iesa vs2013 ssia ulf schneider
DESCRIPTION
Singapore Manufacturing ResearchTRANSCRIPT
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Singapore Semiconductor Industry Association
ISA Vision Summit 2013 Ulf Schneider President, SSIA Managing Director, Lantiq Asia Pacific Pte.Ltd.
Bangalore, 15th February 2013
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Title
Semiconductor Growth
the Multibillion Global Jackpot
ISA Vision Summit 2013
Bangalore, 15th February 2013
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Speakers Profile
2005-present
President Singapore Semiconductor Industry Association (SSIA)
2006 - 2009
Board Member of Singapore National Research Foundation (NRF)
2010
Member of Singapore Economic Strategy Committee (ESC)
1988-1995
Project Manager with Siemens Semiconductor Group in Munich/Germany
1995-1996
R&D Manager with Siemens Components Pte Ltd in Singapore
1999-2004
R&D Director with Infineon Technologies AG in Munich / Germany
2004 2009
Vice President R&D with Infineon Technologies in Singapore
2005-2006 MD with Infineon Technologies in India
2009-2012
Managing Director with Lantiq Asia Pacific in Singapore,
Taiwan, China, Hong Kong and India
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Content
Motivation What is the Rationale behind the Strategy of Governments of the World to
have a Stake in the Semiconductor Industry??
Success Factors & Government Instruments What are the Economic Success Factors of our Industry, which
Governments can influence efficiently and effectively ?
Associations Influence How can Industry Associations step in to further enhance the Situation,
for both the Individual Players as well as the Governments Charters ?
Role Models Which are the other Countries to adequately learn from?
Conclusion & Take-Aways
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MOTIVATION ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Scarring-Off Barriers for Countries Semiconductor Success
High Industry Volatility, High Risk.
Highly Competitive Global Landscape.
Low Gross Margins (in most of the Segments).
Low Visibility for Short- and Mid-Term Future.
Extremely high Capital Demand.
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What makes the Semiconductor Industry so attractive for Country Economics ?
$0.3 Trillion Industry is hard to ignore
Deterministic, long term, Growth Perspective.
Opportunity to generate high number of Jobs.
Vision to generate high number of extremely high qualified Talents (They make it here, they will make it anywhere ...).
Gain (or keep) Ownership of strategically important Core Technologies . Decrease Dependency on other Countries IP.
Necessary Measure to hold down Trade Deficit Accounting.
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Global Semiconductor Impact
The Semiconductor Industry serves as a driver, enabler and indicator of technological progress. Developments in the industry determine the way we work, transport ourselves, communicate, entertain ourselves and respond to our environment.
SIA Semiconductor Outlook and Review - April 2010
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COUNTRY SUCCESS FACTORS ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Country Success Factors for the Semiconductor Industry
Government Focus
Human Resources: Low-cost. Highly Educated. Diverse.
Well-connected league of individual Entrepreneurs
Abundant and robust Country Infrastructure
Logistics Excellence
Stable and predictable political and legal Framework
Free from natural Disasters.
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GOVERNMENT SUPPORT INSTRUMENTS
ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Government Support
Tax Incentives and other Monetary Benefits.
Provision of Country Infrastructure and Resources.
Support of Free-Trade and Special Economics Zones.
Access to world-class Education and Qualification Systems.
Support to attract foreign Talents.
Government Stakes in Companies and Institutions.
Support and Encouragement of Industry-Clusters.
Protectionism.
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ASSOCIATIONS INFLUENCE ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Voice of the Singapore Semiconductor Industry
Support of Business Growth through Sharing of Market Intelligence and Leadership Development.
Support of Cutting Edge Technology & Capability Development.
Support of Talent & Manpower Recruitment and Development.
Communication and Networking beyond Industry Boundaries.
Facilitate close Collaboration between Industry, Research, Education and Government Bodies.
Singapore Semiconductor Industry Association as an Example.
Key Focus Areas
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ROLE MODELS ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Taiwan
About: Taiwan represents 70.2% of the worldwide IC foundry revenue and
55.1% of the worldwide package and testing revenue
History: 1960-1980: Prepatory/Seeding Phase
1980-1990: Constant Growth; UMC/TSMC founded out of local Research Institutes
since 1990: Full development of the Industry Cluster in Taiwan
Government Influence: Electronic Industry Development Projects I/II (1976-1983)
Ultra Large Scale Integration Project (1990-1994)
Financing of basic research and institutions like ITRI
Success Factors: Fully equipped industry verticals, from IC design houses to ODMs/OEMs,
focussed on strategic growth areas.
Very good informal networks.
Young population, a good education system and geographically centered in Asia.
Highly-developed network of institutions for collaboration (ITRI)
Source: "2012 Taiwan Semiconductor Overview, Page 3
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Israel
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Israel
About: Very strong high-added-value R&D orientation as part of the government charter
History: MNC's established R&D centers in Israel in the 70's
Milestones in the development were the establishment of Motorola Israel in 1964,
IBM Israel in 1972 and Intel Israel in 1974
Government Influence: Incubator and venture capital programs (Yozma)
Support of R&D activities via the Office of the Chief Scientist, the 'Law for the
Encouragement of Industrial R&D or the Magnet Program
Success Factors: Well directed government Investments
High education and motivation level
Skilled immigrants
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Singapore
Profile of Singapores Economic Development:
Source: Singapore Economic Development Board, 2012
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Singapore
About: Export oriented industry with a manufacturing output share of global semiconductor
revenues of 13.5%
History: First assembly and test facilities in the 60's
In the 80's the industry expanded into high-value add operations and growing further since
Government Influence: The Economic Development Board is guiding industry players to Singapore and is
holistically involved in taking care of their needs
Comprehensive incentive programs in place to support set up of R&D, manufacturing
and international HQ functions in Singapore.
Recent: Increased investments in education and talent development
Success Factors: Very good country infrastructure
Talented, diligent workforce
Stable, pro-business government and committed government agencies
Source: Singapore Economic Development Board, Singapore Semiconductor Industry Association, 2012
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Mexico
About:
Strong in Electronics Manufacturing Services
E.g. ranked largest exporter of flat screen TVs in 2011 80 percent of the worlds largest manufacturing service suppliers operate in Mexico
History: First Outsourcing activities of US companies started in the 70's
Government Influence: Variety of Government Programs: Refund of Taxes on Imports and Exports, 'Sectorial
Promotion Programm', 'Manufacturing Industry, Bonded Assembly and Export Services'
Success Factors: Low manufacturing costs, approximately 21% less than USA, 11% less than China
and 3% less than India
Good Location proximity to consumer market (US)
Source: Secretea de Econimoia Mexico, 2012
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China
About: Strong manufacturing basis
Today 4 out of the 15 largest foundries worldwide are chinese
History: Stage 1: Government run Project 908 in 1990 and Project 909 in 1995
Stage 2: 2000-2003: Episode of major growth, Industry grew from 98 to 463 design
firms also foundation of SMIC / GSMC
Government Influence: Stage 1: Government financed fabs and projects
Stage 2: Opening of the restrictive market allowed foreign companies to enter china
and also domestic companies established
Success Factors: Opening of the restrictive market, attracted private business
Cheap land, skilled labor, reliable infrastructure, tax benefits and a big market
allowed further growth
Source: University of Massachusetts, 2012
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India
About: Forecast of electronics market size in 2020: $400 billion
Of that $50 billion expected from semiconductors
Challenge for India: growing demand could result in a growing current account deficit
if not sourced locally
Government Influence: Modified Special Incentive Package Scheme (M-SIPS)
National Policy on Electronics 2012
Possible Success Factors: Large consumer market
Large engineering talent pool
Source: Frost&Sullivan Report, 2012
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India
Limitations:
Limited Infrastructure Capabilities:
Electricity & Water
Travel & logistics
Bureaucracy & efficiency of government
agencies
Education and talent development
Critical impact from unions
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CONCLUSION ISA Vision Summit 2013 Singapore Semiconductor Industry Association
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Conclusion & Take-Aways
Do not try to simply copy from other Countries Success Stories. India is unique. For India, go the India Way.
Take the right Sequence and the right Pace. There is no Fast-Track to Success in our Industry.
Focus on Industry Segments, which benefit India demands immediately: Communication, Mobility, Power Generation, ....
For Government Support: Make sure Support reaches the intended Benefices.
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The India Way on Policies: A Proposal A. Government Roadmaps and Policies need to be designed in close
Collaboration with Industry s representation.
B. Progress and KPIs for Roadmap Deployment need to be carefully monitored. Deviations need to be managed. Right Progress needs to be incentivized.
C. Indias huge Network of Entrepreneurs can support the build-up of a good mix of multinational and local Investment, MNCs and SMEs.
D. Indias Growth should be built on Indias Strengths. India is famous for its huge and highly skilled Talent Pool of Engineers.
E. Right Focus and Sequence of Steps. Look first for the Fundaments and then for the Building.
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Lets look forward to the Future of Indias Semiconductor Growth. Enjoy with me the Vision of ISA Vision Summit 2013.
Thank You !