics, and quantum computing, where Australia has the potential to carve out new niches.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

The Australian Genesis and Commercialisation of Wi-Fi Technology The commercialisation of Wi-Fi technology, spearheaded by Australian researchers and academics, led to the establishment and subsequent multi-million-dollar sale of Radiata.

The significant role of Australia, specifically Macquarie University and CSIRO, in the discovery and commercialisation of Wi-Fi technology is not a wellknown story in Australia let alone internationally. It’s an important story that we need to own, and understand to ensure that we continue to have global ambitions for our technologies. It’s a story that has the power to inspire Australian innovators that they too can change the world with their inventions.

The journey began in the late 1980s and 1990s when David Skellen, Neil Weste, both Macquarie academics, started working on wireless networks. The research was funded by CSIRO and involved collaboration with John O’Sullivan from Sydney University, leading to the development of a wireless LAN system.

Despite initial setbacks, including funding being cut by the government, the team built the first demonstration system and formed Radiata, to commercialize the technology.

The success of Radiata’s chips, which were bought by tech giants Cisco and Broadcom, culminated in the company’s sale for $560 million in 2020.

The IMPACT: The commercialisation of Wi-Fi has had a profound impact on the world, influencing various aspects of daily life, business, and the global economy.

Economic Impact Global Economic Value: Wi-Fi’s global economic value is projected to reach nearly $5 trillion by 2025.

This growth underscores Wi-Fi’s role as a critical economic driver.

Cost Savings: Both consumers and businesses benefit from significant cost savings. For example, enterprises save on telecommunications costs by using Wi-Fi instead of wired connections

Social Impact Connectivity: Wi-Fi has democratized internet access, allowing people to connect to the internet in public spaces like cafes, libraries, and parks.

This has been especially important in providing internet access to underserved communities Remote Work and Education: The COVID-19 pandemic highlighted the importance of Wi-Fi in enabling remote work and online education, helping to mitigate the disruptive impact of global events

Technological Advancements Innovation: Wi-Fi has spurred innovation in various fields, including the Internet of Things (IoT), augmented reality (AR), and virtual reality (VR). These technologies rely heavily on Wi-Fi for connectivity and data transfer Wi-Fi 6 and 6E: The introduction of Wi-Fi 6 and Wi-Fi 6E has brought faster speeds, lower latency, and the ability to handle more devices simultaneously, further enhancing the capabilities of Wi-Fi networks

Environmental Impact Energy Efficiency: Modern Wi-Fi technologies are designed to be more energy-efficient, reducing the overall consumption of connected devices This achievement not only demonstrates the potential for technological advancements in these fields but also underscores the importance of combining technical and commercial skills to drive innovation.

The experience and knowledge gained from these successful ventures can provide valuable guidance and strategic direction for future projects, particularly in terms of understanding the complexities of chip design, the types of chips, and their manufacturing processes. This highlights the potential for Australia to play a significant role in the global semiconductor industry, particularly in areas such as design and advanced packaging.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

Australia’s Potential Role in the Global Semiconductor Supply Chain The details describe Australia’s potential role in the global semiconductor supply chain, focusing on design, IP, and advanced packaging, and the contributions of Australian companies and universities in these areas.

Australia, despite not being a major player in semiconductor manufacturing, has the potential to contribute significantly to the global semiconductor supply chain.

The Australian semiconductor industry is already active and thriving, with companies such as Morse Micro and BluGlass leading the charge.

Morse Micro, is specialising in the design and manufacturing of WiFi halo chips. A fabless company with significant design expertise in semiconductors.

Semiconductor-Driven Innovation in Macquarie Park’s Medtech and Synthetic Biology Sector Convergence of semiconductors, synthetic biology, and medtech industries in Macquarie Park, driven by collaborative projects and industry training programs.

There is a move towards a significant trend in the convergence of semiconductors, synthetic biology, and medtech industries within the Macquarie Park innovation precinct. Companies such as Cochlear, ResMed, and various startups are leveraging the proximity to universities and collaborative partners, as well as the availability of clean room space.

Macquarie University, a key player in this ecosystem, is offering industry training programs and positioning itself to lead interdisciplinary projects at the intersection of semiconductors and synthetic biology,

On the other hand, BluGlass, a spin-out from Macquarie University, is focusing on the development of laser diode products. These companies are indicative of the potential Australia has to participate in the global semiconductor supply chain, particularly in the areas of design, materials and advanced packaging.

Their presence also underscores the growing local quantum industry and the need for robust semiconductor capabilities to support its growth.

As such Australia’s potential lies in specific areas such as design, advanced packaging, compound semiconductors, microfluidics and the in the sensing and quantum industries.

Quantum computing and sensing have the potential to be niche areas where Australia could excel in the semiconductor industry. These fields, while complex and requiring advanced technical skills, present an opportunity for Australia to carve out a unique position in the global semiconductor supply chain.

nanomaterials, and SIPS (Silicon Platforms) Lab. These projects, including the development of devices with chips and cells communicating, using AI models for synthetic biology applications, creating specific chips for data processing, and exploring DNA storage, are poised to result in significant disruptions in the next few years.

Macquarie University is leading interdisciplinary projects at the intersection of semiconductors and other fields like synthetic biology and nanomaterials.

The university is also fostering technical expertise and commercial acumen among students, preparing them for roles in the semiconductor industry.

The Australian semiconductor industry, with its focus on design and advanced packaging, and the availability of resources such as the Australian Genome Foundry and the Centre of Excellence in Synthetic Biology, provide a fertile ground for the development of these technologies.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

The Power of Collaboration in Advancing the Local Semiconductor Ecosystem The details highlight the importance of a collaborative approach between industry, academia, and government in driving innovation and value creation in the local semiconductor ecosystem.

The pivotal role of collaboration between industry, academia, and government in fostering the growth of the local semiconductor ecosystem is critical. This collaboration is a key driver for value creation and innovation in the semiconductor industry, particularly in Australia. As a small but potentially mighty force in the semiconductor supply chain we require all

The Role and Significance of the Advanced Manufacturing Readiness Facility (AMRF) in the Semiconductor Industry Government investment in the Advanced Manufacturing Readiness Facility (AMRF) is a key initiative providing infrastructure and support for semiconductor-related manufacturing and product development, catering to the complex needs of the industry.

The NSW government, recognising the significant global shift towards advanced packaging in the semiconductor industry, has made strides in supporting and investing in domestic capabilities.

One such initiative is the Advanced Manufacturing Readiness Facility (AMRF) in New South Wales.

This transition, which began around 2008, has allowed for the integration of multiple chips into a single package, by utlising technologies such as 3D chip

the players working together to provide the right environment for success.

Collaborative partnerships can lead to the development of new niches, such as compound semiconductors, microfluidics, and quantum computing, and can also facilitate the training of skilled labour in areas like automation and robotics.

This collaborative approach can further lead to interdisciplinary projects, combining expertise from fields like synthetic biology, nanomaterials, and semiconductors, potentially resulting in significant disruptions in the near future.

The collaboration is also instrumental in supporting PhD programs that train students in industry skills, thereby benefiting both academia and industry.

stacking and hybrid wafer bonding, thereby reducing power usage and increasing speed. This advancement has enabled the production of more complex and capable chips, including those used in AI applications.

The global semiconductor industry is predicted to continue this trend, with estimates suggesting that half of all chips will be produced as silicon systems in package within the next decade.

This facility, set to be operational by 2026, will focus on advanced packaging technology such as hybrid wafer bonding. This technology allows for the integration of various semiconductors, photonics, MEMs, and other components in a single package, leading to significant power savings and increased performance.

It is predicted that within the next decade, half of all semiconductor chips will be produced as silicon systems in package. The AMRF represents a significant step towards developing Australia’s semiconductor capabilities, potentially positioning the country as a

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

Silicon Platforms Lab: A Hub for Chip Design Training and Research Support The Silicon Platforms lab at Macquarie University is a training and support facility for chip design engineers and research teams.

The new Silicon Platforms lab at Macquarie University is a significant development in the field of semiconductors and related technologies.

This lab is designed to serve a dual purpose: • provide comprehensive training to engineers in the complex field of chip design, thereby equipping them with the necessary skills to contribute effectively to the industry.

• offers support to research teams engaged in chip design projects, facilitating their work and potentially accelerating the pace of innovation.

The lab’s establishment is a strategic move that recognises the importance of chips in powering electronic devices and the need for specialised skills in their design and production.

From left: Professor Sakkie Pretorius, Deputy Vice-Chancellor, Research; Industry Professor Mike Boers, co-founder and Chief Technology Officer of Atto Devices; Professor Lucy Marshall, Executive Dean of the Faculty of Science and Engineering; Professor Dan Johnson, Pro Vice-Chancellor, Research, Innovation and Enterprise; and Adjunct Professor Neil Weste, Atto Devices co-founder.

Niche Opportunities and Skilled Labour Development in Australia’s Semiconductor Industry Opportunities exist for Australia in the semiconductor industry outside of establishing a large-scale foundry, particularly in niche areas and skilled labour development.

The evidence suggests that while Australia has potential in the semiconductor industry, particularly in areas like design and advanced packaging, establishing a large-scale foundry may not be a feasible option. This is due to high investment costs and a lack of incentive for Australian companies to utilise local foundries.

However, there are opportunities for Australia to carve out niches in other parts of the semiconductor value chain as outlined above. These areas include compound semiconductors, microfluidics, and quantum computing.

The importance of skilled labour, particularly in areas like automation and robotics, is also highlighted in order to compete with low labour costs in Asia.

The Australian Manufacturing Readiness Facility (AMRF) can also contribute by providing automation and robotics training, however fitting into a generic support capability may present challenges.

MACQUARIE PARK SEMICONDUCTOR SUMMIT 2024

CONCLUSION The semiconductor industry is poised for a decade of robust growth, driven by technological advancements and increasing demand across key sectors. The recent Semiconductor Mini Summit has highlighted the immense potential and critical importance of the semiconductor industry in driving technological innovation and economic growth.

Moreover, the commercialization of Wi-Fi technology serves as a powerful reminder of Australia’s capability to lead in technological breakthroughs.

The establishment of facilities like the Advanced Manufacturing Research Facility (AMRF) and the Silicon Platforms lab at Macquarie University further strengthens the foundation for future advancements.

As the global semiconductor market continues to expand, reaching new heights in revenue and technological advancements, Australia stands at a pivotal juncture. By leveraging its strengths in key technology areas, education, research, and entrepreneurial ventures, Australia can carve out a significant role in the global semiconductor supply chain.

In conclusion, the insights and discussions from the Semiconductor Mini Summit provide a roadmap for Australia’s semiconductor industry to thrive. By continuing to invest in education, innovation, and strategic collaborations, Australia can not only meet the challenges of the global semiconductor landscape but also emerge as a key player in this dynamic and rapidly evolving field.

The summit underscored the necessity of upskilling the workforce, fostering collaboration between industry, academia, and government, and attracting global talent to sustain and accelerate growth. The success stories of companies like Morse Micro and BluGlass exemplify the potential for Australian innovation to make a global impact, particularly in niche areas such as design, advanced packaging, compound semiconductors, and quantum computing.

The opportunity is here, and the time is now for us to collaboratively build our nations capabilities in the semiconductor sector and play our role.

Event Sponsor:

Event Partners:

COMMERCIALISATION & INNOVATION