Electronics Production | November 23, 2005
Europe's chip industry at a cross-road
ESIA discusses First Competitiveness Report with EU Enterprise Commissioner Günter Verheugen in Brussels.
In a high-level meeting, Europe's Enterprise and Industry Commissioner Günter Verheugen, the European Semiconductor Industry Association ESIA discussed its first Competitiveness Report and how the semiconductor industry in Europe can maintain and enhance its competitiveness. A delegation of ESIA members including the CEOs and general managers of STMicroelectronics, Infineon, Philips, Freescale Semiconductor, Micron and Robert Bosch, focused on key findings of the Report and how they link to the Commission's initiatives to boost Europe's competitiveness. Speaking of the specific role played by the semiconductor industry as a prime technology enabler, the Commissioner acknowledged that “the semiconductor industry in Europe has made remarkable strides in the past decades, with three of the top ten global semiconductor companies head-quartered in Europe and with Europe being a major manufacturing and R&D home for nearly all global competitors.” The semiconductor industry is ideally positioned to contribute to the goals of the EU Lisbon strategy. However, the future challenges for the industry are substantial. Europe remains a net importer of semiconductors and its importance as a region for semiconductor manufacturing is declining, with the danger that R&D will follow. Hence the conviction that only concerted initiatives, which aim at actively investing for R&D and manufacturing in Europe and creating the conditions for a global level playing field, are the way forward to enhance competitiveness. Says Carlo Bozotti, President of ESIA and CEO of STMicroelectronics: "Our motivations for this report are the concerns of the industry about its very future in Europe. Semiconductors are the enabling technology for the Information Society, and their contribution to the success of the European economy is essential. The semiconductor industry in Europe has mobilized all its energy to face the challenges highlighted in the Report. By communicating its call for action, ESIA hopes that the Report will serve as a catalyst for implementing measures that reflect the real needs of our industry." The ESIA Report portrays a comprehensive picture of a sector which is Able to produce record growth rates, making substantial contributions to the development of the European economy, and to lead state-of-the-art technology innovation. It has created worldwide leading centres of excellence in various locations across Europe such as Dresden, Crolles/Grenoble, Nijmegen/Eindhoven/Leuven, Agrate/Milan, Glasgow and Dublin. With up to 20% of annual revenues re-invested in R&D, and furthermore up to 25% in capital expenditures, semiconductor companies are top of Europe's innovation list. Despite a continuous rise of the Asia-Pacific region and declining total shares of other regions, Europe has been able to maintain a relative stable market share of around 20%. Among the key findings of the Report is a comparison of incentive packages offered by different regions. The estimated net cumulative income of a semiconductor manufacturing fab in 2010 in China or Korea is 2.2 times that of the same fab in Germany. The single most significant difference is the incentive package offered, followed by the cost of labour. The magnitude of these differences cannot leave decision makers in the industry indifferent and should not be ignored by governments. “The future development of the semiconductor industry in Europe stands at a crossroads" ESIA's Martin Spät points out. "In order to fully reap the benefits of a globalized economy and continue to develop leading-edge innovation technology, Europe should not shy away from looking at sectoral approaches which match or exceed those of other regions worldwide.” The Report speaks of “…tilting the global level playing field back towards Europe.” ESIA proposes ten concrete measures to boost competitiveness. These include promoting a generalized tax credit system on R&D spending, adopting the Commission's original R&D 7th framework proposals, reversing the European brain drain, promoting more and stronger multiple partnerships, establishing a sectoral framework, ensuring consistent and efficient customs operations, and pooling expertise in the EU and national institutions. Commissioner Verheugen welcomed the industry perspectives that ESIA is providing: "Your Report is a significant contribution to the current competitiveness and industry location debate. We hope that we can count on the European based semiconductor industry to support our own efforts for European industrial excellence.”
Decline in Q4 DRAM contract prices lessens as buying momentum recovers According to the latest analysis from the DRAMeXchange research division of TrendForce, Q4 DRAM ASP is as of yet undergoing a slight QoQ decline, but this decline has shrunk down to 5%.
Technica forms growth-focused equity fund San Jose-based Technica USA has reached an agreement on an equity investment centered on future growth for the global PCB fab and assembly supplier.
IHS Markit: 5G economy in the trillions by 2035 The IHS Markit 5G Economy Study, commissioned by Qualcomm Technologies Inc., is forecasting that 5G will generate USD 13.2 trillion in sales enablement by 2035.
ZEUS Battery partnering with Kruvand Associates ZEUS Battery Products and Texas-based Kruvand Associates Inc. have come to a formal agreement on a collaboration that began in January and covers Texas, Arkansas, Oklahoma, Louisiana, New Mexico, Arizona and Mexico.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
EPP with a new owner The company announces that is has found itself an ideal buyer – Photonics Systems Group – a manufacturer of micro-materials processing machines. With this takeover, PSG is strengthening is operations in the electronics industry and also laying the foundation for further growth.
Volkswagen starts pre-production e-mobility plant in China The new plant of the SAIC VOLKSWAGEN joint venture has been completed. It is purely built for the production of all electric vehicles on Volkswagen’s Modular Electric Drive Matrix (MEB).
Kongsberg Maritime divests KM Contros GmbH Following a strategic review, Kongsberg Maritime AS (KM) has decided to divest KM Contros GmbH (Contros) to AML Oceanographic Ltd. (AML).
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
SUSS MicroTec adjusts outlook for fiscal year 2019 Based on the preliminary figures for the first nine months and the updated budget figures, SUSS MicroTec is substantiating its expectations for incoming orders, sales and earnings for the current fiscal year ending December 31, 2019.
GPV's revenues soars 130% Danish EMS provider, GPV Group, announces that the company generated revenues of DKK 2.2 billion in the first nine months of 2019, a 130% year-on-year improvement driven by the acquisition of Swiss company CCS at the end of 2018.
Former GM plant now Lordstown Motors Corp. General Motors’ shuttered Lordstown plant in Ohio, which closed in March, is now in the hands of an electric truck start-up that is looking to begin production in about a year.
Chinese chip maker to U.S. firms: don’t worry On Friday, the chairman of China’s top state-run semiconductor company, Tsinghua Unigroup, had some advice for U.S. chipmakers, saying they should “relax and sleep well,” with regard to China’s semiconductor development.
POET closes the sale of DenseLight POET Technologies, the designer and developer of the POET Optical Interposer and Photonic Integrated Circuits (PICs) for the data center and tele-communication markets, has successfully closed the sale of its DenseLight subsidiary in Singapore.
HAHN Group expands its footprint in the US via acquisition Factory automation and robotics solution provider, Hahn Group, has acquired REI Automation, Inc. The takeover is effective as of 01. November 2019.
Ynvisible Interactive sells contract manufacturing services to Epishine Epishine is purchasing roll-to-roll manufacturing services from Ynvisible Production, combines solar cells with printed electronic displays.
QEV Technologies gets € 17 million from EIB The E-mobility and R&D specialist, QEV Technologies, will receive EUR 17 million funding from the European Investment Bank (EIB) for a variety of low carbon transportation projects.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Mouser pushing distribution to new (vertical) levels Mouser Electronics, global NPI distributor of semiconductors and electronic components, has expanded its multi-dimensional footprint at its distribution headquarters in Texas.
Micron buys FWDNXT, launches AI platform With its recent acquisition of hardware and software start-up FWDNXT, Micron Technology Inc. has launched a new set of tools for deep learning.
Isola names new president and CEO Isola has appointed Travis Kelly president and chief executive officer. Kelly most recently served as global chief operating officer at Cerberus Operations and Advisory Company (affiliate of Cerberus Capital Management).
CORE-emt to represent BTU in the Baltics BTU International, Inc., a supplier of advanced thermal processing equipment for the electronics manufacturing market, announces that it has expanded its partnership with CORE-emt to include the Baltics (Estonia, Lithuania, Latvia).
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
Kimball reports growth across the board for 1Q20 While the calendar year for 2019 isn’t over yet, Kimball Electronics has already completed its first fiscal quarter for 2020.
AT&S weathers market challenges In an overall challenging environment AT&S held its ground well in the first half-year. Revenues amounted to EUR 490.3 million, declined slightly by 5.1% compared to the previous year.
Covalent Metrology, Rigaku extend partnership with new line Rigaku, a producer of X-ray metrology technology, has installed two of its analytical instruments at the Sunnyvale, California service lab of Covalent Metrology, a provider of analytical services to advanced materials innovation companies.
PG LifeLink expanding in Kentucky Post Glover LifeLink Inc., a manufacturer of isolated power products, announced plans to expand its operation in Boone County with a USD 3.9 million investment.Load more news