1. Khalil Rouhana Director, Components and Systems DG CONNECT, European Commission European Strategy for Electronics: From Roadmap to Delivery European Nanoelectronics Forum 2014 Cannes, 26-27 November

2. Outline EU strategy for Electronic Component and Systems: Where do we stand? The Electronics Leaders Group roadmap and implementation plan Conclusions

3. Almost 18 months ago 23 May 2013: Commission proposes a new EU wide strategy for the field with the aim of regaining production shares Highlights the importance of the sector and the need to act VP Kroes sets a challenge of doubling production in Europe economic value in Europe to reach 20 % of world share An 'aggressive' strategy – beyond business as usual One strategic framework for Europe Set up an Electronics Leaders Group) Focus, build on strengths and seize opportunities A bold and 'holistic' approach covering Full value chain Full innovation chain Be at the forefront of technology development

4. Since then Setting up of an Electronics Leaders Group (ELG) A Strategic Industrial roadmap for electronics in Europe 1/2/2014 Roadmap to guide public policy and ensure industry engagement Implementation plan June 2014 Commission proposes a new JTI, ECSEL, on 10 July 2013 Covers the value chain from components to systems Total budget~5 B€, 1.2 B€ EU, 1.2 B€ MSs, 2.4 B€ private ECSEL adopted by Council on 6 May, 2014on going Launch of first Calls in H2020 and in ECSEL: ~700 M€ on Components and systems First contract signatures: ongoing Revision of state aid guidelines Regional, R&D&I, GBER Guidelines on IPCEI

5. Outline EU strategy for Electronic Components and Systems: Where do we stand? The Electronics Leaders Group roadmap and implementation plan Conclusions

6. Industrial strategic roadmap for ECS Electronics Leaders Group established by VP Kroes Sept 2013, 11 CEOs Main investors in Europe +RTOs From equipment and materials to design and production Goal: propose a roadmap and an implementation plan to double the economic value of the semiconductor component production in Europe by 2020-2025 Consult a wider stakeholder community Representing the whole value chain More than 250 experts across Europe https://ec.europa.eu/digital-agenda/en/electronics-strategy-europe

7. Roadmap: Analysis of the situation

8. One goal, a three-leg approach One Goal: Doubling value of production of semiconductors in Europe Three-leg strategy Demand accelerators - Need to address the whole value ECS value chain Preparing the supply, - Raising production capacity across the supply chain Enhanced Framework and Infrastructure –Skills, trade negotiations, standards Demand/supply economic circle

9. Demand - Identified markets Existing areas where Europe is strong –Above average growth in the electronic field e.g. automotive, energy, industrial automation and security. New high growth areas, in particular IoT/"Smart X" –Where industry in Europe is well positioned to benefit from the development of anticipated "Smart X" markets. Markets in the changing landscape of mobile convergence –which constitute opportunities to be captured –e.g. by maintaining leadership in low power processors –and growing leading edge semiconductor manufacturing.

10. Demand accelerators: the approach "Bottom up": Smart anything everywhere initiative Competence and excellence centres Wide spread and wide reach-out Support Organic growth of new business in IoT/Smart X –Reference zones of full scale testing Spearheading innovation at local level "Top down": light house projects –Focused with clear targets –Mobilising across the value chain and across Europe

11. Competence centres in "Smart Anything Everywhere" Technology hubs in SmartX/IoT. Cover skills extending from chip design to CPS to big data,.. One stop shop for low-tech or non ICT industries Notably SMEs and new businesses Engines for organic development of business ecosystems around "smart X". Centres as brokers between supply and demand Brokers between design and manufacturing, etc.. Attract private investors (VCs, BAs, etc.) Financing from H2020 and regional R&D&I budgets including the ECSEL JTI and ESIF. Combination, articulation of support is essential Deployment at large scale

12. Reference zones for deployment of "Smart Anything Everywhere" Real spearheads for full scale testing of innovations in SmartX/IoT fields. A comprehensive investment in equipping and upgrading infrastructures homes, offices, transport, schools, hospitals, factories, etc. Public-private partnerships involving the ICT supply chain + engineering, energy, construction, health, tourism, financial, etc. Public support mainly at regional and local level But also from H2020 societal challenges (Pilots, demonstrations.) Link to smart cities initiative By 2017, 5 city zones or large public locations deliver: New and challenging service based on SmartX/IoT technologies.

13. Sector-specific focused trailblazer projects/initiatives Develop, test & deploy innovative products/services in essential areas for Europe, –e.g. automotive, energy health, security. Ambitious innovative initiatives: –e.g. Autonomous Mobility, "Smart me" or "Smart personal Companion", Surgery operating room 2023, Urban manufacturing,.. EU-wide initiatives that help focus R&D&I –Supported from H2020, ECSEL, and national or regional level. –Include regulatory and other measures –Involving the whole value chain, mainly user industries, end users & legal, ethical and financial stakeholders

14. Supply side Industry commitment & bold public support Investment in new silicon production and capability –Ambitious public support conditioned by industrial commitment –Start by exploiting and extending existing capacity –Investment in new capacity to match demand growth Explore new models of production Including new cooperation models An eco-system initiative –Reinforcing the electronics design and fabless companies Reinforcing cooperation across the innovation eco-system –Including closer cooperation in R&D&I –Specialise and cooperate

15. New production capacities Industry commitments so far Strong announcements by industry in 2013/14 Investments done in Europe by companies involved in the ELG source: aggregated data based on input from the ELG members But still an important effort needs to be done Item 2007-2010 (cumul.) 2011-2014 (cumul.) 2015-18 Projections for doubling Total investment level required to double Capex4.4 B€15.7 B€ 18.8 B€35 B€ R&D7.2 B€11.4 B€ 12.5 B€

16. Investment in production capacities: The way forward Pool public support, (one stop shop approach) Focused support packages, e.g. use of IPCEI Important Project of Common European Interest Beyond R&D&I: support to first production capacity Match competing regions Build on the investment in pilot lines ~1.8 B€ of investment in 2013-14 EU: ~260 M€, MSs: 260 M€, Industry 1.2 B€ More investments foreseen under ECSEL Provide access to loans financing with favourable conditions EIB financing to KETs can be as high as 60 B€

17. Building on the pilot lines: Four tracks of investments

18. Building on the main tracks of pilot lines Materials & Equipment Power & embedded electronics MEMS & sensors Next generation CMOS

19. A focused package of investment: Example of an IPCEI

20. Outline EU strategy for Electronic Component and Systems: Where do we stand? The Electronics Leaders Group roadmap and implementation plan Conclusions

21. Challenging but feasible and worth it! The weeks ahead can be determining for Europe's investments priorities in growth and jobs The ELG implementation plan provides significant input To double value of production of semiconductors in Europe To strengthen the whole electronics value chain At stake are hundreds of highly qualified jobs Let's just make it happen!

22. THANK YOU DG CONNECT (Communications Networks, Content and Technology): http://ec.europa.eu/dgs/connect/index_en.htm Horizon 2020 on the web: http://ec.europa.eu/research/horizon2020/index_en.cfm Khalil.Rouhana@ec.europa.eu