Is European semiconductor R&D being pursued for the benefit of TSMC? The question was asked at the IFS2010 meeting in London earlier this week.
"The European share of the world semiconductor market is 13% and what we're doing today means it will probably represent 5% of the world market in 2014. Furthermore, the European share of world semiconductor production is 5%. So why is Europe spending $1.8bn a year on semiconductor R&D?" asked Malcolm Penn, CEO of Future Horizons.
Around half of that $1.8bn comes out of public funds. So the European taxpayer is putting up $900m a year to subsidise chip research. "All of this research is World-Class-Plus", added Penn. The question is: Who benefits from this research?
"We're subsidising TSMC", said Penn, "CSR transferred a process to TSMC which had been developed under a European R&D programme. Another company transferred an automotive IC process to TSMC which was developed under a European programme."
This a reference to the deal between Infineon and TSMC which was agreed in November 2009 to extend the two companies' co-operation on embedded flash process development to automotive processes.
Penn bemoaned the fact that Europe's superb R&D capability is not being transferred into productive industrial capability.
"Where is the fab and end equipment follow through?" asked Penn, "Europe has the world's best R&D and the world's worst industrial policy. Why?"