EC Programmes in Micro & nanoelectronics A way to a bright future? EU 2020, KET, FP 8, ENIAC JTI Dirk Beernaert European Commission Head of Unit Nanoelectronics Brussels, 24 November 2010 1

2010 – 2020: A new momentum for Nanoelectronics in Europe ?! Outline presentation 2010 – 2020: A new momentum for Nanoelectronics in Europe ?! What is going-on at the higher policy level in the Commission? Something about Micro & Nano-electronics The initiative ENIAC and the Framework Program The initiative on Key Enabling Technologies and on Smart Growth The future perspective Novel financing mechanisms _ Silicon Saxony 2010, Dresden 2

EU 2020 “ A new momentum for Europe ” José Manuel Barroso Neelie Kroes Máire Geoghegan-Quinn Digital Agenda Research and Innovation Antonio Tajani Industry and Entrepreneurship

EUROPE 2020: A EU strategy for smart, sustainable and inclusive growth From 10 year Lisbon Strategy … to EUROPE 2020 UPDATE VISION TO POST-CRISIS WORLD IMPROVE DELIVERY • Smart Growth: knowledge and innovation economy • Sustainable growth: greener and competitive economy • Inclusive growth: high employment, knowledge people and social and territorial cohesion EUROPE 2020: A EU strategy for smart, sustainable and inclusive growth 5 EU Targets – translated into national ones 7 Flagship initiatives – EU & national action COMMUNICATION FROM THE COMMISSION COM(2010) 2020 http://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf

Europe 2020: 5 EU Headline Targets (translated in national and regional ones) By 2020: 75 % (now 69) employment rate (% of population aged 20-64 years) 3% (now 1,8) Investment in R&D (% of EU’s GDP) “20/20/20” climate/energy targets met (incl. 30% emissions reduction if conditions are right) < 10% (now 15) early school leavers & min. 40% (now 31) hold tertiary degree 20 million less people (now 80) should be at risk of poverty

EU tools in support of the Europe 2020 Strategy Single market relaunch Trade and external policies EU financial support EU levers for growth and jobs flagship initiatives EU monitoring and guidance Macro, thematic & fiscal surveillance Annual Growth Survey policy guidance Innovation Union (Sept. 2010) New Skills and Jobs (Nov. 2010) Digital Agenda (May 2010) Youth on the Move Industrial Policy ( Oct. 2010) Platform against Poverty Resource Efficiency early 2011)

TOWARDS AN INNOVATION UNION Communication COM(2010)546 of 6.10.2010 Innovation Union will advance scientific boundaries, increase European competitiveness and help solve societal challenges such as climate change, energy and food security, health and an ageing population. Around 16,000 participants from research organisations, universities and industry, including about 3,000 SMEs, will receive funding. It is expected to create more than 165.000 jobs. From idea to the market Excellent Knowledge Base Access to finance Innovation Market European innovation partnerships & international cooperation

The Innovation Union: targets Completing the European Research Area joint programming with Member States and regions … Improving framework conditions for business to innovate single EU Patent, access to capital, … speed up setting of interoperable standards, making full use of public procurement … Launching 'European Innovation Partnerships' to speed up the development and deployment of the technologies All EU instruments to support innovation should work together structural funds, rural development funds, R&D framework programme, CIP … EIB … and streamline administrative procedures … Strengthen partnerships in knowledge triangle between education, business, research and innovation and between knowledge clusters people, institutions, infrastructures, regions, …

Innovation Union Partnerships Active and healthy ageing. Smart Cities. Water Efficient Europe. Sustainable supply of non-energy raw materials for a Modern Society. Smart mobility for Europe's citizens and businesses. Agricultural productivity and sustainability. Enabling Technologies??????.

Industrial Policy for the Globalisation Era Putting Competitiveness and Sustainability at Centre Stage. Industry nature is changing (now highly capital and skill intensive) Ensuring timely modernisation of industry Master Globalisation: emerging market competition, international value chains, raw materials, energy Framework conditions for global competitiveness incl. SMEs Strengthen the single market and access to finance Achieving a low-carbon resource efficient economy Respond to emerging societal challenges: security, health, and aging Strengthen industrial innovation performance Sectoral initiatives Exploit cooperation between regional innovation clusters 10

Targeted sectorial approach (some examples) Sustainable mobility (automotive) Tackling climate change (Green Technologies) Policies for health, space and security industries Competiveness through the value chain Energy-intensive industries Access to raw materials and critical products Targeted sectorial approach (some examples)

A Digital Agenda for Europe Every European Digital ! Flagship Communication COM(2010)245 of 19.05.2010 A vibrant digital single market Fast and ultra fast internet access Interoperability and standards Trust and security Enhancing digital literacy, skills and inclusion Research and innovation ICT-enabled benefits for EU society http://ec.europa.eu/information_society/digital-agenda

A Digital Agenda for Europe The Research & Innovation Pillar The Commission will leverage more private investment through pre-commercial procurement and public-private partnerships structural funds 20% yearly increase of ICT R&D budget (at least for FP7) The Commission will also reinforce coordination and pooling of resources with Member States and industry focus on demand- and user-driven partnerships put measures for 'light and fast' access to EU funds support joint ICT research infrastructures and innovation clusters, eInfrastructures and cloud computing strategy develop new generation of web-based applications and services by supporting standards and open platforms The Member States should double annual public spending on ICT R&D in ways that leverage an equivalent increase in private spending engage in large scale pilots in areas of public interest ••• 13

2010 – 2020: A new momentum for Nanoelectronics in Europe ?! Outline presentation 2010 – 2020: A new momentum for Nanoelectronics in Europe ?! What is going-on at the higher policy level in the Commission? Something about Micro & Nano-electronics The initiative on ENIAC and the Framework Program The initiative on Key Enabling technologies and on Smart Growth The future perspective Novel financing mechanisms _ Silicon Saxony 2010, Dresden 14

Industrial and Medical Military, Civil Aerospace, Security The Supply Chain Today Data Processing Communications Industrial and Medical Consumer Automotive Military, Civil Aerospace, Security

Nanoelectronics ”Small, smaller, smarter” - Advanced communication & computing components enabling pervasive applications - Lower cost, higher performance and more functionality performance Enabled by Smart design and Smart manufacturing of Smart Components Digital Society Power consumption More than Moore: Diversification Analog/RF Passives HV Power Sensors Actuators Biochips 130nm Interacting with people and environment Non-digital SoC & SiP - 90nm 65nm Combining SoC and SiP: Higher Value Systems Moore’s Law: Miniaturization Baseline CMOS: CPU, Memory, Logic 45nm Information Processing Digital content SoC 32nm 22nm Beyond Moore

But Fab Cost Entry Barrier Explodes ! -What changes happened and what is their impact on the present situation Dialogues triggered and political agendas planned to face general and specific challenges What do our R&D programmes offer, how they support SC mfg Conclusions Source: IC-Insights, 01/2008

Changing business models Global Consolidation: Number of Logic IDMs with Fabs. European Chip makers are moving up the value chain: From the hardware supply side into the final application Semi equipment materials Wafer foundry Software System mgmt Chip maker Application Content protection Infrastructure integrator Service provider Delivery network Gateway Legislator regulations IBS 2009, ST 2010 18

Nanoelectronics: Challenges ”Small, smaller, smarter” Keep research, manufacturing, integration & system competence in Europe? IPR, lead markets, user-supplier relationships, regional innovation clusters. Our part of global value chain: equipment, manufacturing (450mm), SMEs Policy & more efforts to keep Europe attractive for investments in semiconductor research & manufacturing and for its application in key lead markets. High on EU 2020 Agenda -

What can the European Commission do ? policy funding EU levers for sustainable growth and jobs

FP7-CIP/ICT Budget Profile: 70% increase in period 2011-13 M€  2007 2008 2009 2010 2011 2012 2013 TOTAL PF7 ICT 1.189 1.217 1.227 1.241 1.382 1.582 1.760 9.597 CIP 58 52 105 113 120 135 149 732 Financial support FP7: master & shape research & development CIP: ensure wider uptake & better use of research + Regional and Structural Funds,…

Advanced Nanoelectronics Technology To stimulate interaction of system and technology to better explore European system competences. To address energy efficiency needs for mobile applications Nanoelectronics products as system enablers and solution providers for global challenges as aging society, global warming, growing population or sustainable manufacturing. To prepare for “beyond” traditional shrinking (ITRS roadmap) 35 nm Gate Length

Manufacturing and Equipment assessment and Access Access to nano-manufacturing and to advanced technologies to be assured in Europe. Access to world wide equipment market for European suppliers, especially SMEs, need to be stimulated. Access to design tools and multi-project wafers fabrication for education, PhD and SMEs. Semiconductor Equipment for Wafer Bonding with Plasma Activation EV Group, CEA-LETI, Soitec Ruthenium Atomic Vapor Deposition Competitiveness in Nanoelectronic Device Generations AIXTRON, Fraunhofer IISB, Infineon Munich Low Energy and Dose Implant Test SEMILAB, Fraunhofer IISB, ST Microelectronics Crolles II, NXP Crolles R&D Metrology Using X-Ray Techniques Jordan Valley, CEA-LETI, STMicroelectronics Crolles II, NXP Crolles R&D 3D Integration of Bulk Si Wafers EV Group, CEA-LETI, STMicroelectronics Crolles II

ENIAC Joint Undertaking as Public-Private Partnership Executive Dir. and secretariat Industry and R&D actors Commission and Public Authorities Security & Safety Health & Wellness Energy & Environment Transport & Mobility e-Society Communication 7. Design Methods & Tools 8. Equipment & Materials

ENIAC Themes covered - 1st call - 2008 Proposals selected for funding (EC + MS) per sub-programme Transport and Mobility Energy and Environment 33 M€ 10 M€ E3Car SE2A SmartPM Electric car Car safety & efficiency Power management E&M and Manufacturing Design Methods and Tools JEMSIP_3D LENS MODERN Overall more than 100 M€ invested in SC mfg and ICT contribution to high tech mafg between 2007-2009. Not considering other programmes of the EC supporting Nanotechnologyand high tech manufacturing (MNP, Manufuture). Heterogeneity Lithography Reliability NEPTUNE IMPROVE 12 M€ 43 M€ Heterogeneity Productivity

ENIAC Themes covered - 2nd call - 2009 Proposals selected for funding (EC + MS) per sub-programme 16 M€ 33 M€ 8.5 M€ 11.6 M€ Communications Health and Wellness Security and Safety Energy & eSociety MAS CAJAL4EU MIRANDELA SMART CSSL Remote monitoring & therapy CSI Biosensors for diagnostics mm-wave & RF integration Secure storage Solid state lighting 3D imaging Even about 150 M€ 2007-09 in mfg of which 120 directly in SC mfg including the foodchain (E&M). E&M and Manufacturing MERCURE Design Methods and Tools Wide bandgap & RF MEMS Last Power EEMI 450 ESiP END Wide bandgap materials 450mm preparation Multi-chip integration Energy-aware design 31 M€ 6.3 M€

Findings by the panel of experts (Ex. Summary) “A joint strategy with shared implementation is good for industry, MS and EU » « The industry-led tri-partite industry-national-EU PPPs is a major achievement and must be continued to be coordinated at European level. » Room for improvement: overall investments did not increase as much as expected strategic objectives are insufficiently considered the innovation ecosystem is only partially covered address regional innovation ecosystem at European level harmonisation and national constraints are not yet optimally addressed; synergy with EUREKA has not been achieved there is benefit in broadening membership economics of scale should be better exploited (ENIAC & ARTEMIS) « Community body » constraints are burdensome ! But also: A set of large, high quality cooperative projects of high strategic European added value is launched as a result of the first calls! We all must be committed to “think European, and think bigger, wider, more strategic” Novel financing mechanisms _ Silicon Saxony 2010, Dresden 28

Contracted public funding for cooperative projects in Nanoelectronics First half of FP7 & first 3 calls of Eniac (2007-10): More than 500 M€ invested by EC in Semiconductors cooperative R&D! Photonics and Micro-/Nano-systems excluded

What can the European Commission do ? policy funding EU levers for sustainable growth and jobs

Why an industrial policy for Nanoelectronics NOW? - financial & economic crises (B€ losses – lack of capital for risk taking!) - globalisation (loss of jobs, loss of value added, loss of government income!) - fierce and growing competition from industry clusters in other regions driven by increased political and financial support. “If Europe wants to achieve global competitiveness it has to have direct access to state of the art processing technology and manufacturing competencies. Therefore the European Community should extend their Industrial Policy Framework by similar programs as in the Rest of the World in order to keep Europe’s Innovation driven Industry sustainably and globally competitive.” Dr. J. Knorr Urgent need for a competitive industrial policy, a project plan with detailed Objectives and estimated amount of resources !

Identified Key Enabling Technologies (KET) Communication COM(2009)512 of 30.9.2009 Driving our competitiveness, our innovation potential and knowledge-based economy delivering new goods and services Modernization of the industrial and research base Creating regional knowledge eco-systems incl. clusters of SMEs. Importance of KETs Defining KETs Knowledge intensive R&D intensive Capital intensive (Multi-)Skill intensive Enable innovation, Multipliers Systemic relevance Nanotech, Micro- and Nanoelectronics, Photonics, Advanced Materials, Biotech High Level Group (25#): industries, incl. SMEs, research community member states EIB Make policy recommendations using existing instruments existing state aid rules, improve access to finance KET communication by the Commission, DG Enterprise, now with Italian Commissioner. HLE group created: common approach on KETs and steps to take short/medium/long term. End of 2010: - proposals on way to go, from edu through to market, incentives, efficiency of investments into knowledge triangle Shared long term vision and A sense of partnership Make policy recommendation for EU2020, flagships and FP 8 http://ec.europa.eu/enterprise/sectors/ict/key_technologies

Key enabling technologies and their contribution to Europe’s grand societal challenges

Key Enabling Technologies High Level Group High Level Group (27 Personalities) + Supporting Technical Groups Mission of the KETs HLG To assess the competitive situation of the relevant technologies in the EU with a particular focus on industrial deployment and their contribution to address major societal challenges; To analyse in depth the available public and private R&D capacities for KETs in the EU To propose specific policy recommendations for a more effective industrial deployment of KETs in the EU Nurture and exploit KET technologies along the value chain in Europe in order to remain globally competitive What do we mean when we talk about Key Enabling Technologies? We are talking about high-technologies, which have a big economic potential because of their role as enablers for future goods and services. Most of the goods and services which will come to market in the next ten years may as yet be unknown – but we can be sure that they will be based on the commercial deployment of Key Enabling Technologies. In short, we are talking about the very fundamentals of our industrial base. At the same time, we have to realise that when we talk about Europe 2020 and we are also talking about addressing Europe's societal challenges – whether it be globalisation, climate change or an ageing society – we need innovative products and services, such as new medical treatments, low-carbon solutions, etc. The Commission believes that Europe's economic future will greatly depend on whether and how we master and deploy KET technologies. We have realised that while our research base on Key Enabling Technologies is very good, Europe is less successful in capitalising on its research and development results. Our main challenge is therefore to promote and support the industrial deployment of Key Enabling Technologies. We need to make sure that these technologies – including photonics, are commercialised and fully exploited in the European market. Before elaborating further policy measures, however, we would like to have views of experts and users in the marketplace. And this is why the High-Level Expert Group was launched. This Group was established on 13 July this year as a result of the Communication on Key Enabling Technologies (adopted in September 2009). It is composed of leaders in their areas, representing EU Member States, relevant European industries, SMEs, the research community and European Investment Bank. In the case of Photonics, this is Giorgio ANANIA (Vice President of the Photonics21 ETP) and Winfried HOFFMANN (Vice President of the European Photovoltaic Industry Association, EPIA). What we expect from the HLG group is the following: We want to know how Europe is competitively positioned in the area of Key Enabling Technologies vis-à-vis other regions; We expect a thorough analysis of the needs, challenges and opportunities with regard to the industrial deployment of KETs; and We are looking for specific policy recommendations which will help us to increase the effectiveness of the industrial deployment of Key Enabling Technologies in the EU. The Open Days are an essential part of the KETs work which is currently been undertaken by the HLG on KETs. Inaugural meeting: 13 July 2010, 1 year http://ec.europa.eu/enterprise/hlg_kets.htm

Europe 2020 – Innovation Challenge (European Commission (2010); Communication from the Commission: EUROPE 2020 - A strategy for smart, sustainable and inclusive growth; COM(2010) 2020; Brussels, 03/03/2010) For effective deployment of KETs, it is, amongst other aspects, important to: focus on an increased technology transfer and EU-wide supply chains; focus on increased joint strategic programming and demonstration projects; combine the deployment of KETs and climate change policy; promote demand through public procurement and via the Lead Market Initiative (e.g. protective textiles); exchange experiences and best practices between Member States and at international level; stimulate increased financial investment via EIB’s loan policy and venture capital financing; and upgrade skills and provide appropriate training and education. equal and global playing fields cooperation between knowledge clusters

What’s next Jan July 2nd half 2011 2011 2011 COM on KETs Inaugural Oct./Nov 2011 Jan 2011 July 2011 2nd half 2011 13 July Sep 2009 COM on KETs Inaugural Meeting HLG KET Open Days Your input will directly contribute to the mid-term report of the High-Level Group, which we expect to receive in January. At the moment, working groups on each technology area are working on their contribution to this report. It will provide a first vertical analysis of the needs and challenges for each technology. After the mid-term report, these findings will be merged and brought into horizontal policy recommendations for the final report which we expect to receive by July 2011. HLG mid-term Working document HLG Final Report Follow-up actions by the Commission

2010: Preparing FP 8 & CIP II & EIT (some key messages) Multi-Annual Financial Framework (MAFF) 2014+. RTD + Innovation: a strengthened CIP? FP8: « Competitiveness » (Leadership in Key Technologies), « Societal Challenges » (Mission orientation of research) and « Science for Science » Keep developing the European Research Area, coordination with Member States (joint programming) and with international scene. Keep Long term (ERC) and global cutting edge frontier research (FET) Simplification: A simpler structure (cooperation, capacities & skills and fundamental Research), simplified procedures and easier access for SMEs Externalisation (leverage private investments in PPPs – next generation JTIs) Draft 2011-2012 R&D&I is high on the political Agenda

Europe 2020: Role of Cohesion Policy A regional policy contribution to the “Smart Growth Initiative” Cohesion Policy is largest source of multi-sector EU funding - much larger than R&D budget: Use it also for R&D&I objectives Need to support that EU instruments work together. Regional Clustering, “poles de competivity” and exploring SMEs potential are high on the agenda. Largest budgets besides of agriculture: structural and cohesion funds. Use it also for innovation and related infratsructures; Again, make more directed and efficient use of available funds, create synergies of different interventions from different funds!!! Europe dioes not only have an investment size problem: it has an efficiency problem- R&D results and their impact on economy and society! Europe cannot achieve ‘2020’ goals unless regions achieve them

EUROPE 2020 Flagships EU Levers An Industrial Policy for FP8 / CIP II Regional Policy for Smart Growth (Structural Funds) Trade / External Policies/ Single Market An Industrial Policy for the Globalisation Era …………. Key Enabling Technologies MAFF 2014+: The larger financial context

Time Line !!!! Take part in the consultation processes !!!! Important Dates Digital Agenda: Public website: http://ec.europa.eu/information_society/digital-agenda/index_en.htm Innovation Union: October 2010 Adoption of communication website: http://www.facebook.com/innovation.union Industrial Policy: Nov/ Dec 2010 http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/ Regional Policy: t.b.d Multi-annual Financial Framework 2014+: May/June 2011 Frame work programme 8: Feb. 2011 – Orientation paper Dec. 2011 – Commission paper KET: mid-term Report – Jan 2011 final Report – Mid 2011 !!!! Take part in the consultation processes !!!!

Summary. Transition Barosso I to Barosso II 2010: Renewed cooperative spirit towards EU 2020, renewed emphasis on R&D&I as a basis for smart, sustainable and inclusive growth. Think larger, smarter and be competitive. Multi-Annual Financial Framework 2014+, new FP 8, CIP II,… 2010-2011:New opportunities for improvements and for holistic integrated views to face global and grand challenges KETs initiative including nanoelectronics is a major input to this processes JTI, in an updated format, could become a major element in the future R&D landscape. « Time is ready. Let us profit from these exciting times and take action ---- together -----” Novel financing mechanisms _ Silicon Saxony 2010, Dresden 41

THANK YOU Dirk.Beernaert@ec.europa.eu Information Society and Media: http://ec.europa.eu/information_society http://cordis.europa.eu/fp7/ict/nanoelectronics/mission_en.html European research on the web: http://cordis.europa.eu http://www.eniac.eu

Advanced Nanoelectronics Technology Future developments in Beyond CMOS and More than Moore as an extended-CMOS vision. No disconnection from the advanced silicon CMOS in order to keep impact of its results on the applications and markets. Needs of hybridizing silicon with molecular switches, ferromagnetic logic, spin devices and sensors in order to enable heterogeneous and morphic system architectures. Integrate-ability of novel technology with CMOS and their reliability become key factors. ITRS-ERD vision of the role of Beyond CMOS and More than Moore elements to form future extended CMOS platforms.

ICTs require raw materials: The dynamics of two decades of computer chip technology development and their mineral and element impacts. In the 1980s, computer chips were made with a palette of twelve minerals or their elemental components. A decade later, sixteen elements were employed. Today, as many as sixty different minerals (or their constituent elements) are used in fabricating the high-speed, high-capacity integrated circuits that are crucial to this technology. Source: CT IC

Key enabling technologies and their contribution to Europe’s grand societal challenges