Dirk Beernaert, European Commission Brussels, 16 December 2010 IC design Challenges and opportunities Workshop Dirk Beernaert, European Commission Brussels, 16 December 2010 1

Semiconductors as key enabling industry Electronics WW$1500B / Europa $315B Automotive Industrial Defense Medical Space Semiconductors $256B / Europa $41B Service Providers WW$6300B / Europa $1600B - Internet Services Providers - Games - Broadcast - Telecom Operators Semiconductors provide the knowledge & technologies that generate some 10% of global GDP. 2007 World GDP=65200BUS$ (ppp based) Source: IMF, ESIA, WSTS, Decision

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

The evolving SC value chain / landscape From a linear chain... ...to a networked model Academia, Scientific Research Institu- tions Eq.& Materials IDM DISTI (branded) OEM Service providers (virtual) Network op. (Consumer) Retail Businesses, Consumers, Authorities S/C Mfg Services: Foundry SATS Fabless IP Providers: IP blocks Software (firmware, stacks, middleware, OS) Design houses EDA DISTI ODM EMS (branded) OEM Module makers Service providers/ (virtual) network op. (Consumer) Retail Distrib. Content Industry: Providers Aggregators Service prov. Businesses, Consumers, Authorities Academia, Scientific Research Institu- tions Eq.& Materials IDM Logistics service providers From more vertical and simple model with dominating IDMs (‘real men have fabs’) to far more complex picture Source: ESIA

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 5

Nanoelectronics ”Small, smaller, smarter” Keep research, manufacturing, integration & system competence in Europe? IP, lead markets, user-supplier relationships, regional innovation clusters, equipment, manufacturing, SMEs Policy & more efforts to keep Europe attractive for investments in semiconductor research & manufacturing and for their application in key lead markets High on EU 2020 Agenda -

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

Current FP7 R&D Work Programme 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) - Moore’s Law: Miniaturization Baseline CMOS: CPU, Memory, Logic 130nm 90nm 65nm 45nm 32nm 22nm Beyond Moore Analog/RF Passives HV Power Sensors Actuators Biochips Information Processing Digital content SoC Interacting with people and environment Non-digital SoC & SiP Combining SoC and SiP: Higher Value Systems More than Moore: Diversification

Manufacturing, 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 Health & the Aging Society Energy Efficiency Safety & Security Automotive & Transport Communication & Digital Lifestyles Design Technologies Equipment, Materials & Manufacturing Semiconductor Process & Integration Industry and R&D actors Commission and Public Authorities New emphasis

FP7-CIP/ICT/ENIAC Budget Profiles: 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 ENIAC JU (2/3nat’l + 1/3EC) 97 106 87 125 240 620 1275

What’s next for nanoelectronics R&D in Europe? What are the challenges ahead in a globalized world? What are the priorities? How to measure impact and success? What’s necessary to better exploit results in Europe? What’s necessary to innovate and invest in Europe?