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Europe to unite on single semiconductor strategy

Europe to unite on single semiconductor strategy »

        The advocates of "More Moore" and "More than Moore" will close ranks and together push the full value chain forward

At the International Semiconductor Strategy Symposium (ISS Europe), which took place between February 24th and 26th, 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 was whether the best way to attack future challenges should be "More Moore" or "More than Moore."

The high-calibre participants of the panel ended with an expected compromise; namely that the industry should pursue both strategies concurrently. While 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 percent of their products.

On 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 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 organiser of 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 alive and kicking among Europe's chipmakers, technology suppliers and researchers.

The 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 Belgian research centre imec. "Talking in a common voice allows the European Commission to act and support this industry."

Jean-Marc Chery, chief manufacturing and technology officer of chipmaker STMicroelectronics, pointed out that a holistic approach is necessary. "We have to push the full value chain cooperatively," he said.

The panel participants recognised 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 showed their understanding of the needs for 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 of strategic programs 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 den 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 participants agreed that 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. In this fast moving industry decisions have to be taken speedily. The strong Euro and the lack of qualified labour are further regarded as potential stumbling blocks for the technological progress and the business competitiveness.

Europe to unite on single semiconductor strategy

At the panel, the European Commission signalled 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 of Components & Systems at the European Commission.

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