Micro-/Nanoelectronic Industry in Romania An Overview and Growth Potential Dr. Michael Neuhaeuser Vice-President and General Manager Infineon Romania Infineon worldwide Infineon provides semiconductor and system solutions, focusing on three central needs of our modern society: Energy efficiency, Communications and Security Revenue in FY 2009: 3.027 billion EUR Some 25,000 employees worldwide (as of Jan 2010) Strong technology portfolio with about 22,900 patents and patent applications More than 30 major R&D locations Infineon Romania Founded in April 2005 Located in the northern part of Bucharest R&D Center, 200 employees 3500m² office, research and laboratory area 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 2 Infineon Romania core competencies Automotive applications Concept Engineering Design Flow Support Chip Cards and Security Analog Design Test Engineering Digital Design Product Engineering Analog IC Layout Product Support Infineon Romania is working over the complete value chain, from concept to product ramp-up for state of the art semiconductors 10.02.2010 For internal use only Copyright © Infineon Technologies 2010. All rights reserved. Page 3 Positive outlook for global semiconductor market Revenue in US Dollar billion and market growth rate 40% 37% 273 28% 18% 213 204 4% -8% 132 137 149 126 256 249 227 228 139 166 7% 247 20% 218 15% 3% 1% -8% 248 18% 30% 9% -3% 10% 0% 141 -10% -11% -20% -30% -32% -40% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Revenue Forecast range revenue Market growth rate Forecast range market growth rate Source: WSTS for historical data; Forecast: ∅ of VLSI, Gartner, iSuppli, WSTS, IC Insights, Future Horizons; market growth rate y-o-y January 29, 2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 4 Romania: Automotive Industry Map OEM ■■ Renault Renault (complete (complete value value chain chain in in Romania) Romania) ■■ Ford Ford TIER 1 SUPPLIERS Electrical Electrical systems systems Cables, bus systems, embedded systems Dräxlmaier Delphi Packard Continental Kromberg&Schubert Alcatel Lear Corporation Alcoa Fujikura Leoni Wiring Sys. Suleve Interior Interior equipment equipment Cockpit, seats, dash-board, air conditioning Johnson Controls Faurecia Continental Valeo Calsonic Kansei Body Body Propulsion Propulsion Power train, exhaust systems, engines Borla Cortubi Honeywell Garett Pulsor Compponente Auto Topoloveni Body, roof, glass, doors, lighting etc. Autoliv BOS Hella Bosch Rolem Valeo Gean Otomative Running Running gear gear Suspension, brakes, axles, steering, tyres Continental Michelin Pirelli Takata Corporation Bega Tehnomet Production is moving East and more R&D is being carried out by the OEMs and suppliers (e.g. Renault, Infineon, Honeywell, ON Semi). 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 5 Electronic share within automotive applications Romania has a good research competence and the complete value chain of the automotive industry is already present => Use the trend of increasing the electronic share within automotive applications! Now! 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 6 Necessary measures to use the momentum (1) National Programs Set-up of National Funding Programs/Platforms with clear focus on certain technology fields and the needs of the local industry (No watering-pot principle) EU Programs Set-up of National coordination groups for EU Programs / Gov. – Industry (e.g. ENIAC Austria, an open platform acting as an industry driven enabler for research and development activities in the field of micro- and nanoelectronics) 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 7 Necessary measures to use the momentum (2) Legislation to improve R&D activity in Romania Corporate Tax (chapter in Fiscal Procedure Code, Law 571/2003): Extra deductibility of eligible costs for R&D activity for tax on profit calculation - dificult to apply as there is no norm in place Income Tax (chapter in Fiscal Procedure Code, Law 571/2003): Income tax exemption for employees working in the area of creating computers programs -dificult to apply as list of specialisation is limitted and not updated periodically; e.g. employees doing the same job and graduating the same faculty but different specialisation (electronics and microelectronics can not benefit from this law) Intellectual Property. A better legislation regarding will: ¬ secure companies investment in R&D activities ¬ develop innovation activities in Romanian R&D centers ¬ Attract more R&D activities/companies 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 8 Necessary measures to use the momentum (3) New concepts in cooperation across Universities – R&D institutes – Industrial partners to develop a strong cooperation platforms and enable a more focused education Sponsored Master & PHD Programs Invited Lectures Sponsored Laboratories Curriculum Support University Relation Program Joint Research Projects Industry can provide leadership and support for Romanian learning system that guides students in making informed career preparation decisions, developing skills and knowledge, and preparing them to compete effectively in a global economy 10.02.2010 Copyright © Infineon Technologies 2010. All rights reserved. Page 9