SEMI mulls show sites as numbers climb

Electronic News, Dec 2, 1996 by Judy Erkanat

Mountain View, Calif.--The explosive growth of attendees and exhibitors at the Semicon shows drove Semiconductor Equipment & Materials International (SEMI) to make Semicon/West 1997 into a tale of two cities. Moving Semicon/West to Las Vegas in 1999 may be one solution, but is it one SEMI members will choose to live with?

Rick Heim, SEMI VP of operations and expositions, and Stanley T. Myers, the organization's new president, were candid during a recent interview with Electronic News.

"We have to develop a strategy to meet the needs of our members and who they serve," said Mr. Myers. "We've got some work to do. All SEMI's shows are strategically set in certain locations. As the market grows, like the huge growth we're seeing in Southeast Asia, we add shows."

But the problem with "West" is sheer numbers, leading SEMI to create strategic board committees addressing problems, such as where to put Semicon/West in the next millennium.

A recent SEMI survey about the show garnered an 11 percent response indicating front-end and back-end attendees were two-to-one in favor of segmenting the show into a separated front- and back-end event. An exhibitor survey pulled in a 49 percent response, indicating an almost 50/50 split for and against segmentation.

"Make it so," said SEMI, and Semicon/West will make its split-venue debut in 1997 between San Francisco's Moscone Center and San Jose's Convention Center.

"We've laid the tracks and must now stay on them, but find ways to make the journey smoother," Mr. Myers said. "SEMI is the glue to hold it together. A complex equation, it's no longer just a question of front-end and back-end. Old users were the device makers; now the industry is more intermingled, and we area ways from understanding the fundamentals of our new strategy."

The explosive growth of the semiconductor industry has had the effect on the equipment industry of forcing it to change the venue for the premier equipment industry event. "We thought Moscone Center would hold Semicon/West through 2000, and then expand to accommodate our expansion," explained Mr. Myers. "At first, SEMI didn't see the potential of putting our equipment and our members in front of the semiconductor public. The value of the show is important in times of growth and decline. In bad times, you have to hold your customer's hand; in good times, you're there to sell. In March, we knew we had pent-up demand. We did a survey of member companies, and got a 70 percent response saying the show would grow by 25 percent. Already, we have hit a 50 percent growth number."

Semicon/West mushroomed from its humble beginnings. Reported registration in 1971 was 2,800 people, with 188 booths and 80 exhibiting companies at the old San Mateo County fairgrounds location. This year was indicative of the gargantuan growth the event has seen over the last 25 years, with 45,347 reported registrations, 2,916 booths and 1,351 exhibiting companies. With 1997 expected to draw 1,500 exhibiting companies bursting out of 4,200 booths in a split San Francisco/San Jose venue, how can SEMI expect to be in control in view of such staggering growth?

"Part of Semicon/West's attraction is the cost," said Mr. Heim. "The cheapest component of any show is booth space. At Comdex, booth space is $44 per square foot; at Semicon/West, it's $22 per square foot. We're at 4,100 booths; we've exceeded the 150 available new booths. Semicon/West is exhibitor-driven. We just need to find a place for these guys to have the party. We had a 90 percent internal growth this year, that is, existing exhibitors wanting more booth space. The show is 33 percent back-end and 66 percent front-end, with 92 companies out of 1,200 in both, and membership of SEMI is currently 1,800."

Semicon/Japan has more booths, but traditionally featured fewer SEMI members until this year, when it was made mandatory that only SEMI members participate. Larger booths are responsible for Semicon/Japan's size, with representatives selling for multiple U.S. companies requiring more real estate.

Other location transitions have been less than successful. When Semicon/Europa moved to Geneva, Switzerland, that show lost some of its German participation. Coupled with the extravagant expense of the Swiss location, Munich is being considered as a potential site.

"Munich is more the center of the semiconductor industry in the area," said Mr. Heim. "We are conducting a professional survey of attendees to determine the best location, keeping in mind we always want to attract quality decision makers and purchasing people, and that the members want the users there, too."

Semicon/West's split venue continues to be a cause for concern. Back-end is divided 50/50, adopting a wait-and-see attitude about the performance of the San Francisco/San Jose debut. Some are concerned that a split show will dilute the under-one-roof size draw.

In Singapore, SEMI has a successful, exclusively back-end show, with Mr. Myers speculating the locale could support two shows, with test, assembly and packaging doing fine on its own.