BRUSSELS, Belgium – The European Commission has launched a campaign of public investment in micro- and nanoelectronics with the aim of doubling chip production on the continent to around 20 percent of global production.
The plan is to channel more than 5 billion euro (about $6.4 billion) of public authority money into research, development and innovation over the next seven years to match a similar amount of investment from the companies supported by the plan. However, the spending is likely to be spread across the whole semiconductor supply chain and cannot be used to simply lower the cost of capital or buy production equipment due to anti-subsidy commitments.
European Commission vice president Neelie Kroes said: "Others are aggressively investing in computer chips and Europe cannot be left behind. We have to reinforce and connect our existing strongholds and develop new strengths. A rapid and strong coordination of public investment at EU, member state and regional level is needed to ensure that transformation."
Kroes, who is responsible for digital economy and services delivery in Europe, has argued for several years that nanoelectronics is strategic to European wealth creation as a least 10 percent of GDP depends on electronic products and services.
Kroes said that the public authorities across Europe, at the Commission, member state and regional level should be able to channel more than 5 billion euro (about $6.4 billion) into research, development an innovation over the next seven years. "This is what will attract not only a similar amount of investment in research and innovation by industry but also the 100 billion euro that industry has committed to invest in Europe if we are able to get our act together," Kroes said in the text of a speech to launch the initiative.
"I want Europe to produce more chips in Europe than the United States produces domestically. It's a realistic goal if we channel our investments properly," Kroes said. The industrial strategy will focus on larger investments to reinforce Europe's semiconductor centers in Dresden, Eindoven, Leuven and Grenoble and their connections to design clusters in such places as Cambridge and Milan.
"If we don't take this opportunity, if we don't connect our strongholds, then others will leapfrog us. So we need this public investment - we need it to be rapid, strategic and coordinated. I will expect great things from the industry; they will have to build on this investment to take the sector to new heights. They will have to find ways to repeat the success of Airbus, but this time in the chip sector, and with its own unique business model," Kroes said.
The strategy will cover making chips at the leading edge (More Moore) as well as more varied (More than Moore) and the transition to production on 450-mm diameter wafers.
In support of Kroes' ambitions the Commission referenced a positioning document entitled Innovation for the future of Europe: Nanoelectronics beyond 2020 that described how to secure a European nanoelectronics industry and which outlined how a total investment of 100 billion euro could be delivered between 2013 and 2020.
There is an argument that once the manufacturing leaves the design follows.
We are definitely seeing the rise of Greater China as a significant design entity since chip manufacturing started to migrate there. Meanwhile we are seeing European design start to struggle. Note the linked examples of Nokia and ST-Ericsson.
It is because VCs are not putting money in to semiconductor startups that the European Commission is getting involved, but as indicated before that is being done under a different program due to start in 2014.
I think Europe should focus on semi product design not manufacturing. The vast majority of semi companies are fabless for good reasons. I suspect a lot of the US semi production is a actually done in Asia anyway. A previous comment stated only SMIC and TSMC are able to make money from semi production. More EU money won't change that significantly.
A good proposal. Atleast the EU is taking some steps. As adapteva has said, a sizable portion of this fund should go towards funding high quality startups. Even if they build a single fab, that should do I suppose.
Indeed - that's where Giorgio Cesana, FD-SOI mover & shaker at ST got his degree. They have a big analog/power team there, too (see http://www.advancedsubstratenews.com/2011/04/smart-power-saves-power/ , for example).
Also VCs are not putting money into fabless companies irrespective of whether the EC is one of their LPs or not
Andreas knows this very well
The only thing that will fix the semiconductor market is to feed large amounts of the tax take on semiconductor enabled products back into fabs and fabless companies
Don't hold your breath
Bottom line €6B would not even pay for one wafer fab at the geometries relevant over the next 7 years and 700M/yr over 7 years is a drop in the ocean.
What is required if the EC wants to account for 20% of global wafer starts is something like the Mega project in the mid 80s along with structural changes in the tax regieme to make it viable to build wafer fabs in Europe