Nanotechnology Now

Our NanoNews Digest Sponsors





Heifer International

Wikipedia Affiliate Button


DHgate

Home > Press > Innovation Is at Risk as Semiconductor Equipment and Materials - Industry Loses up to $4 Billion Annually Due to IP Infringement

Abstract:
Semiconductor equipment and materials suppliers face serious and mounting challenges in intellectual property (IP) protection, with adverse economic consequences for the entire microelectronics industry, according to a new white paper published by SEMI.

Innovation Is at Risk as Semiconductor Equipment and Materials - Industry Loses up to $4 Billion Annually Due to IP Infringement

SAN JOSE, CA | Posted on April 30th, 2008

The report, "Innovation at Risk -- Intellectual Property Challenges and Opportunities," provides a detailed study of various IP challenges facing the equipment and materials industry and offers recommendations for improving the situation. The white paper is based on a survey of 49 SEMI member companies representing 56 percent of the total annual sales of the entire equipment and materials industry. The study was conducted by the Noblemen Group.

"Protection of IP rights is a serious area of concern for the semiconductor equipment and materials industry, which supplies critical enabling technologies to microchip manufacturers," said Stanley Myers, president and CEO of SEMI.

The study found that increasing IP violations are driven by factors such as weak IP protection laws and weak enforcement and penalties in many regions of the world, outsourcing and off shoring in Asia, and the ongoing quest by the semiconductor industry for cost reduction in a consumer driven market.

Close to 90 percent of the companies that participated in the study reported experiencing some form of IP violation, including infringement, counterfeiting, and theft of core technologies, core products, spare parts and components, trade secrets, and trademarks. 54 percent of companies characterized these infringements as serious to extremely serious.

"In the highly competitive global business environment, IP protection is essential to the industry, allowing it to make the significant R&D investments needed to sustain technological advancement of the semiconductor device industry," said Bob Akins, chief executive officer of Cymer, Inc. and vice chairman of SEMI. "IP violations of various forms undermine the development of the next generation of equipment and materials required to meet the challenges of Moore's Law."

"Semiconductor equipment and materials companies offer complex and advanced systems to a highly specialized market. Continued violations of IP could undermine the development of new equipment and materials for the next generation semiconductor devices," said Tetsuro "Terry" Higashi, chairman and CEO of Tokyo Electron.

These companies identified Taiwan, China, Korea, and North America as regions of the greatest concern. However, the form and nature of IP violations in each region vary and occur for different reasons, especially in the case of North America. In addition, about 53 percent of the companies report IP violations by their customers (i.e., chipmakers). Nearly 60 percent of the companies surveyed have taken legal action against IP violations. However, only 48 percent of them were satisfied with the outcome, citing legal processes that were slow, expensive, and unpredictable. Companies were also concerned about costs and variability in the outcome of litigation.

Over 60 percent of the companies surveyed have experienced adverse economic impact caused by IP violations -- due to loss of sales and market shares -- with estimated lost revenues ranging from one percent to 2.5 percent of the total annual sales of the industry. In aggregate, the total magnitude of economic impact due to IP violations on the industry including lost sales, market share losses, loss of sales due to pricing pressure and loss of market valuation is in the range of US$2-4 billion per year.

To address IP concerns, the white paper provides a set of recommendations to SEMI that focus on expanding public policy efforts, working with governments for global IP protection, driving customer dialogue, working with SEMI member companies to promote a global culture of respect for the industry IP assets, as well as providing IP management education to its members.

The IP report can be downloaded in PDF format from the following URL: www.semi.org/ipwhitepaper.

About Noblemen Group:

The Noblemen Group is a specialized management advisory organization focused on the Technology sector. The company's services include market research, M+A advisory services, global due diligence support and interim management for clients in the Microelectronics, Homeland Security, and Analytical Instrumentation industries.

####

About SEMI
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C.

For more information, please click here

Contacts:
Association Contact:
Scott Smith
SEMI Public Relations
Tel: 1.408.943.7957

Copyright © Marketwire

If you have a comment, please Contact us.

Issuers of news releases, not 7th Wave, Inc. or Nanotechnology Now, are solely responsible for the accuracy of the content.

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

News and information

Smaller, faster, cheaper: A new type of modulator for the future of data transmission July 27th, 2015

Researchers predict material with record-setting melting point July 27th, 2015

Reshaping the solar spectrum to turn light to electricity: UC Riverside researchers find a way to use the infrared region of the sun's spectrum to make solar cells more efficient July 27th, 2015

Industrial Nanotech, Inc. Provides Update on PCAOB Audited Financials July 27th, 2015

Chip Technology

Superfast fluorescence sets new speed record: Plasmonic device has speed and efficiency to serve optical computers July 27th, 2015

Spintronics: Molecules stabilizing magnetism: Organic molecules fixing the magnetic orientation of a cobalt surface/ building block for a compact and low-cost storage technology/ publication in Nature Materials July 25th, 2015

Penn researchers discover new chiral property of silicon, with photonic applications July 25th, 2015

Global Nano Barium Sulfate Industry 2015 Market Research Report July 23rd, 2015

Announcements

Researchers predict material with record-setting melting point July 27th, 2015

Reshaping the solar spectrum to turn light to electricity: UC Riverside researchers find a way to use the infrared region of the sun's spectrum to make solar cells more efficient July 27th, 2015

Industrial Nanotech, Inc. Provides Update on PCAOB Audited Financials July 27th, 2015

Global Corrosion Resistant Nano Coatings Market To 2015: Acute Market Reports July 27th, 2015

Interviews/Book Reviews/Essays/Reports/Podcasts/Journals/White papers

Smart hydrogel coating creates 'stick-slip' control of capillary action July 27th, 2015

Researchers predict material with record-setting melting point July 27th, 2015

Reshaping the solar spectrum to turn light to electricity: UC Riverside researchers find a way to use the infrared region of the sun's spectrum to make solar cells more efficient July 27th, 2015

Global Corrosion Resistant Nano Coatings Market To 2015: Acute Market Reports July 27th, 2015

Patents/IP/Tech Transfer/Licensing

Reshaping the solar spectrum to turn light to electricity: UC Riverside researchers find a way to use the infrared region of the sun's spectrum to make solar cells more efficient July 27th, 2015

Smarter window materials can control light and energy July 22nd, 2015

Magnetic nanoparticles could be key to effective immunotherapy: New method moves promising strategy closer to clinical use July 15th, 2015

Nanospheres shield chemo drugs, safely release high doses in response to tumor secretions July 14th, 2015

Alliances/Trade associations/Partnerships/Distributorships

Dais Analytic's Business Affiliate in China Announces Ten-Year Strategic Energy Efficiency Business Arrangement With COFCO: Dais Beijing to Perform Feasibility Study on Over 80 Buildings to Improve Efficiencies as Part of Overall Hotel Energy-Savings Project July 23rd, 2015

Leti and Diabeloop Project Aims at Developing Artificial Pancreas for Diabetes Treatment July 22nd, 2015

Imec and Panasonic Demonstrate Breakthrough RRAM Cell July 16th, 2015

Leti and EVG Launch INSPIRE, a Lithography Program Aimed At Demonstrating Benefits of Nano-imprint Technology July 15th, 2015

NanoNews-Digest
The latest news from around the world, FREE



  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More











ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project