Industrie in Europa –
Zukunft durch Kompetenz
07.05.2013
Dr. Reinhard Ploss
Vorstandsvorsitzender
Infineon Technologies AG
Europe but not only Europe!
Being successful as Europe means
being successful on a global basis
Latest technology shrinks the world
into one single point
Global competition is just around the corner!
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 2
Chinese population as percentage of global
population will decline by 2030, but…
…China will jump from producing 17% of the world's GDP in 2011
to producing 28% of the world's GDP in 2030.
Share of global GDP
2011
China
17%
2030
USA
23%
China
28%
USA
18%
The bigger share of this growth is expected
to come from local consumption.
Source: OECD Economic Policy Paper #3, Nov 2012 and IMF, Euromonitor, Roland Berger.
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 3
Consumption, urbanization and mobilization are
key growth drivers in China
CONSUMPTION
INFRASTRUCTURE
MIDDLE CLASS
28%
34%
x4
of global growth in 2030
is contributed by Chinese
domestic consumption
of GDP will be fixed asset
investments in 2030
Middle class will
quadruple in two decades
Source: World Bank, China 2030
Source: World Bank, China 2030
Source: World Bank, China 2030
INNOVATION
MOBILIZATION
URBANIZATION
1652
483
1 billion
Chinese patents registered 2010 in US up from
112 in 2000
Source: Roland Berger, Think Act, 8 billion
2013-05-07
Billion USD Light vehicle
sales in 2030
Source: Roland Berger, Think Act, 8 billion
live in cities by 2030
Source: MCK, Preparing for China's urban billion
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 4
Europe –
Where do we come from?
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 5
Europe was already successful in the past by
it's innovation, competencies and industry
Erstes Fließband,
Schlachthöfe von Cincinnati
1870
Erster mechanischer
Webstuhl
1784
1. Industrielle Revolution
durch Einführung mechanischer Produktionsanlagen
mit Hilfe von Wasser- und
Dampfkraft
Ende
18. Jhdt
2. Industrielle
Revolution
durch Einführung arbeitsteiliger Massenproduktion
mit Hilfe von elektrischer
Energie
Beginn
20. Jhdt
Erste Speicherprogrammierbare Steuerung (SPS),
Modicon 084
1969
3. Industrielle
Revolution
durch Einsatz von
Elektronik und IT zur
weiteren Automatisierung
der Produktion
Beginn 70er Jahre
20. Jhdt
Source: DFKI (2011)
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 6
Today's challenges
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 7
Major challenges of the 21st century
worldwide
Population explosion
Growing megacities
Limited energy resources
Emerging markets
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 8
Europe's future –
The challenge
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 9
How will Europe maintain its position in the
Global Market in the upcoming years?
Differentiation potential in
industrial competition –
Examples
 Competence
 Individual factors, especially in
the face of global competition
from emerging nations, are
hard to maintain
 Innovation
 Costs
 Speed
 Customer focus and proximity
& application
 Raw materials
2013-05-07
Which factor gives Europe a
significant and sustainable
edge?
 Constant renewal in selected
priorities
 Combination of several
elements and formation of a
multi-factor competitive
advantage
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 10
Knowledge is growing, and scientific and
technical challenges are increasing
Earlier: Knowledge was
associated with one person
Later: Knowledge was
associated with a group
Cause and effect were linear
and managable
Today: Knowledge is widely
distributed, solutions require
cooperation
Tomorrow: The pooling of
knowledge will become a
competence in its own right.
Cause and effect will no longer
be as clear
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 11
The higher the (digital) semi content the faster the
product ramp up is possible … and realized
ANALOG
Base technology
% of semiconductors
in price production
1000 m
2%
DIGITAL
12%
30%
35-40%
GSM
100 m
TV color
PC
TV B&W
xDSL
Set Top Box
Ipod
VCR
10 m
DVD
1m
1950
USER
1960
1970
PASSIVE
1980
ACTIVE
1990
2000
VE
Source: Dataquest, ST shown at IEF 2005, Malta
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 12
Only a successfully implemented idea is an innovation. The last step is often the most difficult one.
Source: Final Report High-Level Expert Group on Key Enabling Technologies, June 2011
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 13
Europe's future –
Competence
Solution by focusing
on KET
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 14
Focus on Key Enabling Technologies will
support future success of 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
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 15
Europe's way from basic research to
globally competitive manufacturing
Competitive
Manufacturing
Prototyping
Product
Development
Technological
Research
Basic
Research
To overcome the valley of death
a close interaction of all aspects is recommended
Source: HLG, Sherpa Group Meeting, 01/23/2013 + Infineon
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 16
Pilot Lines will help to close the innovation
gap
 Equipment and
consumables
European
companies
KETS
PILOT
LINE
 European
subcontractors
 European research
organisation
 Advanced KETS
prototype
products for competitive advanced
products of
european end
user companies
Single pilot line
on a single site
in Europe
UPSTREAM
DOWNSTREAM
Source: HLG, Sherpa Group Meeting, 01/23/2013
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 17
Europe needs to play a leading role in the
ICT sector
Europe needs to set the right
frame conditions
 Innovation along the value chain
 Inventions (patents and IP)
 Core competencies along the value
chain
 Appropriate education and sciences
 Eco systems – cluster w/ KMU and
Universities
 Incentives for R&D and production
Major European industries depend on high tech
ICT is key enabler for most of the other industries
… and semiconductors are a motor for innovation
Source: AT Kerney, The future of Europe's High-Tech Industry + Infineon
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 18
Semiconductors Enable Future
Technologies
Global challenges
Climate
Energy
Health
Nutrition
Fields of action
Mobility
Security
Communication
Key technologies
Cross-cutting issues / general conditions
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 19
Leading by system competency along the value
chain based on selected competencies
Energy 
Smart grid
Data 
Secure
internet
Cars 
mobility
Technical
competence
Material
competence
Manufacturing
competence
Highest
quality
standards
Selection of differentiating elements
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 20
Europe's future –
Through selected core
competencies
Semiconductor
technology
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 21
Semiconductors are a Key Enabling Technology
and 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
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 22
Infineon: System competency is key to
provide products for outstanding solutions
Competency
 Understanding of System
Requirements
 Technical and Commercial Driver
 Interdependency of various subsystems
System
 Data Center
 Automotive
 Wind Mill
Competency
Sub-System
 Motor Control
 Power Supply
Application
 Recuperation
 Understanding of the
Sub-System
 Broad technical
Expertise
Competency
Product
Technology
 Power Discretes
Production
 Driver ICs
 Sensors
 Power Management ICs
 Electrical Circuit Design
 Semiconductor Processes and Manufacturing
TECHNOLOGY
PRODUCTION
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 23
Infineon: System competency is key to
provide products for outstanding solutions
System
Innovation Process:
Understand Future Requirements
 Data Center
 Automotive
 Wind Mill
Sub-System
 Motor Control
 Power Supply
Application
 Recuperation
Go to Market:
Design Support and
New Concepts
Product
Technology
 Power Discretes
Production
 Driver ICs
 Sensors
 Power Management ICs
TECHNOLOGY
PRODUCTION
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 24
Europe's future –
System competence
Cyber-Physical Systems:
Industry 4.0, competitive
production
Network of data – things –
energy: Smart Grid
Optimal energy use
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 25
Industrie 4.0 supports Europe's advantages
in a global manufacturing environment
Erster mechanischer
Webstuhl
1784
1. Industrielle
Revolution
durch Einführung
mechanischer Produktionsanlagen mit Hilfe
von Wasser- und
Dampfkraft
Ende
18. Jhdt
2. Industrielle
Revolution
durch Einführung
arbeitsteiliger
Massenproduktion
mit Hilfe von
elektrischer Energie
Beginn
20. Jhdt
4. Industrielle
Revolution
auf Basis von CyberPhysical Systems
Degree of complexity
Erstes Fließband,
Schlachthöfe von
Cincinnati
1870
Erste Speicherprogrammierbare Steuerung
(SPS), Modicon 084
1969
3. Industrielle
Revolution
durch Einsatz von
Elektronik und IT zur
weiteren Automatisierung der Produktion
Beginn 70er Jahre
20. Jhdt
heute
Source: DFKI (2011)
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 26
Several Challenges need to be solved to
achieve Industrie 4.0
Smart Factorys need to be stable and profitable
Know-how needs to be secured successfully
Manufacturing tools are linked together internally and externally
and therefore need to be protected from manipulation
Smart Factory need to be able to control complexity and to be
robust against disfunctions
Industrie 4.0 is showing close collaboration between politics,
sciences and industry
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 27
Smart Grids are key for delivering sustainable,
cost effective and secure energy supplies
Smart Grid: Infineon's contribution
1
1
3
2
1
Integration of
renewable
energies
2
Energy efficient
transmission
3
EV charging and
energy storage
4
Grid and smart
meter security
5
Smart
Metering
6
Energy efficient
consumption
1
4
6
6
2013-05-07
5
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 28
Several challenges need to be addressed as
traditional grids evolve into Smart Grids
The worldwide growth in energy demand must be met
in a sustainable way
Large numbers of distributed and intermittent renewable energy
sources need to be integrated
Supply and demand must be balanced intelligently
Existing energy efficiency potentials need to be utilized
The grid must be reliable in terms of stability, security, privacy
For this to happen we need international collaboration across
politics, science and industrial value chains
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 29
Europe's future –
Network competence
Infineon in its network of
competence, innovation,
networking – Examples of
successful innovation
implemented into manufacturing
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 30
To master the future we need to bring together
our competencies across organizations
Customer
Local
Innovation
activities
Innovation
Initiatives in
the Divisions
InnovationFAB
Universities
Common Culture
Methods & Language
Suppliers
Research
Intitutes
All innovation activities are integrated in the InnoNet.
Started 2007 the INNOVATION project is still growing!
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 31
Infineon Austria and its network
Lehr- und Forschungsnetzwerke
Bildungskooperationen
Kompetenzzentren/ Forschungszentren
Cluster
2013-05-07
Gesellschaftliche Verantwortung
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 32
Infineon – successful innovation and
transferred into manufacturing
Customer acceptance
First 300mm thin-wafer technology
CoolMOS™ qualified
 CoolMOSTM C3 600V
 CoolMOSTM C6 600V
... and released by first customers
Production start
 CoolMOSTM production in Villach started
 1st products have passed Qualification in Dresden
Next for qualification
 Low Voltage MosFET and IGBT
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 33
Summary
Shaping tomorrow's success today
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 34
Europe will be successful driving innovation along
the value chain based on core competencies
 Innovation along the value chain
 Inventions (patents and IP)
 Core competencies
 Appropriate education and
sciences
 Incentives for R&D and
production
 Pilot lines – the step to
innovation
 Competitive manufacturing
2013-05-07
Copyright © Infineon Technologies AG 2013. All rights reserved.
Page 35