4 Topics Trending at SEMICON West
SEMICON West brings together leaders across the semiconductor industry, discussing trends, challenges, and opportunities as the industry quickly advances. The Nortek Air Solutions CleanSpace team was back in action, hosting our first booth in several years, and we dove right into key conversations. Here are the top 4 trends and how attendees revealed they are navigating them.
1. CHIPS Act Spurring Activity
With the passing of the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors for America), the U.S. is forecasted to grow its capabilities in critical technology segments, such as leading-edge fabrication, DRAM memory, analog, and advanced packaging. This was a major theme of SEMICON West and aligns with the recent Semiconductor Industry Association’s recent report that states the U.S. capacity for advanced logic will grow from 0% in 2022 to 28% by 2032, including new capabilities at the leading edge.
To support chips manufacturing expansion, we need wafer fabs. Taiwan is leading expansion and investment in wafter gab production, with the United States trailing in second. Not only is Taiwan leading, but their production process is outpacing the United States at just 19 months compared to 38 months. The main drivers? Permitting, supply chain, labor and construction demand.
Speaking of the main drivers in speed to market, the already strained skilled labor shortage is about to get hit harder. With over 89% of construction firms challenged with hiring skilled labor in 2023, many initiatives are underway to develop talent in a depleted field. In fact, we asked attendees at SEMICON West if they navigating skilled labor shortages and in our official, unofficial poll, over 60% of attendees said they are. While the industry works to attract talent, firms are looking for new solutions to keep projects on time and deliver for customers in complex spaces.
3. Flexibility Brings Synergy
As cleanroom construction tries to keep pace with growing demand in semiconductor, life sciences, medical devices, and battery manufacturing, an emerging trend of off-site manufacturing (OSM) is a strong solution to nationwide labor shortages. Once again, our official, unofficial poll, showed that the labor gap is impacting how they design cleanrooms, looking for solutions that are less labor intensive and easier to install. 66% of attendees polled have shifted to OSM approaches.
Advanced cleanroom ceiling systems represent complex architectural design, and their proper construction requires strategic partners that can deliver the right solution. Modular ceiling grids, like the Clean-Trak and Flex-Trak Hybrid designs, support an off-site manufacturing model. They are fully assembled at the factory and delivered complete, ready to be installed, reducing the need for more fabrication and intensive onsite labor.
4. Experience is Paramount
As offsite manufacturing capabilities are evaluated, it’s worth noting that in a third-party independent study commissioned by Nortek Air Solutions CleanSpace, data confirmed:
48% reduction in additional structural steel cost, and assembly of it, with modular and hybrid options compared to onsite assembled stick-built ceiling design.
Field Labor Cost-Efficiency: Modular ceilings are easier and faster for onsite teams to install, leading to an estimated 25% reduction in total labor hours at the construction site compared to stick-built ceiling design.
While a shift to OSM decreases reliance on skilled labor in the field, it means that partnering with manufacturers that have deep experience in cleanroom design is critical. With more funding from the CHIPS Act, we’ll likely see less experienced partners enter the scene.
With any additional 3,620 skilled labor jobs needed for every $1 billion in new construction, the labor shortage will continue to create challenges in project timelines and a lack of expertise. As cleanrooms navigate solutions and partners for delivering the right cleanroom ceiling solutions, OSM should be a major factor in your conversations.