Australia could become major semiconductor player

NSW invests to kickstart local chip design opportunities.

By David Braue on Jun 27 
2022https://ia.acs.org.au/content/ia/article/2022/australia-could-become-major-semiconductor-player.html


The NSW Government will invest $4m in a centre of gravity for Australia’s 
nascent semiconductor design industry, setting up an “enormous opportunity” for 
the state’s local talent to assert itself in the global market for supply of 
crucial chips.

To be hosted by “home of deep tech” Cicada Innovations and located in Sydney’s 
Tech Central precinct, the new Semiconductor Sector Service Bureau (S3B) will 
tap expertise from three universities, the CSIRO, and the Australian National 
Fabrication Facility (ANFF).

The S3B “will build connectivity and collaboration, and support commercial 
impact,” inaugural S3B director and technical director of the ANFF’s University 
of Sydney site Dr Nadia Court said in announcing the creation of the S3B.

“It will play a key role in advocating for the sector, connecting companies and 
researchers with design and manufacturing capabilities globally.”

Participants the University of Sydney, Macquarie University, and UNSW Sydney 
will tap their broad and deep expertise in semiconductor design to turn the S3B 
into a hub for industry collaboration.

That expertise includes, for example, joint work by Macquarie University and 
CSIRO to develop early WiFi technologies and newer work around millimetre-wave 
monolithic integrated circuits (MMIC), Macquarie University School of 
Engineering dean Professor Darren Bagnall noted as the S3B was announced.

“For decades, Macquarie University has been at the cutting edge of integrated 
circuit design,” he said. “Our researchers are proud to be able to lend their 
expertise to S3B to drive innovation in this space.”

Sydney University’s expertise with the ANFF will support the S3B with expertise 
in nanofabrication techniques – crucial to manufacturing today’s ever smaller 
and more powerful semiconductors – with University of Sydney Nano Institute 
deputy director Dr Omid Kavehei noting that the S3B will leverage university 
capabilities in areas like microelectronics design, fabrication and packaging.

Tapping expertise “within Core Research Facilities and faculties has great 
potential to support the S3B initiative’s goal of building sovereign 
capabilities,” Kavehei said, “and creating a high-tech talent pool for growing 
this strategically important sector.”

Building on NSW's strengths

The hub, which will run for an initial five years, targets what NSW Minister 
for Science, Innovation and Technology Alister Henskens called “an enormous 
opportunity to secure a brighter future for NSW by accelerating our 
participation in the global semiconductor market.”

Hit hard by the COVID-19 pandemic’s disruption, the semiconductor industry has 
been investing to recover and in April posted a 21.1 per cent year-on-year 
sales growth, to $71.7b ($US50.9b), according to the Semiconductor Industry 
Association.

The total market for semiconductors reached $783b ($US556b) in 2021, with the 
US already using targeted legislation and industry development plans to address 
problematic chip shortages that have disrupted product supply chains of the 
likes of Apple, Tesla, and many others.

Semiconductor design was flagged as one of the key opportunities for Australian 
R&D within the recent NSW 20-Year R&D Roadmap, which in turn drew on the 2020 
Australian Semiconductor Sector Study that canvassed more than 100 local 
experts.

Last October, that study led the NSW Government to call for tenders to host the 
S3B to address the fact that, despite having extensive semiconductor design 
expertise in universities and broader companies, Australia has no companies 
focused on semiconductor design.

The S3B won’t involve creation of massively expensive semiconductor fabrication 
plants – industry giants Taiwan Semiconductor Manufacturing Co, Intel, and 
Samsung, for example, have recently committed $62b ($US44b), $49b ($US35b), and 
$28.2 billion ($US20b) respectively to new facilities – but it will unify 
previously-disparate capabilities to create significant opportunities in 
medical, military, space, and other areas.

“Compared with other parts of the world, Australia’s semiconductor sector is 
comparatively small,” said UNSW School of Electrical Engineering and 
Telecommunications associate professor Torsten Lehmann.

“Given our talent and education levels, we should be a much bigger, global 
player in this space,” he said, calling the S3B “a fantastic opportunity to 
grow the sector here.”

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