Category Archives: MEMS

By Walt Custer, Custer Consulting Group

Global Manufacturing Growth has Slowed, but is Still Positive (Chart 1)

Most key countries/regions saw a slowdown in growth in March based on their respective Purchasing Managers Indices. And in one case – South Korea – manufacturing moved into contraction.

February 2018 March 2018
Japan 54.1 53.1
South Korea 50.3 49.1
Taiwan 56.0 55.3
China 51.6 51.0
Europe 58.6 56.6
USA 60.8 59.3

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PMI Points to More Modest Expansion (Chart 2)

The global Purchasing Managers Index is a timely and readily available leading indicator for both world semiconductor and semiconductor capital equipment shipments. PMI values greater than 50 indicate expanding manufacturing activity.  See www.markiteconomics.com for PMI values for all major countries.

 

Recent semiconductor equipment, semiconductor and PMI 3-month (3/12) world growth rates were:

SEMI Equipment +29% February
Semiconductors                +21% February
PMI (squared) +4% March

The PMI leading indicator now points to more modest but still positive growth ahead.

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Semiconductor Industry Still has Legs (Chart 3)

Another useful and timely leading indicator is a composite of monthly Taiwan Chip Foundry sales.  Taiwan-listed companies publish their revenues about 10 days after the month closes. Chart 3 compares the composite monthly revenues of 14 Taiwan listed foundries vs. global semiconductor sales. Due to Lunar New year shutdowns, February 2018 was weak but foundry sales rebounded in March. Chip demand appears to be holding!

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Originally published on the SEMI blog.

Sensera Inc. (MicroDevices) has acquired and qualified a SPTS ASE-HRM etch platform. This etcher adds capability to the fab that was previously outsourced to partners. This is a key process technology development tool to bring complex MicroElectroMechanical Systems (MEMS) to market.

This system offers market leading etch rates while controlling ion damage through a de-coupled plasma source. The HRM is ideal for deep anisotropic silicon etching at high rates with the STS ASE process. This technology eliminates sidewall breakdown, which results in enhanced process performance and a high device yield.

“We are very pleased to bring to our customers additional Deep Reactive Ion Etch (DRIE) capabilities. This equipment supplements Sensera’s existing etch tool set and enables increased throughput and improved etch uniformity to meet our customers’ rapidly growing demand,” said Tim Stucchi, COO of Sensera’s MicroDevices division.

“ClassOne Equipment was happy to provide this advanced etch platform to Sensera. We have worked with many etch platforms and the SPTS ASE-HRM delivers excellent etch performance with a low cost of ownership. ClassOne maintains a close partnership with our customers and is proud of a long history of customer satisfaction. This is our second installation at Sensera, and we recently took the first steps in a new project, look for more exciting news later this year,” said Byron Exarcos, CEO of ClassOne Equipment.

“We continue to add new capabilities to our fab in order to drive down cycle time, control quality and improve costs,” stated Ralph Schmitt, CEO of Sensera Inc. “These are important steps as we move many of our customers to commercial volume shipments. This is all part of the strategy of the company to have internal capability to develop complex MEMS.”

Johan Lodenius is joining the Board of JonDeTech, a Swedish company that develops and markets IR sensor technology based on nanotechnology aimed at consumer electronics and mobile phone mass markets. Mr. Lodenius is former Senior Vice President Marketing and Product Management of the American semiconductor and telecom corporation Qualcomm, a position in which he defined the company’s hugely successful strategy of marketing turn-key chip and software solutions to other cellphone manufacturers, one of the world’s most profitable services today.

”As a result of a breakthrough in nanotechnology research, JonDeTech has developed and patented a completely new type of IR sensor that has the potential to become leading in the global marketplace”, said Mr. Johan Lodenius. “I look forward to contribute to this. JonDeTech’s IR sensors are down to a tenth as thick as conventional sensors, and can be manufactured in high volumes at low cost, which opens for a multitude of applications.”

Johan Lodenius also has an entrepreneurial background, leading the Swedish microprocessor company Coresonic to an exit as Taiwanese semiconductor giant MediaTek acquired it in 2012. Mr. Lodenius was part of MediaTek’s executive management team as Chief Marketing Officer until last year. Today he is self employed as business advisor and now also a Board Member of JonDeTech.
”Johan Lodenius brings exceptional technology know-how coupled with deep international business experience from global top-level cellphone and electronics markets to our company”, said JonDeTech’s CEO Robert Ekström. ”He has a deep understanding of how our markets function and act, and will be very valuable for us in our upcoming global expansion.”

The company recently announced that it will apply for a listing on Nasdaq First North Stockholm during the second quarter of this year, and in connection with this, aiming to receive up to SEK 30 million in a public issue.

JonDeTech’s sensors are very small and thin (thickness 0.2 mm) compared to conventional sensors, which allows them to be easily integrated into many different products. JonDeTech is primarily targeting international customers who develop applications within consumer electronics and the Internet of Things.

Imec, a research and innovation hub in nanoelectronics, energy and digital technologies and partner in EnergyVille, has been named the coordinator of an ambitious 3-year European Union (EU) funded project, “ESPResSo” (Efficient Structures and Processes for Reliable Perovskite Solar Modules), that gathers known leaders in the field of perovskite PV technology to revolutionize Europe’s photovoltaics (PV) industry.

The ESPResSo consortium has been granted over 5M euro by the European Union to overcome the limitations of today’s state-of-the-art perovskite PV technology, bring perovskite solar cells to the next maturity level, and demonstrate their practical application. The members of the consortium include the fundamental research organizations Ecole Polytechnique Federale de Lausanne (EPFL), Switzerland and Consiglio Nazionale delle Ricerche (CNR), Italy; perovskite solar cell scale-up and industrialization members imec, Belgium, Universita degli Studi di Roma Tor Vergata (UNITOV-CHOSE), Italy and Fraunhofer Institute for Solar Energy Systems ISE, Germany;  and experts in sustainability and renewable energies CSGI (Consorzio Interuniversitario per lo Sviluppo dei Sistemi a Grande Interfase), Italy and University of Cyprus, Cyprus.  Members representing materials development include Dycotec Materials LTD, United Kingdom, Dyenamo AB, Sweden and Corning SAS, France; equipment manufacturer, M-Solv LTD, United Kingdom; along with perovskite solar cell technology developers Saule Technologies, Poland, and building-integrated photovoltaics developer, Onyx Solar Energy SL, Spain.

With its low-cost materials and low temperature deposition processes, perovskite-based PV technology has the potential to takes its place in the thin-film PV market. Perovskite solar cells have already demonstrated high efficiencies (above 22%) that rival those of established mainstream thin-film PV technologies like copper-indium-gallium-selenide (CIGS) and cadmium-telluride (CdTe). The challenge is now to transfer the unprecedented progress that the perovskite PV cell technology has made in recent years from its cell level into a scalable, stable, low-cost technology on module level.

“Every aspect of our lives – from our homes to our workplaces, hospitals, schools and farms – depends on the nonstop availability of energy,” stated Tom Aernouts, imec group leader of thin-film photovoltaics.  “Perovskite cells demonstrate clear potential to support world’s energy demands cost-effectively. The ultimate aim of the partners of the ESPResSo project is to achieve this by bringing perovskite photovoltaics from the lab to the fab.”

The ESPResSo team targets alternative cost effective materials, novel cell concepts and architectures, and advanced processing know-how and equipment to overcome the current limitations of this technology. The consortium aims to bring the cell performance close to its theoretical limit by demonstrating cell efficiency of more than 24% (on 1cm²) and less than 10% degradation in cell efficiency following thermal stress at 85°C, 85% RH for over 1000h. Scale up activities utilising solution processed slot-die coating and laser processing will additionally deliver modules with more than 17% efficiency showing long-term (>20 years) reliable performance as deduced from IEC-compliant test conditions.

The ESPResSo team also envisions integrating modules in façade elements demonstrating a levelised cost of electricity (LCoE) of ≤ 0.05€/kWh. Prototyping advanced, arbitrary-shaped architectures with specific materials and process combinations will emphasize that new highly innovative applications like on flexible substrates or with high semi-transparency are well accessible in the mid- to longer-term with this very promising thin-film PV technology.

In a new paper published by Nano Energy, experts from the Advanced Technology Institute (ATI) at the University of Surrey detail a new methodology that allows designers of smart-wearables to better understand and predict how their products would perform once manufactured and in use.

The technology is centred on materials that become electrically charged after they come into contact with each other, known as ‘triboelectric materials’ – for example, a comb through hair can create an electrical charge. ‘Triboelectric Nanogenerators (TENGs)’ use this static charge to harvest energy from movement through a process called electrostatic induction. Over the years, a variety of TENGs have been designed which can convert almost any type of movement into electricity. The University of Surrey’s tool gives manufacturers an accurate understanding of the output power their design would create once produced.

This follows the news earlier this year of the ATI announcing the creation of its £4million state-of-the-art Nano-Manufacturing Hub. The new facility will produce plastic nanoscale electronics for wearable sensors, electronic tags and other electronic devices.

Ishara Dharmasena, lead scientist on this project from the University of Surrey, said: “The future global energy mix will depend on renewable energy sources such as solar power, wind, motion, vibrations and tidal. TENGs are a leading technology to capture and convert motion energy into electricity, extremely useful in small scale energy harvesting applications. Our work will, for the first time, provide universal guidance to develop, compare and improve various TENG designs. We expect this technology in household and industrial electronic products, catering to a new generation of mobile and autonomous energy requirements.”

Professor Ravi Silva, Director of the Advanced Technology Institute, said: “This is truly an exciting area of research for our team – an area we have been working on over a number of years. We believe that our new tool will be of great help to a lot of researchers and designers who are investigating these materials.

“The world urgently needs new forms of affordable and renewable energy sources. TENGs not only present a wonderful opportunity for the consumer electronics industry, but they are an incredibly exciting material group that could be used in all countries and remote locations where the nation grid does not extend, particularly for radios, wireless communication devices and medical equipment.”

Global MEMS market for mobile devices to grow at a CAGR of 10.55% during the period 2017-2021.

The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

One trend in the market is advances in the manufacturing technology of MEMS pressure sensors. The OEMs in the global MEMS pressure sensors market are continually adding new features to their products, resulting in the launch of innovative products in the market on a regular basis. The accuracy of MEMS pressure sensors is increasing with these advances.

According to the report, one driver in the market is MEMS becoming an integral part of consumer electronic devices. MEMS devices are increasingly being used in consumer electronics and mobile devices such as smartphones, tablets, and gaming consoles. The mobile devices integrated with MEMS devices can be scrolled, tilted, rotated, and switched from horizontal and vertical displays. Applications such as GPS and gaming, which employ motion sensors, are popular among smartphone and tablet users. For instance, MEMS sensors, when used in GPS applications, help consumers get directions and estimate the distance even in remote locations.

Further, the report states that one challenge in the market is design-related challenges faced by optical MEMS manufacturers. MEMS manufacturers face a lot of difficulties while designing optical MEMS. The optimization of the switching speed of optical MEMS devices needs a clear understanding of the mode shapes and frequencies of oscillations. Optical MEMS devices need to be checked for parameters such as shock dynamics, temperature drift, contact dynamics, and power. Furthermore, the manufacturing of integrated MEMS wafers is very challenging for the manufacturers as the components are manufactured individually and are then assembled on a single chip. This increases the time to market and creates the need for the testing of components at the individual and assembled levels.

Key Vendors

  • Analog Devices
  • Robert Bosch
  • STMicroelectronics

Other Prominent Vendors

  • AAC Technologies
  • Goertek
  • Maxim Integrated
  • Murata Manufacturing
  • Sensata Technologies
  • Silicon Laboratories

Worldwide PC shipments totaled 61.7 million units in the first quarter of 2018, a 1.4 percent decline from the first quarter of 2017, according to preliminary results by Gartner, Inc. The PC market experienced a 14th consecutive quarter of decline, dating back to the second quarter of 2012.

Asia/Pacific and the U.S. experienced declining shipments, while other regions saw some minimal growth, but it was not enough to drive overall growth for the PC industry. In the first quarter of 2018, PC shipments in Asia/Pacific declined 3.9 percent compared with the same period last year, while shipments in the U.S. decreased 2.9 percent.

“The major contributor to the decline came from China, where unit shipments declined 5.7 percent year over year,” said Mikako Kitagawa, principal analyst at Gartner. “This was driven by China’s business market, where some state-owned and large enterprises postponed new purchases or upgrades, awaiting new policies and officials’ reassignments after the session of the National People’s Congress in early March.

“In the first quarter of 2018, there was some inventory carryover from the fourth quarter of 2017,” Ms. Kitagawa said. “At the same time, vendors were cautious in overstocking due to the upcoming release of new models in the second quarter of 2018 with Intel’s new eighth-generation core processors.”

The top three vendors — HP, Lenovo and Dell — accounted for 56.9 percent of global PC shipments in the first quarter of 2018, compared with 54.5 percent of shipments in the first quarter of 2017 (see Table 1). Dell experienced the strongest growth rate among the top six vendors worldwide, as its shipments increased 6.5 percent.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

HP Inc.

12,856

20.8

12,505

20.0

2.8

Lenovo

12,346

20.0

12,305

19.7

0.3

Dell

9,883

16.0

9,277

14.8

6.5

Apple

4,264

6.9

4,199

6.7

1.5

Asus

3,900

6.3

4,458

7.1

-12.5

Acer Group

3,828

6.2

4,189

6.7

-8.6

Others

14,609

23.7

15,637

25.0

6.6

Total

61,686

100.0

62,569

100.0

-1.4

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

HP Inc.’s worldwide PC shipments increased 2.8 percent in the first quarter of 2018 versus the same period last year. In EMEA, HP Inc. recorded double-digit growth in both desktop and mobile PCs. This was contrasted with a small decline in other regions. HP Inc. was adversely impacted by declining demand in the U.S., which generally accounts for one-third of its total shipments.

Lenovo’s global PC shipments remained flat in the first quarter of 2018. Lenovo achieved 6 percent growth in EMEA and double-digit shipment growth in Latin America. However, in Asia/Pacific (its largest market), PC shipments declined 4 percent.

After record holiday sales for consumer and gaming products in the fourth quarter of 2017, Dell continued to perform well in the first quarter of 2018. With double-digit shipment increases in EMEA, North America and Latin America, Dell grew in all regions except Asia/Pacific. Desktop and mobile PCs grew in equal measures, showing Dell’s strength in the business segment.

Rising ASPs

The average selling prices (ASPs) of PCs continue to rise. Acknowledging deceleration in the smartphone market, and uncertainty in PC replacement demand, component companies remain cautious about expanding their production capabilities. Therefore, persistent component shortages and a rising bill of materials continue to create an environment conductive to higher prices.

“In contrast to other DRAM-related price spikes, PC vendors are not reacting by reducing DRAM content. Rather they have passed the cost increase to consumers,” Ms. Kitagawa said. “With fewer people buying new machines, manufacturers need to get the highest profit margin from each sale. To do that, they are raising the selling points and focusing on customer experience or perception of value.”

Regional Overview

In the U.S., PC shipments totaled 11.8 million units in the first quarter of 2018, a 2.9 percent decrease from the first quarter of 2017. Dell moved into the No. 1 position in the U.S. based on shipments, as its market share increased to 29.1 percent. HP Inc. moved into the No. 2 position as its shipments declined 4.8 percent, and its market share totaled 28.4 percent in the first quarter of 2018 (see Table 2).

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

1Q18 Shipments

1Q18 Market Share (%)

1Q17 Shipments

1Q17 Market Share (%)

1Q18-1Q17 Growth (%)

Dell

3,440

29.1

3,198

26.2

7.6

HP Inc.

3,363

28.4

3,532

29.0

-4.8

Lenovo

1,632

13.8

1,714

14.1

-4.8

Apple

1,491

12.6

1,484

12.2

0.5

Acer Group

321

2.7

429

3.5

-25.1

Others

1,586

13.4

1,836

15.1

-13.6

Total

11,833

100.0

12,193

100.0

-2.9

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

PC shipments in EMEA totaled 18.6 million units in the first quarter of 2018, a 1.7 percent increase year over year. Enterprise shipments increased as many Windows 10 projects that were put on hold in 2017 began to be implemented. The fast approach of the compliance deadline for the General Data Protection Regulation (GDPR) in Europe, as well as earlier reports of cybersecurity breaches, made security a strong priority in the hardware refresh cycle among enterprises. Eurasia continued to be a bright spot for EMEA, as several countries, such as Russia, Ukraine and Kazakhstan, saw strong demand in the first quarter of 2018.

PC shipments in Asia/Pacific totaled 21.9 million units in the first quarter of 2018, a 3.9 percent decline from the first quarter of 2017. As previously mentioned, the PC market in China drove the decline in Asia/Pacific. There is no significant sign of strong upgrading to the special version of Windows 10 from the Chinese government institutions. Consumer demand was weak as most buyers already took advantage of the aggressive promotions offered in the fourth quarter of 2017.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe.

 

What makes the Vivo X20 Plus UD smartphone so important is that it is the first smartphone to use Synaptics’ under-display fingerprint sensor, and it has the potential to bite into Apple’s face recognition technology, announced the Teardowns service of ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies.

(PRNewsfoto/ABI Research)

(PRNewsfoto/ABI Research)

Traditional fingerprint sensors are either embedded under the home key on the front of the mobile phone or on the back of the phone. Placing the fingerprint sensor under the display on the front of the mobile phone should allow for a borderless display on three sides of the display. The top still requires room for the front camera, proximity sensor, and receiver, etc. However, Vivo did not take full advantage of the new fingerprint technology from Synaptics. Vivo retained a significant border below the display along the bottom of the phone.

“Vivo may have been cautious to fully commit to the new technology and left room to fall back to a traditional sensor below the display,” said Jim Mielke, ABI Research’s vice president of the Teardowns service. “The performance of this first implementation does warrant some caution as the sensor seemed less responsive and required increased pressure to unlock the phone.”

Smartphone manufacturers are continually trying to achieve the truly borderless phone, and currently there are only three ways to achieve and still maintain biometric security: fingerprint sensor on the back of the phone, fingerprint sensor under the display, and facial/retina-based recognition. Despite the non-optimal capabilities, the Vivo X20 Plus UD is well ahead of Apple’s face recognition technology.

“Face recognition on smartphones is five times easier to spoof than fingerprint recognition,” stated ABI Research Industry Analyst Dimitrios Pavlakis (“Executive Foresights: Did Apple Miss the Bus – The Display – Integrated Fingerprint Sensor Gives the Industry a Much-Needed Push“). “Despite the decision to forgo its trademark sapphire sensor in the iPhone X in favor of face recognition (FaceID,) Apple may be now forced to return to fingerprints in the next iPhone,” added Pavlakis.

Fingerprint sensors are increasingly becoming more relevant with a host of new banking, financial institution and payment service providers getting behind the technology.

Vivo, a 9-year-old company based in China, was smart to partner with California-based Synaptics, which has 30-plus years of experience in the “human interface revolution” by offering touch, display and biometrics products.

ABI Research’s Teardowns reports feature ultra-high-resolution imaging, pinpoint power measurements, detailed parts list with fully costed BOMs (bill of materials), block diagrams and x-rays. ABI Research performs the highest resolution imagery in the teardown industry, providing unprecedented competitive analysis on components, cost, and chip system functionality.

By Emir Demircan, Senior Manager Advocacy and Public Policy, SEMI Europe

With its leading research and development hubs, materials and equipment companies and chipmakers, the EU is in a strategic position in the global electronics value chain to support the growth of emerging applications such as autonomous driving, internet of things, artificial intelligence and deep learning. Underpinning the European electronics industry’s competitive muscle requires a new EU-wide strategy aimed at strengthening the value chain and connecting various players. Specializing and investing in key application segments, such as automotive where the EU enjoys a central place at global level, is crucial to help European electronics industry hold its ground.  In parallel, Europe’s production capabilities need bolstered, requiring effective use of Important Projects of Common European Interest (IPCEI).

On research, development and innovation (RD&I), the upcoming Framework Programme 9 (FP9) must provide unprecedented collaboration and funding opportunities to Europe’s electronics players. Concerning small and medium enterprises (SMEs) and startups, it is vital that EU policies are aligned with global trends and small and young companies benefit from a business-friendly regulatory framework. And as an overarching action, building a younger, bigger and more diverse talent pipeline is paramount for Europe to innovate in the digital economy.

Laith Altimime, President at SEMI Europe, opening speech at ISS Europe 2018

Laith Altimime, President at SEMI Europe, opening speech at ISS Europe 2018

These were the clarion messages that emerged from the Industry Strategy Symposium (ISS) Europe organized by SEMI in March, an event that brought together more than 100 industry, research and government representatives for in-depth discussions on strategies and innovations for Europe to compete globally. Here are the key takeaways:

1) Build a strong electronics value chain with a focus on emerging demands

In recent years the EU has focused on beefing up semiconductor production in Europe within the 2020-25 window, starting with the EU 10|100|20 Electronic Strategy of 2013. The strategy aims to secure about 20 percent of global semiconductor manufacturing by 2020 with the help of € 10 billion in public and private funding and € 100 billion investment from the industry. Today, Europe is not nearly on track to achieving this target. Supply-side policies have done little to help grow the EU semiconductor industry. Now is the time to change our thinking.

To nourish the electronics industry in Europe, we need to shift our focus to demand. Semiconductors are a key-enabling technology for autonomous driving, wearables, healthcare, virtual and augmented reality (VR/AR), artificial intelligence (AI) and all other internet of things (IoT) and big data applications. To become a world leader in the data economy and energize its semiconductor industry, Europe needs to start by better understanding the evolution of data technologies and their requirements from electronics players, then design and implement an EU-wide strategy focused on strengthening collaboration within the value chain.

2) Specialize and invest in Europe’s strengths that are enabled by electronics

Jens Knut Fabrowsky, Executive VP Automotive Electronics at Bosch

Jens Knut Fabrowsky, Executive VP Automotive Electronics at Bosch

Fueled by increasing demand for smaller, faster and more reliable products with greater power, the global electronics industry has developed a sophisticated global value chain. Europe brings to this ecosystem leading equipment and materials businesses, world-class R&D and education organizations, and key microelectronics hubs throughout Europe that are home to multinationals headquartered both in and outside of the EU. Nevertheless, global competition is growing ever fiercer in the sectors where the European microelectronics industry is most competitive: automotive, energy, healthcare and industrial automation. In the future, Europe is likely to be more challenged between the disruptive business models of North America and the manufacturing capacity of East Asia. The European electronics industry must re-evaluate its strengths and set a strategic direction.

Make no mistake: Europe is in a strong position to advance its microelectronics industry. The EU already boasts leading industries that rely on advances made by electronics design and manufacturing. Take the automotive industry – crucial to Europe’s prosperity. Accounting for 4 percent of the EU GDP and providing 12 million jobs in Europe, according to the European Commission, the EU automotive industry exerts an important multiplier effect in the economy. Automotive is essential to both upstream and downstream industries such as electronics – a level of importance not lost on the EU’s GEAR 2030 Group. Since the 1980s, automotive industry components have increasingly migrated from mechanical to electrochemical and electronics.

Today, electronic components represent close to a third of the cost of an automobile, a proportion that will grow to as high as 50 percent by 2030 with the rise of autonomous and connected vehicles. Automotive experts anticipate that over the next five to 10 years, new cars will feature at least some basic automated driving and data exchange capabilities as electronics deepen their penetration into the automotive value chain. Europe’s leadership position and competitive edge in automotive are under threat by competitors across the world as they invest heavily in information and communications technologies (ICT) and electronics for autonomous driving and connected vehicles. Investing in next-generation cars will help the European electronics industry retain its strong competitive position, as will investments in other key application areas such as healthcare, energy and industrial automation where Europe is a global power.

3) Make better use of Important Projects of Common European Interest (IPCEI)

Microelectronics is capital-intensive, with a state-of-the-art fab easily costing billions of euros. That’s why countries around the world are making heavy government-backed investments to build domestic fabs. For instance, China’s “Made in China 2025” initiative, which establishes an Integrated Circuit Fund to support the development of the electronics industry, calls for 150 billion USD in funding to replace imported semiconductors with homegrown devices. In 2014, the European Commission adopted new rules to IPCEI, giving Member States a tool for financing large, strategically important transnational projects. IPCEI should help Member States fill funding gaps to overcome market failures and reinvigorate projects that otherwise would not have taken off. To fully benefit from the IPCEI, the industry requires Member States involved in a specific IPCEI to work in parallel and at the same pace and faster approvals of state-supported manufacturing projects.

4) Use FP9 to strengthen Europe’s RD&I capabilities

Panel Discussion on growing Europe in the global value chain. (L-R) Bryan Rice, GLOBALFOUNDRIES; James Robson, Applied Materials Europe; Joe De Boeck, imec; Leo Clancy, IDA Ireland; James O’Riordan, S3; Colette Maloney, European Commission; Moderator: Andreas Wild

Panel Discussion on growing Europe in the global value chain. (L-R) Bryan Rice, GLOBALFOUNDRIES; James Robson, Applied Materials Europe; Joe De Boeck, imec; Leo Clancy, IDA Ireland; James O’Riordan, S3; Colette Maloney, European Commission; Moderator: Andreas Wild

A top EU priority in recent years has been to enhance Europe’s position as a world leader in the digital economy. Fulfilling this mission requires an innovative electronics industry in Europe. To this end, FP9 should encourage greater collaboration between large and small companies to leverage their complementary strengths – the dynamism, agility and innovation of smaller companies and the ability of larger companies to mature and scale new product ideas on the strength of their extensive private funding instruments and testing and demonstration facilities. Also, future EU-funded research actions should prioritize electronics projects involving players across the value chain, starting with materials and equipment providers and spanning chipmakers, system integrators and players from emerging “smart” verticals such as automotive, medical technology and energy. FP9 should also play the pivotal role of setting clear objectives, increasing investments, and easing rules for funding. These measures would help expand the European electronics ecosystem, accelerate R&D results and defray the rising costs of developing cutting-edge solutions key to the growth of emerging industry verticals.

5) Support high-tech SMEs, entrepreneurship and startups to become globally competitive

European SMEs, the backbone of EU’s manufacturing, are already strong players in the global economy, making outsize contributions to Europe’s innovation. Yet more of Europe’s small and young businesses with limited resources are challenged in Europe’s regulatory labyrinth. Only by improving the European regulatory environment in a way that supports young and small businesses can Europe fulfill its vision of a dynamic electronics ecosystem and digital economy. Access to finance must also be easier, particularly as underinvested startups struggle under a European venture capital apparatus that is smaller and more fragmented than those in North America and Asia. Early-stage funding instruments such as bank loans are essential for young businesses but they often face barriers to finance due to the sophistication of their proposed business models that are difficult to be understood and supported by banks.

One answer is to better familiarize Europe’s financial sector with industrial SMEs and startups so they can co-develop financial tools that support the growth of small and young businesses. Also, the narrow European definition of SME with staff headcount limited to 250 block innovative companies from access to financial tools exclusively provided to SMEs. By contrast, the United States defines SMEs as businesses with as many as 500 employees, placing their EU counterparts at distinct funding disadvantage. EU should ensure that its SME policy is aligned with global trends and industry needs.

6) Create a bigger and more diverse talent pipeline with a hybrid skills set 

Europe’s world-class education and research capabilities help supply the electronics industry with skilled workforce. Yet the blistering pace of technology innovation calls for rapidly evolving skills sets, a trend that has led to worker shortages at electronics companies and left the sector fighting to diversify its workforce and strengthen its talent pipeline. The deepening penetration of electronics in AI, IoT, AR/VR, high-performance computing (HPC), cybersecurity and smart verticals is giving rise to a new set of skills that blend production technologies, software and data analytics. As more technologies converge, the gap between university education and business needs continues to widen.

One solution is work-based learning – allowing students to build job skills in a setting related to their career pathway. Encouraging higher female participation in STEM education programs at the high school and university levels is also a must to overcome the traditionally low number of females entering high technology. To build on its reputation as “a place to work” in the eyes of the international job seekers, Europe also needs a more flexible immigration framework to attract skilled labour to high-tech jobs.

Save the Date: Industry leaders, research and government representatives will meet again next year at the ISS Europe organized by SEMI on 28-30 April 2019 in Milan, Italy. More details regarding the event will be published soon on www.semi.org/eu.

MarketResearch.biz has published a new report titled Global Internet of Things Market by Components (Hardware, Software, and Services), Application, and Region – Global Forecast to2026., which offers a holistic view of the global internet of things market through systematic segmentation that covers every aspect of the target market. The first five-year cumulative revenue (2017-2021) is projected to be US$ 7,760.8 billion, which is expected to increase rather significantly over the latter part of the five-year forecast period.

Internet of things (IoT) is combination of information technology (IT) with operational technology (OP) connected via virtual intelligence and interface used in various sectors to send, control, and receive data with/without human intervention. The technology simplifies human efforts and reduces need for manual interference. IoT is an interconnected system of mechanical systems, computing devices, and digital technology, devices, and human beings.

Rising demand for wireless technology, increasing adoption of smart wearables, and shift to automation by various industries are major factors driving growth of the global internet of things market. Increasing adoption of connected devices, smart wearables, and increasing number of high speed internet providers are further fueling growth of the global internet of things market.

In addition, increasing adoption of big data analytics and cloud based services and solutions in various sectors such as consumer electronics, manufacturing, healthcare, etc. are some other factors fueling growth of the global internet of things market. Increasing deployment of augmented reality and virtual reality in gaming is another factor expected to further propel growth of the global internet of things market.

Rising concerns related to data privacy and data security, leading to data theft and leakage is a major factor expected to hamper growth of the global internet of things market over the forecast period.  In addition, relatively increasing incidence of cyber-attacks and cyber breaches, and lack of standards for deployment IoT devices and products, and as the technology is in nascent stage there are complexities related to integration and interoperability of these technologies. This are some other factors hampering growth of the global internet of things market.

Development of smart cities by various government across the globe is another factor driving growth of the global internet of things market. This trend is expected to further drive growth of the global internet of things market to a significant extent over the forecast period. Moreover, technological advancements in related technologies & towards product development, and rising investment in IoT technology can create lucrative business opportunities for key vendors and major service providers in the global internet of things market over the forecast period.

The comprehensive research report comprises a complete forecast of the global internet of things market based on factors affecting the market and their impact in the foreseeable future. According to the forecast projections, revenue from the global internet of things market is expected to expand at a CAGR of 21.6% during the forecast period.

The research report on the global Internet of things market includes profiles of major companies such as Google Inc., Cisco Systems, Inc., IBM, Fujitsu Ltd., HP Inc., Dell Inc., Arm Limited, Intel Corporation, Infineon Technologies AG, and Infosys Limited.