European strategy for nanoelectronics — EU10/100/20

ENGLAND, UK: Probably the most significant news of the past two months was the announcement from the European Commission on a new strategy for nanoelectronics.

Although not mentioned in the original document, VP, Neelie Kroes stated publicly that Europe should aim for around a 20 percent share of IC manufacturing by 2020, a significant increase on the current level, and this is now stated in the fact-sheet released this weekand included in the name of the initiative which means 10 billion Euros of public and private funding for R&D will trigger 100 billion Euros of private investment for

manufacturing, which is aimed to yield 20 percent of the world's semiconductor manufacture!

What is Europe's objective: 10/100/20

- €10 billion public/private funding for research and innovation

- €100 billion from the industry for manufacturing

- 20 percent of the global chip production market by 2020.

What will this strategy do?

- Reverse Europe's declining trend in micro-/nanoelectronics manufacturing

- Focus on Europe's strengths and support cross-border cooperation to create critical mass in knowledge and financing

- Target public-private investment in:

-- ‘More than Moore' on 200mm and 300mm

-- ‘More Moore' on 300mm

-- 450mm transition.

- Facilitate access to financing CAPEX through loans and equities (EU memorandum with European Investment Bank to prioritize key sectors including micro-/nanoelectronics)

- Simplify European state aid rules and allow for large-scale investment in manufacturing

- Create a level global playing field (eliminate market/trade distortions)

- Align EU, national and regional/local financial resources to achieve large-scale investments on agreed common strategic priorities, rather than continue with fragmented low-scale investments across a wide range of activities

- Create and maintain a highly skilled workforce.

Who is this strategy targeting?

- Leading manufacturers and research centres

- SMEs (small and medium-sized enterprises): integrate SMEs into value chains and offer them access to the latest technology and state-of-the-art research facilities

- The entire supply and innovation chain: research, design, materials, equipment, manufacturing processes, device makers

- Focus on European clusters of excellence (Dresden, Grenoble, Eindhoven/Leuven) but cooperate with specialized clusters elsewhere.

450mm is further mentioned in the following key bullet point.

"The development of new manufacturing technology on 450 mm wafers. The investment will initially benefit equipment and material manufacturers in Europe who are today world leaders on a market of around €40 billion per year and will provide a clear competitive edge to the whole industry, in a five-to-10 years range."

However, a key point to consider is the now famous statement that ‘no-one wants to build the last 300mm fab, nor the first 450mm fab'.

To meet the 20 percent goal, Europe will need new fabs and the decision will need to be taken on which wafer sizes are to be produced. The experiences of the KET pilot lines will influence these decisions greatly.