Investments in the semiconductor industry pay off for the state - this is shown by the current ZVEI study "From chips to opportunities: The importance and profitability of microelectronics funding". According to study author Tanjeff Schadt, Partner at Strategy&, PwC's global strategy consultancy, subsidies for microelectronics bring an impressive return of 30 to 40 per cent. The money invested is amortised within just nine to twelve years.
Investments in microelectronics increase added value and create jobs
As a result of microelectronics funding, the annual gross value added in Europe has increased by 33 billion euros and tax revenues have risen by 7.9 billion euros per year. In addition, 65,000 new, qualified jobs would be created in Europe, 49,000 of them in Germany alone.
"The figures clearly show that the investment pays off and creates the basis for Europe's competitiveness and innovative strength. We are seeing economic growth and job creation along the entire value chain," summarises Schadt. "Every direct job creates around six additional jobs along the value chain, not including jobs that are created in neighbouring industries as a result of increased competitiveness."
Despite these positive effects, Germany and Europe need to do more for the microelectronics industry. The study clearly states that the European Union's 20% target for global semiconductor capacity by 2030 is not achievable. Even with the subsidies currently provided, the share would fall from the current 8.1% to 5.9% in 2045.
Funding commitments for the semiconductor industry must be expanded
"If production capacities continue to decline, Europe risks being left behind and becoming a pawn in the game of geopolitical power interests," warns ZVEI President Dr Gunther Kegel. Because the microelectronics industry is crucial for Europe's competitiveness and technological sovereignty, the EU must step up its commitment.
Kegel: "The current funding commitments can only be a first step, they must be expanded." Europe only still has a strong market position in the areas of power semiconductors, microcontrollers and sensor technology, the ZVEI President continued and demanded: "In order to secure our position in the global value chains, funding should focus on existing strengths in the future. Europe needs its own technological foothold that cannot be ignored internationally."
It is also important to extend funding to the microelectronics ecosystem. Kegel: "We cannot afford to allow our market share in printed circuit boards and electronics production to shrink any further." Unlike in the USA, for example, there is no funding for either industry in the EU. The EU's share of the global PCB market has historically shrunk significantly and is well below 5%. 85 to 90 % of the global production volume is manufactured in China and Taiwan.
Microelectronics makes a major contribution to CO2 reduction
The study also highlights the contribution that microelectronics makes to reducing CO2 emissions. "Semiconductors help to save many times the emissions that occur during their production," explains Andreas Urschitz. The ZVEI and Infineon board member sees great opportunities in developing Europe into a pioneer of climate technologies. "Whether photovoltaics, wind power, heat pumps, storage or emission-free mobility: the demand for climate-friendly technologies will increase rapidly," Urschitz continues. "The intended climate-neutral transformation of the economy and society will only succeed with microelectronics. Semiconductors enable innovation, productivity progress and thus the competitiveness of future-oriented industrial sectors, such as the automotive sector, renewable energies and grids, industrial automation and many more."
According to the study, power semiconductors account for the largest share of the semiconductor demand required to achieve the climate targets - 80%. This is because they are needed almost everywhere for control and optimisation. In order to achieve the self-imposed goal of climate neutrality by 2050, up to 25% of the anticipated European production capacities could be required for climate-neutral electrification alone, the study also shows.
ZVEI's new microelectronics platform
In order to address the resulting needs of the microelectronics industry even better in the future, the ZVEI has created the new Microelectronics Platform. It is intended to bring together the relevant stakeholders and pool the concerns of the industry. The platform will be chaired by Andreas Urschitz.
Further information is available at www.zvei.org.
