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Europe has to look outside its borders if it is to survive as a semiconductor producing region. That was the clear message of the SEMI conference in Brussels this week.
Also, Europe has some of the best semiconductor manufacturing equipment suppliers in the world. ASML and ASMI are good examples.
And it has some of the best materials suppliers in the world.
What Europe lacks is world-class manufacturing companies.
NXP’s New York owners want a profitable exit more than they want world class manufacturing, while its mixed signal focus does not require advanced processes.
Infineon gave up on advanced processes at 65nm.
STMicroelectronics has only one 300mm fab and wouldn’t have that if it wasn’t paid for, substantially, by the French government.
So, lacking companies which can run advanced manufacturing facilities, what must Europe do to promote advanced manufacturing in Europe?
The answer is clear: Europe has to work with foreign manufacturers.
It would be better to work with foundries rather than IDMs because foundries won’t compete with European companies.
The big foundries are: TSMC, Samsung, UMC, SMIC, Globalfoundries and even, maybe, Intel.
If the European authorities, who seem keen to invest in keeping Europe world-class in chip manufacturing, were to talk to these companies about collaboration on a world class fab in Europe, then a start could be made on building Europe’s manufacturing expertise again.
There are precedents in going outside Europe for expertise: When the 1984 Philips-Siemens Megaproject couldn’t make 1Mbit DRAMs , it turned to Toshiba for help.
Later on when the Jessi partners Philips, Siemens IBM and Motorola looked for process expertise – they took Toshiba into the club.
Today, even more so than in the ’80s, the semiconductor industry is global. If you get the world’s best companies, regardless of nationality, Europe can build a manufacturing industry.
By being international – working with everyone – Imec became the world’s leading microelectronics research establishment.
By being international – working with everyone – Europe could become the world’s leading manufacturing region.
I see that India needs to make chips because otherwise its annual hardware IT import bill will grow to exceed its fuel import bill by as soon as 2020 ( http://www.eetimes.com/electronics-news/4216436/India-starts-hunt-for-fab-building-chipmakers )
What is the the fuel import bill of Europe?
I was in Taiwan when they announced the setting up of TSMC, Robert, and some of those involved asked if the UK semi companies would be interested. I phoned Plessey and MEDL but there was absolutely zero interest in joining in. So it wasn’t just the EC bureaucrats who got it wrong.
How Ironic is it that EU officials are courting TSMC or CSM management, promising them great investment deals, IF they bring their technology and Fab Know-how to Europe.
Where were these EU IDIOTS when Taiwan officials offered the unbelievable deals to Phillip’s that created TSMC. I know, I know they were all guzzling the free trade kool-aid!
And you wonder why logical sound thinking businessmen, are not stepping up to fill this void….
David, what you say is not impossible, but highly improbable.
To get any investor to invest in Europe is very difficult, however high-tech the business or however good the Europeans are at that business.
Why? Because there is a “S” word that leaves the investors shit-scared.
The S word that grants no more than 40 working hours a week with terrible overtime payments. The S word that bankrupts the visitor who chooses to take a taxi from the airport to his hotel. The S word that forces businesses to pay through their nose for investments that have gone awry. The S word that leaves your post-tax balance sheet resemble a teenagers wallet after a weekend of partying. The S word that downs the shutters on your high-streets every weekday at 6:00PM. The S word that practically shuts down life on sundays.
For many Europeans, this S word is “sustainability”. For the rest of the world, it is “socialism”.
How does this contrast with life in Asia? Asia is eminently affordable, open 24*7, governmental agencies can work at the speed of thought (you may question the morality and validity of the thoughts, but not the speed), taxation is modest and talent is in abundance. Cogs in the wheel such as Labour unions, lobbies for everything from green to old people to young people to women and children to handicapped people to consumerism etc – are simply not present.
If it were my money, I’d stay in USA, invest in Asia and spend on holidaying in Europe.
Yes, tourism is probably one of the few industries that hold a promise for Europe. The luxury industry still has a niche. Wine,Diary, confections will likely follow the path of high-tech some day. It is only a matter of time.
A plausible idea.
I suggest that the fabs are kept away from known earthquake risk areas such as Italy and Greece.