It's Europe's turn now
04/01/2001
SPECIAL SECTION: EUROPEAN TECHNOLOGY
Ludo DeFerm, VP of business development, IMEC, Leuven, Belgium; e-mail [email protected]
After a down period in 1997/1998, the semiconductor industry is flourishing. Worldwide semiconductor consumption is projected to grow solidly in 2001, and next year looks bright as well.
The decline in 1997/1998 was due to over-capacity (especially in memory chips), the increasing demand for sub-$1000 PCs, and the continuing Asian crisis. One of the main reasons that Europe withstood this down-period quite well is that the European electronic equipment industry is not entirely PC-oriented, but particularly system-oriented.
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Over the past 10 years, Europe has maintained and even strengthened its position in the semiconductor world. STMicroelectronics and Infineon Technologies, world-ranked 7th and 10th by the end of 2000, fought their way up from 13th and 16th in 1989. Philips Semiconductors, ranked 11th, maintained a largely stable position over the past 11 years. Semiconductor consumption is expanding beyond PCs into the end-user market, in which Europe holds the trumps. European system companies now dominate the telecommunications, smart cards, and automotive electronics markets.
Although penetration of mobile communication is somewhat higher in Japan, the annual growth is nowhere else as large as in Europe: 60% per year, according to Booz, Allen & Hamilton, 1999. European companies such as Nokia and Ericsson are ranked among the world's top players in telecommunications.
Automotive has always been a strong business in Europe. This region is the largest producer of automotive electronics, accounting for nearly $21 billion in 2000 (according to Dataquest), with—for example—Bosch as one of the world's most important manufacturers of automotive equipment. A growing market within the automotive sector is telematics, in which Europe will also take a leading position. Already today, ACUNIA (originated as an IMEC spin-off) is at the forefront of telematics development in Europe and the US.
Smart cards are rapidly increasing in interest, especially with the recent uptick in e-commerce. Worldwide production of smart cards grows at 38%/year (according to Dataquest, 2000), of which about 84% are produced in Europe. European companies such as STMicroelectronics and Infineon take a leading position in this sector.
Industry taps into R&D
One of the cornerstones of Europe's increasing success in the semiconductor world is the match between the needs of the industry and the fields in which R&D centers in Europe are working. People in the industry often reside at an R&D center, creating mixed teams that provide cross-fertilization. An example is IMEC, Europe's largest independent R&D center in microelectronics and ICT, where more than 250 industrial residents from all over the world work closely together with IMEC researchers. This presence is crucial in bringing market needs to the R&D centers, so that they can perform research in those areas that industry will require for future advanced products.
Semiconductor companies can initiate R&D projects at the right time so that new products can get to market when good profits can be made. By tuning R&D to industrial needs, companies can strengthen their market position.
In Europe, independent R&D centers closely collaborate with the R&D departments of companies. Such cooperation is essential in today's quickly evolving and highly competitive environment, since it forms a base for sharing cost and intellectual property (IP) where possible. Consequently, the economic feasibility of bringing new systems to market within a shorter timeframe increases. Moreover, as companies are better prepared, they can enter the market from a stronger position than before.
Semiconductors have evolved to a global industry that is more and more driven by market needs rather than by technology. The market determines which technology will be needed. Today, there is an increasing demand for intelligent appliances that combine wireless communications and computing power. These appliances require innovations in both design and process technology. As the market pushes toward these advanced systems, R&D centers and companies need to follow by concentrating their research on the enabling technologies.
Currently, more and more research is oriented toward new design methodologies that can support the complexity of these systems. An example is the development of high-speed wireless broadband communication devices. These advanced appliances require complete systems-in-a-package (SiP) or systems-on-a-chip (SoC). In many cases, SiPs are preferred over SoCs based on financial arguments, because of the many technological problems that still need to be solved for integration of complete wireless communication systems in a single chip. That is why R&D centers are now concentrating on SiP technology in which BiCMOS and CMOS ICs, micro-electromechanical systems, and passive components can be integrated into one and the same package. IMEC develops an object-oriented C++ based design technology for embedded systems. Besides that, IMEC investigates single-package integration of complete transceivers based on its own thin-film multichip module technology (MCM-D). Higher frequencies than currently used in market applications are targeted.
 Figure 1. Multi-project wafer in 0.35?m CMOS technology from Alcatel Microelectronics. |
European Commission supports development of information society
Information technologies are integrated into — or support — products and processes in all sectors of the economy. To be competitive in the global marketplace, Europe needs to master both the supply and use of these information technologies.
As part of its mission to strengthen Europe and its position in the world, the European Commission has set up the Information Society Technologies (IST) program. The program aims to realize the benefits of the information society for Europe both by accelerating its emergence and by ensuring that the needs of individuals and enterprises are met. One of the objectives of the program is to drive the development of the enabling technologies that are the foundations of the information society, and to enhance their applicability and accelerate their take-up in Europe. An example is the IST project HUNT (Hundred Nanometer CMOS Technology) launched in 1999 on the initiative of IMEC. HUNT targets the development of 100nm CMOS technology through industrial collaboration.
A universally recognized project launched by the European Commission is EUROPRACTICE. It was set up in 1995 to help companies improve their competitive position in world markets by adopting application specific integrated circuit (ASIC), multichip module (MCM), or microsystem solutions in the products they manufacture. The program helps to reduce the perceived risks and costs associated with these technologies by offering potential users a range of services, including initial advice and ongoing support, reduced entry costs, and a clear route to chip manufacture and product supply. EUROPRACTICE also provides users with the training and CAD software required to design and develop their ASIC, MCM, or microsystems solution.
The EUROPRACTICE IC Service, coordinated by IMEC, has grown to be the world's most successful ASIC prototype and small volume service, and is further funded by the European Commission under the IST program. By acting as a broker with CAD vendors, foundries, library vendors, assembly and test houses, EUROPRACTICE IC services can provide a total package, from access to design services, libraries, fabrication, backend and final layout, through to assembly and test for prototyping and small volume quantities. Since July 1999, EUROPRACTICE extended this service to the US.
 Figure 2. Polygon cluster used for atomic layer CVD (trademark of ASM) of high-k materials. |
European nations strengthen global competitiveness
Several cooperation initiatives to stimulate the microelectronics industry have been set up in Europe. In 1997, the R&D program MEDEA was launched by the European nations. The MEDEA program, initiated by industry, is politically and financially supported by national governments and since early 2001 has been succeeded by MEDEA+. This program will run for eight years (2001-2008) and will focus on system innovation on silicon for the global e-economy. Several MEDEA projects will continue under MEDEA+.
MEDEA's goal is to strengthen the global competitiveness of the European microelectronics industry through research and development cooperation along the supply chain between European companies. System houses, CAD software and methodologies suppliers, microelectronics companies, equipment and material suppliers for chip and package manufacturing, suppliers of testing tools and methodologies, independent design centers, institutes, universities, laboratories, and technical centers cooperate under the MEDEA program. It allows them to share cost, risk, and know-how and consequently to speed up development time. Moreover, it gives European companies a stronger voice in international standard-setting bodies, which is a crucial factor in future digital product markets.
MEDEA is divided into two main sub-programs. One is devoted to developing improved technology and manufacturing processes geared toward further miniaturization. Since the demand for increasingly complex systems and functionality is driving the whole semiconductor industry, it is necessary for European chip manufacturers to develop the necessary technology to guarantee a competitive position in the world. This program includes projects that aim to solve the scaling problems in sub-100nm processes, such as the ALAD1N project, led by ASM, in which atomic layer CVD is investigated for 100nm devices (Fig. 2), and the FLUOR project in which 157nm lithography is being developed.
The second sub-program addresses the most important application fields in European and world markets: multimedia, communications, smart cards and automotive electronics. This program aims to forge an early lead in the most advanced system-on-chip applications. It focuses on both applications and design techniques, which form the glue between application and technology, including chipsets for multi-service GSM terminals and UMTS systems, domestic wireless networks, system-level methods, and tools. Strong cooperation between partners is crucial in allowing system houses to get early access to advanced semiconductor processing technology.
IPC Fab Automation GmbH (Kallmuenz, Germany), a company that provides software tools for production optimization in semiconductor manufacturing, has entered into a comprehensive agreement with semiconbay.com for e-commerce services. IPC will promote its products and services on the semiconbay.com website, including promotional materials, sales/marketing collateral, technical documents, patent information, and "webinars." n