European Taxpayer Subsidising TSMC

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Is the good old European taxpayer subsidising TSMC? This was asked at the IFS2010 meeting in London last 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 $1.8 billion a year on semiconductor R&D?" asked Malcolm Penn, CEO of Future Horizons.

 

Around half of that $1.8 billion comes out of public funds. So the European taxpayer is putting up $900 million a year to subsidise chip research.

 

 "All of this research is World-Class-Plus", added Penn. The question is: Who benefits from it?

 

"We're subsidising TSMC", is Penn's answer, "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?"

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4 Comments

"CSR transferred a process to TSMC which had been developed under a European R&D programme."

Is this a reference to CSR, Plc, the Bluetooth company? Thanks.

If Europe does not spend that money into R&D today, then eventually the Far East will have the capability in R&D comparable to Europe and the manufacturing will not be in Europe anyway.

Could this be a case of something or nothing? At least today, the engineers stay in Europe.

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