At the International Semiconductor Strategy Symposium (ISS Europe), the European semiconductor industry affirmed its ability to innovate. More than 170 top industry representatives agreed on a number of joint steps and strategic measures to strengthen their competitiveness and sustainability. The controversial question whether the best way to attack future challenges will be "More Moore" or "More than Moore," ended in an expected compromise, namely that the industry should pursuit both strategies concurrently, the participants of a panel expressed. Whilst the More than Moore sector is traditionally strong in Europe, going on with More Moore is important for two to three device makers in Europe and in particular for the European equipment suppliers which export 80% of their products.
In a global scale, the semiconductor industry is approaching the move to 450mm wafer processing technology – a step that promises to greatly boost the productivity of semiconductor manufacturers. However, since the investment to build a 450mm fab easily exceeds the 10 billion dollar mark, this move is regarded as risky and, for this reason, reserved to only the very largest enterprises. In the past, this perspective divided the European industry into two camps – the "More Moore" group that advocates taking on the 450mm challenge, and the "More than Moore" group which shunned this risky investment and preferred to rely on application-oriented differentiation instead.
At the event SEMI Europe, an industry association embracing enterprises that represent the entire value chain and organizer of the ISS Europe, set up a high-ranking panel discussion on options and choices of a single European semiconductor strategy. The panel proved that entrepreneurial spirit is well alive among Europe’s chipmakers, technology suppliers and researchers.
Time is ripe to close the ranks and take on the challenges, as the speakers in the panel pointed out. Judged on the basis of its expertise and abilities, the European semiconductor and equipment industry has remarkable strengths, the experts said unanimously.
"We have to think in European terms," said Luc Van den hove, CEO of the Belgian research center Imec. "Talking in a common voice allows the European Commission to act and support this industry".
Jean-Marc Chery, Chief Manufacturing & Technology Officer of chipmaker STMicroelectronics, reminded that a holistic approach is necessary. "We have to push the full value chain cooperatively," he said.
The panel participants recognized that the European semiconductor industry possesses the necessary expertise. So far, the willingness to jointly face these challenges has been affected adversely by the macroeconomic environment and the Euro crisis, which discouraged far-reaching strategic decisions. The members of the European Commission that recently signalized understanding the needs of the semiconductor industry’s vital role for the high-tech location Europe, certainly contributed to the optimism in the industry.
"We have all the knowledge, the materials and the equipment," said Rob Hartman, Director Strategic Program for leading equipment manufacturer ASML, during the panel. "Let’s do it in the EU."
European Commissioner Neelie Kroes’ idea of creating an "Airbus for chips," a European initiative for the semiconductor industry comparable to the initiative that once led to the launch of the Airbus in the aviation industry, was strongly hailed by the panel.
"An Airbus for chips could be a very powerful tool," Van der hove said. "It does not need to be a single company, it also can be a framework of companies," added Laurent Malier, CEO of French research centre CEA-LETI.
The main concern of the industry is the slow decision process of the European institutions due to a complex political approval process inside of the European Union, the participants agreed. This industry is moving fast and so the decisions have to be taken fast, too. The strong Euro and the lack of qualified labor are further regarded as potential stumbling blocks for the technological progress and the business competitiveness.
At the panel the European Commission signalized its support for the industry as well.
“If policy instruments would be combined on EU and national levels, a critical mass of support for R&D for both More than Moore and More Moore could be achieved,” said Khalil Rouhana, Director Components & Systems at the European Commission.
Sounds like continuation of dual strategy is their "single" strategy.
The industry is mature and more capital intense than ever.
But its interesting to see the EU vendor portion of the supply chain try to unite over the ASML-ST-IMEC vision knowing that they will be sending production to TSMC and other foundries eventually.
Meanwhile, the IBM Alliance partners are moving ahead using device-flow innovation to protect IBM’s hardware reliability niche. And the bi-coastal US efforts may form some interesting shared ownership relationships with global equipment vendors as Intel has already attempted with mixed results so far.
Samsung goes on taking volume device share, while Qualcomm takes the IP and market valuation share, and Android and Arm commoditize the operating systems world while the consumer wins again, as they insist on mobility. Now if only the battery makers would co-operate!