 So very good morning to all of you and very early good morning to our friend and always from California Who is joining us for this 40 70 couldn't be here in person? But I think that his presentation was a lot for for the debate. We are going to have so You have been you know listening on the first panel and that was a beautiful Introduction also for what we are going to touch right now because you have seen that the world is going into new applications very critical applications and What we want to touch today is what is the industry behind it? I mean how is it going to happen and why and What are the forces that really drive these? Innovations and you know that the complications today is not on the technology It's all about also the geopolitical around it So we are going to touch this and in the debate also we want to make sure that as we go into the discussions We also talk about this part of the world the Gulf regions if you if you talk about You know innovation if you talk about leadership if you talk about sovereignty it is very important that You understand also that it is a critical Industry for this part of the world as well so with that I want to make sure that We will have a first and introduction with under Jones. We're going to again talk from California. We Edmuth is on my on my left here first and with them and would has been Playing in the industry for more than 30 years in the semiconductor industry and it will and you have isn't Bio into the into the the documents here with max max. I will only say that max is Traveling around the world is the innovation makers is one of these few people in the world who are really connecting the dots and Again, I make sure that you read is bio. It's very very important so with that and all maybe I'll turn it to you and We start into the debate just after that today we'll talk about the Underline capabilities of AI which is semiconductors So if we're going to slide to I basically would give some background on Myself and also the company So IBS has been in business for 33 years We work with most of the major semiconductor companies. We also work with financial institutions But we also work extensively with governments We worked with new US government on their strategies for semiconductors I spent a lot of time in China regarding semiconductors in China Also interface with the French government. We actually have a high-level discussion of fresh government last week Also Japan Also Taiwan Now we're also doing some work for India and also potentially Vietnam so we work on a global basis and also a key part of what we do is focusing on the growth and evolution of AI and Then focusing very heavily on the semiconductor support for AI and of course the key part of the essence of AI is data and in some ways data has similarity to oil But also I'm going to cover why Semiconductors have become so important in the last few years and one of course is now the government of many countries are involved Also the supply chain issues But the third factor, which is that all the emergence of generating of AI Which is going to change Markable industries and I'll cover some of those points that are focused very heavily on the semiconductor supply That is needed to support AI. Can we go to slide three please? So we see AI today in smartphones the camera functionality in smart phones is based on AI And this is the beginning so basically we're going to see many many new applications emerging in the automobile industry we see some of the consumption in 2030 and about 2500 per vehicle compared to $500 in 2020 and of course a key part of that is the self-driving capability that will emerge and Nvidia of course has had very high visibility of recently in terms of data centers Otherwise, we can think of data centers in some ways as equivalent to all refineries a large amount of data goes in and it gets as processed and then of course the Utilization of data is very widespread and of course the key building block function of AI is that of the GPU of Nvidia Where they predict when we cost them about $3,000 to make it But they sell it for $50,000 and their global shortages So this is the beginning of what we call generative AI and the impact initially is in the data centers But we will see why is that use at the edge devices in the edge applications in future Which can use major opportunities for country for countries in the Middle East in Europe in the US and in other global regions And we go to slide for please So governments are becoming increasingly active in our semiconductors and of course the initial Driver was that of supply chains cars could not be shipped because of our lack of semiconductors So we now see the joint venture between global foundries and STM ST micro in Chrome you see Fab in Germany for TSMC We see a Fab in Germany for Intel The US chips act is produced in this money So governments are now actively involved in decision processes for semiconductors. This was not the case in the past and of course AI will increase the involvement of the governments Let's go to slide five please So the semiconductor market will be a trillion dollars in 2030 IBS along with semi predicted this back in 2017 So of course, this is a huge industry with significant little potential Very fragmented in terms of many different products. Let's go to slide six so a trade war has emerged in the semiconductor industry and Yeah, so let's go to slides next slide slide seven. Let's go one more slide Let's go one more slide Yeah, thank you. This is the one I want so a trade war has emerged between the US and China in Semiconductors and of course a part of it was supply chain issues But US sees China becoming a major competitor in terms of semiconductors But the real emphasis right now is on artificial intelligence the key building blocks for semiconductors in terms of the Artificial intelligence of processors and this is where there's right now a trade war between US and China regarding supply chain of processors Also, the AI is increasingly important in the military applications Drones rely very heavily on AI and of course software for military intelligence is a key factor in terms of the AI arena Let's go the next slide so China though is moving rapidly in building semiconductor capabilities and I've been there. I just came back over this about a week or so ago And this is my third visit to China this year I spent about six weeks in China this year and we do see a rapid progress in a number of areas And of course China has a large in a row highly skilled engineers and Chinese governments providing large funding The role though of Taiwan is critical SMC is producing approximately 60% of the foundry market and 90% of advanced feature Technologies Apple Qualcomm Nvidia all these companies depend on TSMC What's going to happen to TSMC in the future? That's a question for another discussion and basically we do have Significant visibility into what some of the potential options are. Let's go the next slide So generative AI is Effectively a new capability within the semiconductor industry Generative AI is the ability to develop software which then allows tasks to be addressed Very effectively chat GBP can create content But the real value of generative AI is development of software which then allows New applications to emerge. We heard in the last presentation about digital health That's going to be a biggest one the biggest both industries in 2030 to 2040 and generative AI and semiconductors are a key part of that Also sensors will be a key part of that and of course sensor capability and sensor leadership is in Europe and In generative AI we think can be important to have global collaboration or collaboration between Countries that have different skill sets, but also different requirements So this is a new era for the semiconductor industry and again dream TV. I is a new capability Which will revolutionize many applications. Let's go the next slide, please And let's go the next slide Let's go there. So Generative AI basically is the ability as I mentioned to generate models and The initial activities of generative AI is in data centers and as I mentioned at Vidya their revenue data centers in 2014 Was 199 million this year will be 40 billion so what IBS has done is quantified the value of generative AI and If we go the next slide Let's go the next slide, please. Yeah, basically. We looked at each category and then looked at the value of AI And this is what we have in terms of the impact of AI in 2030. Let's go the next slide So AI will represent 760 billion dollars out of a total of a trillion dollars of a separate semiconductor industry This really is a has a huge impact in terms of semiconductor production Semiconductor supply, but also now increasing government control over semiconductors. Let's go the next slide This shows a similar perspective, but now based on a percentage basis So this this this is going to change the semiconductor industry is supply chains and again It's going to produce many new opportunities. Let's go the next slide So what we see in the semiconductor market as a summary is the market will decline this year It will grow next year and then basically fairly strong growth between now and 2030 The trade war between US and China though, however, will become more contentious We see more restrictions being placed on China and it's actually hurting China China is trying to do some Mature technologies and that's gonna be a play for a while However, though, there's gonna be a point with China will push back and that's going to create potentially Significant supply chain issues on the global basis. When will it occur? Maybe 2025 2026 maybe 2027 But it's gonna happen so again the trade war issues have some basis for National security are the areas that we question and again I but the end result is China is making huge investments in semiconductors But as I said, there will be Significant escalation of the conflict in the future. Let's go the next slide so The growth of the semiconductor market right now is driven quite heavily by smartphones by data centers, but Basically, we're going to see edge devices being the key factor in terms of Generative AI So what are the applications? Well, it was mentioned earlier digital health. This is revolutionary I've been exposed to some activities in Stamford in Harvard and we will have major benefits in terms of Reduction or increased importance of diseases Longer lifestyles More productive lifetimes So this is going to change society and of course it's going to take large resources It's also going to take collaboration food production is another area where they're going to be significant benefits from generating AI Education system will need to change dramatically. What has been learned today will become with generating AI what people will have will be what we call a virtual digital twin Which will have higher IQ in terms of data analysis than the human brain We'll have autonomous transportation, of course. This will change logistics. We think China will actually be the first market to adopt Generative AI and L5 it does maybe 2035 it's going to come So we're going to have major changes in society Yes, we have we can learn about the end of the dangers of AI but it's important to up to Accept AI and try and accelerate the adoption because the benefits will far outweigh the limitations of AI So, thank you very much. That is my presentation. I wish I could have more time. I wish I could be there, but again, thank you very much Thank you, and you stay with us if you can right so What we are hearing from you know the previous panel and what and that is sharing with us is that We are big we are going into a new era. I mean, we have been through the gold era the oil and gas era and now we are entering into this Semiconductor era and this is a very critical phase and this is going to be there for the next 30 40 50 years So it is clearly an opportunity to For some government also to get into the game as and I was sharing but is it really true? I mean max, what do you think about this? Well, first of all, good morning to all of you salamu alaikum It's always good to be back in United Arab Emirates and my gratitude to the organizer Committing Muslim O'briel madame Kwan and the Syrian partners Founders Helmut and Paul for allowing me to be on the stage with them It's a distinct honor and a privilege to be here with you It's it's really interesting because Semiconductor industry Let me give you some dates for backdrop the first transistor, which is the genesis of integrated circuit was invented in Bell Labs in 1947 10 years later in 1958 Jack Kilby created integrated circuit which was basically assembly of a bunch of transistors to create functions Over the last 40 years semiconductor industry has contributed so immensely to our lives being enriched To the society being the way it is today and unfortunately majority of the people Don't know the contribution of the semiconductor industry But the last 40 years and half a trillion dollars worth of revenue Will be dwarfed in the next decades on what? Contribution semiconductor industry can bring and what economic value it brings to Countries that they participate in the semiconductor industry that and any innovation it brings Probably all of you have a cell phone in your pocket The last 40 years semiconductor industry has transformed Computing and communication industry to the point that today you take your phone out you can face time your Friends and family without even understanding how all of that has become possible Single-handedly our industry owes a debt of gratitude to a gentleman who was the founder of Intel Which you probably all know because the stickers on your laptop By the name of Gordon Moore Gordon Moore's law which became known as Moore's law Dictated that every two years the number of transistors on a chip to grow to become double and And as such the semiconductor industry has followed that pattern and created more efficient chips Every year at same or reduced cost and as a result it has made possible innovations that has created The the communication and computing industry that you see today Those devices that you have generate data data is the genesis and and I Hesitate to mention AI again because everybody has talks about AI, but it's important to understand why AI Has I think the professor before us explained it very eloquently that AI AI is not new It is actually a very old idea But the advent of semiconductors and and the computing architecture today available has allowed AI to flourish and and again, I like to focus on the positives of the AI such as Ability to be able to detect tumors that Professional doctors with 30 years of experience couldn't do so there's plenty of opportunities And if you look at where the chip industry is today Give you a frame of reference Which is quite honestly for me for all of us in this industry that we've been around for a long time It's still hard for me to grab my head around it the NVIDIA the AMD and Intel's Ponte Vecchio Each have somewhere between a hundred to a hundred and fifty billion transistors in it if you look at the Genius of this devices that there are crunching data and the ability that they are bringing to the society It's it's mind-boggling what will be happening and and you saw handles eloquent Analysis of where the industry is headed in the last 40 years the industry has become at half a trillion dollar industry In the next seven to eight years The industry will double its size and become one point one trillion dollar industry now Why is chips act so important? Why is every country and every society trying to have a control over semiconductors? because from one side if you look at it from advanced agriculture to drones and to computing AI platforms it is the genesis of the new industrial revolution Semiconductors are what makes it makes it to happen But from the other side of it. It's it's part of sovereign Protection of of individual societies each country needs to have access to the technology for their protection So semiconductors have a dual use capability these days and and and in all honesty I am so happy that After the pandemic and shortage of cars because of semiconductors at least now my family knows what I'm doing Because up to that point. They didn't know what I was doing Thank you. Yeah, this is true I mean this is not an industry that is really marketing itself But this is really the foundation for most of the innovations that we see today and these innovations are going to Basically continue to spread over time. So we have built basically we have built over over time we have built this Capability computing capabilities that you are talking about max We also built these communication capabilities really that really drives You know 4g going into 5g and tomorrow it will be 6g So it's a lot of also different type of applications, but it is needed so the the Lego itself I mean the constructions that the architecture is now ready to the next step because we have this high computing high-level computing models that are running with these Capabilities we have this ability to really go fast and move the information very fast We still have a lot of problem to fix. Okay, and and power is going to be a lot of these Situations where the industry is going to continue to focus, but as Andal is saying we want to bring these models Close to the applications. We want to make sure that this Whatever we call it artificial intelligence or ability to do more with less at the point of use This is what the industry is going to bring in the in the future So if you think about that you understand also why US versus China Is going on right now? I mean this is clearly a sovereignty Part of the discussions we understand the policy makers that you guys are Here for and this is so important for this industry, but and would back to you I mean, what do you think? How do you think? What do you think about Europe in this race? I mean, how do you see Europe? Acting and and what are the potential strengths and weaknesses that you see in Europe? That's two questions. Well, good morning, everybody first and foremost also pleasure for me to talk about my favorite subject semiconductors I've spent all of my professional life in semiconductors, and I'm as happy as you are maxed to the fact that finally a Large portion of society recognizes how relevant it is and That's one of the reasons why the tensions between US and China Have a gain so much attention Because in Taiwan, there's a super high concentration of Semiconductor manufacturing in particular advanced semiconductor manufacturing handle showed some numbers on that Why is that critical no car? No phone no internet would be possible today without that particular manufacturing in Taiwan now What are people thought about that? Two things We want to regionalize manufacturing They've diversify the manufacturing landscape. It's got to be in other places and and Handel also said well TSMC is venturing into the US into Japan into Europe Intel is bringing their manufacturing into Germany for instance many things are happening at this point in time And change is always an opportunity for those who are courageous enough to drive it so It's the opportunity I think for many for many countries for many companies to Participate in that change and make a fortune out of it It doesn't come by itself. And as I said, I do believe it takes quite a bit of courage to do that but There's another point that is relevant When we are talking about Taiwan in this particular strength and concentration in Taiwan on this particular capability The semiconductor industry is a lot broader. We are talking about a very relevant specific point but the 600 billion or whatever the number was in 2022 of value that was Created or revenue that was generated is on the so-called device level These devices have to be manufactured these divide the for those manufacturing we need to have equipment and For that to run it needs material if you add all those different steps of the value chain together you are at a trillion already already today you are and these other areas are way more diversified the concentration of of Capability in Taiwan is focused on manufacturing of leading edge technology only There's a lot other things that are being Manufactured designed and value created in other regions for instance in Europe and you were asking about the Europe PN angle to this besides the benefit of Europe now getting from advanced manufacturing being brought into the region Europe has its own strength in certain areas One is automotive I'd say 50% of the semiconductors for automotive are being Designed and to a large extent manufactured in Europe today. So it is a very great strength We also talked about equipment. There is this famous company. Everybody has heard the acronym meanwhile It's called ASML Why is ASML so critical because they are the only company in the world that can enable so-called leading edge technology? but Again leading edge is only a certain portion of the semiconductor industry a critical one that has a lot of focus Also because of potential dual use to it But again, there's a lot of other things that being done in Europe right now today where Europe is leading The the global effort in certain areas and material is a third one and then Paul has been running company called soy tech for for many years again a capability in Europe That is unique to this industry and is very critical for development of certain specific areas So if you go a level deeper in trying to understand what semiconductors are all about You recognize that each region you as for instance owns design automation No chip can be made no chip in this world without Certain capability that resides in the US only Japan owns They from certain areas away for capability and some materials All of this leading edge lithography would not be possible without chemistry coming out of Japan so this is a truly global industry and Yes, it is changing as we speak and yes, we can take advantage of it Every region has to look at what are the particular capabilities and if you're brave enough to take advantage of the current change you can bring This industry or a portion of this industry into this region as well. I will talk about that soon yeah, absolutely and but but that comes I mean for me everything you said makes sense and yes, Europe has very strong capabilities and niches that really bring this You know part of the world in terms of into the club by club I mean If you want to enforce policy you have to have something to say you have to have also the ability to play a part in this technology world and But what we said before is that everything start with innovation. So is Europe Slowing down on innovations. What is max? What is the what is the situations when it comes to this industry semiconductor industry? What do you what do you think about the innovations? You are the first and you are the right person to talk about it by the way So I think Paul refers to the fact that I am fortunate enough to represent an organization That has been the driving force Behind innovation in the semiconductor industry our organization is called I'm a it's located in Belgium We are truly global. We have over five thousand five hundred of the brightest minds from 95 nationalities That they use an infrastructure that is in excess of four and a half billion dollars and We are fortunate enough to collaborate with pretty much any company that is successful Including I think we have a colleague here from Volkswagen including Volkswagen and car companies and Sequencing DNA sequencing companies besides the semiconductor industry You know semiconductor industry has different segments to it There is the logic segment. There is the memory segment There is sensing and actuate segment Europe has been a prominent player in the sensing and actuate Which as you can see is is driving the autonomous driving segment And the company that helmet was on the board is one of the pioneers in creating chips for this automotive industry in Phinean German company. So if you look at innovation in Europe quite honestly speaking I would have to be forgiven because I Am part of IMEC and I get a paycheck from IMEC. So I have to defend IMEC But if you look at the talents that the universities in Europe create Innovation is what has created semiconductor industry and has driven it forward to the point that the chip today has 150 billion transistors on it every aspect of the industry has been innovating and And quite honestly the ecosystem has worked together and and the driving force of the ecosystem is the talent is The innovation behind the industry and Europe has played a significant role Because if you look at the universities in Europe the access to the universities It has a wealth of universities that they can still continue the innovation in the semiconductor industry For us to continue to grow in the semiconductor industry if you look at AI for example or if you look at many of the applications quite honestly speaking if AI grows at the rate It's growing the computing platform the power that is required for that computing platform That the world doesn't have that much power So we need to continue to innovate in order to reduce the power of Consumption of the chip we need to continue to innovate in order to increase the performance of the chips so I think Each region needs to bring something to the table But underlying part of the participation and the price for participation is to create workforce and talent That they can innovate at least part of this value chain Thanks Max. I think it's clear. I think it's clear that this is the new the new era and as part of it, I mean if you think about post-covid and the current China US tension This industry is thinking about Regionalizations we have been building this industry for the last 30 years thinking about globalizations We are now thinking about Regionalizations if you think about the footprint every single region in the world is trying to really get into Into this industry. They are trying to really attract and Built on this industry. So so and I mean there is a question for you I mean, is it a good time? Is it the time? Is it the moment in life where? collaborations between Europe and the Gulf regions should should materialize And is it possible? You know the second industry has different levels we have the foundry level and Movedala has made a significant investment in global foundries and it took a while, but now The situation looks very positive but the manufacturing at the foundry level of the Also for memory is one level and that is very capital intensive and it also requires a lot of skills The next level up is other products and of course products need markets and the markets Platforms represent 35% of the market The other level though is the applications the software and the Solutions that can be brought to the market So if you look at generative AI and where growth opportunities exist as I mentioned earlier Visual health is one of those areas So if you are going to collaborate if the if if the Middle East is going to bring up this own industries related to AI for me digital health is one of the key areas and And why Europe? Well Europe has leadership in sensors the sensors developed by IMEC CLT Bosch Infineon ST These are leadership on a global basis So there it can be collaboration in terms of these sensors that you can get from Europe European companies also have some reasonably good processors. You can build industries like the digital health based on collaboration So you can utilize the infrastructure that is being built You can you can utilize the billions of dollars of capacity that is being built But then develop new industries agriculture is another one Basically pharmaceutical it is another one. So to me the collaboration should be based on applications that benefit society and Whether benefits are tangible and of course there can be significant investments, but the payback will be huge So I see I see significant synergy between Europe and the Middle East and frankly, I think the emergence of generative AI Japanese like jet TBT This is the perfect time to build new industries and as I've been said as Paul mentioned Basically, we need to collaborate No country can do everything by themselves and again I think right now is perfect timing to look at generative AI and then look at who the potential partners could it can be and of course they do involve political stability in relationships as well as economic factors as well as Innovation and of course also the need for end markets So to me, this is perfect time to focus on generative AI because there's at the early stages of emergence But the applications on opportunities are very clear So and what what is your view on that and maybe if you want to get into what? What can be done in also to get into win-win situations? I think it's it's an opportunity, but but the train is moving right and This is an industry who doesn't stop. I mean clearly it is about speed and it is also long-term vision. So What do you think about potential collaborations? How do you see that as you know being someone who has built this industry in Europe, but also What can be done and maybe I would open that questions to max and ender as well what can be done to Create these win-win situations with this part of the world Yeah, I think max already described it very well innovation is the DNA the core DNA of this industry and to Create an Innovative environment is what you have to have in mind if you want to be successful Longer term in this industry Now the chicken and egg question is always how do you create an innovative ecosystem? How does it begin? Does it start with a the Institute with the research facility does it start with manufacturing? Frankly, I my experience, but I have seen many times when when when you wanted or when been somebody ventured on on setting up a semiconductor Activity in a new country or in a new place It usually starts with true business. You have to start with somebody who has all the ingredients To bring business to a marketplace Once you have that the ecosystem grows around it that doesn't grow overnight You can do a lot of things to accelerate that and you probably have to do that But once you do that the ecosystem is going to grow it begins with one one first start One company that is willing to set foot on a new ground and the question is how do you attract that? In my experience and what I've seen lately Subsidies are no longer differentiating Probably have never been but now as every region wants to Bring semiconductors to their region. They want to have or Participate in the fact that you have to have semiconductors to have a future no matter what economy It's no longer compute and consumer. It's an automotive. It's an industrial. It's everywhere So if you want to participate in the oil of the next era Then you want to have semiconductors. So you have to attract somebody What does a semiconductor company need in order to come to a region? Well, when it's manufacturing involved, it needs infrastructure. It needs electricity stable cost-effective and it needs water Okay, you can provide that but you have to provide it of course at competitive at Competitive level the second thing you want to have political and other is societal stability but Plant this or you you you plan this factory to be there for at least two decades So you have to have a vision is stability in the region in the place Something that you will have with very high likelihood The third thing and that becomes critical more and more is Do I have Skilled workforce and talent and can I attract it to be in that region? That's very critical and that's actually something where a lot of Areas are struggling with right now in Germany It's a big talk because of Intel and then TSMC coming and and Finyan and others investing heavily Well, we're getting short on on talent and creating that talent is essential and for that You need to probably invest early in Building research facilities and making a work workplace attractive So many of all of this done Then you basically need a partner and We might be a partner to help with that We've just founded the Celian partners and working with Arjan very closely on the first ever Private equity semiconductor fund that's fully dedicated to the semiconductor industry in order to help With finding those companies and building those bridges that are necessary to bring a Company here and when you do that then I think the rest can fall in place If there is the vision and the and they I'd say entrepreneurial spirit of the leaders in that region to drive all the necessary environment so Yes, it's possible. Yes, it's a good time because there's a lot of movement in the industry and But there's also a lot of competition. So It's not not a given that That that you can bring this industry to any country in the world where it's not yet If I may since this is the world policy conference and quite frankly speaking I'm not qualified to be making any policies, but I think President Macron has a forum which is tech for good and And if you look at the positive aspects that our industry can create and Solve so many challenges in the society that we are going to be facing from climate change to food shortage to Challenges for curing cancer and health disease Are Honestly, yes, I'm the ambassador for the semiconductor industry. So I should speak good about it But I think it's incumbent to all the leaders That are gathered here to have a policy about Semiconductors because of the good that it can bring To their societies besides the economic and the sovereignty issues the value that it can bring by educating the workforce to have a Mistake in their future in in because the future more and more is being mapped by technology and by the way Semiconductors are changing different applications from agri-food to life sciences handle very well mentioned I Think between Genomics and proteomics we are getting a complete map of the human body and Honestly without semiconductors that would have never been possible So I think it's incumbent to all the leaders to think and craft a policy that is holistic for innovation and semiconductors and not too many People in venture and financing are as versed in Semiconductors as the two of you So I'm glad that we are loaning some of our talent to the finance industry to help Thanks max. I think it's it's a very good transitions to maybe open the door for questions in the forum I would like to stop here a little bit and see if if you have questions that we could then take on Good morning Stan Cosimo Capgemini yesterday. We heard about China and Taiwan This morning we heard that TSMC is an important player in this industry. So two questions What would be the potential? Consequences on your industry on this industry should China take control of Taiwan number one and number two What is being done to anticipate? Number two is I didn't hear number two either number two is what is being done to anticipate that potential scenario Okay So we want to start and you want to stop the did you get the question? Sure? Thank you. I hear the question The reality is But if something negative happens to supply chain from Taiwan the consequences are dramatic and drastic and The reason is that if you look at the advanced technologies TSMC has 90% of the market And yeah, we do have attempts right now by Intel by Samsung to build capacity But if you look at the total capacity of TSMC in Five nanometers and below is 300,000 waifers a month 300,000 waifers a month so chips act will not solve that problem the Activities in Europe frankly will not solve that problem So there's really nothing Significant being done today if there is drastic reduction in the supply chain from Taiwan in the next three to five years and That's that's a problem and we think that the cost of addressing that can be up to 200 billion dollars But again, we think it's important To prevent it from happening Which requires diplomacy and we do see lack of diplomacy in many areas at the present time unfortunately So since this is a world policy council Maybe there you have some smart people that can actually address this problem and provide diplomatic solutions because there really no Solid economic solutions in place at the present time. Yeah, I think I want to answer that question Leading edge what's so-called leading edge technology About 15 years ago. There was 10 plus companies who were competing for who is the first on leading edge? and The semi-technology develops in so-called nodes it takes steps and every step of the way Two to three of the companies fell off the wagon They weren't able to keep up with the speed of development in the semiconductor industry and that has led to the point where now it is Three or some say two and a half. I don't care three companies left that are really fighting for leading edge and TSMC is clearly leading the pack Why do I say that if somebody would have wanted to prevent the current situation? Somebody would have needed to step in 20 years ago at least 20 years ago We haven't done that and that's why we are where we are now a lot of things are done Probably the most effective one is bringing TSMC's capability into several other places Several things are done, but it takes years three to five at least To be somewhat less somewhat less dependent on the currency as compared to the current situation so that's just a matter of the fact and and we can all we can do is is Do whatever we can to really Grow our independence or become less dependent from the current situation and a lot of efforts are done and I agree with I wouldn't probably Formulated as drastically as handle does As to the chips acts are not gonna cut it, but they will be a contribution But they will not be sufficient there needs it a lot needs a lot more than that to really grow that independence or come You can can formulate it more positively to to strengthen the capability of the rest of the world in comparison to what isn't I want By two cents first of all, I encourage you to believe in the good of people I am a naturally optimistic person even though a bad news sells better commercials, I Hope you can focus on the good Yes, if you're going to scenario plan and scenario for the worst-case scenario If there is a disruption in supply from Taiwan on the most advanced nodes Considering that the most advanced node production in Taiwan sums up to a 80 plus percent Yes, we will have globally a problem that said I agree with Helmut the chips acts Intention is to remedy that and Let's hope that that's a remote possibility that the chips act just remedy that Furthermore you have to realize how did we get here Semiconductor industry was maximizing cost for the last For the years and as a result you wake up in the United States I live in San Francisco the birthplace of Integrated circuit and we found ourselves with absolutely zero manufacturing in California Well, it was because we wanted to optimize for cost today The optimization needs to be based on other factors and the industry with veterans like you guys are way working on reshifting it without truly sacrificing the cost and The benefits that it's brought with it. So we are working in the industry very diligently I just came from handle alive in Honolulu two days ago in in a conference of CEOs We are as an industry focused on making sure we plan for the worst-case scenario But we are also conscious that some of the geopolitical tensions are outside our control Thank you Maybe there is another questions in the middle. Yeah, good morning. Jean-Pierre Cabistin from Hong Kong Baptist University I have a question to well the whole panel may maybe more to handle Do you think the restrictions introduced by the Biden administration in terms of semiconductors Transfer to China will help the US to keep an edge over China That's my first question. The second part of the question is about the EU or European manufacturers or designers of semiconductors how much Europe can stay away or stay outside of these these restrictions and what the US doing to You know prevent China from catching up And then do you start? Thank you for the question. I think the US chips act is Has some positives. It basically does now recognize the importance of semiconductors The amount of funding for manufacturing is like 39 billion There are 500 applicants or four for funding So I think is really good that the that the leaders understand the importance semiconductors We see the same thing in Europe basically again and understanding of the importance of semiconductors What China is doing is accelerating development of mature technologies and Trying to do what companies do in advanced technologies in more mature technologies an example is the mid-60 of Huawei which was done pretty much with Full China technology in seven nanometers Apple right now is a three nanometers. So two or three generations behind So China is putting big emphasis into trying to be as self-sufficient as possible And we think of the next three or four years. That's going to work longer term though There will be problems So I think it's really good that the world really understands the importance of semiconductors and What we do see in Europe and we actually do work with some European companies We do see a high level of innovation I mean right now ST Micro is the leader in silicon carbide and This is for autonomous vehicles and they're actually a leader by a significant amount I mean the difference between number two and number one is pretty big Maybe in Phineon might dispute that but again, that's our opinion but Europe is also very strong as I said in sensors and Sensors are really important in terms of applications So I think it's really very good that we are getting this Political attention But the cost though of participating in advanced technologies are so high an example for you is that to put in capacity Of 50,000 wafers a month in two nanometers cost 30 billion dollars But 28 nanometers ten years ago. It was three billion dollars 10x so the cost of participation is going up The rewards though also go up because of course you get big revenue So I'm very positive in the fact that we are recognizing the problems and there are specialty areas that Do not do not require advanced technologies That basically have very high growth in addition to silicon carbide we see gallium nitride having high growth Basically the the sensors as I mentioned of high growth potential so Yeah, I think the The recognition and I agree, you know, we should have looked at this problem 20 years ago But we are looking at it now and hopefully we can we can not have significant Political supply chain disruptions because frankly if there is disruption from Taiwan It's gonna be bad for China as well as for the US and also for Europe. So it's gonna be better globally. So hopefully same Mines will not result in catastrophe But again, I think when when you plan certain things you have to look at different options the optimistic realistic pessimistic and very pessimistic So again, hopefully we won't have catastrophe, but again, I think as Helmut said we should have planned this 10 years ago or maybe 20 years ago, but we are now doing things and so maybe in the future. We'll be in better shape Thank you. Maybe the last questions. Yes the last question Yes, we are talking about a semiconductor, but where are we with a superconductor? Are we still very powerful or Almost Well, first of all as as as it was mentioned before This industry has been it should get the Nobel Prize for genius Inventions over the last four years. So we are diligently working on new materials I was with the CEO of Intel two weeks ago and he was not joking saying That we are using only one third of periodic table. We have still have two-thirds to go And and and we will definitely go there I think supercomputers Goes as Francois is working on it is quantum computing platform Right now the latest and the greatest is about a hundred qubits That is being produced but quite honestly speaking, I think Francois Team is counting on 50 to a hundred qubits and and sandbox is one of the best out there We are working as an industry to bring supercomputers because Right now what sandbox is doing on drug discovery What would have taken a number of years? It's being done in less than Four hours with that number of qubits. So the industry is making humongous progress But what is needed for the progress is to have an environment that innovation can happen and the geopolitics Is only getting in the middle of it? Creating redundancies across the globe getting in the middle of it not being able to collaborate With the best minds gets in the middle of it, but as an industry since I'm an optimist. I would say Stay tuned to this channel Yeah, and maybe as a quick conclusion, I mean I think that you will understand that This industry is really supporting the next 20 30 40 years in terms of applications that will be around us and we have all these Verticals that are really supporting by semiconductors and Clearly innovation is at the bottom of it Innovation brings leadership and There is a new Parameters today. I mean this leadership is also equivalent to sovereignty So if you want to play even in the policy world, I mean, it's very important now to be very very active in To this industry there is room. Okay, there is room because the this industry is now as we said Transforming itself we are moving from globalizations to regionalization and we believe that The Gulf region has a big big place to take on this race. So that's the end of it Thank you very much for attending this Thank you under