COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A EUROPEAN STRATEGY FOR MICRO- AND NANOELECTRONIC COMPONENTS AND SYSTEMS
Date: 2013-05-23
Institutions: European Commission
Subjects: aeronautical industry, aerospace industry, competitiveness, economic intelligence, electronic component, innovation, nanotechnology, research and development

EUROPEAN 
COMMISSION 

Brussels, 23.5.2013  
COM(2013) 298 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A EUROPEAN STRATEGY FOR MICRO- AND NANOELECTRONIC 
COMPONENTS AND SYSTEMS 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A EUROPEAN STRATEGY FOR MICRO- AND NANOELECTRONIC 
COMPONENTS AND SYSTEMS 

INTRODUCTION 

1. 
Micro- and nanoelectronic components and systems1 are not only essential to digital products 
and  services;  they  also  underpin  innovation  and  competitiveness  of  all  major  economic 
sectors.  Today's  cars,  planes,  and  trains  are  safer,  more  energy-efficient  and  comfortable 
thanks  to  their  electronic  parts.  The  same  holds  for  large  sectors  like  medical  and  health 
equipment, home appliances, energy networks and security systems. This is why micro- and 
nanoelectronics is a Key Enabling Technology (KET)2 and is essential for growth and jobs in 
the European Union (EU). 

This  Communication  sets  out  a  strategy  to  strengthen  the  competitiveness  and  growth 
capacity  of  the  micro-  and  nanoelectronics  industry  in  Europe.  In  line  with  the  updated 
industrial  policy3,  the  aim  is  for  Europe  to  stay  at  the  forefront  in  the  design  and 
manufacturing of these technologies and to provide benefits across the economy. 

The  strategy  spans  policy  instruments  at  regional,  national  and  EU  level  including  financial 
support  for  research,  development  and  innovation  (R&D&I),  access  to  capital  investment 
(CAPEX)  as  well  as  the  improvement  and  better  use  of  relevant  legislation.  The  strategy 
builds on Europe's strengths4 and on regional clusters of excellence. It covers the whole value 
chain from material and equipment manufacturing to design and volume production of micro- 
and nanoelectronics components and systems.  

The  importance  of  the  area  and  the  challenges  faced  by  the  stakeholders  in  the  EU  require 
urgent  and  bold  actions  in  order  to  leave  no  weak  link  in  Europe's  innovation  and  value 
chains. The focus is on: 

• 

• 

• 

1 

2 
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4 

Attracting  and  channelling  investments  in  support  of  a  European  roadmap  for 
industrial leadership in micro- and nanoelectronics.  

Setting  up  an  EU-level  mechanism  to  combine  and  focus  support  to  micro-  and 
nanoelectronics R&D&I by Member States, the EU and the private sector.  

Taking  measures  to  strengthen  Europe's  competitiveness  towards  a  global  level 
playing field regarding state aid, to support business development and SMEs, and to 
address the skills gap. 

Referred to as "micro- and nanoelectronics" in this Communication, spans from nano-scale transistors 
to micro-scale systems integrating multiple functions on a chip 
COM(2012) 341 final 
COM(2012) 582 final 'A stronger European Industry for Growth and Economic Recovery' 
e.g. electronics for cars, energy and manufacturing sectors 

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2. 

2.1. 

WHY ARE MICRO- AND NANOELECTRONICS ESSENTIAL FOR EUROPE? 

An  important  industry  with  a  significant  potential  for  growth  and  a  massive 
economic footprint 

Micro- and nanoelectronics underpin a significant part of the worldwide economy. Their role 
will continue to grow as future products and services will become more digital, as illustrated 
below.  

• 

• 

• 

• 

• 

The global turnover of the sector alone was around €230 billion in 2012 5. The value 
of  products  comprising  micro-  and  nanoelectronic  components  represents  around 
€1.600 billion of value worldwide.  

Despite the recent financial and economic setbacks, the worldwide market for micro- 
and nanoelectronics has grown by 5% per year since 2000. Further growth of at least 
the same magnitude is predicted for the remaining part of the current decade. 

The pace of innovation in the field is one of the main drivers behind the high growth 
rates  of  the  whole  digital  sector  which  today  has  a  total  value  of  around  €3.000 
billion worldwide6.  

In  Europe,  micro-  and  nanoelectronics  is  responsible  for  200.000  direct  and  more 
than 1.000.000 indirect jobs7 and the demand for skills is unceasing.  

The impact of micro- and nanoelectronics on the whole economy is estimated at 10% 
of the worldwide GDP8.  

2.2. 

A key technology for addressing the societal challenges 

Micro-  and  nanoelectronics  are  not  only  the  computing  power  in  PCs  and  mobile  devices. 
They fulfil also the sensing and actuating functions9 found for example in smart meters and 
smart  grids  for  lower  energy  consumption,  or  in  implants  and  sophisticated  medical 
equipment  for  better  healthcare  and  for  helping  the  elderly  population.  They  are  also  the 
building blocks for better security, for the safety and efficiency of the whole transport systems 
and for environmental monitoring.  

Today no societal challenge can be successfully met without electronics.  

3. 

A CHANGING INDUSTRIAL LANDSCAPE FOR MICRO- AND NANOELECTRONICS 

3.1. 

Technology progress opens new opportunities 

Two main tracks characterise technology development and drive business transformation. A 
first  track  progresses  the  miniaturisation  of  components  at  the  nano  scale  along  an 
international  roadmap  for  technology  development  established  by  industry10.  This  is  the 
"more  Moore" 
less  energy 
consumption11.  

track  aiming  at  higher  performance, 

lower  costs  and 

5 
6 
7 
8 

9 

10 
11 

World Semiconductor Trade Statistics (WSTS), 2012 (http://www.wsts.org/) 
Digiworld report, IDATE 2012 (http://www.idate.org) 
http://ec.europa.eu/enterprise/sectors/ict/files/kets/hlg_report_final_en.pdf 
See  European  Semiconductor  Industry  Association  (ESIA)  Competitiveness  Report,  2008  "Mastering 
Innovation Shaping the Future" (https://www.eeca.eu/data/File/ESIA_Broch_CompReport_Total.pdf) 
A sensor is any device, such as a thermometer, that detects a physical condition in the world. Actuators 
are  devices,  such  as  switches,  that  perform  actions  such  as  turning  things  on  or  off  or  making 
adjustments in an operational system 
International Technology Roadmap for Semiconductors (ITRS) (http://www.itrs.net) 
Moore's Law: doubling performance to cost ratio every 18-24 months 

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A  second  track  aims  at  diversifying  the  functions  of  a  chip  by  integrating  micro-scale 
elements such as power transistors and electro-mechanical switches. This is referred to as the 
"more than Moore" track. This track is at the basis of innovations in many important fields 
such as energy-efficient buildings, smart cities and intelligent transport systems. 

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More than Moore:  Diversification

Analog/RF
Analog/RF

Passives
Passives

HV Power
HV Power

Sensors
Sensors
Actuators
Actuators

Biochips
Biochips

Interacting with people and environment
Interacting with people and environment
Non-digital content SoC & System-in-
Non-digital content SoC & System-in-
Package (SiP)
Package (SiP)

Combining SoC and SiP:  Higher Value Systems
Combining SoC and SiP:  Higher Value Systems

Information
Information
Processing
Processing

Digital content 
Digital content 
System-on-Chip
System-on-Chip
(SoC)
(SoC)

Beyond & Extended CMOS
Beyond & Extended CMOS

In addition, totally new, disruptive technologies and architectures are being researched. This 
is often referred to as the "beyond CMOS"12 track. It requires multi-disciplinary research, deep 
understanding of physics and chemistry and excellence in engineering.  

Furthermore, in order to lower production costs, industry increases also step by step the size 
of  the  material  support13  for  producing  micro-  and  nanoelectronics.  Massive  investments  in 
R&D&I and CAPEX are required for such transitions in manufacturing standards.  

3.2. 

Escalating R&D&I costs and a more competitive R&D&I environment 

Further  miniaturisation  implies  escalating  costs  for  R&D&I  and  CAPEX.  The  R&D&I 
intensity of the micro-  and  nanoelectronics industry increased from 11% in 2000 to 17% in 
200914.  This  trend  appears  to  continue.  Such  high  investments  can  only  be  sustained  by 
volume production.  

Consolidation  in  the  industry  is  on-going.  This  could  lead  to  a  situation  where  only  a  few 
actors are left worldwide and perhaps none in Europe. It is estimated that a 10% share of the 
worldwide market is needed for a semiconductor company to sustain the investment to keep 
up with technology development.  

As  a  result,  global  alliances  between  companies  are  formed,  e.g.  the  New  York  based  IBM 
alliance  on  300  mm  wafer  technology  and  the  Global  450  Consortium  focusing  on  the 
transition  to  450  mm  wafers.  In  Europe,  the  next  generation  technology  development  is 
centred on leading research centres such as LETI15, Fraunhofer16, and imec17 working in close 

12 

13 

14 

15 

Complementary metal-oxide-semiconductor (CMOS) is the standard technology for integrated circuits 
in the "more Moore" track 
Micro- and nanoelectronics chips are produced on round material supports called 'wafers'. Successive 
technology  generations  are  identified  by  the  diameter  size  of  the  wafers  on  which  they  are  produced. 
Today production is mainly done on 200 mm and 300 mm wafers. The next wafer size will be 450 mm 
OECD Information Technology Outlook 
(http://www.oecd.org/internet/ieconomy/oecdinformationtechnologyoutlook2010.htm) 
LETI  is  an  institute  of  CEA,  a  French  research-and-technology  organization.  It  specialises  in 
nanotechnologies  and  their  applications,  from  wireless  devices,  to  biology,  healthcare  and  photonics 
(http://www-leti.cea.fr) 

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cooperation with industrial players. Research itself is increasingly becoming global with the 
emergence of Asia as the home of patent holders and a skilled workforce. 

3.3. 

New business and production models 

The micro- and nanoelectronics industrial landscape is changing drastically with a significant 
shift of volume  production  to  Asia  in  the last 15 years18. Overall, production  in Europe has 
dropped  to  just  less  than  10%  of  world  production  in  2011.  Despite  the  strengths  of  US 
companies in the field only 16% of production is made in the US.  

With the increased cost of setting up production facilities ("fabs"), the granting by territorial 
authorities of financial incentives has become an important element in the decision where to 
build new capacity. Tax breaks, land, cheap energy and other incentives play a major role as 
does the availability of skilled labour force19.  
Another important trend is the rise of the "foundry" model20. Foundries developed strongly in 
Asia and represent already around 10% of the worldwide electronic components production. 
In conjunction, there are an increasing number of "fabless" companies21 that generate income 
from  selling  chip  designs.  Without  production,  these  fabless  companies  have  not  the  high 
financial overheads of the manufacturing companies. 

Secure  access  to  production  capacity  may  however  become  problematic  in  the  future  as 
foundries  extend  their  offer  to  include  design  and  prototyping  which  would  give  them  an 
insight into the end products. To minimize the risk, some companies doing own designs keep 
limited production lines in-house (the so-called "fab-lite model").  

3.4. 

Equipment manufacturers own key elements of the value chain 

Without progress in production equipment, advances in further miniaturisation and increased 
functionality of chips are not possible. Equipment manufacturers have become a key part of 
the  value  chain  which  is  reflected  in  their  prominent  role  in  the  international  technology 
alliances.  

4. 

4.1. 

EUROPE'S STRENGTHS AND WEAKNESSES 

Industry  structured  around  centres  of  excellence  and  wider  supply  chains 
covering all Europe 

Similar to the rest of the world, Europe's micro- and nanoelectronics industry is concentrated 
around  major  regional  production  and  design  sites.  The  regions  around  Dresden  (DE), 
Grenoble  (FR)  and  Eindhoven-Leuven  (NL-BE)  host  three  main  research  and  production 
centres with increased specialisation in one of the three areas of "more Moore", "more than 
Moore"  and  equipment  and  materials.  In  addition,  the  region  of  Dublin  (IE)  hosts  a  large 

16 

17 

18 
19 

20 
21 

The German Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public 
enterprise  and  of  wide  benefit  to  society.  Several  institutes  are  focusing  on  integrated  circuits  and 
systems (http://www.fraunhofer.de) 
Belgian imec performs world-leading research in nanoelectronics, leveraging scientific knowledge with 
global partnerships in ICT, healthcare and energy (http://www.imec.be) 
e.g. Capital expenditure of Korean companies increased from 13% in 2005 to 27% in 2012 
See Semiconductor Industry Association (SIA), Maintaining America's Competitive Edge: Government 
Policies  Affecting  Semiconductor  Industry  R&D  and  Manufacturing  Activity,  March  2009 
(http://www.semiconductors.org/clientuploads/directory/DocumentSIA/Research%20and%20Technolo
gy/Competitiveness_White_Paper.pdf) 
A foundry is a company owning factories and offering manufacturing services to "fabless" customers 
A  fabless  company  designs  its  own  components  but  outsources  their  manufacturing  to  a  service 
provider (the "foundry") 

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European  manufacturing  site  of  microprocessors,  and  Cambridge  (UK)  e.g.  is  home  to  the 
leading company in the design of low power consumption microprocessors that equip most of 
today's mobile devices and tablets.  

This  clustering  and  regional  specialisation  is  essential  for  the  future  development  of  the 
sector.  However,  it  relies  on  a  wide  supply  chain  spread  across  Europe.  This  includes 
relatively smaller but highly innovative and specialised clusters  such as the regions of Graz 
and Vienna (AT), Milan and Catania (IT) or Helsinki (FI). 
Europe  counts  three  large  indigenous  micro-  and  nanoelectronics  companies  ranking  8th 
(STMicroelectronics), 10th (Infineon) and 12th (NXP) in worldwide sales in 2012. Europe also 
attracted  some  major  overseas  companies  that  invest  in  Europe  (e.g.  GlobalFoundries  and 
Intel).  Micro-  and  nanoelectronics  manufacturing  in  Europe  is  further  served  by  a  very 
competitive  and  extended  value  chain  and  ecosystem  of  companies,  including  many  SMEs. 
The main manufacturing sites are embedded in the regional clusters as mentioned above.  

4.2. 

Leading in essential vertical markets, almost absent in some large segments 

Europe is relatively absent in the production of computer and consumer related components 
that represent a large part of the total market. It is leading though in electronics for automotive 
(~50%  of  global  production),  for  energy  applications  (~40%)  and  industrial  automation 
(~35%). Europe is also still strong in designing electronics for mobile telecommunications.  

European  companies,  including  a  large  number of  SMEs,  are  world  leaders  in  smart  micro-
systems  like  health  implants  and  sensing  technologies.  Although  these  are  currently  niche 
markets, they are areas of high growth (typically more than 10% per year). Another key asset 
is the European leadership in the high growth market of low power consumption components.  

4.3. 

Undisputed European leadership in materials and equipment  

Europe  has  some  of  the  most  important  equipment  and  materials  suppliers  including  e.g. 
ASML  and  SOITEC  that  hold  significant  shares  of  the  relevant  world  market.  These 
companies rely on many suppliers established throughout Europe many of them SMEs. These 
European  equipment  and  materials  suppliers  uniquely  master  highly  sophisticated 
technologies ranging from optics and lasers to precision mechanics and chemistry. Their role 
in  progressing  the  micro-  and  nanoelectronics  area  is  significant  and  well  acknowledged  as 
e.g.  illustrated  by  the  recent  strategic  investment  of  major  semiconductor  companies  in 
ASML22.  

4.4. 

Investments of EU companies remain relatively modest 

Although  in  absolute  terms  investments  by  European  companies  are  high  (in  the  order  of 
billions  of  euros),  they  remain  relatively  modest  compared  to  investments  made  elsewhere. 
Europe's business attractiveness nevertheless remains high given the size of its consumption 
which is above 20% of the world market. But future investments in electronics manufacturing 
in Europe are not guaranteed. Competition with other regions in the world is stiff.  

Public  investment  in  R&D&I  and  policies  to  attract  private  investment  remains  highly 
fragmented  across  the  EU  despite  the  progress  made  in  the  last  five  years.  This  sharply 
contrasts with the fact that European R&D&I in micro- and nanoelectronics is world-class and 
very attractive to international players.  

22 

See http://www.asml.com/asml/show.do?ctx=5869&rid=46974 - "As part of the program, Intel, TSMC 
and Samsung will each acquire ASML shares, equal to an aggregate 23 percent minority equity stake in 
ASML for EUR 3.85 billion in cash" 

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5. 

EUROPEAN EFFORTS SO FAR  

5.1. 

Regional and national efforts reinforcing the clusters of excellence 

Important efforts, notably over the last 15 years, have been devoted at regional level to build 
industrial  and  technology  clusters  in  the  area.  The  most  successful  clusters  are  the  result  of 
long-term  sustained  strategies  that  combine  policies  such  as  tax  incentives,  investment  in 
R&D&I in public labs, intensive industry-academia  cooperation, world-class  infrastructures, 
critical coverage of the value chain and a dynamic business environment. The availability of 
skills and knowledge is equally of major importance for the field.  

With  the  challenges  ahead  including  the  increasing  costs  of  R&D&I,  the  fierce  worldwide 
competition and the erosion of some key parts of the value chain in Europe (e.g. the stage of 
packaging  components  into  systems),  much  closer  collaboration  along  value  chains  and  in 
innovation ecosystems at EU level is a must.  

5.2. 

A growing and more coordinated investment in R&D&I at EU level 

Investment  in  R&D&I  in  micro-  and  nanoelectronics  is  part  of  the  EU  programmes  for 
research  and  development  since  their  inception.  The  EUREKA  programme  also  has  a  large 
research cluster on micro- and nanoelectronics23.  
After  10  years  of  stagnation  of  EU  support  to  R&D&I  in  the  field24,  a  gradual  increase  of 
around 20% per year started in 2011 leading to a budget of more than €200 million in 2013. In 
order  to  focus  the  R&D&I  efforts  and  build  critical  mass,  the  Commission,  Member  States 
and private stakeholders together launched, in 2008, a public-private partnership in the form 
of a Joint Undertaking25 (ENIAC JU). By the end of 2013, the ENIAC JU will have invested 
both from the public and private sides more than €2 billion on R&D&I  in addition to around 
€1 billion invested in micro- and nanoelectr onics in the Seventh Framework Programme.  

5.3. 

Technology breakthroughs but gaps in the innovation chain 

The  focus  in  the  EU  R&D&I  support  is  on  preparing  for  the  next  two  generations  of 
technologies26.  Through  these  programmes,  industry  kept  pace  with  the  state-of-the-art 
developments in further miniaturisation. Also through these programmes, sophisticated smart 
systems were developed that today are deployed for example in cars or health systems. 

However  the  EU  R&D&I  programmes  so  far  supported  the  early  phases  of  the  innovation 
process, i.e. validating the technologies up to a laboratory level27. The logic was to leave the 
next steps getting closer to the final product up to industry, given the high level of investment 
these require. This led to clear gaps in the innovation chain. To be effective and cross the so-
called 'valley of death', support to research and innovation in the field needs increasingly to 
address  the  whole  innovation  chain  spreading  beyond  any  one  company,  region  or  Member 
State.  

The  ENIAC  JU  called  recently  for  manufacturing  pilot  lines  addressing  particularly  these 
higher  scales  of  technological  maturity.  The  strong  interest  demonstrated  by  the  private 
stakeholders  and  the  public  authorities  to  support  these  pilot  lines  show  their  strategic 
importance.  

23 
24 
25 
26 
27 

http://www.catrene.org/ 
At ~€130 million per year 
Based on Article 187 TFEU 
Along the International Technology Roadmap for Semiconductors (ITRS) http://www.itrs.net/ 
Technology Readiness Levels (TRLs) are used to assess the maturity of evolving technologies. Levels 1 
to 4 typically refer to early R&D while levels 5-8 indicate prototyping and actual system validation in 
an operational environment 

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6. 

THE WAY FORWARD - A EUROPEAN INDUSTRIAL STRATEGY 

The proposed strategy builds on the European initiative on Key Enabling Technologies and on 
the HORIZON 202028 proposal for research, development and innovation. It focuses though 
on the actions that are specific for the challenges faced in micro- and nanoelectronics. 

6.1. 

Objective: Reverse the decline of EU's share of world's supply 

Europe  cannot  afford  to  lose  the  capacity  to  design  and  manufacture  micro-  and 
nanoelectronics. This would put large parts of the value chains of major industrial sectors at 
risk and deprive Europe of essential technologies needed to address its societal challenges. 

Given the wide range of opportunities ahead and the challenges industry is facing, it is now 
urgent  to  step  up  and  coordinate  all  relevant  public  efforts  across  Europe.  An  industrial 
strategy should ensure return to growth and reach, in a decade, a level of production in the EU 
that is closer to its share of world GDP. In detail, the aims are to: 

• 

• 

• 

• 

Ensure  the  availability  of  micro-  and  nanoelectronics  that  are  needed  for  the 
competitiveness of key industries in Europe. 

Attract  higher  investment  in  advanced  manufacturing  in  Europe  and  reinforce 
industrial competitiveness across the value chain from design to manufacturing. 

Maintain  leadership  in  equipment  and  material  supply  and  in  areas  such  as  "more 
than Moore" and energy-efficient components. 

Build leadership in the design of chips in high growth markets, notably in the design 
of complex components. 

6.2. 

Focus on Europe's strengths, build on and reinforce Europe's leading clusters  

As  indicated  above,  Europe's  assets  in  micro-  and  nanoelectronics  include  an  excellent 
academic research community and industrial leadership in vertical markets. Moreover, when 
considering Europe as a whole, there is an industrial and technology presence across the full 
value chain including equipment, material, manufacturing, design as well as strong end-user 
industry. 

Building on these strengths and mobilising the resources needed should make Europe a major 
player in micro- and nanoelectronics. Mobilising resources will need alignment of actions at 
regional,  national  and  European  level.  This  will  build  confidence  and  stimulate  the  renewal 
and growth of manufacturing capability in Europe. 

Emphasis  is  on  reinforcing  and  building  on  the  excellence  of  research  and  technology 
organisations  (RTOs)  in  terms  of  facilities  and  staff.  They  should  be  the  "places  to  be"  for 
talented  engineers  and  researchers  in  the  field,  at  the  centre  of  ecosystems  to  attract  private 
investments  in  manufacturing  and  design.  In  order  to  maximise  return  on  investment  and 
ensure  excellence,  further  progress  towards  complementary  specialisation  and  stronger 
cooperation  between  the  main  RTOs  will  be  a  key  for  success  in  line  with  the  Smart 
Specialisation strategy29 of the EU. 

To ensure the further uptake of electronics in all industrial sectors and seize the opportunities 
arising  from  cross-disciplinary  work,  closer  cross-border  and  cross-sector  collaborations 
including with end-user industries should be reinforced.  

28 
29 

COM(2011) 809 final 
http://s3platform.jrc.ec.europa.eu/home 

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6.3. 

Seize opportunities arising in non-conventional fields and support SMEs growth 

SMEs play a key role in emerging areas like plastic and organic electronics, smart integrated 
systems and in general in the field of design. An important goal therefore is to better integrate 
SMEs  in  value  chains,  and  provide  them  with  access  to  state-of-the-art  technologies  and 
that  help  embed  micro-  and 
R&D&I  facilities.  Support 
nanoelectronics  in  all  types  of  products  and  services  will  be  essential  to  spur  innovation 
across the economy and mainly in non-technology SMEs.  

to  centres  of  excellence 

EU–wide partnerships between end-user industries, public authorities and suppliers (large and 
small)  of  micro-  and  nanoelectronics  will  help  open  up  new  high  growth  areas  like  electric 
vehicles, energy-efficient buildings and smart cities and all types of mobile web services.  

7. 

THE ACTIONS 

7.1. 

Towards a European Strategic Roadmap for investment in the field 

The aim is to attract higher public and private investments and channel these to implement a 
roadmap for leadership to be established by industry.  

The level of public and private investment will match the size of the challenge. The intention is 
to bring the total public and private investment in R&D&I at EU, national and regional level 
to  more  than  €1.5  billion  per  year,  i.e.  a  total  budget  of  more  than  €10  billion  over  seven 
years.  

To  this  end  the  Commission  will  pursue  the  dialogue  with  stakeholders  and  set  up  an 
Electronics  Leaders  Group  to  elaborate  and  help  implement  a  European  Industrial  Strategic 
Roadmap that will build on Europe's strengths and cover three complementary lines: 

• 

• 

• 

The development of the "More than Moore" technology track on wafer sizes of 200 
mm and 300 mm. This will enable Europe to maintain and expand its leadership30 in 
a market that represents roughly €60 billion  per year and has a 13 % yearly growth. It 
will have a direct impact on high-value jobs creation including notably in SMEs.  

The  further  progression  of  "More  Moore"  technologies  for  ultimate  miniaturisation 
on  wafer  sizes  of  300  mm.  The  investment  should  enable  Europe  to  gradually 
increase production in this market that represents more than €200 billion 31.  

The  development  of  new  manufacturing  technology  on  450  mm  wafers.  The 
investment  will  initially  benefit  equipment  and  material  manufacturers  in  Europe 
who  are  today  world  leaders  on  a  market  of  around  €40  billion  per  year  and  will 
provide a clear competitive edge to the whole industry, in a five to ten years range. 

The roadmap will be established at the latest by the end of 2013 as a set of concrete actions 
reinforcing notably Europe's clusters of excellence in manufacturing and design (see Section 
4.1) and ensuring openness to partnerships and alliances across the value chain. The actions of 
the public sector, European Commission, Member States and regional authorities will consist 
of:  

• 

30 
31 

Supporting R&D&I through institutional funding or grants to actions driven by the 
roadmap.  Focused  and  coordinated  interventions32  generating  critical  mass  and 
maximising return on investment will be mobilised. 

Currently, production in Europe in this track is more than 30% of the world value.  
Europe's share of production is around 9%, but Europe is still at the leading edge of technology in the 
miniaturisation race.  

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• 

• 

Developing, in partnership with industry and in support to innovation, an advanced 
manufacturing  and  piloting  infrastructure  to  bridge  the  gap  in  the  innovation  chain 
and connect design with actual deployment.  

Facilitating access to financing CAPEX through loans and equities, notably regional 
funds  and  the  innovation  schemes  of  the  European  Investment  Bank  (EIB).  In  this 
context,  the  European  Commission  signed  in  February  2013  a  Memorandum  of 
Understanding with the EIB signalling KETs as a priority for investments. 

The Commission will prepare the ground for industry to team up along the value chain and to 
develop  and  regularly  update  the  roadmap.  Member  States,  regional  authorities  and  the 
European  Commission  will  support  the  roadmap  individually  and/or  collectively  including 
through a Joint Technology Initiative (JTI) and the EUREKA initiative. It will ensure the best 
use  of  regional  Structural  Funds  including  through  Smart  Specialisation  between  the  target 
clusters  and  the  use  of  financial  instruments foreseen under European Structural Investment 
Funds (ESI Funds)33. 

Industry  will  engage  in  maintaining  and  expanding  design  and  manufacturing  activities  in 
Europe  and  will  regularly  update  the  roadmap  with  the  help  of  RTOs  and  the  academic 
community  in  order  to  keep  it  up  to  date  with  the  dynamics  of  market  and  technology 
developments.  

The Joint Technology Initiative: A tri-partite model for large scale projects 

7.2. 
The European Commission will propose a Joint Technology Initiative34 based on Article 187 
TFEU that combines resources at project level in support of cross-border industry-academia 
collaborative R&D&I. The proposal for a Council Regulation to establish a Joint Undertaking 
will  replace  the  two  existing  Joint  Undertakings  on  embedded  computing  systems 
(ARTEMIS)  and  nano-electronics  (ENIAC)  that  were  set  up  under  the  Seventh  Framework 
Programme.  Within  HORIZON  2020  under  the  'Leadership  in  Enabling  and  Industrial 
Technologies' challenge, the new JTI will cover three main interrelated areas: 

• 

• 

• 

32 
33 
34 

Design  technologies,  manufacturing  processes  and  integration,  equipment  and 
materials for micro- and nanoelectronics. 

Processes,  methods,  tools  and  platforms,  reference  designs  and  architectures  for 
embedded/Cyber-Physical Systems.  

Multi-disciplinary approaches for smart systems. 

From regional, national and EU level programmes. 
http://s3platform.jrc.ec.europa.eu/home 
The impact of the proposal will be presented in the impact assessment. The budgetary impact will be 
included in the legislative and financial statement.  

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The  new  JTI  will  build  on  lessons  learned  from  the  current  JTIs35  and  provide  a  simplified 
funding structure. It will mainly support capital-intensive actions36 such as pilot lines or large 
scale  demonstrators  at  higher  Technology  Readiness  Level  up  to  level  8  as  shown  above. 
These will require a tri-partite funding model involving the European Commission, Member 
States  and  industry  and  will  help  align  relevant  investment  strategies  across  Europe.  The 
implementation will follow the principles of HORIZON 2020 and will be consistent with the 
cross-cutting  KETs  work  programme  to  strengthen  cross-fertilisation  between  the  different 
KETs.  

Support  to  the  JTI  will  be  complemented  with  EU  funding  for  technological  R  &D  and  for 
innovation  actions  targeting  notably  SMEs.  This  will  cover  R&D&I  in  new  areas  of  micro- 
and  nanoelectronics  (see  Section  6.3),  including  those  requiring  the  combination  of  several 
key  enabling  technologies  such  as  advanced  materials,  industrial  biotechnology,  photonics, 
nanotechnology and advanced manufacturing systems37. 

Within the new JTI the Commission will furthermore explore how to simplify and accelerate 
state  aid  approvals  including  through  a  Project  of  Common  European  Interest  according  to 
Article 107.3(b) of TFEU. 

7.3. 

Building on, and supporting horizontal competitiveness measures 

The  access  to  a  highly  skilled  workforce  of  engineers  and  technicians  and  to  high  quality 
graduates  is  essential  for  attracting  private  investments  in  electronics.  Similar  to  the  whole 
ICT  sector,  micro-  and  nanoelectronics  is  suffering  from  an  increasing  skills  gap  and  a 
mismatch  between  supply  and  demand  of  skills.  The  Commission  will  continue  to  promote 
digital competences for industry through the e-Skills initiative and has recently launched the 
"Grand Coalition for ICT skills and jobs". . For micro- and nanoelectronics the engagement of 

35 

36 
37 

First interim evaluation of the ARTEMIS and ENIAC Joint Technology Initiatives, 2010   
http://ec.europa.eu/dgs/information_society/evaluation/rtd/jti/artemis_and_eniac_evaluation_report_final.pdf 
Currently, public support to pilot lines in ENIAC JU is between €50 and €120 million per action.  
See COM(2012) 582 final Section III.A.1.ii) 

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industry  to  attract  the  young  generation  early  in  its  education  is  critical.  In  addition  to 
industrial  efforts  and  relevant  initiatives  at  regional  and  national  level  the  Commission  will 
continue  to  co-finance  in  HORIZON  2020  projects  to  develop  and  disseminate  training  and 
teaching materials on the latest technology in micro- and nanoelectronics as well as support 
awareness campaigns targeting young entrepreneurs. 

In  addition,  the  European  Commission  is  putting  in  place  an  EU  Skills  Panorama  with 
updated  forecasts  of  skills  supply  and  labour  market  needs  up  to  2020,  to  improve 
transparency  for  Skills,  Competences  and  Occupations  classification  (ESCO),  as  a  shared 
interface between the worlds of employment, education and training and to support mobility.  

Together with RTOs, Universities and national and regional authorities, the Commission will 
seek to make shared facilities and services for testing and early experimentation of micro- and 
nano-electronics technologies available to start-ups, SME's and users across Europe.  

Furthermore  through  public  procurement  of  innovations  that  are  driven  by  micro-  and 
nanoelectronics  such  as  health  or  security  equipment  better  conditions  for  market 
developments in these fields will be created. 

7.4. 

International dimension  

The  European  Commission  will  promote 
in  micro-  and 
nanoelectronics  especially  in  areas  of  mutual  benefit  such  as  international  technology  road-
mapping, bench marking, standardisation, health and safety issues linked to nano-materials38, 
and preparing the transition to 450 mm wafer size or advanced research in "beyond CMOS". 

international  cooperation 

The European Commission will continue its efforts to move towards a more transparent and 
global  level  playing  field  in  international  multi-  and  bilateral  fora  by  limiting  trade/market 
distortions  and  to  support  industry  in  sectorial  trade  negotiations  and  in  relevant  issues 
demanding an international debate such as the problem of non-practicing entities (NPEs).  

8. 

CONCLUSIONS 

As it has done in strategic fields such as aeronautics or space, Europe has no other choice but 
to  engage  in  an  ambitious  industrial  strategy  for  micro-  and  nanoelectronics.  This 
Communication proposes such a strategy that is based on a European roadmap for the field. It 
supports  smart  regional  specialisation  and  promotes  close  cooperation  along  the  value  and 
innovation chains.  

The EU, national and regional financial resources in this field have to be aligned in order to 
reach  the  critical  mass  needed  to  attract  investments  and  the  world  best  talents.  Financial 
resources will be concentrated on Europe's leading clusters. The further development of these 
will  enable  the  whole  European  businesses,  wherever  located,  to  exploit  the  latest 
developments  in  micro-  and  nanoelectronics.  The  action  plan  in  annex  summarises  what 
should be done.  

38 

COM(2012) 572 final: Second Regulatory Review on Nanomaterials 

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ANNEX 

Main actions: 

1 

Pursue  the  dialogue  with  stakeholders,  set  up  an 
Electronics  Leaders  Group  to  elaborate  and  help 
implement a European Electronics Industrial Strategic 
Roadmap 

By: 

When: 

European 
Commission, 
Industry 

The latest 
by end 
2013 

financial 
Promote  smart  specialization,  use  of 
instruments  foreseen  under  European  Structural 
Investment Funds (ESI Funds) and HORIZON 2020 

European 
Commission, 
Member States 

On-going - 
to be 
reinforced 

Promote,  under  the  Memorandum  of  Understanding 
signed  with  the  EIB  on  KETs,  the  means  to  ensure 
capital investment in production in Europe 

European 
Investment 
Bank, Industry 

1Q2014 

2 

Adopt Council Regulation and launch of the new tri-
partite JTI 

Early 2014 

European 
Commission, 
Member  States, 
Industry 

the  JTI,  explore  how 

Within 
to  simplify  and 
accelerate  state  aid  approvals  including  through  a 
Project  of  Common  European  Interest  according  to 
Article 107.3(b) TFEU 

European 
Commission, 
Member  States, 
Industry 

3Q13 

3 

Continuous  dialogue  with  key  RTOs,  regions  and 
Member  States 
the  micro-  and 
to  strengthen 
nanoelectronics eco-system at a European level 

European 
Commission, 
Member  States, 
Regions, RTOs  

On-going – 
to be 
reinforced 

Within  HORIZON  2020  make  shared  facilities  for 
testing  and  early  experimentation  available  to  start-
ups, SME's, universities and users 

RTOs,  European 
Commission  

1Q2014 

Invest in building bricks (education, training); foster a 
favourable engineering environment in Europe 

Member  States, 
Academics 

1Q14 - 
4Q20 

4 

Elaborate  and  implement  a  market-pull  strategy 
focussed  on  electronics-intensive  products  using 
diverse instruments such as public procurement 

Elaborate policy actions aimed at establishing a world 
trade/market 
level-playing 
distortions  including  within  the  Government  and 
Authorities Meeting on Semiconductor (GAMS) 

limiting 

field 

by 

By 2Q2014 

Industry, 
Member  States, 
Regions, 
European 
Commission  

European 
Commission, 
Industry 

On-going - 
to be 
reinforced 

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