Europe’s Kroes softens stance on chip manufacturing target
When initially launched, the program was referenced to semiconductor manufacturing with the 20:20 metric of Europe achieving 20 percent of worldwide production by 2020. Which would mean more than doubling the percentage as it stands today and require and investment of billions of euros in wafer fabs. However, in this speech, Kroes related the objective to the high-tech manufacturing sector in general rather than specifically to semiconductors.
The advent of universal connectivity, Kroes said, “Promises to inject innovation, energise the economy and generate jobs – but only if we stay ahead of the global game – and that is the purpose of our European Electronics Strategy, launched a year ago to stimulate this strategic sector, boost our leadership and economy.”
“We have made a lot of progress; we have an agreement on a joint undertaking [involving] electronics – components and systems (ECSEL), which was agreed in one year… lining up all the sources of funding.” This, Kroes comments, is an achievement in terms of the timescales on which such matters normally proceed; the first goals will be launched within one month (Kroes was speaking on 4th June).
“We [that is, the Commission] are contributing nearly €1.2billion over seven years, which I sincerely hope the EU member states will at least match. And I count on industry, and their R&D partners, to double that again. This would amount to a combined investment of €5-€6billion which would make it the EU’s single biggest public-private partnership, and that seems appropriate given the sector’s size, and its strategic importance. All sources [of finance] are being lined up to deliver in the most effective way.”
Significant projects should not face delays, Kroes said, and initial concerns have been taken into account… there are guidelines in place for projects of common European interest, setting support levels and timings for individual government assistance, without affecting the principles of the single market. Kroes has convened a grouping of leading CEOs to advise on the target of doubling semiconductor production in Europe by 2020 and of electronics components and systems in 10 years.
There will be new “lighthouse” projects, investment in pilot lines and connections made between centres of excellence… all parties need to work together, from materials supply to those integrating complete systems, Kroes says. She notes the comments of her leaders’ group that demand matters – not surprisingly, they appear to have made the point that the outcome of the innovation will be products, and those products need to be bought.
Kroes responds, “We cannot forget about stimulating supply, too; I’m going to continue to insist on that; Europe needs the capacity to design and manufacture electronic components and systems…. we should not build ballooning overcapacity, but if we just rely on demand picking up, and just wait around for that to happen, it will be too late. I’m expecting concrete proposals by the end of this month (June) [from the leaders’ group]. The framework conditions are now in place – the partnerships, the funding… Europe stands to benefit from those technological transformations: the only question is, do we have the creativity, direction and purpose to make a difference… the skill, ambition and energy to lead the world? We do , I’m certain. We have talked about industrial strategy for years, and we share the same goals of more competitiveness, more employment and stronger economy A roadmap is not enough, we need action.”
Related links and articles:
Digital Agenda for Europe
News articles:
European Commission repeats call for "Airbus of chips"
Time to ECSEL
Europe in 10 billion bid to boost chip industry
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