Regional Collaboration:
Key for Success in Globalization
Monika Kircher-Kohl
International Business Symposium on
Globalization of R&D
August 28, 2007
Beijing, China
The New Infineon‘s
Sharper Image
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Infineon Technologies offers semiconductor and
systems solutions for a variety of applications
 More than EUR 4 bn in revenues in the fiscal year 2006
 Approx. 30,000 employees (incl. 6,000 R&D staff)
as of March 31, 2007
 Strong technology portfolio with about 22,900 patents
and applications; more than 35 major R&D locations
worldwide
 Focus on Energy Efficiency, Connectivity and Security
 Majority holding of Qimonda
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Infineon Technologies is organized in two business
groups according to applications: AIM and COM
AIM
Automotive,
Industrial &
Multimarket
COM
Communication
Solutions
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Applications
Car Electronics (powertrain, safety
management, body & convenience,
infotainment),
Power control (distributed power generation,
automation / motor control, transportation,
power supplies, medical, building control),
Chipcard & Security (communications,
payment, identification, entertainment)
Wireless communications (mobile phones,
cellular base stations, cordless telephones,
RF technology for short, medium and longrange distances, TV receivers, navigation),
Wireline communications (Voice and
broadband data communications, integrated
voice and data communications, wireless
infrastructure, home networks)
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Customers
Business
Groups
Page 4
Infineon has a global Infineon
R&D network,
with
– R&D Network in Europe
more than 35 major R&D centers world wide
7.18
6.80
6.20
5.00
Duisburg
Warstein
Aalborg
Horten
Linköping
Skoppum
Stockholm
Riga
Hanover
Leuven
Dresden
Bristol
Milpitas
Morgan Hill
Regensburg
Yorktown
Heights
CorbeilEssonnes
Bucharest
6.40
Tempe
Sophia
Antipolis
Ulm
Augsburg
Munich,
Neubiberg
Padua
Villach
Graz
8.60
9.20
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Austin
East Fishkill
Netanya
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Shanghai
Bangalore
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Malacca
Singapore
Xi'an
Hsinchu
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8.60
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We Contribute To The Three Challenges Of
Modern Society
Energy
Efficiency
Connectivity
Security
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Increased Efficiency In all Areas Of Electric
Supply Chain Through Semiconductors
Saving potential
is everywhere
Generation
 Wind,
water
and solar
power
 Fuel cells
Distribution
 FACTS
& SVC
 HVDC
Transmission
 Traction
 Speed
controlled
motors
Industry
 Pumps
 Computer &
server
Consumption
power supply
 Lighting
 TV, DVD, etc.
Consumer
supply &
stand-by
 Inductive
cooking
FACTS = Flexible Alternating Current Transmission Systems; SV = Static Variable Compensator; HVDC = High Voltage Direct Currect
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Why do we look across borders?
What is the motivation for investment in R&D collaborations with
universities & private research institutes?
Access to
human
resources
 Access to specific
 Know-how
 Competence
 Expertise
Proximity to
customers/
markets
 Access to pool of experts/
human capital
 For recruiting purposes
Corporate
investment in
(crossborder) R&D
collaboration
s
Profit from
favorable
R&D
environment




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Funding programs
Incentives (e.g. taxes)
Lower cost level (wages)
IPR – stability of the law
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Infineon Technologies Austria – the largest
regional subsidiary of Infineon
Infineon Technologies Austria AG incl. subsidaries & holdings
Villach
Linz
Research & Development
Vienna
Sales
Villach
Graz
•Headquarters AIM PS
•Production
•Research & Development
Kulim/Malaysia
Research & Development
Bucharest/Romania
Klagenfurt
Headquarters
IT Services GmbH
Graz
Linz
Klagenfurt
Production
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Research & Development
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Austria has established attractive conditions
for R&D intensive companies
Clear structures
Clear strategy
 Lisbon agenda and
Barcelona target
 Austrian Innovation
Plan 2002
 Strategy 2010 on
research, technology
& innovation
Tax incentives
 Establishing of clear
structures/bundling
regarding funding
organizations
¬
 Attractive corporate
income tax
 Group Taxation
 Research premium
 Research allowance
FFG, FWF,…
Attractive funding
programs
Excellent education
 Kplus competence
centers
 Christian Doppler
Gesellschaft
 Headquarter program
 Top level universities
and schools
 … but not enough
science/technology
graduates
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Infineon Austria profits from a broad spectrum of
educational and academic co-operations
Educational and academic
Co-operations
Research co-operations
Universities
Clusters
Universities of Applied Science
Technically oriented high
schools (HTL)
Professional training institutes/
life long learning
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Competence Centers
Research Labs and Institutes
in Austria and internationally
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A Challenge: How to encourage the link between
academia and industry?
Universities
Industry
Research institutes
Examples Austria
to encourage the link:
 Kplus Centers of Competence
 Christian Doppler Laboratories
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Kplus Competence Centers - Example to
encourage the link between academia and industry
Kplus
Competence Centers
Goal
 To overcome the gap between science and industry
Approach
 Foundation of temporary competence centers
 in cooperation with partners of industry and academia
 for long-term, focused and internationally relevant R&D
 Since 1998 – three calls
Scope
¬ 18 Kplus Centers
¬ K_ind program line (industry lead)
¬ 300 industry and 150 scientific partners
 Since 2007 – follow-up program COMET
Source: FFG
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Christian Doppler Society – bridging fundamental
research and industrial application
Christian Doppler Society
Christian Doppler Laboratories
 Support of application oriented fundamental research
 Technology and know-how transfer between science and industry
Goal
Approach
 CD labs are established in universities for a max. of 7 yrs around a
talented (young) scientist
 Company funds for labs provided are doubled by the CDG
Scope
22.05.2007
 Currently 45 labs in 6 research areas Source: Christian Doppler Gesellschaft
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Infineon experience with cross border R&D –
some examples
Design
Center in
Bucharest
 Focus power mixed
signal
 Close cooperation with
University of
Bucharest
Hyundai
Infineon
Innovation
Center
 Strategic cooperation
 Joint development
projects
 Training of employees
in Austria
Kulim
trainees @
Villach
 400+ engineers of
Infineon Kulim
Power Fab as
trainees in Europe
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APAC is becoming the most important region for
Infineon Technologies
Infineon Technologies regional
sales split Q3/FY07
Total: EUR 1,751 m
NAFTA/RW
426
Europe
270
Australia,
New Zealand 1%
(2)
NCA*
15%
33%
Germany
272
16%
APAC
585
Japan
208
4%
4%
5%
United
12%
States
45%
Asia
12%
Central,
Eastern
Europe
12%
Sub-Sahara
Africa
1%
MENA***
SA**
24%
(1)
Geographic origin of graduates
with technical background
16%
Western
Europe
Source: Accenture
(1) Excluding Germany (2) Remaining world
*) North Central America, **) South America,
***) Middle-East, North Africa
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Infineon’s strong expansion & strategic positioning
in China’s major economic zones











1995 CAT plant established, Wuxi
1995 Sales company, Hongkong
2002 Trading company, Shanghai
2003 April COC, Shanghai
2003 June R&D center, Xi’an
2003 July Holding Company,
Shanghai
2003 July MP plant, Suzhou
2004 Feb IT Center, Suzhou
2004 April MP module plant, Suzhou
2006 April, Qimonda R&D, Xian
2006 May MP Carve-out
Jingjing
Delta
Beijing
Sales Office
Xi’an
Design Center
Shanghai
HQ/ CoC/Trading
Center of
West
China
Offices
Yangtze Delta
Shenzhen
Sales and FAE
Production
Lab or DC
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Qimonda
For internal use only
Suzhou
Wuxi
MP
Plants/IT
Center
CC/DS Plant
Hong Kong
Sales/Marketing/ SMS Lab Pearl Delta
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Infineon China also closely cooperates with local top
university on joint R&D research in different areas
Harbin Institute
of Technology
Tsinghua
University
Beijing
Xi’dian
University
Tianjin
Tianjin
University
Xi’an Jiaotong
Tongji
University
Xi’an
University
Shanghai
Chengdu
Hefei
University of
Shanghai
Electronics Science
University
Hangzhou
and Technology
Chongqing
Zhejiang
Hefei University of
Southeast
University
Technology
University
(newly setup)
- Chongqing Jiaotong U
- Chongqing University
of Post Communication
MCU Training Lab
High Power Experimental Platform
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Automotive Electroncis
Tsinghua: focus on Safety & Dynamic
Application
Tongji University: focus on Body and
Motor Drive Control
Tianjin University: focus on Powertrain
for Diesel Engine and
Motorcycle
Motor Control
Shanghai University: focus on high-end
motor control
Harbin Institute of Technology: focus on
general motor control
Power Electronics (Energy Efficiency)
Zhejiang University: focus on Low power
(ultra high efficient converter)
Xi’an Jiaotong University: focus on
Windpower project
Tsinghua University: focus on Power
Quality & multilevel converter
(very high power)
Harbin Institute of Technology: forcus on
High efficient motor control for
home appliances
Communication:
Tsinghua University: T-DVB solution
project
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Where does China stand today?
Why do High Tech companies envisage to push R&D activities in
China? What are the limiting factors?
Access to
human
resources
 ~600.000 graduates in
engineering and natural
sciences each year
 But…
¬
¬
¬
Proximity to
customers/
markets
Corporate
investment in
(crossborder) R&D
collaboration
s
High fluctuation of
employees
Lack of experts
Language barriers
Profit from
favorable
R&D
environment
 Still opportunities for action!
 Intellectual property rights stability of the law
 Funding programs/research cooperations
¬
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Eg: Sino-European R&D center with
joint education program
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Don‘t forget the intercultural aspects!
The Iceberg Model
behaviour
rituals
language
systems
architecture
institutions
heroes
practices
traditions
beliefs
attitudes
values
Source: ICUnet.AG
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Opinion
Me
Contacts
Source: Yang Liu
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Worries
Dealing with
problems
1970
Transport
2007
Source: Yang
Yang Liu
Liu
Source:
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Boss
Trendy
Image of
the other
Source: Yang Liu
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Contact method: Maggie.zhou@infineon.com
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Back-up
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Our China Headquarters Locates in Shanghai
• Infineon Technologies (China) Co., Ltd. was
established in July 2003, it is now qualified as
the regional headquarters for Infineon China.
• China has become a key driver for our
business development in the region and
worldwide.
• Infineon Technologies (China) Co., Ltd
focuses as headquarter, shared service,
service provider, sales & mkt.
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The R&D Center for Mobile Phones in Shanghai
Infineon Technologies Center of Competence Ltd. in Shanghai is a central part of
the Development and Customer Center Mobile Systems in APAC (DCC MS).
There are currently 7 CoC locations with over 100 engineers for cellular systems.
Chip
Design
R&D, Design-in &
Customization
Platform R&D
Cust
omer
Project Office
Client & Project
Management
SW Customization &
Development
HW Customization &
Development
The DCC MS develops, customizes
and supports wireless products and
provides customer support based on
platform R&D for mobile phones to
enable fast interaction between
customer requests and system
development.
Test & Measurement
Training, Services &
Support
Center of
Competence APAC
The UltraLowCost platform is the latest
product which was developed in DCC MS.
Since the first CoC was established in 2001
our APAC customers launched over 100
different mobile phones into the market with
a total of over 21 million chipsets sold.
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The R&D Center in Xi’An
• Infineon Technologies (Xian) Co., Ltd.
incorporated in June, 2003, now has
over 350 engineers and 25 support
staff, including Qimonda with 90
engineers and 10 support staff.
• Technical staff is engaged in projects
onsite or overseas for state-of-the-art
IC-design projects.
• Focus on creating innovative products in the
fields of communications, automotive and
industrial electronics.
Qimonda's focus is on memory products
• Develop Integrated circuits for new applications
(system-on-chip integration)
• Support Infineon globally by IC design
implementation with best manufacturability at
lowest possible cost.
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Our Back-end Manufacturing Capabilities in Wuxi

Infineon Technologies (Wuxi) Company
Ltd. was founded in October 1995,
manufacturing discrete components and
smart card modules. By Dec 2006, the
company had about 779 employees.
Product Information

Deployed the new FCOS (Flip
Chip on Substrate) production
 Discrete components, mainly Diodes &
line in 2005. Only Infineon
Transistors, fulfil the quality & reliability
Regensburg and Wuxi plants
standard of global OEM's in a wide range
have FCOS assembly lines.
of applications, such as house-hold
 FCOS technology has a bright
appliances, mobile electronics &
future in the market, Infineon
automotive electronics. Being the most
Wuxi plays a critical role in
universal component in electronic industry,
developing our global smart
SOT23 package is the largest volume
card business.
runner in Discrete group. And the HighFrequency products of Discrete are the
market leader in term of technology and
performance.
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Qimonda Suzhou-Memory Product Manufacturing

Qimonda Suzhou Co., Ltd.
focus on component
assembly & test, and
Qimonda Modules (Suzhou)
Co., Ltd. focus on modules
assembly and test

Investment of about US$ 1
billion planned in total, official
opening in September 2004

Shipment qualification for
components
and modules achieved by end 2004,

Maximum capacity planned of up to
1billion chips per year, volume
production has been ramp up.

More than 1,000 employees planned
when completely ramped, first
products: 256M DDR in BGA packages
and
related modules
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Qimonda Suzhou-IT Infrastructure Systems and
Service
22.05.2007

As the Qimonda IT development and support
center, it opened in September 2004,
supporting our worldwide IT development as
well as its operations in Asia Pacific.

The Qimonda IT development is concentrating on
the manufacturing process, while the regional
support is covering the complete set of IT
services.

Qimonda IT uses a standard set of
applications and systems for the
manufacturing processes.

It will build and maintain those
major systems used in all Infineon
production sites worldwide; thereby
supporting its standard
manufacturing processes.
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Infineon built strong presence in China
22.05.2007

Infineon added its market share year after year, resulting in a
ranking improved from 15th to 7th in Chinese semiconductor
market in the past 3 years. (Source: IC Insights)

Developed strong and reliable partnerships with government,
industry and universities:
- Established collaboration especially for solutions business
opportunity with local enterprises such as Lenovo, Huawei,
Tsinghua Tongfang, Konka etc.
- Established cooperation like Automotive and Chip Card projects with
local universities such as Tsinghua, Tongji, Fudan, TianJin, etc.

Commitment and contribution to Chinese semiconductor
industry
- Technologies transfer like 0.14-µm and 0.11-µm DRAM trench
technology to SMIC.
- To expand registered capital to 50 million in Wuxi plant.
- To establish a MP backend factory with US$ 1 billion investment in
Suzhou.
- To grow our total local staff to about 3,000 people by 2007
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