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European Taxpayer Subsidising TSMC

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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Comments (4)

SemiCurious:

"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.

David Manners Author Profile Page:

The very same, SemiCurious

Outsider:

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.

David Manners Author Profile Page:

That's absolutely true, Outsider, and it would be terrible for Europe to throw this superb capability away. For instance, I beleive IMEC does the basic R&D for all the DRAM companies now. It would be tragic not to do it, but why Oh why, can't we establish a self-sustaining semiconductor industrial sector? Our Eurocrats seem to understand R&D, but they don't seem to have much of a clue about stimulating industry.

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