DECISION Etudes & Conseil

From our keynote at #SEMICON on trade dynamics of the EU in the semiconductor industry: Over the past three years, the top six countries driving the exchange of semiconductor-related products across the value chain with the EU have been China, Taiwan, the United States, South Korea, Malaysia, and Japan. Together, these six countries account for 70% of the EU’s semiconductor value chain trade. 📦 Malaysia's notable position in the EU's semiconductor trade is due to the back-end manufacturing facilities of EU IDMs, including Infineon (3 facilities), NXP (1 facility), and STMicroelectronics (1 facility). These facilities handle assembly and testing, producing semiconductor final products, most of which are then shipped back to the EU. Similarly, many of the chips imported from China are assembled or packaged in facilities owned by the same EU IDMs before being shipped back to the EU. ⚙️ Overall, the EU maintains a surplus in semiconductor equipment exports. Interestingly, four of the top five destinations for EU equipment —South Korea, the United States, Taiwan, and China— are also among the top six countries driving overall semiconductor trade with the EU. Check out our full keynote at SEMICON Europa here: https://lnkd.in/ebRFa59X 📥 Analysis on trades in the semiconductor will be in the coming update of the ICOS-International Cooperation On Semiconductors report (to be published in 2025). You can check the latest version at: https://lnkd.in/e3WnCTQj #SemiconEuropa #Semiconductors #Trades #ExportControl #EUIndustrialPolicy #EUChipsAct

From our keynote at #SEMICON on trade dynamics of the EU in the semiconductor industry: 🌍 EU trade within the semiconductor value chain (Semiconductors, Equipments and Raw Materials/ Raw wafers/ Tools) experienced robust growth from 2016 onwards. In 2023, imports reached €74 billion, while exports hit €73 billion, almost balancing the trade thanks to the strong export performance in equipment. ⚙️ The EU’s robust ecosystem - featuring leading companies such as ASML, ASMI, and Aixtron, among other EU players, alongside the presence of global leaders like Applied Materials, LAM Research, KLA Tencor and other global players operating on EU soil - plays a critical role in this balance. Equipment exports totaled €34.5 billion in 2023, contributing significantly to offset trade deficits in other areas. 🏭 Despite the trade equilibrium, the EU faces a €20.9 billion deficit in semiconductors. The €53.5 billion in imports includes both semiconductors produced and packaged abroad but also a considerable volume of semiconductors produced within the EU however packaged abroad. Check out our full keynote at SEMICON Europa here: https://lnkd.in/ebRFa59X 📥 Analysis on trade in the semiconductor industry will be in the coming update of the ICOS-International Cooperation On Semiconductors report next year. You can check the latest version at: https://lnkd.in/e3WnCTQj #SemiconEuropa #Semiconductors #Trade #ExportControl #EUIndustrialPolicy #EUChipsAct

🤝 Thanks to SEMI Europe and SEMICON, as part of the world's leading trade fair electronicaFair, for giving us the opportunity to do a keynote speech on "The EU Semiconductor Strategy: Adapting to a Changing Geopolitical Landscape », in front of a hundred participants from a wide range of horizons (industry, professional organisations, policy-makers), setting the stage for an interesting panel discussion on chips and geopolitics with Frédérique LE GREVES, Gustav Kalbe, Virginia Kent, Joris Teer and Stefano Ramundo Orlando. 📈 Despite escalating geopolitical tensions, trade within the semiconductor value chain (raw materials, equipment and semiconductors) experienced robust growth from 2016 to 2022, outpacing overall merchandise trade. This growth was driven by increasing demand for cutting-edge technology, which rely on semiconductors, across different sectors of the economy. The period was marked by significant developments, including a surge in the DRAM and flash memory markets in 2017 and 2018, and a strong post-COVID recovery in 2021 and 2022. Notably, in 2020, semiconductor trade continued to buck the overall trade trend, driven by continued demand for IT products. In 2023, the global semiconductor value chain trade experienced a decline, more pronounced than that of total trade. However, this was primarily due to the industry's inherent cycles of market growth and contraction rather than geopolitical tensions. As it is often the case, the memory chip market was the most volatile, explaining the 10.2 % decline in the market in 2023. 📌 However, signs of geoeconomic fragmentation have started to emerge: trade tensions between China and the US have had a significant impact on bilateral trade, exacerbated by global uncertainty and geopolitical tensions following the Ukraine conflict. Since 2018, trade between the US and China in the semiconductor value chain has been consistently less dynamic than their trade with the rest of the world (see graph bellow). As a result, China's share of US semiconductor value chain trade has declined from 17% in 2018 to 10% in 2023. There are two distinct periods of decline: from the start of trade tensions in July 2018, and after the war in Ukraine in February 2022. A sharp recovery in 2020 and 2021 explained by a faster recovery of China during the COVID-19 pandemic, is also visible. In contrast, there are no apparent trade tensions between the EU and China. Trade in the semiconductor value chain between the two remains consistently more dynamic than their trade with the rest of the world. 📥 Check out the full presentation here: https://lnkd.in/ebRFa59X #SemiconEuropa #Electronica #Semiconductors #Geopolitics #EUIndustrialPolicy #EUChipsAct #Trade

📢 Upcoming event! Meet Léo Saint-Martin - Partner at DECISION Etudes & Conseil - at Semicon Europa on November 12th for a keynote speech on "The EU Semiconductor Strategy: Adapting to a Changing Geopolitical Landscape"! 🌍💡 This keynote will introduce the panel discussion on the Geopolitics of Semiconductors with: - Frédérique LE GREVES, President STMicroelectronics France and Executive Vice President, Europe & France Public Affairs, STMicroelectronics - Gustav Kalbe, Acting Director of DG Connect C, Digital Excellence and Science Infrastructure, European Innovation Council - Virginia Kent, CHIPS Act, ITSI Senior Coordinator, U.S. Department of State - Joris Teer, Associate Analyst Economic Security and Technology, EU Institute for Security Studies - Stefano Ramundo Orlando, Advocacy Manager, SEMI Europe, for the moderation Don’t miss this opportunity to gain insights into the forces driving the semiconductor sector and the EU’s path forward. See you at Semicon Europa! 🚀 📆 Check out the event agenda at: https://lnkd.in/dt9ZjCvb #SemiconEuropa #Semiconductors #Geopolitics #ExportControl #EUIndustrialPolicy #EUChipsAct #Innovation #Electronica

📢 Good news! The European Chips Skills Academy "Skills Strategy - Adressing the talent gap in the EU semiconductor ecosystem" report has just been published! 🎉 This report, produced by DECISION Etudes & Conseil, offers a deep dive into the skills gap within the EU semiconductor industry. Check out the full report here: 👉 https://lnkd.in/eC53EQQe #ECSA #Skills #Workforce #Semiconductors #TalentGap #PactforSkills #ErasmusPlus #EUChipsAct #ECSASkillsStrategy

🇺🇸 While Intel has recently put its German and Polish fab projects on hold for at least two years due to financial concerns and market conditions, the US continues to see significant momentum in semiconductor investments. A notable example is Wolfspeed, which last week signed a preliminary memorandum of terms with the U.S. Department of Commerce for up to USD 750 million in funding under the CHIPS and Science Act. 📊 The US demonstrates a broad range of semiconductor investments, driven by both domestic and foreign companies. With more than €200 billion invested, the US Chips Act is more than twice the size of the EU Chips Act. Over sixty investment projects have been registered in the US since the launch of the Chips Act. Among the eight largest projects valued at over €10 billion each, six are driven by American companies, like Intel, Micron, and Texas Instruments. Foreign investments are also contributing significantly: Samsung's €16.5 billion fab in Taylor, Texas, focusing on advanced logic chips, and TSMC’s €38 billion Arizona investment, which will produce the latest Apple A16 chips. 🏭 Beyond front-end investments, the US is also bridging its dependency on segments where it has a relatively lower production share, such as raw silicon wafers, where the US production share is estimated at 10.3% in 2022 by DECISION Etudes & Conseil, and in back-end manufacturing, where the majority of US facilities are located outside the country. Despite the overall momentum, some projects in the US have seen minor delays such as Intel's Ohio plant (with production now expected in 2027 instead of 2025),TSMC's Arizona project (pushed back to early 2025 due to workforce shortages), Samsung’s Texas fab (delayed until 2025 due to subsidy issues) and Micron's New York project (which faces environmental review delays, with construction expected in 2025). 🌍 Attached graph: Map of the ongoing investments in the US. 📥 Check out all the insights on investments across the world in the "Economic analysis of the EU and International semiconductor ecosystem,”. Full report here: https://lnkd.in/e3WnCTQj Marco Mezger Mark Calderhead #Semiconductors #MarketResearch #Electronics #Manufacturing #Investment #ChipsAct

📢 Are you interested in helping interoperability become a reality in the European cloud market? We invite you to participate in an external study launched by the European Commission on the interoperability of data processing services, supporting the implementation of provisions on this subject in the Data Act. We, at DECISION Etudes & Conseil, along with our partners WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH and Schuman Associates, are conducting this study and seeking input from stakeholders. Your insights are crucial! 📅 Key opportunities to contribute: - An online survey scheduled for December 2024 - A stakeholder workshop around March 2025 - Stakeholder interviews with key players The study will provide a comprehensive overview of existing harmonised standards for cloud interoperability, identify gaps, advise on the recognition of harmonised standards and open interoperability specifications in the repository, and identify industry efforts related to open interoperability specifications. Interested in contributing to this study? Please reach out via c.interop@WIK.ORG to get involved.

🇪🇺 Last week, Würth Elektronik announced the closure of its Schopfheim PCB facility in Germany, affecting more than 300 employees: https://lnkd.in/etKdPkrQ This decision is a direct result of the ongoing crisis in the European PCB industry, where a combination of rising energy costs, labor costs, and increasing competition from foreign countries like China have dramatically impacted the sector. Würth Elektronik will consolidate its PCB operations in Germany, focusing on more complex and customized PCBs, but this closure is yet another illustration of the rapid decline of PCB manufacturing in the EU. 🏭 What is the outlook for PCB production in the EU? The attached graph outlines the continued decline in PCB production in the EU. Over the past two decades, the EU’s share of global PCB production has plummeted from 13.8% in 2000 to just 2.2% today. If the current trend continues, the EU's share in the world production is expected to drop further to 1.7% by 2035 according to DECISION Études & Conseil. By 2035, the EU’s dependency on non-EU PCBs across strategic sectors is set to increase to 88.9%. The PCB demand in the EU is expected to grow to €13 billion, but production will only increase by 4.9%, leading to a production-to-demand ratio of just 11.1%. This decline is driven by the dominance of Asian countries, particularly China, which now accounts for nearly 60% of global PCB production. Europe, in contrast, has shifted to focusing on high-mix, low-volume production, catering to niche markets that require specialised PCBs. If these trends continue unchecked, the EU risks further deindustrialisation in critical electronics sectors, leaving the region highly dependent on foreign suppliers. 📊 Attached Graph: World PCB Production Distribution from 1980 to 2023. Check out the latest IPC Government Relations in Europe and DECISION Etudes & Conseil report "Securing The European Union’s Electronics Ecosystem” for more insights. Full report here: https://lnkd.in/entV9SUK #MarketResearch #Electronics #Manufacturing #Investment #EUChipsAct #PCB

🌟 Thank you to all the participants of the 2nd Skills Observatory Working Group of the European Chips Skills Academy for attending the presentation of the Skills Strategy 2024-2030 for the EU semiconductor ecosystem on October 10th. This seminar provided us with the opportunity to present our talent gap forecasts for 2030, refined by the results of our latest Skills Online Survey 2024, as well as the concrete actions to be implemented. Special thanks to Léo Saint-Martin, Raphaël Beaujeu, and Cédric LEBON for their contributions. 📈 Similar to industrial policy, a skills strategy to address a talent gap is a long-term process, mainly because it takes considerable time to train a new generation of graduates, requiring both short-term and long-term responses. In the short term, it is vital to tackle immediate skill shortages by making the optimal use of the current workforce. Concurrently, long-term planning is crucial to foresee future industry requirements and guarantee that the education system is aligned with these evolving necessities. 🤝 This webinar was an excellent opportunity to engage with over 50 participants from diverse backgrounds (industries, universities, technical universities, professional organizations, etc.) on the measures needed to address the skills challenges in the semiconductor industry. Video Presentation available here : ➡ https://lnkd.in/ePMm5fGF Follow DECISION Etudes & Conseil to stay informed about the release of the Skills Strategy at the end of October ! Christopher Frieling Reviliani Gani Rainer Schmidt-Rudloff Fabrice Graignic Stefano Ramundo Orlando Caroline Bedran Patrick COGEZ Adam M. Marie Martinet Camille Colombier ALI AMAN Péter Fürjes Oliver Krammer Alain Jarre Francesco Not Graeme Essen Laëtitia Baousson Javier Calpe Marco Koelink Daniel Lichtblau Brandon Jones Gerry Byrne Luís Miguel Pinho Dr. Anja Quednau Iranda Chaki Panagiotis Dimitrakis Betul Kucukakarsu Markus Seuring Wim Vanhaele #Semiconductors #Workforce #Skills #MarketResearch #EUChipsAct

🗞️ In this article published by #VIPress, we reflect on Intel's recent announcement to delay the construction of their facilities in Germany and Poland by at least two years. In this article, we provide a detailed overview of the current state of investments across Europe’s semiconductor manufacturing ecosystem. In case you missed it, you can read the full article here: https://lnkd.in/eXcat6yQ You can also explore the full report for an analysis of major semiconductor investments across key countries here: https://lnkd.in/e3WnCTQj A special thanks to vipressnet and Pascal Coutance for covering this important topic! #Semiconductors #EU #Investment #MarketResearch #EUChipsAct