Breaking News
Comments
gutieauB
User Rank
Rookie
re: EU paper stirs discussions at Semicon
gutieauB   10/8/2009 11:19:32 PM
NO RATINGS
This proposition sounds nice and full of good desires; however we seem to forget that when we call the semi electronic industry strategic we are really referring to an industry based on one technology "Planar Lithography" that so clearly seems to be running the end of its course rather quick. We also forget that there is no correlation between high tech and economic growth; in fact a mature high tech industry is just as bad as a mature low tech industry. None of them grows, none of them creates good jobs and none of them attracts capital. Economic growth is correlated to business growth, and that is not only function of markets but of skillful exploitation of market opportunities. A small market growing fast attracts capital, creates jobs, generates ROI and delivers investable capital surpluses. A stagnant market consumes capital, and if corporate welfare kicks in, it also consumes taxes. EU got into the semi current disaster by trying to interfere in market processes and by trying to catalyze business expansion through subsidies and targeted investments. Once again the EU is headed downwards, this time by trying to "correctly" guess the growth industries of the future, and once again will end up in another Quimonda, AMD+Globalfoundries and Infineon disasters. The semi industry is now mature, the game is now played through cost cutting, by extending plant life-cycles, and by living with diminished profits and with decaying R&D expenditures. There will be fewer growth segments in the microelectronics sector; however they may come from new technologies, perhaps bio inspired, perhaps from architectures or even perhaps from growing networks or older systems. Only the market can signal the right course of action, signal the path towards higher ROI, towards higher rates of VC deployments and towards higher standards of living. The EU commission, in all of its infinite wisdom, cannot replace the outcome of the most complex social game ever organized; that is the game of the competitive markets.



Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Saddleback Sale – It's Happy Dance Time
Max Maxfield
Post a comment
It's no secret that I'm a huge fan of the products from Saddleback Leather. As I sit here at my desk, I'm wearing one of their 1¾" wide Tow Belts, upon which rests one of their Belt ...

Engineering Investigations

Air Conditioner Falls From Window, Still Works
Engineering Investigations
Post a comment
It's autumn in New England. The leaves are turning to red, orange, and gold, my roses are in their second bloom, and it's time to remove the air conditioner from the window. On September ...

David Blaza

The Other Tesla
David Blaza
5 comments
I find myself going to Kickstarter and Indiegogo on a regular basis these days because they have become real innovation marketplaces. As far as I'm concerned, this is where a lot of cool ...

Larry Desjardin

Engineers Should Study Finance: 5 Reasons Why
Larry Desjardin
47 comments
I'm a big proponent of engineers learning financial basics. Why? Because engineers are making decisions all the time, in multiple ways. Having a good financial understanding guides these ...