Challenges of Production in Europe: Strategies and Needs Sabine Herlitschka Chief Executive Officer, Infineon Technologies Austria AG Infineon at a Glance Energy efficiency Mobility Security Revenue in FY 2013: € 3.843 billion 27,000 employees worldwide (as of September 2013) Strong technology portfolio 21 R&D locations and 12 production locations Germany's largest and Europe's second largest semiconductor company IFAT: 3.110 employees, 23% R&D Invest 2014-05-08 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 2 Infineon Austria – Company Overview FY 2013 Revenue in Mio. € 1.181,7 Linz (R&D) EGT in Mio. € Employees 3.111 Investment in Mio. € 64,2 Graz (R&D) Villach (R&D, P, M, IT) international Headquarter-Functions Production Innovation Fab fast corridors for R&D Thinwafer Technology SiC, GaN and MEMS Technologies Automation Page Wien (Sales) 88,7 Klagenfurt (IT) international Headquarter-Functions R&D 2013 1.100 employees in R&D 271 Mio. € R&D-Expenses (23 % R&D Expenditure of Revenue) 299 First Field Patents Competence Center for Power Electronics Copyright Company ~ 20 % of all employees are from 54 nations 44 % keep an University Degree 5 Product Lines from 3 Divisions (ATV, IPC, PMM) Worldwide Manufacturing Sites Competition within Infineon Morgan Hill Dresden Kulim Beijing Warstein Singapore Villach Regensburg Frontend 2014-05-08 Wuxi Cegléd Malacca Batam Backend Copyright © Infineon Technologies AG 2014. All rights reserved. Page 4 Key Enabling Technologies recognized in Europe Micro- and nanoelectronics, including semiconductors Advanced materials Biotechnology Nanotechnology Photonics Advanced manufacturing Systems http://ec.europa.eu/enterprise/sectors/ict/key_technologies Source: Willy Van Puymbroeck, European Commission, 2012 2014-05-08 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 5 Semiconductors are most likely the Key Source of Productivity Automotive / Industrial / Medical / ... Electronics ×5 WW: $1,600 bn Semiconductors WW: $298 bn Innovation x 20 100 Productivity WW: ~USD 30,000 bn About 45% of the OECD Economic growth since 1985 comes from increased productivity, electronics is a key driver for this growth Good system understanding enables semiconductor companies to develop solutions which increase productivity Example Automotive: 70-80% of innovations depend on electronics Source: DECISION, ESIA, Future Horizons, IMF, WSTS 2010, AUDI, OECD Factbook 2013, Infineon 2013-11-07 ICT Conference Copyright © Infineon Technologies AG 2013. All rights reserved. Page 6 Functional Diversification is a Main Strength of the European Industry… Leading system competence in major application areas like power electronics for industry and individual mobility located in Europe A leading MtM semiconductor industry and fast access to innovations in micro/nanoelectronic is vital for leveraging further this European strength Full value chains enabled by pilot lines and high volume semiconductor production (MtM!) are needed for global competitiveness 2014-05-08 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 7 Challenges of Manufacturing in Europe: Strategies and Needs R&D combined with differentiating manufacturing From product thinking to system understanding Active contribution to European agenda setting Collaboration with excellent partners in the value chain incl. European universities and RTOs Speed in time to market Agreed strategies and programmes: straight implementation and speed: at European, National, Regional level State Aid rules designed to foster European competitiveness in global „match“ Europe as lead market and ”Made in Europe“ supply chains New production facilities require high volume products, pilot lines, services & solutions for generating economic growth. CPS/Ind. 4.0! Best work force and talents: education!! 2014-05-08 Copyright © Infineon Technologies AG 2014. All rights reserved. Page 8