On the occasion of today's deadline for participation "Announcement of an expression of interest for the planned funding of research and investment projects in the field of microelectronics and communication technologies" of the Federal Ministry for Economic Affairs and Energy, the semiconductor and IT industry association Silicon Saxony e. V. addresses an open letter to the Federal Ministers Peter Altmaier and Olaf Scholz as well as the members of the German Bundestag.
IPCEI is the abbreviation for "Important Project of Common European Interest". This is a transnational, important project of common European interest that makes an important contribution to the growth, employment and competitiveness of European industry and the economy through state funding. More information on IPCEI: https://www.bmwi.de/Redaktion/DE/FAQ/IPCEI/01-faq-ipcei.html
Here is the wording of the open letter:
Dear Federal Minister Altmaier, Dear Federal Minister Scholz,
Ladies and Gentlemen, Members of the Bundestag, Ladies and Gentlemen,
We are writing to you today in the form of an open letter to explain our position on the current situation in the semiconductor manufacturing sector in Europe.
From a German perspective, it is positive that Saxony has developed into the largest production location for semiconductor chips in Europe in recent decades. In a global comparison, however, the proportion of chips produced in Europe has been falling steadily for years. Production capacities are increasingly concentrated in Asia (Taiwan and South Korea). China, the USA and Japan have launched extensive support programs and measures to maintain and expand technological sovereignty in chip production in their own spheres of influence.
At the same time, the current demand situation for semiconductors clearly shows the role our industry plays in the functioning of globally networked value chains. The bottlenecks in the automotive sector are not an isolated case. The ongoing digitalization of the economy and society as a whole will lead to a further drastic increase in demand for semiconductors in the coming years.
Against this backdrop, we expressly welcome the path taken towards the establishment of an Important Project of Common European Interest (IPCEI) 2 for microelectronics as a contribution to securing German and European technological sovereignty. The successes from the implementation of IPCEI 1, such as the establishment of Bosch in Dresden against competing global locations, clearly demonstrate that Europe and Germany can still demonstrate their competitiveness under the right framework conditions. The aim must be to improve digital sovereignty with regard to the supply of semiconductor elements in addition to crisis-proof security of supply for European industry.
Without a rapid and consistent implementation of IPCEI 2, Europe and Germany risk losing further importance within the global value chain.
The world is not waiting for Europe; investment decisions have been and are being made worldwide these days, for example by TSMC and Samsung in the USA or TSMC in Japan. We are therefore advocating the following important aspects:
- Speed: The IPCEI 2 must start in Germany as soon as possible.
We welcome the decision that Germany will once again take over the coordination of this IPCEI. This is a good prerequisite for achieving rapid coordination at European level. As delays are foreseeable due to the large number of expressions of interest from other countries, we are calling for the German partners to start by July 1, 2021 at the latest and for a concrete implementation plan to achieve this goal. - Budget: IPCEI 2 must be provided with sufficient and secure financial resources
The federal government and the EU must provide the necessary funds to enable ambitious projects, especially in comparison to the Asian countries and the USA mentioned above. We expressly welcome the funding rate of 20-40% that you have already articulated as a correct and important framework. It is also crucial that the players know the rules associated with the funding, such as repayment clauses, before submitting an application in order to have planning security. - Flexibility: IPCEI 2 must remain flexible in terms of content during the project term
This is necessary in order to be able to involve SMEs in particular during the course of the project and to be able to adapt work topics to current challenges with as little administrative effort as possible. - European cooperation: Germany should work towards this goal as a coordinator with its European partners: IPCEI 2 promotes necessary research, development, innovation and, above all, the expansion of urgently needed production capacities in order to
(a) be able to reliably supply European customers with innovative solutions and
(b) continue to be globally competitive.
As a European high-tech cluster and association, Silicon Saxony, in close cooperation with its partners from Silicon Europe, is available as a supporter and point of contact for interested companies in their participation in IPCEI 2 and beyond.
We also welcome the ambition to strengthen Europe in all areas of microelectronics. Commissioner Breton's vision points to the weaknesses in European microelectronics that have emerged over the last 30 years. The realization of this vision is not feasible in this decade, the conditions for this are lacking in Europe today and tomorrow. The faster IPCEI 2 is implemented, the better the chances that the vision can be achieved in the next decade on the basis of significantly strengthened microelectronics in Europe.
It is imperative that European users of microelectronics are included in the necessary strategy process. Their technological requirements and the volumes needed for markets such as automotive, 5G/6G and industrial IoT must be taken into account here. Thank you for your support!
We are at your disposal for further discussions.
Yours sincerely
Heinz Martin Esser
Spokesman of the Board Silicon Saxony e.V.
Frank Bösenberg
Managing Director
