**London**: Companies in the semiconductor manufacturing sector are under increasing pressure to protect intellectual property amid escalating trade tensions. Traditional data-sharing methods heighten risks, prompting firms like CoLab to develop advanced solutions to safeguard critical knowledge essential for innovation and compliance with stringent export controls.
Amid escalating trade tensions, companies within the semiconductor manufacturing sector are facing growing pressure to safeguard their technological advantages. CoLab, a technology firm that focuses on collaborative design review and artificial intelligence solutions, has highlighted that traditional methods of data sharing during the product design stage leave many businesses at risk of intellectual property leaks, regulatory compliance issues, and restricted access to critical knowledge essential for innovation.
The significance of semiconductor manufacturing cannot be overstated, as it is vital for a range of products, from artificial intelligence to aerospace and defence technologies. The industry operates under stringent export controls, including the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). These regulations, while essential for national security, pose substantial challenges to semiconductor machinery manufacturers such as ASML, Applied Materials, and ASM, particularly as specific technologies are deemed crucial to national interests. For instance, ASML, based in the Netherlands, is constrained by export controls on its extreme ultraviolet (EUV) lithography machines, which are pivotal for manufacturing advanced chips used in AI.
Export controls extend beyond physical machinery, encompassing a broad range of product data, including engineering drawings, technical specifications, software, and documentation. The intricacies of semiconductor manufacturing involve a single machine consisting of tens of thousands of components sourced from a wide array of suppliers, all of whom require access to precise engineering data. This data access is essential for providing pricing, assessing designs, and offering necessary technical feedback.
Adam Keating, CEO and Co-Founder of CoLab, commented on current developments, stating, “As trade wars lead to increased competition and sensitivity around technology development and commercialisation, countries are understandably becoming more protective of IP to maintain a competitive edge.” He emphasised that for companies to comply with export controls and protect their intellectual property, they must either adapt their supply chains to include domestic suppliers or exercise stringent control over data access within existing supply chains. Keating noted that many companies are far from achieving adequate data control, which exposes them to significant risks.
Current data-sharing methods often fall short of addressing the needs of advanced product development. CoLab’s recent survey revealed that only 6% of engineering leaders believed that suppliers should have unrestricted access to their Product Lifecycle Management (PLM) systems, while an even smaller fraction, just 4%, believed that suppliers should have no access at all. Many engineering teams resort to sharing data outside of PLM systems, typically via email or file transfer protocol (FTP), methods that lack robust security and traceability. Once data is disseminated, it is virtually impossible to retract access, increasing the risk of inadvertent leaks.
To address these flaws, various companies have started developing in-house solutions, including FTP sites. While these offer better security, they are often inefficient and struggle to manage the complexity and volume of collaboration required for advanced product development. Jeremy Andrews, CTO and Co-Founder of CoLab, remarked, “If each company tries to build its own solution, they stand to waste a huge amount of IT resources, which would be far better used elsewhere, and still not end up with a workable solution.”
The landscape of semiconductor supply chains is further complicated by US export controls affecting over 40 countries involved in semiconductor production. Although there are efforts to bolster domestic semiconductor manufacturing, including a substantial $100 billion investment from Taiwan Semiconductor Manufacturing Company (TSMC), industry experts from Deloitte warn that the US semiconductor sector is likely to face a skills gap of up to 90,000 workers in the coming years.
Keating also pointed out that much of the vital technical know-how in manufacturing resides informally within individuals rather than in documented processes. He added, “If companies look to shift to more domestic-led supply chains, they’ll not only have to assess and onboard hundreds of new companies, but they’ll need to ensure specialist knowledge is passed over, potentially to less experienced teams, which could have an impact on speed and quality, and therefore competitiveness.”
To mitigate compliance risks while enhancing competitiveness, firms such as ASM are collaborating with technology providers to implement advanced data sharing solutions. One such innovation is the Design Engagement System (DES) developed by CoLab, which integrates with PLM systems and allows for attribute-based access controls and automated user provisioning. These systems help manage access permissions, critical in a sector where personnel changes are frequent. An analyst from ASML recently shared that the company’s PLM team must modify access permissions for over 100 users daily.
The DES systems not only maintain a comprehensive record of design review feedback but also aim to protect specialised knowledge while facilitating the upskilling and onboarding of new employees. For firms looking to redesign their supply chains to enhance resilience amid trade disputes, a DES system could ease the technical evaluation processes across numerous suppliers.
Keating concluded, “If companies fail to adopt a secure, efficient design review process they risk handcuffing engineering teams, slowing down the engineering process, and disincentivising teams from seeking supplier expertise.” The transition to a DES system, he posits, provides a secure and seamless experience, enhancing the capabilities of semiconductor engineering teams and positioning them to create advanced chips that meet the demands of an evolving technological landscape.
Source: Noah Wire Services
