Semiconductors - Overview
AI is existential here -- 78% activity with TSMC, Cadence, and Google all building foundational AI silicon. Governance sits at 60%, the highest of any industry, but the gap widens as design-for-AI becomes table-stakes. When a fab-scale decision traces back to an unverified model output, the chain of custody is not optional.
AI is not a feature in semiconductors. It is the process. TSMC, Cadence, and Synopsys have embedded machine learning into every stage from RTL synthesis to lithographic process control. Activity is 78% -- the highest of any industry -- and governance is 60%, the most mature. The gap is narrower here, but the stakes are absolute. A single unverified model output in a fab-scale routing decision cascades into millions of defective units. EAR and ITAR export controls add a second dimension: when design tools cross borders, provenance is not optional. The governance infrastructure exists. What it lacks is the forensic chain tying specific model outputs to specific design decisions under version control. At fab scale, "the model suggested it" is not a root cause analysis.
This industry includes 1 segment in the Ontic governance matrix, spanning risk categories from Category 4 — Safety-Critical through Category 4 — Safety-Critical. AI adoption index: 9/5.
Semiconductors - Regulatory Landscape
The semiconductors sector is subject to 6 regulatory frameworks and standards across its segments:
- AEC-Q100
- CHIPS Act compliance
- EAR/ITAR (export controls)
- Foundry-specific requirements (TSMC / Samsung / Intel)
- ISO/TS 16949 (automotive grade)
- REACH/RoHS
The specific frameworks that apply depend on the segment and scale of deployment. Cross-industry frameworks (GDPR, ISO 27001, EU AI Act) may apply in addition to sector-specific regulation.
Semiconductors - Semiconductors -- Foundry or Fabless
Risk Category: Category 4 — Safety-Critical Scale: Enterprise Applicable Frameworks: EAR/ITAR (export controls), CHIPS Act compliance, ISO/TS 16949 (automotive grade), AEC-Q100, REACH/RoHS, Foundry-specific requirements (TSMC / Samsung / Intel)
At fab scale, an unverified model output in routing cascades into millions of defective units.
The Governance Challenge
Semiconductor companies deploy AI for design documentation drafting, process spec summarization, yield analysis reports, customer-facing product qualification docs, export control screening, and supply chain compliance narratives. Activity is 78% — the highest of any industry. EAR/ITAR export controls apply to AI-generated design documentation that crosses borders. CHIPS Act compliance requires governance evidence for funded activities. Foundry-specific requirements (TSMC, Samsung, Intel) add customer-mandated governance standards. When an AI-assisted design decision contributes to a yield excursion at fab scale, the cost is measured in millions of defective units and the root cause analysis must include the model's contribution.
Regulatory Application
EAR/ITAR export controls apply to AI-generated semiconductor design documentation. CHIPS Act compliance requires governance evidence for funded R&D and manufacturing activities. ISO/TS 16949 applies to automotive-grade semiconductor production. AEC-Q100 reliability standards apply to AI-assisted qualification decisions. REACH/RoHS applies to AI-generated material compliance documentation. Foundry-specific requirements add customer-mandated governance standards.
AI Deployment Environments
- Studio: Design documentation drafting | Process spec summarization | Yield analysis reports
- Refinery: Customer-facing product qualification docs | Export control screening | Supply chain compliance narratives
- Clean Room: CHIPS Act compliance evidence | Export control audit packages | Safety-critical component traceability
Typical deployment path: Clean Room → clean_room (primary) | refinery for customer-facing documentation
Evidence
- In our research, semiconductors showed the highest AI activity (78%) and highest formal governance (60%) among all 29 industries analyzed
- CHIPS Act compliance governance requirements are being defined
- Export control enforcement for AI-related semiconductor technology intensifying
- Foundry customer qualification requirements increasingly include AI governance