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European Fab Database
November 1991
DataQuest
Semiconductors Europe
>
European Fab Database
November 1991
Source:
Dataquest
Dataquest
Semiconductors Europe
i
{
Published by Dataquest Incorporated
The content of this report represents our interpretation and analysis of information generally available to the public or
released by knowledgeable individuals in the subjea industry, but is not guaranteed as to accuracy or completeness. It does
not contain material provided to us in confidence by our clients.
Printed in the United States of America. Allrightsreserved. No part of this publication may be reproduced, stored in retrieval
systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming,
videotaf)e, or otherwise—without the prior permission of the publisher.
© 1991 Dataquest Incorporated
November 1991
European
Fab
Database
Background
The material in this booklet applies to the
European portions of Dataquest's Semiconductors Europe service Wafer Fab Database. The
Wafer Fab Database is updated on an ongoing
basis, employing both primary and secondary
research methodologies. Tlie tables included in
this booklet highlight both production and
pilot line wafer fabs.
General Definitions
A fab line is a processing line in a d e a n room
that is equipped to do all front-end wafer
processing. Occasionally there are two separate
product-specific fab lines or two different
wafer sizes in a clean room. In this situation,
a dean room will be documented as two fab
lines if the equipment is dedicated to each
wafer size or product line. There can be many
fab lines at one location.
Front-end wafer processing is defined as all
steps involved with semiconductor processing,
beginning with initial oxide and ending at
wafer probe.
A production fab is defined as a wafer fab
capable of front-end processing more than
1,250 wafers per week (type = F).
A pilot fab is defined as a wafer fab capable
of front-end processing 1,250 wafers or less
per week (type = P).
Definitions of Table Columns
The Products Produced column contains product information for seven product categories.
The information in this column can be very
detailed, depending on the information's availability. The nomendature used within the
seven product groups of the fab database is
as follows, with definitions where warranted:
• Analog
- UN—^Linear/analog devices
- A/D D/A—Analog-to-digital, digital-toanalog converters
- AUTOMOTIVE—^Dedicated to automobile
applications
- CODEC—Coder/decoder
- INTERFACE—Interface IC
- MESFET (GaAs)—Metal Schottky fieldeffect transistor
- MODFET (GaAs)
- MDIODE (GaAs)—Microwave diode
- MFET (GaAs)—^Microwave field-effect
transistor
- MODEM—Modulator/demodulator
- MMIC—Monolithic microwave IC
- OP AMP—Operational amplifier
- PWR IC—Power IC
- REG—Voltage regulator
- SMART PWR—Smart power
- SWITCHES—Switching device
- TELECOM—^Telecommunications chips
Memory
-
MEM—^Memory
RAM—^Random-access memory
DRAM—Dynamic RAM
SRAM 4 TR.—Static RAM uses a
4-transistor cell design
SRAM 6 TR.—Static RAM uses a
6-transistor cell design
VRAM—Video RAM
ROM—^Read-only memory
PROM—^Programmable ROM
EPROM—^Ultraviolet erasable PROM
EEPROM or E2—^Electrically erasable
PROM
FERRAM—^Ferroelectric RAM
NVMEM—^Nonvolatile memory (ROM,
PROM, EPROM, EEPROM, FERRAM)
FIFO—^First-in, first-out memory
SPMEM—Other specialty memory (dual
port, shift-register, color look-up, etc.)
Micrologic
- ASSP—Application-specific standard
product
- BIT—^Bit slice (subset of MPU functions)
- DSP—^Digital signal processor
- MCU—Microcontroller unit
European Fab Database
- MPR—^Microperipheral
- MPRCOM—MPR digital communications
(ISDN, LAN, UART, modem)
- MPU—Microprocessor unit
- USP—^32-bit list instruction set processor
for AI applications
- RISC—^Reduced-instruction-set computation
32-bit MPU
• Standard logic
- PTRAN—Photo transistor
- SAW—Surface acoustic wave device
- s r r IMAGE SENSOR—Static induction transistor image sensor
The Process Technology column lists four major
types of technologies. This column also lists a
few uncommon technologies along with information on levels of metal, type of well, and
logic structure, when available. Definitions of
the nomenclature used in the Process Technology column are as follows:
- LOG—Standard logic
• MOS (silicon-based)
• ASIC logic
-
ASIC—^Application-specific IC
ARRAYS—Gate arrays
CBIC—CeU-based IC
CUSTOM—Full-custom IC (single user)
PLD—^Programmable logic device
• Discrete
- DIS—^Discrete
- DIODE
- FET—^Field-effect transistor
- GTO—Gate turn-off thyristor
- HEMT (GaAs)—^High-electron-mobility
transistor
- MOSFET—MOS-based field-effert transistor
- PWR TRAN—Power transistor
- RECnnER
- RF—^Radio frequency
- SCR—Schottky rectifier
- SENSORS
- SST—^Small-signal transistor
- THYRISTOR
- TEiAN—^Transistor
- ZENER DIODE
•
Optoelectronic
-
OPTO—Optoelectronic
CCD—Charge-coupled device (imaging)
COUPLERS—^Photocouplers
lED—^Infrared-emitting diode
IMAGE SENSOR
LASER (GaP)—Semiconduaor laser or
laser IC
- LED—^Light-emitting diode
- PDIODE—^Photo diode
- CMOS—Complementary metal-oxide semiconductor
- MOS—^n-channel metal-oxide semiconductor (NMOS) and p-channel metal-oxide
semiconductor (PMOS) (More than
90 percent of the MOS fabs use
n-charmel MOS.)
- Ml—Single-level metal
- M2—^Double-level metal
- M3—Triple-level metal
- N-WELL
- P-WELL
- POLYl—Single-level polysilicon
- POLY2—Double-level polysilicon
- POLY3—Triple-level polysilicon
• BiCMOS (silicon-based)
- BICMOS—Bipolar and CMOS combined
on a chip
- BIMOS—^Bipolar and MOS combined o n a
chip
- ECL I/O—^ECL input/output
- TTL I / O — T i l input/output
• Bipolar (silicon-based)
- BIP—Bipolar
- ECL—^Emitter-coupled logic
- TTL—^Transistor-transistor logic
- STTL—Schottky TTL
• Gallium arsenide and other compound semiconductor materials
- GaAs—Gallium arsenide
- GaAlAs—Gallium aluminiom arsenide
- GaAs on Si—Gallium arsenide on silicon
- GaP—Gallium phosphide
©1991 Dataquest Incorporated November—Re|>ioduction Prohibited
European Fab DatalKise
- HgCdTe—^Mercuric cadmium telluride
- InAs—Indium arsenide
- InP—^Indium phosphide
- InSb—^Indium antimony
- LiNb03—^Lithium niobate
- SOS—Silicon on sapphire
The number in the Minimum Linewidth column
represents the minimimi linewidth at the critical mask layers as drawn. This number is
stated in microns and is defined in Dataquest's
fab survey as being available in production
volumes.
Tlie Wafer Size column represents the wafer
diameter expressed colloquially in inches.
However, for wafers greater than 3 inches in
diameter, die colloquial expression is inaccurate. When calculating square inches, the
following approximations are used;
Wafer-Start Capacity is defined in the fab survey as the equipment-limited wafer-start capacity per four-week period. Start capacity is not
limited by current staffing or the nimiber of
shifts operating; it is limited only by the
installed equipment in the fab and the complexity of the process it runs. Start capacity in
square inches is calculated using the approximate diameter and the wafer-start capacity.
The Clean Room Class column represents the
level of cleanliness in the cleanest part of the
dean room. This area represents the tme
environment to which the wafer is exposed.
The Origin of Owner column represents
the country where the parent company is
headquartered.
The Merchant or Captive column categorizes
each fab line on the tables as one of these
two types. Definitions of the various categories
are as follows:
• A Merchant fab line is a fab line that
produces devices that end up available on
the merchant market.
• A Captive fab line does not sell any of its
devices on the merchant market. All production is consumed by the owner of the fab
line.
©1991 Dataquest Incorporated November—Reproduction Prohibited
Table 1
European Existing Pilot and Production Fab lines
(Including Fabs Going Into Production During 1992)
Waf.
Size
Max.
n/Start
Capacity
(4 wks.)
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
1.50
4
5,000
60,850
5.00
3
16,000
113,120
Coimpany
City
Country
Fab
Name
Products
Produced
ABB-HAFO AB
JABFALIA
sneoEH
M/A
DIS OPIO
LAHPERTHEIM
GERMANY
N/A
PHR DIS
LIN
GERMAN!
QUI RSCH
3D ICs
nm-HAVE
OPTO
:t^:.
LIN AD/DA
TELECOM
CMOS BICMOS
1.00
t
15,000
182,550
t
20,000
547,600
6,000
73,020
1,000
12,170
AEQ AC (DAIMLER BENZ)
• . 1 ^ '
ANALOG DEVICES
Process
Technology
Min.
Linewidth
BIP CMOS SOS
ANALOG DEVICES
tj^fUl^.
N/A.
LIN AD/DA
TELECOM
BIP BICMOS
1.20
ANSALDO TRASPORTI
^aait
BfHiprH
PHR DIS
BIP IM
*r(j^
ASCOM FAVAG
SniTZERLAND
N/A
ARRAYS
CDSIOM
BH!
6,00
10,00
Table 1 (Continued)
European Existing Pilot and ergi^Ii^Htiili ; l ^ lines
(Including Pabs Going Into Brpc^jj^eti^ 'Pil0ffS 1992)
Company
City
Fab
Name
Products
Produced
K/k.
CBIC
CDSITOH
N/A.
EPROH
EEPROH
ARRAYS
N/A
A&RMS
SCOTLAND
N/A
MPn FPU
LOS
GERMANY
H/A
.1^';.
Coxintry
KCIT MICROELECTRONICS
Process
Technology
Min.
Linewidth
1.25
Max.
ff/Start
Waf. Capacity
Size
(4 wks.)
6
Sq. In.
Clean
Start
Room
Capacity (square
(4 Kks,)
feet)
14,000
383,320
25,000
5,000
243,350
0
«
•g
a
i
I
I
fttHM.
W*
NETHERLANDS
AUSTRIA HIKROSVSTEME eHBH
DIGITAL EQOIPHENI
SODTR QCEEHSrERSY
NMOS C^fOS
BICHOS
'ii-SS:-
4
25,a00
304,250
10,000
CMOS
0.70
«
3,000
82,140
28,000
LIN CUSTOM
CtlOS
1.50
4
4,16S
50,700
0
N/A
:i^-
1,000
19,020
0
•3
ELHOS GHBB
i
ES2 EUROPEAN SILICON STRUCTURES
ROOSSET CEDEX
CBIC
ARRAYS
CUSTOM MIL
0.80
Table 1 (Continued)
European Existing Pilot and Production Fab lines
(InclufUng Fabs Going Into Production During 1992)
Company
City
Country
Fab
Name
Products
Produced
Process
Technology
Max.
Sq. In. Clean
Min.
W/Start
Start
Room
Line~ Waf. Capacity Capacity {square
width Size (4 wks.) (4 vks.)
feet)
SID 883
PHASE 1
4Hb DRAH
ASIC
SEC PLESSEX S/C
v/x
LIN MPO
ARRAYS
SRAH COST
SEC PLESSEX S/C
Wi^
»/*
rcjiisn
O
NEWTON AXCLIFFE
EHCLUtp
i
a
GACtd
1.00
6
25,000
684,500
1.50
.4;
13,000
158,210
3.00
"-i.
15,000
182,550
CHOS NHOS H3 0.70
.-.ti-
6,000
164,2B0
19,9
29,0
MOS
12,00
f
Q
6EC PLESSEX S/C
ENGLAND
N/A
ASIC DSP
TELECOM
GEC PLESSEX S/C
ENGIAND
M/A
DIODES DIS BIP
LIN
5.00
B
12,000
228,240
GEC PLESSEX S/C
ENSLABD
H/A
LIN
3.00
4
14,000
170,380
"0
3
I
Table 1 (Continued)
European Existing POm unit &sbdxKf$C^ Fa|f lines
(Including Fabs Goltig into !IS^»0^ctf!Si0a: il>ai;a:^ 1992)
CompAny
City
BMT
Min.
Linewidth
Haf.
Size
Max,
H/Start
Capacity
(4 wks.)
Sq. In.
Clean
start
Room
Capacity (square
(4 wks.)
feet)
0.00
3
15,000
106,050
15,000
6,400
77,888
28,000
Products
Produced
Process
Technology
SWITZERUin) N/A
CONSUMER
ICs
HOS
SCOTLAND
ARRAYS
CMOS HOS
CBIC EPROH
CDSTOH
3.00
4
w*.
PHR CIS
HXBRID
dtaO
4.
20,000
243,400
Country
Fab
Nana
1-1
SLEHKOTHES
BOEBLINGEN
I
Wfik
2
q
CORBEIL-ESSONNES
FRANCE
*/*
ARRAYS LIN BIP
COSIOH
2.00
S
40,000
760,800
50,000
ISM
CORBEIL-ESSONNES
FRANCE
1^
256K DRAM
64K SRAH
CMOS HOS
1.00
S
25,000
475,500
25,000
S IBM
CORBBIL-ESSONNES
FRANCE
l!/*'
}Hb DRAM
CMOS
0.00
7,000
340,690
.Kt^;
DIS
20,000
243,400
I
s
IBU
0.00
4
Table I (Continued)
European Existing Pilot and Production Fab lines
(including Fabs Going Into Production During 1992)
Company
city
Country
Fab
Name
SINDEI.FIHGEN
GEBHANX
H/A
Products
Produced
Process
Technology
Min.
Llnewidth
Waf.
Size
Max.
W/Start
Capacity
(4 vks.)
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
15,000
285,300
20,00
a
20,000
973,400
45,00
t>
25,000
475,500
20,00
15,000
285,300
20,00
30,000 1,460,100
45,00
@
I
H/A
SINDELFIHQEM
IHb Dtma
4Mb DRAM
I
M/*
SIHDELFINGEH
H/A
SIHDELFIHSEN
H/A
4Mb ORAM
H/A
16K ORAM,
64K DRAM
a
I
I
I
1.50
256K DSAH
SRAM DSP
HPn
SINDELFINSEH
a.50
CMOS
T)
I
Vl*.
i
INST. SCIENCE & TECB.
BULGARIA
H/A
10,000
121,700
European Fab Database
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©1991 Dataquest Incorporated November—Reproduction Prohibited
Table 1 (Continued)
European Existing Pilot and Production Fab lines
(Including Fabs Going Into Production During 1992)
Company
Process
Technology
Min.
Linewidth
Max,
Sq. In.
Clean
W/Start
Start
Room
W a f . Capacity Capacity (square
Size
(4 w k s . ) (4 w k s . )
feet)
City
Country
Fab
Name
Products
Produced
FBEIBDHG
6EBHANY
N/A
DIS C D S T O H B I P
5.00
4
SDTION C O L D F I E U )
ENGLAND
H/A.
pntt D I 3
GaAs
0.00
0
n^pet:
itil^
25«K SRAH
MCD ASIC
LIN
CMOS BICMOS
H2
0.70
5
rRAHCB
%%:
M/A
H/A
0.00
0
H/A
0.00
3.00
16,500
200,805
®
S
I
LDCAS
0
54,00
10,000
190,200
21,50
4
10,000
121,700
.4
10,000
121,700
4
4,000
48,680
n
t
Q
MATRA 1
I
HATRA HHS/CYPRESS
O
9
N/A
HICORELECT. -HARIN
SWITZERLAND N / A
casWM'
tacROELECT. -MARIN
SWITZERLAND N / A
ARRAYS LIN CMOS
CDSTOH
I
s.
HICRONAS, I N C .
H/X
LIN CBIC
COSTOM
H2
2.00
12,9
Table 1 (Continued)
European Existing Pilot and Production Fab Lines
(Including Fabs Going into Production During 1992)
Company
City
Country
HIEI2C ALCATEL
ODDENAABDE
BELGIDM
MOTOROLA
EAST KILBRIDE
SCOTLAND
EAST KILBRIDE
SCOTLAND
Max.
Sq. In. Clean
Min.
n/Start
Start
Room
Line- Haf. Capacity Capacity (square
width Size (4 icks.) (4 wks.)
feet)
Products
Produced
Process
Technology
CUSTOM
CBIC ANA
MOS CMOS
BICHOS
1.00
4
15,000
182,550
21,520
HOS-1
HCD MEM
LOQ
CMOS tiOS Ml
3.00
4
20,000
243,400
25,600
MOS-4
HCD MEM
St^jitO
'.^
45,000
855,900
35,000
t
25,000
684,500
34,000
Fab
Nam«
8!
II
LOG
z
I
MOTOROLA
i
MOTOROLA,
EAST KILBRIDE
SCOTLAND
HDS-»
SRAM 1Mb
CMOS TOSHIBA 1 . 0 0
DRAM 68040
MPD
TODLODSE
riAHCB
BIP PHR
PHR TRAN
BIT
10.00
S
12,000
228,240
8,700
TODLOOSE
ntwra';
BP^
TELECOM OP BIP
AMP REG
AOTO
2.00
A
25,000
304,250
22,000
N/A
PIS
0.00
4
14,000
170,380
5,800
Table 1 fContlnued)
European Existing Pilot and Production Fab Unes
(Including Fabs Going Into Production Dming 1992)
Sq. In.
Clean
Start
Room
Capacity faquare
(4 wks.)
feet)
Waf.
Size
5.00
4
40,000
486,800
10,00
15,000
285,300
15,00
Fab
Name
NATIONAL S/C
SCOTLAND
BIP 4
NATIONAL S/C
SCOTLAND
LOQIC
LOS
H/A
0.00
5
SCOTLAND
UK 6"'
LOG CDSTOM
ABRAXS
BIP
1.50
*:
7,000
191,660
10,00
LIVINGSTON, XEST
LOTHIAN
SCOTLAND
PHASE 1
IHb DRAM
4Mb DRAM
CMOS H2 H3
0.70
9
9,000
171,180
19,50
LIVINGSTON, BEST
LOTHIAN
SCOTLAND
PHASE 2
4Hb DRAM
256K SRAM
0.00
G
9,000
246,420
19,50
City
ProcasB
Technology
Max.
H/Start
Capacity
(4 wks.)
Country
CoBf>any
Products
Producad
Min.
Linewidth
@
O
&
S
a
I
P
NATIONAL S/C
I
I
I
a
Mpn
NEHHARKET HICROSYS.
NOOVA MISTRAL S.P.A.
•ttKHum-
iVJit
.:ic^ Dis
iuc»
0.00
4
10,000
121,700
N/A
ZENER
DIODE
DIODES
V/A
3.00
3
15,000
106,050
10,7
Table 1 (Continued)
European Existing 141^ aiiiil. i!!|!^i3ae^laia Tab Lines
(including Fabs Going Ifil^ Rrq«4iw^gliut l^tiring 1992)
Company
City
Fab
Name
Country
nuuics
H/A
Min.
Linewidth
Products
Produced
Process
Technology
CONSUMER
ICS
BIPOLAR H2 M3 1.50
Max.
W/Start
Waf. Capacity
Size
(4 wks.)
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
5
18,000
342,360
0
K*
O
fS
PBIUPS
HAHBOEUF
GEKHUK
CONSDHER
CON
B I P KZ
1.20
S^
18,000
342,360
16,140
DISCRETE
DIS
BZS (Q
2.00
4.
22,000
267,740
0
tfA
8-BIT HCO
CtfOS HOS HI
1 6 - B I T HCO H2
EEPROH
ASIC
1.00
$
12,500
237,750
32,280
10.00
a
45,000
547,650
19,368
•S
^t^iit^
I
O
9
I
PHILIPS
HAZELGROVE,
ENGLAND
STOCKPORT CHESHIRE
BIPOLAR
TRAN DIODE BIP
RECTIFIER
tgmsB:
HAZELGROVE,
BNCLAND
STOCKPORT CHESHIRE
POHERHOS
DIODE
SMART PHR
HOS IH
3.00
4
10,000
121,700
11,836
N/A
N/A
:i|# >iiti.;
3.00
4
26,000
316,420
23,456
NETHERLANDS
Table 1 (Continued)
European Existing Pilot and Production Fab l i n e s
(Including Fabs Going Into Production During 1992)
CotnpAny
City
@
Country
Fab
Name
Products
P roduced
Process
Te chnology
Max,
Sq. In. Clean
Uin.
W/Start
Start
Room
Line- Haf. Capacity Capacity (square
width Size (4 wks.) (4 wfcs.)
feet)
8,400
229,992
20,000
380,400
39,3
0
12,9
NETHERLANDS H/A
SBAH CON
NEIHEBLANDS N/A
pm
MOS BICMOS
BIP
1.50
PHS DIS
DIODES
Sfli
6.70
BECTiriER
BIP H3
0.00
3
70,000
494,900
».^
'^-
12,000
228,240
12,5
'Z.i^
4
12,000
146,040
21,5
0.00
3
10,000
70,700
13,0
CMOS NMOS H2 0.80
O
S
iWEMEi;
It:
B'
O
o
I
])/A
I
Q
PHILIPS
I1
STADSKANAAL
NETHEBLANDS N/A
g13
PHILIPS RIC
'ItiS)^'
PHILIPS/FASELEC
SWITZERLAND N/A
I
a
ORANOLLERS
H/A
ii/h
DIS LIN
CMOS IH
Table 1 (Continued)
European Existing Pilot and f^roducUon Fab lines
Oncludlf^ Pabs Going IntbJRcO^hiction During 1992)
Company
S"
g
RIFA AB
City
KUKUt
Country
Fab
Hane
Products
Produced
Process
Technology
Min.
Linewidth
Max.
H/Start
Waf. C a p a c i t y
Size
(4 v k s . )
Sq. I n .
Clean
Start
Boom
Capacity (square
(4 v k s . )
feet)
N/A
0.00
3
10,000
70,700
0
a/A
Pm DIS
0.00
4
25,000
304,250
»2,000
SnEDEH
H/A
H/A
Stlf'W^
0.00
%.
10,000
121,700
0
20,000
243,400
0
EHSUUID
n/A
SHKDEH
•g
i
a
I
ROBERT BOSCH
REOIUNGEN
GERMANY
B^E^^UM;
LIN DIS
CDSTOM
BIP BICHOS
3.00
4
SEAGATE WCROELECT.
LIVINGSTON
SCOTLAND
N/A
SiH
SI* tS
3.00
<:
5,000
60,850
16,140
GLENROTHES
SCOTLAND
N/A
LIN DIS
OPTO
BIP CMOS MOS
4.00
4
2,000
24,340
ft
ilA.
DIS
IWW
0.00
*
10,000
121,700
0
!c
o
§'
9
I
I
Table 1 (Continued)
European Existing Pilot and Production Fab lines
(Including Fabs Going Into Production During 1992)
Company
g
SeS-TBOHSON
City
Country
Fab
Name
OKIlHMre
tl/X
35041 BENHES
'•xi/ii
Products
Produced
Waf.
Size
Max.
W/Start
Capacity
(4 wks.)
0.00
4
10,000
121,700
5.00
0
16,000
304,320
4.00
5
16,000
304,320
22,00
0.70
6
28,000
766,640
22,00
AM.
3.00
#
34,000
646,680
.^M^
SiW
t
21,000
255,370
Process
Technology
•.•ttS;
Min.
Linewidth
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
I
I
LIN ABB&XS
WOIC
SGS-THOHSON
a
BIP BICHOS
I
SG3-THOMS0N
AGRftTE (MILAN)
ITALY
HIA <
64K 256K
1Mb EPROH
PLD LIN
ARRAYS
C
I
I
K/ft
SGS-IHOHSOH
i
WiSx
S6S-IB0HS0N
S6S-TH0HS0H
COSTALEITO
w^
N/A
LOG LIN
COSTOM
Table 1 (Continued)
EiiTopeaa Existing Pilot silft Production Fab Uncs
(Including Fabs Going intl) Froductlon During 1992)
Waf.
Size
Max.
n/Start
Capacity
(4 wks.)
1.50
4
20,000
243,400
14,000
CMOS HOS
2.00
4
22,000
267,740
•
NVMEH MPD
CMOS HOS
l.SO
5:
16,000
304,320
Q
vm>
8^
H/A
5.00
3
70,000
494,900
0
esnitw
. txn^
»/»
5.00
4
20,000
243,400
0
ImdCH
BALANSTRAS ASIC
BH?
CUSTOM LIN
2.00
S
15,000
285,300
0
HfPlEi^
BALANSIRAS ASIC
CUSTOM
1.50
.^
15,000
285,300
0
Process
Technology
Min.
Linewidth
LIN PWR IC
CUSTOM
BIF CMOS
MOODLE 4
MPD LIN
MODULE 5
:l$|ili«e»;.
TtwtieB-'
Country
Fab
Hame
Products
Produced
FBAHCE
H/A
3GS-TH0MS0N
S<3S-TR0MS0H
Company
City
SGS-IBOHSOH
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
C
S
•g
I
I
SGS-TROHSON
I
SGS-TBOHSOH
iposiR'
I
i
CMOS HOS
Table 1 (Continued)
European Existing Pilot and Production Fab Unes
(lacludlng Fabs Going Into Production During 1992)
Company
City
Country
Fab
Hana
Products
Produced
RESEHSBORG
GEBHAHX
MESA 1
1Mb DRAH
4Hb DRAM
RE6ENSBDRQ
QERUntn
MESA 2
4Mb DRAM
I
O
SIIMENS
Process
Technology
Max.
Min.
H/Staxt
Line- Haf. Capacity
width Size (4 wks.)
Sq. In. Clean
Start
Room
Capacity (square
(4 wks.)
feet)
0.80
6
20,800
569,504
CMOS
0.80
e
16,000
438,080
WK
0.00
:«
10,000
121,700
I
I
itfik
REGENSBDRG
a
I
AUSTRIA
FAB 1
64K DRAM
LOG
Z,PO
i«' 40,000
486,800
AOSTRIA
FAB 2
25 eK DRAM HOS
1.20
S
40,000
760,800
SHITZERLADD
N/A
VOX
HfK'
0.00
<;
10,000
121,700
LOG HPO
CMOS
HCO ARRAYS
3.00
4
24,000
292,080
c
I
I
TELEFDMKEN
6ERHIUTY
H/A
0
3,000
Table 1 (Continued)
European Existing Pilot aiut Production Fab lines
(Including Fabs Going Into ^wductlon During 1992)
Coonpany
City
Country
Fab
Nana
Products
Produced
Process
Technology
Mln.
Linewidth
Waf.
Size
1.00
4
1.00
$:-
Max.
W/Start
Capacity
(4 wks.)
Sq. In.
Clean
Start
Room
Capacity (square
(4 wks.)
feet)
CUST
TELEFDNBEN ELECT.
eEBHurr
H/A
h-*
CUSTOM LIN
DIS MCa
BIP HOS CA405
20,000
243,400
s
•S
it/it
TELEFDNKEN ELECT.
OPIO HIGH BIP
FREQUENCY
5,000
35,350
3,000
9,420
I
2!
TELEFDNKEN ELECT.
BEILBSONN
H ^
N/A
1.00
K/A
0.00
4
10,000
121,700
25,000
PHASE 1
4Hb DRAH
CMOS
AS3P CBIC
0.80
C:
23,740
650,001
4«,000
PDR FAB
FHR DIS
WS
0.00
J4
14,379
174,992
9,000
N/A
LIN ASSP
BIP CMOS
BICHOS
0.80
-A-
9,463
179,986
10,000
rttMicK
K/A
T^MMf
EHQLAND
a
s
g: w
I
jra
BEDFORD
FREISINQ
Table 1 (Continued)
European Existing Pilot and Production Fab Lines
Clncludlng Fabs Golt^ Into Productloa During 1992)
Company
City
Country
Fab
Name
Products
Produced
Process
Technology
Max.
Min.
n/Start
Line- Haf. Capacity
vidth Size (4 wks.)
Sq. In. Clean
Start
Room
Capacity (square
(4 nks.)
feet)
-*?*->
@
GERMANX
N/&
FINLAND
Kill.
I
CBIC LIN
ASSP
CMOS BICMOS
O.SO
3
10,515
199,995
5.00
3
aOO
1,414
0,00
t
0.00
0
i
fb
O
VAISALA
I
I
STARNSDORF
»fX
PHR DIS
it/K
VEB HALBLEITERHERK
FRANKFORT <ODER)
QERHANY
N/A
LIN
VEB KOMBIH&T MIRROELEKTRONIK
EHFCRT
GERMAHX
M/A
N/A
CMOS MOS
0.00
0
NEDHAUS AH RENNHEG GERMANY
W^
VSt^i
Wf^'
0.00
0
BERLIN-OBERSCBOEME GERMANY
nSIDE
H/A
SENSOR CCD N/A
0.00
0
I
a
VEB mSRK FDER FEBNSEBELEKTRONIK
17,00
Table 1 (Continued)
European Existing Riot aod lEP^Siducidaa Vab lines
(Including Fabs Goli^ into K^bd^Kiikm JDuring 1992)
Company
City
Country
Fab
Name
Products
Produced
«
NESTCODE S/C
CBIPPENRAH
EHeUMD
N/A
DIS
«
ZETEX
OLDHAM
Ii
S
o.
E
I
NA - Not Available
Source: E>auquest (November 1991)
n/A-
Procesa
Technology
Hln.
Linewidth
Waf.
Size
Max.
W/Start
Capacity
(4 wks.)
Sq. In.
Clean
Start
Ro<»n
Capacity (square
(4 wks.)
feet)
N/A
0.00
4
10,000
121,700
0
BIP MOS
1.50
5
10,000
190,200
26,000
Table 2
European Future PUot and Production Fab lines
(Planned FacUlttes Going Info Production fay Year)
Country
Fab
Name
Production Begins; 1992
HITACHI
LANDSHDT
GERMANY
N/A
4Hb DRAM 256K
IHb SRAM
MITSUBISHI
AIiSDORF
GERMANY
N/A
4Mb DRAM HPU
1Mb DRAM
tl
AVEZZANO
ITHiX
PHASE 2
16Hb DRAM
Company
@
S
City
Products
Proceas
Technology
N/A
&i»,
(SHEJi^:
Fab
Type
Target
Date
Prod.
Begins
r
01/01/92
0.80
e
is,coo
779,720
FAT
03/01/92
0.80
E
22,000
602,360
25
F
02/01/92
0.60
8
20,000
973,400
30
0.80
6
45,000 1,232,100
I
^
^
/
Production Begins: 1993
FOJITSU
NEWTON AYCLIFFE
ENGLAND
PHASE 2
4Mb DRAM ASIC
CMOS
/
Hafer
Hln.
Start
Line- Waf. Capacity
width Size (4 wks.)
Sq. In.
Clea
Start
Roo
Capacity (Square
(4 wks.)
Feet)
IMTEL
LEIXLIP, KILDARE IRELAND
FAB 10
386 486 586
MPD LOG
CMOS
r
06/01/93
0.80
e
18,000
876,060
30
MIETEC ALCATEL
OODENAARDE
BELGIUM
FAB 2
ASIC
CMOS M2
P0LY2
FAT
07/01/93
0.50
6
5,000
136,900
12
ENGLAND
PHASE 3
16Hb DRAM
0.60
8
30,000
1,460,100
I
g
g
i
Production B e g i n s : 1994
FUJITSU
NEnTON AYCLIFFE
DaUquest (October 1991)
CKOS
/
/
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The content of this report represents our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed
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This information is not furnished in connection with a sale or offer to sell securities, or in connection with the solicitation of an offer to buy securities. This firm and its parent and/or their officers,
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© 1990 Dataquest Incorporated
Introduction to the Service
EUROPEAN SEMICONDUCTOR INDUSTRY SERVICE
Dataquest's European Semiconductor Industry Service (ESIS) is a comprehensive
information service covering the European semiconductor industry. It is a
product-oriented, executive-level perspective intended to assist with strategic
decisions of key executives and product managers of semiconductor manufacturing
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businesses or institutions interested in the semiconductor industry. The service
consists of the following:
•
Data-base reference notebooks containing sections that are continually
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becomes available
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SERVICE STRUCTURE
The service analyzes and reports on the products, markets, and major
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•
Provides semiconductor consumption forecasts in the following ways:
By product technology
By product function
By application market—includes data processing, communications,
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ESIS Volume II
0003068
© 1989 Dataquest Incorporated February
Introduction to the Service
Analyzes European semiconductor markets for the following regions:
Benelux—includes Belgium, Luxembourg, and the Netherlands
France
Italy
-
Scandinavia—includes Denmark, Finland, Norway, and Sweden
United Kingdom and Ireland
West Germany
Rest of Europe—includes Austria, Portugal, Spain, and Switzerland
Identifies services and suppliers to the European semiconductor industry
Analyzes the forces affecting the European semiconductor market, such as:
Supply and demand
Technological developments
-
Economic issues
Government policies
Distribution
SERVICE ORGANIZATION
Volume I
Volume I contains separate sections for each of the European geographical regions
covered by the service, and each regional section covers the following topics:
•
Overview—discussion of the economic environment
•
Semiconductor Device Markets—analysis of the local markets by technology
and function
© 1989 Dataquest Incorporated February
ESIS Volume n
0003068
Introduction to the Service
•
Application Markets—analysis of local application markets for semiconductors
in data processing, communications, industrial, consumer, military, and
transportation sectors
•
Plant Locations—manufacturing locations by company within the region
•
Design Center Locations—semiconductor design center locations by company
for the region
Volume n
Volume II, which discusses Europe as a whole, is divided into the following topics:
European Overview—covers analysis of trends in capital and research and
development expenditures, venture capital, and government and private
investment; discusses the European economic environment and channels of
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Semiconductor Device Markets—analyzes the European market for integrated
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Semiconductor Application Markets—analyzes the European application
markets for semiconductors in data processing, communications, industrial,
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Major Users—analyzes the major semiconductor users in Europe
Services and Suppliers to the Semiconductor Industry—identifies the key
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testing services, and wafer fabrication services
Memory—analyzes the European memory semiconductor markets
Microcomponents—analyzes the European microcontroller, microprocessor,
and microperipheral markets
Volume in
Volume III, which contains the company-related data, is divided into the following
topics:
•
European Plant Locations—lists
semiconductor manufacturers
ESIS Volume II
0003068
the
plant
locations
© 1989 Dataquest Incorporated February
for
all
major
Introduction to the Service
•
European Design Center Locations—lists the design center locations for
worldwide semiconductor companies in Europe
•
European Semiconductor Production—analyzes wafer fabrication in Eurojje
•
Company Profiles—profiles selected companies active in Europe
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•
Worldwide market shares of European companies
•
European market shares of:
European companies
U.S. companies
Japanese companies
Rest of World companies
Other Components
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© 1989 Dataquest Incorporated February
ESIS Volume II
0003068
Introduction to the Service
Newsletters
Newsletters are published regularly throughout the year and should be filed in the
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ESIS Volume II
0003068
© 1989 Dataquest Incorporated February
Introduction to the Service
PRODUCT TECHNOLOGY DEFINITIONS
Dataquest divides the total semiconductor market into integrated circuits, discrete
devices, and optoelectronic devices. These categories are further segmented as shown
on the following pages.
Integrated Circuits (ICs)
ICs include bipolar devices, MOS devices, and analog devices, broken down as
follows:
•
Bipolar—bipolar memory, bipolar logic
Bipolar Memory—ECL RAM, ROM, PROM, flip-flops, latches, register
files, shift registers
Bipolar Logic—^bipolar ASIC, bipolar standard logic, bipolar other logic
Bipolar ASIC—includes gate arrays, PLDs (programmable logic
devices), CBICs (cell-based ICs) and full-custom
Bipolar standard logic—includes TTL, ECL, and other family logic,
as well as TTL-compatible SSI, MSI, LSI; CML, ECL, I2L, ISL, STL
with TTL levels; standard, AS, FAST, LS, ALS lines;
ECL-compatible SSI, MSI, LSI; RTL and DTL
Bipolar other logic—includes ASSPs (application-specific standard
products), bipolar bit-slice (e.g., 2900, 29300 families), ALU,
control unit, multiplier, floating point, digital filters; also includes
bipolar support chips and chip sets for MPUs
•
MOS—MOS memory, MOS microcomponents, MOS logic
MOS Memory—DRAM, SRAM, ROM/other
DRAM—Dynamic RAM
SRAM—Static RAM
ROM/other—includes ROM, PROM, EPROM, EEPROM, flip-flops,
latches, register files, shift registers
MOS Microcomponents—MOS
MOS microperipheral, DSP
microprocessor,
© 1989 Dataquest Incorporated February
MOS
microcontroller,
ESIS Volume II
0003068
Introduction to the Service
Microprocessor (MPU)—includes all microprocessors such as Intel
X86 family. Motorola 68XXX family, RISC
Microcontroller (MCU)—includes single-chip controllers such as
Intel 8051 and Motorola 68HC05
Microperipheral (MPR)—includes MPU support chips used in system
support (e.g., timer, interrupt control, DMA, MMU), peripheral
controllers (e.g., disk, graphics display, CRT, keyboard),
communications controllers (e.g., UART); also includes MOS chip
sets for MPU support, LAN coprocessors, accelerator coprocessors
(e.g., floating-point unit, graphics coprocessor, image processor)
Digital signal processor (DSP)—includes single-chip DSPs, MOS
bit-slice, ALC, mulipliers, accumulators, and digital filters
MOS Logic—MOS ASIC, MOS standard logic, MOS other logic
MOS ASIC—includes gate arrays, PLDs (programmable logic
devices), CBICs (cell-based ICs), and full-custom
MOS standard logic—includes MOS family logic such as HC, HCT,
and FACT lines
MOS other logic—includes application-specific standard products
(ASSPs) (e.g., motor control ICs); also MOS ALC, MAC, digital
filters, and other building blocks
Analog (linear)—monolithic, general-purpose, specialty-purpose, analog ASIC,
hybrid
Monolithic—includes bipxilar and MOS monolithic linear ICs with more
than SO percent analog circuits by area on the die
General-purpose—includes input/ouput and power applications
Specialty-purpose—includes
applications
telecommunications
and
consumer
Analog ASIC—includes linear arrays, linear CBIC, and linear full-custom
Hybrid—includes hybrid packages sold by semiconductor vendors, used
mostly in linear applications
ESIS Volume II
0003068
© 1989 Dataquest Incorporated February
Introduction to the Service
Discrete Devices
Discrete devices include transistor, diode, thyristor, and other discrete devices, as
follows:
•
Transistor—includes small signal and power transistors, and field effect
transistors (FET)
•
Diode—includes small signal and power diodes, Zener diodes, and rectifiers
•
Thyristors—includes all unidirectional and bidirectional thyristors
•
Other discrete—includes tunnel and varactor diodes, microwave diodes, and
other polycrystalline devices
Optoelectronic Devices
Optoelectronic devices include light-emitting diodes (LEDs), infrared lamps, LED
displays, laser devices, optoelectronic couplers, and sensors (photo diodes, selenium
rectifiers, solar cells). They exclude LCD displays and incandescent and fluorescent
lamps and displays.
APPLICATION MARKET DEFINITIONS
Dataquest segments and defines the semiconductor application markets as follows:
•
Data Processing—This includes all equipment whose main function is flexible
information processing. Included in this segment are all personal computers,
regardless of price, distribution, or use in the office, education, or home
environment.
•
Communications—Within the communications market, Dataquest classifies
telecommunications as a subsegment that consists of customer premises and
public telecommunications equipment. The other communications categories
include radio, studio, and broadcast equipment.
•
Industrial—The industrial segment includes all manufacturing-related
equipment, including scientific, medical, and dedicated systems.
•
Consumer—This is equipment that is designed primarily for home or personal
use, the primary function of which is not flexible information processing.
Audio and video equipment and appliances are typical examples of equipment
that is classified in the consumer application market.
© 1989 Dataquest Incorporated February
ESIS Volume 11
0003068
Introduction to the Service
•
Military—Military electronic equipment is primarily defense-oriented
electronic equipment and is classified by major budget area. It does not
include all electronic equipment procured by the government because such a
breakout would double-count equipment that logically belongs in other market
segments.
•
Transportation—This segment consists mainly of automotive and light truck
electronics. This designation leaves room to analyze other markets, such as
off-highway equipment, that are potentially large veers of semiconductors.
Further definitions of these segments are included in the European Semiconductor
Applications Market (ESAM) binder.
ABOUT DATAQUEST
Dataquest's research covers an entire generation of high-technology industries, with
a primary focus on the following six broad areas:
Semiconductors
Information systems
Peripherals
Office equipment
Industrial automation
Telecommunications
Within these primary areas, Dataquest tracks and serves more than 25 separate
industries.
Dataquest provides a comprehensive line of products and services designed to meet
the varying research and analysis needs of corporate decision makers. The products
include the following:
•
Industry services similar in nature to the European Semiconductor Industry
Service
•
Executive and Financial Programs—A series of business opportunity and
technology advisory programs specifically designed for senior executives
involved in high technology
•
Focus Reports—Highly detailed landmark publications on specific issues of
topical interest
ESIS Volume II
0003068
© 1989 Dataquest Incorporated February
Introduction to the Service
Newsletters—General overviews and analyses of specific industries or markets
Product Specification Guides
Who's Who Industry Guides
Consultancy
DATAQUEST LOCATIONS
The European Components Group (ECG) has its headquarters in our London office,
and clients in Europe should address their inquiries to that office. ECG also maintains
staff in our San Jose office, and inquiries from subscribers in the United States can be
addressed there.
Dataquest Incorporated
1290 Ridder Park Drive
San Jose, California 95131-2398
USA
Telephone: (408) 437-8000
Telex: 171973
Fax: (408)437-0292
Dataquest UK Ltd.
103 New Oxford Street
13th Floor, Centrepoint
London WCl AIDD
United Kingdom
Telephone: (01)379 6257
Telex: 266195
Fax: (01)240 3653
Dataquest GmbH
Rosenkavalierplatz
D-8000 Munich 81
West Germany
Telephone: (089) 91 1064
Telex: 5218070
Fax: (089) 91 2189
10
Dataquest Japan, Ltd.
Taiyo Ginza Building/2nd Fir
7-14-16 Ginza, Chou-ku
Tokyo 104
Japan
Telephone: (03)546 3191
Telex: J32768
Fax: (03)546 3198
Dataquest SARL
Dataquest Intelligent Electronics
Tour Gallieni
36, Avenue Gallieni
93175 Bagnolet Cedex
France
Telephone: (1) 48 97 31 00
Telex: 233263
Fax: (1)48 97 34 00
© 1989 Dataquest Incorporated February
ESIS Volume H
0003068
What Is On-Line?
On-line is an electronic database containing information from all of Dataquest's worldwide
and regional services. Depending on which service a client subscribes to, access may be gained to
one or more of the service information bases. Along with the individual service databases there are
certain information areas available to all clients, irrespective of which service they subscribe to.
Figure 1 illustrates the main menu. Options 1 to 10 are service specific, for example, cUents to ESIS
are able to access option 3; options 11 to 19 are available to all clients.
Figure 1
Dataquest's Semiconductor On-Line Service Main Menu
nSH CLIENTS - Type;
GO MfiS
for iieusletter
nemi
WAILABLE TO ALL CLIENTS - COnPAHV BACKGfiOUNDERS UPDATi:!) IZ/^O
TYPE: GO COFl
MAILABLE TO SISPMT CLIENTS - US SCfllCOMDUCTOR BOOK-TO-BILL REPORT AHn ANALYSIS
IflHAURY 1^91 NEUSLETTER
TYPE: GO SIS2B8
' r e s s <i^> foaf MDre •
llATAQUEST
i A3ETS
2 ESAN
3 ESIS
4 JSAM
5 JSIS
6 SAM
7 SENS
8 SIS
9 SUIS
10 NILAERO
* INFORMATION AUAILABLE TO ALL CLIENTS
11
12
13
14
15
16
17
18
19
« Inquiry Sfiruirre
* LJorlduide Market Share - Update 5/90
* Uorlduide Forecast-History-Shipnents-Updctte
** General N e u s l e t t e r s
« Company InforFiatiqn
* DQ flonday Report
*f Keyword Search
« Stock Market
« Neu Updates
Enter choice or <CR> for nore f
Note: Options 11 to 19 are available to all clients
Source: Dataquest (Maich 1991)
Online also provides:
•
Information on company balance sheets (Option 15)
•
Dataquest's latest worldwide market share estimates (Option 12)
•
Dataquest's latest worldwide semiconductor forecast (Option 13)
•
A selection of important newsletters (Option 14)
•
The latest Wall Street stock market prices (Option 18)
ESIS
0008308
©1991 Dataquest Europe Limited March
Reference material—^will not be republished
10/90
What Is On-Line?
Option 11 provides cUents with their own electronic mail box. Using this chents are able to
send inquiries to Dataquest's Client Inquiry Centers (CIC) in San Jose in the United States and to
Denham in England.
The DQ Monday report (option 16) provides pricing information on 26 key semiconductor
components from 6 world regions on a twice-monthly basis. An analysis of the recent price changes
is also published. In addition, a Dataquest analysis of recent news items is published on a weekly
basis. These news items are drawn from Dataquest's worldwide research offices in Japan, Taiwan,
Korea, Hong Kong Europe and the United States.
Option 17 provides a keyword search facility. If a cUent wishes to find out what is on line
about certain subjects—for example ASICs or Phihps—^keyword search provides a reference listing
of all the information available. Quick references then enable the inquirer to locate the reference
directly.
HOW TO ACCESS THE ON-LINE SERVICE
To access the Dataquest semiconductor on-line service you will require a personal computer, a
modem, and a communications software package. Dataquest's on-line database is located in the
United States and is supported by CompuServe; it can be accessed directly from major cities around
the world. Accessing via a local node rather than phoning directly to the United States will save you
telephone charges. Access can also be obtained through your local PTT, for example the Packet
SwitchStream (PSS) offered by British Telecom in the United Kingdom.
As the method of access will vary from country to country, you will need to contact either
James Heal at Dataquest, Denham, England or Denise Zertuche, Dataquest in San Jose, USA. They
will provide you with your local node number (or see Appendix A) and can advise on any login
procedures. In addition, Dataquest will issue you with a personal identifier number and password to
access the on-line database. This will also provide you with your own electronic mailbox. In your
own interest, we urge you to keep your password secret.
Once your password and identifier number have been issued you will need to take certain steps
to access the database. Set your software to 7 databits, 1 startbit, 1 stopbit, even parity, no echo,
TTY (ASCII) emulation for best effect. The procedure for logging into the semiconductor on-line
service using the above setup is as follows:
1.
Dial the appropriate telephone number via modem (see Appendix A)
2.
Enter several carriage returns <CR> until a pound sign or # prompt appears in the top left-hand
comer of your screen.
3.
Type in the letter C and then <CR>.
The system will respond with PORT (number) CENTER:
4.
Type in CPS and then <CR>.
llie system will respond by overstriking this several times, and there may be a short delay
until it responds with HOST NAME:
5.
Type in CPS and then <CR>.
The system will respond witfi ID NUMBER:
©1991 Dataquest Europe Limited March
Reference material—^wiU not be
republished
ESIS
0008308
What Is On-Line?
6.
Type in your ID number, for example, 44023,500, and then <CR>.
The system will respond with PASSWORD:
7.
Type in your password and then <CR>.
The system will respond with the Dataquest Welcome Menu, which will offer you various
database options. For further assistance in moving around the database type HELP or H, and a Ust
of commands to aid your movement around the database will appear. You are now logged in.
European support of Dataquest's semiconductor on-line service is provided by:
•
James Heal, Research Analyst, Dataquest Europe Limited
Tel: +44 895 835 050
In the United States by:
•
ESIS
0008308
Denise Zertuche, On-Line Administrator, Dataquest Incorporated, San Jose
Tel: (408) 437 8000
©1991 Dataquest Europe Limited March
Reference material—^will not be republished
What Is On-Line?
APPENDIX A
NODE TELEPHONE NUMBERS USED FOR THE ON-LINE SYSTEM
(as at February 1991)
Austria
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Austria:
City
Baud Rate
Number
Vienna
Async access 0-2400 (V.22 bis)
222-7127211
Belgium
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Belgium:
City
Baud Rate
Number
Brussels
Async access 300 (V.21)
Async access 1200/2400 (V.22 bis)
Async access 1200/75 (V.23)
02-648-0710
02-647-9847
02-646-3301
Denmark
Access numbers and baud rates supported by Computer Sciences Corp. are in the following
city within Denmark:
City
Baud Rate
Number
Copenhagen
Async access 300/1200/2400 (V.21/V.22/V.22 bis)
38-331499
Finland
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Finland:
City
Baud Rate
Number
Helsinki
Async access 0-2400 (V.22 bis/MNP)
92919
(Note: Domestic (National) network users must dial 92919. Users from outside Finland must
dial +358.2919, no area code needed.)
4
©1991 Dataquest Europe Limited March
ESIS
0008308
What Is On-Line?
France
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within France:
City
Baud Rate
Number
Paris
Async access 300-2400 (V.21, V.22, V.22 bis MNP)
1-43 44 12 12
Germany
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Germany:
City
Baud Rate
Frankfurt
Async
Async
Async
Async
access
access
access
access
Number
300 (V.21)
1200/2400 (V.22)
1200/2400 (V.22 MNP)
1200/75 (V.23)
069-6666062
069-6666881
069-6666886
069-6664007
Italy
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Italy:
City
Baud Rate
Number
Milan
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
Async access 300/2400 (V.22 bis)
2-545-6351
2-546-8840
2-545-5716
2-546-9145
2-546-8225
2-545-9857
2-546-8649
2-546-2657
2-598-991
2-540-0428
2-540-0425
2-545-0620
2-546-8994
ESIS
0008308
©1991 Dataquest Europe Limited March
What Is On-Line?
Netherlands
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within the Netherlands:
City
Baud Rate
Number
Amstelveen
Async access 300 (V.21)
Async access 1200/2400 (V.22 bis)
Async access 1200/75 (V.23)
020-417855
020-476171
020-456955
Norway
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Norway:
City
Baud Rate
Number
Oslo
Async access 300 (V.21)
Async access 1200/2400 (V.22 bis)
47-2421217
47-2423590
Portugal
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Portugal:
City
Baud Rate
Number
Lisbon
Async access 300/2400 (V.21, V.22)
1-609192
Spain
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Spain:
City
Baud Rate
Number
Madrid
Async access 300/2400 (V.21, V.22 bis)
1-3581951.
©1991 Dataquest Europe Limited March
ESIS
0008308
What Is On-Line?
Sweden
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Sweden:
City
Baud Rate
Number
Stockholm
Async access 300 (V.21)
Async access 1200 (V.22)
Async access 1200/2400 (V.22 bis)
08-834095
08-834090
08-7646595
Switzerland
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within Switzerland:
City
Baud Rate
Number
Bern
Async access 300 (V.21)
Async access 1200/2400 (V.22 bis)
Async access 1200/2400 (V.22 bis)
031-260-931
031-260-787
031-260-691
Geneva
Async access 300 (V.21)
Async access 1200/2400 (V.22 bis)
22-7985756
22-7986364
United Kingdom
Access numbers and baud rates supported by Infonet Services Corp. are in the following city
within the United Kingdom:
City
Baud Rate
Number
London
Async 0-2400 bit/s (level 5 MNP) (V.21, V.22, V.23, V.22 bis)
71-439-7537
ESIS
0008308
©1991 Dataquest Europe Limited March
Table of Contents
Volume I
Title Page
INTRODUCTION'
Introduction to the Service
TABLE OF CONTENTS
Table of Contents
Newsletter Index
1. BENELUX
1.1
1.2
1.5
1.6
Benelux
Benelux
Benelux
Benelux
Overview
Semiconductor Device Markets
Plant Locations
Design Center Locations
2. FRANCE
2.1
2.2
2.5
2.6
France
French
French
French
Overview
Semiconductor Device Markets
Plant Locations
Design Center Locations
3. ITALY
3.1
3.2
3.5
3.6
Italy Overview
Italian Semiconductor Device Markets
Italian Plant Locations
Italian Design Center Locations
4. SCANDINAVIA
4.1
4.2
4.5
4.6
Scandinavia Overview
Scandinavian Semiconductor Device Markets
Scandinavian Plant Locations
Scandinavian Design Center Locations
'Titles in c ^ t a l letters signify tabs.
ESIS Volume II
0006447
©1990 Dataquest Incorporated February
Table of Contents
Volume I (Continued)
5. UNITED KINGDOM AND IRELAND'
5.1
5.2
5.5
5.6
U.K.
U.K.
U.K.
U.K.
and
and
and
and
Ireland Overview
Irish Semiconductor Device Markets
Irish Plant Locations
Irish Design Center Locations
6. WEST GERMANY
6.1
6.2
6.5
6.6
West
West
West
West
Germany Overview
German Semiconductor Device Markets
German Plant Locations
German Design Center Locations
7. REST OF EUROPE
7.1
7.2
7.5
7.6
Rest
Rest
Rest
Rest
of
of
of
of
Europe
Europe
Europe
Europe
Overview
Semiconductor Device Markets
Plant Locations
Design Center Locations
EXCHANGE RATE TABLES
Exchange Rate Tables
Volume II
Title Page
INTRODUCTION
Introduction to the Service
TABLE OF CONTENTS
Table of Contents
Newsletter Index
^Titles in capital letters signiiy tabs.
©1990 Dataquest Incorporated Febmaiy
ESIS Volume n
0006447
Table of Contents
Volume II (Continued)
1. EUROPEAN OVERVIEW
1.0
1.1
1.2
1.3
1.4
1.5
Capital Investment
R&D Investment
Venture Capital
Government and Private Investment
The European Economic Enviromnent
Channel of Distribution
2. SEMICONDUCTOR DEVICE MARKETS
European Semiconductor Consumption Estimates 1984-1994 by Product and Technology*
- Benelux
- France
- Italy
- Scandinavia
- U.K. and Ireland
- West Germany
- Rest of Europe
3. SEMICONDUCTOR END-USER MARKETS
3.0 Semiconductor End-User Markets
4. MAJOR USERS
4 Major Users
4.1 Electronic Equipment Company Revenue
4.2 User Company Profiles
5. SERVICES AND SUPPLIERS
5.0 Services and Suppliers to the Semiconductor Industry
-Air Products and Chemicals, Inc.
-Balzers
-The BOC Group PLC
-Compugraphic International
-General Signal
-LTX Corporation
-MEMC Electronic Materials S.p.A.
-Merck Group
^Titles in capital letters siguify tabs.
In booklet format
ESIS Volume n
0006447
©1990 Dataquest Incorporated February
t
Tbble of Contents
Volume II (Continued)
5. SERVICES AND SUPPLIERS' (Continued)
-Micro-Image Technology Ltd.
-Monsanto Company
-Olin Corporation
-The Perkin-Elmer Corporation
-Plasma Technology Ltd.
-Teradyne Inc.
-VG Instruments PLC
-Wacker-Chemitronic GmbH
6.'
1.'
%.'
9. MEMORY
European MOS Memory Market—
Consumption Forecast 1988-1994,
Market Share Rankings 1988'
10. MICROPROCESSOR
10.1 Microcomponent Device Market
10.2 Microcomponent Device Supply
ECONOMIC DATA AND OUTLOOK
Economic Outlook Update 1988-1990'
Economic Data and Outlook 1988-1989'
EXCHANGE RATE TABLES
Exchange Rate Tables
'Titles in capiul letters signiiy tabs.
^In booUet fomiat
^In timsition
©1990 Dataquest Incorporated Febraary
ESIS Volume n
0006447
Table of Contents
Volume III
Title Page
INTRODUCTION'
Introduction to the Service
TABLE OF CONTENTS
Table of Contents
Newsletter Index
1. EUROPEAN PLANT LOCATIONS
1. European Plant Locations
2. EUROPEAN DESIGN CENTER LOCATIONS
2. European Design Service Locations
3. EUROPEAN SEMICONDUCTOR PRODUCTION
3. European Semiconductor Production
3.1 Wafer Fabrication
4. COMPANY PROFILES
4. Company Profiles
A-B
Advanced Micro Devices, Inc.
Analog Devices, Inc.
ASEA Brown Boveri
Austria Mikro Sysieme International GmbH
C-D
E-F
Ericsson Components AB
European Silicon Structures
Eurosil Electronic GmbH
Fujitsu Limited
'Titles in copilal letters sigmfy tabs,
ESIS Volume n
0006447
©1990 Dataquest Incorporated February
Table of Contents
Volume III (Continued)
4. COMPANY PROFILES' (Continued)
G-H
General Instrument Corporation
Harris Corporation
Hewlett-Packard Company
Hitachi ltd.
I-J
Intel Corporation
ITT Corporation
K-L
LSI Logic Corporation
M-N
Marconi Electronic Devices Ltd.
Matra-Harris Semiconducteurs
Mitsubishi Electric Corporation
Motorola, Inc.
National Semiconductor Corporation
NEC Corporation
OP
N.V. Philips Gloeilampenfabrieken
The Plessey Company PLC
Q-R
S-T
Semikron International
SGS-Thomson Microelectronics
Siemens AG
Telefunken Electronic GmbH
Texas Instruments, Inc.
Toshiba Corporation
TRW, Inc.
U-V
w-x
Y-Z
Zilog, Inc.
'Tittes in capital letters signify tabs.
©1990 Dataquest Incorporated Febiuaiy
ESIS Volume n
0006447
Table of Contents
Volume III (Continued)
MARKET SHARE DATA'
European Semiconductor Market Share Estimates—^Final 1988^
Worldwide Semiconductor Market Shares by Vendor Base
European Semiconductor Market Shares by Vendor Base
Worldwide Semiconductor Market Share Rankings
European Semiconductor Market Share Rankings
EXCHANGE RATE TABLES
Exchange Rate Tables
'Titles in cs^ntal letteis ognify tabs.
In boddet foimat
ESIS Volume n
0006447
©1990 Dataquest Incorporated Februaiy
Table of Contents
ASIC
Title Page
INTRODUCTION'
Introduction to the Binder
TABLE OF CONTENTS
Table of Contents
ASIC OVERVIEW
ASIC—Executive Summary
ASIC—^Family Tree and Definitions
ASIC—^Forecast Summary
ASIC—Market
ASIC—^Historical Shipment Data
GATE ARRAYS
Gate
Gate
Gate
Gate
Gate
Gate
Arrays—Executive Summary
Arrays—Forecast
Arrays—Product Analysis
Arrays—Competitive Analysis
Arrays—Emerging Technologies and Trends
Arrays—Historical Shipment Data
PROGRAMMABLE LOGIC DEVICES
PLD—^Executive Summary
PLD—Forecast
PLD—^Product Analysis
PLD—Competitive Analysis
PLD—^Emerging Technology and Trends
PLD—Application and User Issues
PLD—^Historical Shipment Data
'llQes in capital letters signify tabs.
©1990 Dataquest Incorporated February
ESIS Volume n
0006447
Table of Contents
ASIC (Continued)
CELL-BASED IGs'
CBICs—^Executive Summary
CBICs—Forecast
CBICs—^Product Analysis
CBICs—^Emerging Technologies and Trends
CBICs—^Historical Shipment Data
FULL-CUSTOM DEVICES
FuU-Custom Devices—^Executive Summary
Full-Custom Devices—^Forecast
Full-Custom Devices—^Historical Shipment Data
EUROPEAN DESIGN CENTERS
European
European
European
European
European
Design Service Locations—^Executive Summary
Design Service Locations
Full-Custom IC Design Service Locations
CBIC Design Service Locations
Gate Array Design Service Locations
EXCHANGE RATE TABLES
European Currency Exchange Rates
*l\tles in capital letters signify tabs.
ESIS Volume n
0006447
©1990 Dataquest Incorporated February
Table of Contents
Volume rv
Newsletters 1988-1989
1989-29
European MOS Gate Array and CBIC Design Starts Analysis
1989-28
European Semiconductor Procurement Survey
1989-27
European Quarterly Industry Forecast Third Quarter Update
1989-26
GaAs PLDs Attack the SUicon TTL PLD Market
1989-25
Exchange Rate Quarterly Newsletter
1989-24
Closing the Gap: Will Japan Become the World's Largest
Producer of Fab Equipment?
1989-23
Less Buoyancy Expected in the U.K Economy; More Confidence
in the Irish Economy
1989-22
Mixed Analog/Digital ASIC—^An Embryonic Market
1989-21
The PLD Evolution
1989-20
Dataquest European Semiconductor Industry Conference: "The
European Renaissance"
1989-19
The ASIC Package Proliferation
1989-18
International Semiconductor Trade Issues—^Dominance,
Dependence, and Future Strategies
1989-17
The Shape of Post-1992 Distribution in Europe
1989-16
Exchange Rate Quarterly Newsletter
1989-15
Final 1988 Market Share Estimates—European Semiconductor
Market
1989-14
European DRAM Market Update
1989-13
European Quarterly Forecast Update
1989-12
Unexpected Buoyancy of the French Economy
1989-11
European Personal Computer Production and Its Impact on the
Semiconductor Market
1989-10
Preliminary European MOS Gate Array and CBIC Market Share
Rankings
1989-09
Regional Review 1989—A Year of Consolidation
1989-08
EISA—Will It Be an Alternative to MCA?
1989-07
Understanding the NEC/Intel Decision
1989-06
Europe—A Healthy Marketplace for UNIX
1989-05
ASICs Surpass $7.4 Billion in 1988
1989-04
Exchange Rate Quarteriy Newsletter
1989-03
Hitachi and TI Share the Risk: The 16Mb DRAM Agreement
1989-02
The EEC Rules on "Made in Europe"—Article 5 No. 802/68
Analyzed
1989-01
Preliminary 1988 Market Share Estimates—^European
Semiconductor Marketplace
1988-29
Europe Refreshes Its Stagnant White Goods Market
1988-28
The Semiconductor Chip Protection Act Is Finalized
10
©1990 Dataquest Incorporated Febniaiy
November
October
October
September
September
September
August
September
July
July
July
July
June
June
June
May
April
April
March
March
March
March
March
March
March
March
March
March
January
November
November
ESIS Volume H
0006447
Table of Contents
Volume IV (Continued)
Newsletters 1988-1989
1988-27
GEC-Siemens' Joint Bid for Plessey
1988-26
European Quarterly Forecast Update
1988-25
Exchange Rate Quarterly Newsletter
1988-24
Straw Poll of 1992: Regional Attitudes
1988-23
DRAM Alliance: The United States Talks, The British Act
1988-22
West Germany: Facing Up to the Economic Challenge
1988-21
Component Distribution in 1992
1988-20
Can California Micro Devices Inject New Life into AMI?
1988-19
Harris Corporation to Acquire GE Solid State
1988-18
ASIC Midyear Update
1988-17
European Quarterly Forecast Update
1988-16
Exchange Rate Quarterly Newsletter
1988-15
Standard Logic Is at Life's Crossroads
1988-14
Dataquest European Semiconductor Industry Conference: "Planning and Positioning for the '90s"
1988-13
1992—What's in a Number?
1988-11
Semiconductor Recovery Gathers Momentum
1988-10
U.K. Semiconductor Distributors' 1987 Revenue
1988-9
"InteUigent" ICs Power Their Way into $1.1 Million
Semiconductor Application Market
1988-8
Semicon Europa: A Slow Show for a Year of Slow European
Equipment Sales
1988-7
An Introduction to 1992
1988-6
DRAM Dej^ Vu
1988-5
1988 European Regional Semiconductor Outlook
1988-4
Ericsson Gets Leaner while Nokia Continues Acquisitions
1988-3
Exchange Rate Quarterly Newsletter
1988-2
Exchange Rate Quarterly Newsletter
1988-1
1987 Preliminary Market Share Broad-Based Recovery in
Semiconductors
November
October
November
October
October
October
September
September
September
September
August
September
August
July
July
June
May
May
March
March
March
March
February
February
January
January
I.C. EUROPE
Monthly reports containing:
State of the Industry
Industry Highlights
Research Update
Semiconductor Pricing and Analysis
Thought for the Month
1992
ESIS Volume U
0006447
©1990 Dataquest Incorporated Febiuaiy
11
Newsletter Index
BY SUBJECT
Subject
Newsletter
1992
Introduction to 1992
1922—What's in a Number?
Component Distribution in 1992
I.C. Europe Thought for the Month—
Japanese Perception of Europe
The Shape of Post-1992 Distribution
in Europe
The EEC Rules on "Made in
Europe"—Article 5 No. 802/68
Analyzed
I.C. Europe Thought for the MonthEuropean Semiconductor Supply
Note: Also see 1992 Section in I.C. Europe each month.
Acquisitions
Ericsson Gets Leaner while Nokia
Continues Acquisitions
Harris Corporation to Acquire GE
Sqlid State
Can California Micro Devices Inject
New Life into AMI?
Date
1988-07
1988-13
1988-22
September 1988
1989-17
1989-02
July 1989
1988-04
1988-19
1988-20
AMI
Can California Micro Devices Inject
New Life into AMI?
1988-20
Analog
I.C. Europe Research Update—Analog
Market Analysis
March 1989
Application Markets
I.C. Europe Research Update—
Quarterly Electronics Industry Update
European Personal Computer
Production and Its Impact on the
Semiconductor Market
EISA—Will It Be an Alternative to
MCA?
Europe—A Healthy Marketplace for
UNIX
ESIS Volume H
0006457
©1990 Dataquest Incotporated February
August 1988
1989-11
1989-08
1989-06
Newsletter Index
Subject
Application Markets
(Continued)
Asia
ASICs
Newsletter
Europe Refreshes Its Stagnant White
Goods Market
I.e. Europe Thought for the Month—
Workstation Market Opportunities
I.e. Europe Thought for the Month—
Cordless Telephones
I.e. Europe Research Update—
European Military Market
I.e. Europe Thought for the Month—
ISDN: Aging before Birth?
I.e. Europe Research Update—
European Laptop Market Analysis
I.e. Europe Research Update— CT2:
A Rising Star in Europe
I.e. Europe Research Update—^U.K.
V32 Modem Race
I.e. Europe Research Update—^The
Next Graphics Standard
I.e. Europe Research Update—^Dynamic
European CAD/CAM Market
I.e. Europe Research Update—^Military/
Aerospace Semiconductor Demand
I.e. Europe Thought for the Month—
EC's Green Paper on Telecommunications
I.e. Europe Research Update—^The
Tigers Prepare for Graduation
ASie Midyear Update
European MOS Gate Array and CBIC
Design Starts Analysis
Mixed Analog/Digital ASIC—An
Embryonic Market
The ASie Package Proliferation
Preliminary European MOS Gate Array
and GBIC Market Share Rankings
ASICs Surpass $7.4 Billion in 1988
©19SK) Dataquest Incorporated Febraary
Date
1988-29
February 1989
October 1988
November 1988
December 1988/
January 1989
April 1989
June 1989
July 1989
August 1989
September 1989
November 1989
November 1989
March 1988
1988-18
1989-29
1989-22
1989-19
1989-10
1989-05
ESIS Volume D
0006457
Newsletter Index
Subject
ASICs (Continued)
CAD/CAM
Cahfomia Micro Devices
Capital Spending
Cellular Radio
Chip Protection Act
Communications
Companies
ESIS Volume H
0006457
Newsletter
Date
LC. Europe Research Update—Gate
Array Design Start Forecast Slashed
December 1989
LC. Europe Research Update—^Dynamic
European CAD/CAM Market
September 1989
Can California Micro Devices Inject
New Life into AMI?
1988-20
LC. Europe Research Update—
Quarterly Electronics Industry Update
August 1988
I.e. Europe Research Update—
European Cellular Market
September 1988
The Semicoductor Chip Protection Act
is Finalized
1988-28
I.e. Europe Research Update—^The
Final Frontier in Voiceband Modems
LC. Europe Thought for the Month—
Satellites
LC. Europe Research Update—
European Cellular Market
I.e. Europe Thought for the Month—
Cordless Telephones
LC. Europe Thought for the Month—
ISDN: Aging before Birth?
LC. Europe Research Update—
CT2: A Rising Star in Europe
I.e. Europe Research Update—^U.K.
V32 Modem Race
I.e. Europe Thought for the Month—
EC's Green Paper on Telecommmunications
LC. Europe Thought for the Month—
Company Results
I.e. Europe Research Update—South
Korean Companies
LC. Europe Thought for the Month—
Cordless Telephones
©1990 Dataquest Incorporated February
July 1988
August 1988
September 1988
October 1988
Dec/Jan 1989
June 1989
July 1989
November 1989
January 1988
October 1988
October 1988
Newsletter Index
Subject
Computers
eonferences
Newsletter
European Personal Computer
Production and Its Impact on the
Semiconductor Market
Europe—^A Healthy Marketplace for
UNIX
I.e. Europe Thought for the Month—
Workstation Market Opportunities
I.e. Europe Research Update—
European Laptop Market Analysis
I.e. Europe Research Update—^The
Next Graphics Standard
Semicon Europa: A Slow Show for a
Year of Slow European Equipment
Sales
Dataquest's 1988 European Semiconductor Industry eonference: Planning
and Positioning for the '90s
1992—What's in a Number?
Dataquest's 1989 European Semiconductor Industry eonference: "The
European Renaissance"
Consumer
Europe Refreshes Its Stagnant White
Goods Market
Consumption Data
1988 European Regional Semiconductor
Outlook
Semiconductor Recovery Gathers
Momentum
European Quarterly Forecast Update
European Quarterly Industry Forecast—
Third Quarter Update
European Quarterly Forecast Update
Regional Review 1989—^A Year of
Consolidation
ASICs Surpass $7.4 BiUion in 1988
I.e. Europe Research Update—
Worldwide Semiconductor Forecast
Low
[•
©1990 Dataquest Incorporated February
Date
1989-11
1989-06
February 1989
April 1989
August 1989
1988-08
1988-14
1988-13
1988-29
1988-05
1988-11
1988-17
1989-27
1989-13
1989-09
1989-05
October 1989
ESIS Volume U
0006457
Newsletter Index
Subject
Newsletter
Date
Consumption Data
(Continued)
I.e. Europe Research Update—Gate
Array Design Start Forecast Slashed
December 1989
Deregulation
I.C. Europe Thought for the M o n t h Government Policies
May 1988
I.e. Europe Research Update—^EC's
Green Paper on Telecommunications
November 1989
European MOS Gate Array and CBIC
Design Starts Analysis
1989-29
Design Starts
Distribution
EC
Economy
U.K. Semiconductor Distributors' 1987
Revenue
Component Distribution in 1992
The Shape of Post-1992 Distribution
in Europe
I.e. Europe Thought for the Month—
Distribution in Europe
November 1988
I.e. Europe Thought for the Month—
European Community Not a Technological Backwater
June 1989
I.e. Europe Thought for the Month—
Business Prospects
February 1988
I.e. Europe Thought for the Month—
Government Policies
Less Buoyancy Expected in the U.K.
Economy; More Confidence in the
Irish Economy
Equipment and Materials
Ericsson
ESIS Volume U
0006457
1988-10
1988-21
1989-17
May 1988
1989-23
Unexpected Buoyancy of the French
Economy
1989-12
Semicon Europa: A Slow Show for a
Year of Slow European Equipment
Sales
1988-08
I.e. Europe Research Update—General
Signal Acquires GCA
May 1988
Ericsson Gets Leaner while Nokia
Continues Acquisitions
1988-04
©1990 Dataquest Incc»porated February
Newsletter Index
Newsletter
Subject
Date
Exchange Rates
Exchange
Exchange
Exchange
Exchange
Exchange
Newsletter
Newsletter
Newsletter
Newsletter
Newsletter
1988-16
1988-02
1989-25
1989-16
1989-04
GaAs
GaAs PLDs Attack the Silicon TTL
PLD Market
1989-26
I.e. Europe Research Update—General
Signal Acquires GCA
May 1988
GEC
GEC-Siemens' Joint Bid for Plessey
1988-27
General Signal
I.e. Europe Research Update—General
Signal Acquires GGA
May 1988
Harris eorporation to Acquire GE
Solid State
1988-19
OCA
Harris
Hitachi
Industry Trends
Rate
Rate
Rate
Rate
Rate
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Hitachi and TI Share the Risk: The
16Mb DRAM Agreement
I.e. Europe Research Update—Hitachi/
TI DRAM Deal
1988 European Regional Semiconductor
Outlook
DRAM D6ja Vu
Semiconductor Recovery Gathers
Momentum
Standard Logic Is at Life's Grossroads
ASie Midyear European Quarterly
Forecast Update
European Quarterly Forecast Update
I.e. Europe Research Update—^RlSe
Architecture
I.e. Europe Thought for the Month—
DRAMs
I.e. Europe Research Update—
Quarterly Electronics Industry Update
>ataquest Incorporated Febiuary
1989-03
February 1989
1988-05
1988-06
1988-11
1988-15
1988-18
1988-17
April 1988
July 1988
•
August 1988
ESIS Volume n
0006457
1
Newsletter Index
Subject
Industry Trends
(Continued)
Intel
Investment
Japan
Market Shares
Memory
ESIS Volume U
0006457
Newsletter
Date
European DRAM Market Update
1989-14
European Quarterly Forecast Update
Regional Review 1989—A Year of
Consolidation
I.e. Europe Research Update—
Worldwide Semiconductor Forecast
Low
European Quarterly Industry Forecast—
Third Quarter Update
1989-13
1989-09
October 1989
1989-27
Intel Turns Twenty: Is There Life after
DOS?
Understanding the NEC/Intel Decision
1988-12
1989-07
I.e. Europe Thought for the Month—
European Conununity not a Technological Backwater
June 1989
I.e. Europe Thought for the Month—
Japanese Perception of Europe
September 1988
Preliminary 1987 Market Share
Estimates
Final 1988 Market Share Estimates—
European Semiconductor Market
Preliminary European MOS Gate Array
and CBIC Market Share Rankings
Preliminary 1988 Market Share
Estimates—^European Semiconductor
Marketplace
I.e. Europe Research Update—
Worldwide Market Share Analysis
I.e. Europe Research Update—^Analog
Market Analysis
DRAM D6jk Vu
European DRAM Market Update
Hitachi and TI Share the Risk: The
16Mb DRAM Agreement
©1990 Dataquest Incoiporated February
1988-01
1989-15
1989-10
1989-01
Dec/Jan 1989
February 1989
1988-06
1989-14
1989-03
Newsletter Index
Subject
Newsletter
Memory (Continued)
I.e. Europe Thought for the Month—
Business Prospects
I.e. Europe Thought for the Month—
DRAMs
I.e. Europe Research Update—Hitachi/
TI DRAM Deal
I.e. Europe Thought for the Month—
Users Erupt Against DRAM Proposals
Mergers
I.e. Europe Research Update—
Managing the Mergers
Microcomponents
Microelectronic Tube
Military
February 1988
July 1988
February 1989
September 1989
June 1988
Intel Turns Twenty: Is There Life after
DOS?
Understanding the NEC/Intel Decision
I.e. Europe Research Update—A
RISC-less Approach
April 1989
I.e. Europe Thought for the Month—
Return of the Tube
December 1989
I.e. Europe Research Update—
European MiUtary Market
I.e. Europe Research Update—Military/
Aerospace Semiconductor Demand
Modems
Date
1988-12
1989-07
November 1988
November 1989
I.e. Europe Research Update—^The
Final Frontier in Voiceband Modems
July 1988
NEC
Understanding the NEC Intel Decision
1988-07
Nokia
Ericsson Gets Leaner while Nokia
Continues Acquisitions
1988-04
Offshore Manufacturing
I.e. Europe Thought for the Month—
Japanese Printer Manufacturers
June 1988
Plessey
GEC-Siemens' Joint Bid for Plessey
1988-27
PLDs
GaAs PLDs Attack the Silicon TTL
PLD Market
The PLD Evolution
1989-26
1989-21
©1990 Dataquest Incorporated February
ESIS Volume n
0006457
Newsletter Index
Subject
Power ICs
Printers
Newsletter
Intelligent ICs Power Their Way
into $1.1 Billion Semiconductor
Application Market
Quality
RISC
Satellites
1988-09
I.e. Europe Thought for the Month—
Japanese Printer Manufacturers
Procurement
Date
June 1988
European Semicoductor Procurement
Survey
1989-28
I.e. Europe Thought for the Month—
Perception versus Measurement
March 1988
I.e. Europe Research Update—RISC
Architecture
I.e. Europe Research Update—A
RISC-less Approach
April 1988
April 1989
I.e. Europe Thought for the Month—
Satellites
August 1988
I.e. Europe Research Update—
Managing the Mergers
June 1988
Siemens
GEC-Siemens' Joint Bid for Plessey
1988-27
South Korea
I.e. Europe Research Update—South
Korean Companies
I.e. Europe Thought for the Month—
Cordless Telephones
SGS-Thomson
October 1989
October 1988
Standard Logic
Standard Logic Is at Life's Crossroads
1988-15
Takeovers
GEC-Siemens' Joint Bid for Plessey
1988-27
Tariffs
I.e. Europe Research Update—^The
Tigers Prepare for Graduation
The EEC Rules on "Made in
Europe"—Article 5 No. 802/68
Analyzed
I.e. Europe Thought for the Month—
Regional Aid Policy
ESIS Volume D
0006457
©1990 Dataquest Inctvprarated February
March 1988
1989-02
April 1989 -
9
Newsletter Index
Subject
Tariffs (Continued)
TI
Trade Issues
U.K. Markets
UNIX
Users
USSR
Venture Capital
Vertical Integration
Wafer Fabrication
10
Newsletter
I.e. Europe Thought for the Month—
European Semiconductor Supply
Hitachi and TI Share the Risk: The
16Mb DRAM Agreement
I.e. Europe Research Update—^Hitachi/
TI DRAM Deal
International Semiconductor Trade
Issues—^Dominance, Dependence, and
Future Issues
The EEC Rules on "Made in
Europe"—Article 5 No. 802/68
Analyzed
Date
July 1989
1989-03
February 1989
1989-18
1989-02
U.K. Semiconductor Distributors' 1987
Revenue
1988-10
Europe—A Healthy Marketplace for
UNIX
1989-06
I.e. Europe Thought for the Month—
Users Erupt against DRAM Proposals
September 1989
I.e. Europe Thought for the Month—
An Era of Glasnost and Perestroika
March 1989
I.e. Europe Thought for the Month—
Changing Role of Equity in Europe
October 1989
I.e. Europe Thought for the Month—
Forward Vertical Integration
August 1989
Closing the Gap: Wm Japan Become
the World's Largest Producer of Fab
Equipment?
1989-24
©1990 Dataquest Incorporated February
ESIS Volume n
0006457
1.0 Capital Investment
CAPITAL SPENDING BY MERCHANT EUROPEAN COMPANIES
Dataquest surveys the major European merchant semiconductor manufacturers on an annual
basis to track their capital spending plans. Table 1 gives a summary of the history of worldwide
capital spending in US dollars by European-owned companies for 1989 and 1990. Table 2 expresses
European companies' capital expenditure as a percentage of their worldwide sales. It includes a
capital spending forecast for 1991. Table 3 shows capital spending by European-owned merchant
companies in European Currency Units (ECUs).
Table 1
Estimated European Companies Woldwide Capital Expenditure
(Millions of US Dollars)
Company
1989
($M)
1990
($M)
AGR
1990/1989
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electrdnica
GEC Plessey Semiconductors*
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
5
7
10
7
3
4
2
26
12
8
8
292
8
240
193
2
2
39
20
5
7
11
8
6
5
3
34
13
0
22
290
11
278
175
3
3
46
14
0.8%
-0.6%
12.1%
20.0%
100.0%
17.0%
50.0%
30.8%
8.3%
-100.0%
176.0%
-0.8%
35.0%
15.8%
-9.3%
32.0%
50.0%
18.5%
-30.0%
Total
888
934
Percent Change
5.2%
* 1989 expenditure is for Plessey SenucoDductore only.
AOR = Anuual growth rate
Soince: Dataquest (Match 1991)
ESIS Volume H
0008321
©1991 Dataquest Europe Limited Maich
1.0 Capital Investment
Table 2
Estimated European Companies Woldwide Capital Expenditure
As a Percentage of Worldwide Semiconductor Revenue
Company
1989
1990
1991
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electr6nica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
14%
14%
18%
13%
17%
13%
7%
11%
14%
13%
15%
17%
8%
18%
16%
11%
9%
13%
44%
12%
12%
19%
15%
22%
12%
10%
9%
13%
NA
24%
15%
10%
19%
14%
11%
12%
14%
31%
14%
14%
16%
15%
15%
14%
11%
9%
13%
NA
25%
14%
10%
18%
13%
10%
12%
16%
25%
Total Merchant
16%
15%
NA = Not ApplkaUe
Soiuce: Datacpiest (Maicli 1991)
©1991 Dataquest Europe Limited March
ESIS Volume n
0008321
1.0 Capital Investment
Table 3
Estimated European Companies Woldwide Capital Expenditure
(Millions of ECUs)
Company
1989
CUM)
1990
(ECU M)
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electr6nica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
5
6
9
6
3
4
2
24
11
7
7
269
7
221
178
2
2
36
18
4
5
9
7
5
4
2
27
10
0
17
229
9
220
138
2
2
36
11
Total
817
738
Percent Change
-10%
AQR = Annual growth rate
Source: Dataquest (Maidi 1991)
ESIS Volume H
0008321
©1991 Dataquest Europe Limited March
AGR
1990/1989
-13.4%
-14.6%
-3.7%
3.0%
71.7%
0.5%
28.8%
12.3%
-7.0%
-100.0%
137.0%
-14.8%
15.9%
-0.5%
-22.1%
13.3%
28.8%
1.7%
-39.9%
1.1 R&D Investment
R&D EXPENDITURE BY MERCHANT EUROPEAN COMPANIES
Dataquest surveys the European merchant semiconductor manufacturers on an annual basis to
track their R&D spending plans. Table 1 supplies a summary of the history of worldwide R&D
spending in US dollars by European-owned companies for 1989 and 1990. Table 2 expresses
European companies' R&D expenditures as a percentage of their worldwide sales. It also includes
an R&D spending forecast for 1991. Table 3 shows R&D expenditure by European-owned
merchant companies in European Currency Units (ECUs).
Table 1
Estimated European Companies Woldwide R&D Expenditure
(Millions of US Dollars)
Company
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electrbnica
GEC Plessey Semiconductors*
Matra-MHS
MEDL
Mietec
PhiUps
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
Total
Percent Change
1989
($M)
1990
($M)
4
5
7
6
8
3
2
25
9
6
7
395
5
210
315
1
2
28
7
5
7
8
7
9
5
2
36
21
0
13
425
8
240
335
2
2
26
7
1,045
1,158
10.7%
* 1989 expendituie is for Pleasey Sennconducton only.
AOR = Annual growth rate
Source: Dataquest (Mansh 1991)
ESIS Volume H
0008322
©1991 Dataquest Europe Liinited March
AGR
1990/1989
26.0%
39.2%
9.6%
12.0%
12.5%
56.0%
20.0%
44.0%
133.3%
-100.0%
84.0%
7.6%
51.2%
14.3%
6.3%
92.0%
0.0%
-5.7%
-3.6%
1.1 R&D Investment
Table 2
Estimated European Companies Woldwide R&D Expenditure
As a Percentage of Worldwide Semiconductor Revenue
Company
1989
1990
1991
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Stractures
Eurosil
Fagor Electrdnica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
11%
10%
13%
11%
44%
10%
7%
10%
11%
10%
13%
23%
5%
16%
26%
5%
9%
9%
16%
12%
12%
13%
12%
33%
12%
8%
9%
21%
NA
14%
22%
7%
16%
27%
8%
8%
8%
15%
13%
13%
14%
10%
14%
11%
8%
13%
20%
NA
14%
13%
7%
18%
26%
8%
9%
10%
13%
Total Merchant
19%
19%
NA = Not Applicable
Souice: Dataquest (December 1990)
©1991 Dataquest Europe Limited March
ESIS Volume n
0008322
1.1 R&D Investment
Table 3
Estimated European Companies Woldwide R&D Expenditure
(Millions of ECUs)
1989
(ECU M)
1990
(ECU M)
AGR
1990/1989
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electr6nica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
4
5
6
6
7
3
2
23
8
6
6
363
5
193
290
1
2
26
6
4
5
6
5
7
4
2
28
17
0
10
336
6
190
265
2
2
21
5
8.2%
19.5%
-5.9%
-3.8%
-3.4%
34.0%
3.0%
57.0%
100.4%
-100.0%
58.0%
-7.6%
29.8%
-1.9%
-8.7%
64.9%
-14.1%
-19.0%
-17.2%
Total
962
915
Company
Percent Change
-5%
Somce: Dataquest (Deceinber 1990)
ESIS Volume H
0008322
©1991 Dataquest Europe Limited March
1.2 Government R&D
INTRODUCTION
In Western Europe there are two main sources of government funding for research and
development in semiconductor technology and its applications: a European Community (EC)
budget administered by the Commission in Brussels; and funding at national government level.
Clearly, the EC budget is directed towards pan-European programmes such as ESPRIT; typically,
the projects involve companies from several EC countries and may well include companies from
EFTA countries. By comparison, a national govenment's support is directed towards companies in
its own country, though these companies may well be participating in EC or even global research
programmes.
In Europe, the primary semiconductor research programmes are ESPRIT and JESSI. ESPRIT
is an EC programme; JESSI is not. JESSI is part of EUREKA, which was developed from a
French-German initiative started in 1985 and relies on national government money. It has
developed in parallel to EC research, but coordinates with EC programmes. Whereas EC research
is mainly concerned with precompetitive and basic research, EUREKA projects are nearer to the
market. In the case of JESSI (now the biggest EUREKA programme) there is considerable synergy
with many of the ESPRIT projects. This coordination centralizes funds, enabling both EC and
national government money to be used on the same projects.
In addition to ESPRIT, there are three other EC programmes that directly benefit the
European semiconductor industry. These are RACE, DRIVE, and BRITE/EURAM. RACE and
DRIVE have subprogrammes that involve applications for semiconductors. RACE is involved in
telecommunications, and DRIVE in transportation. BRITE/EURAM is concerned with research
into basic raw and advanced materials. Several of its subprogrammes are of interest to the
semiconductor industry.
The EC programmes so far mentioned form part of the Information and Conmiunications, and
Industrial Technologies programmes. Figure 1 illustrates the relative durations and scale of funding
of the programmes. From it, the enormity of ESPRIT II is clear; indeed, ESPRIT II is the largest of
all the EC research programmes.
STRUCTURE OF THE DOCUMENT
Each section has a Contents hst of the semiconductor-related projects within each main
programme. The sections then go on to describe these projects where there is semiconductor
interest.
Section
Page
1
2
3
4
5
ESPRIT
RACE
DRIVE
BRITE/EURAM
EUREKA
5
49
65
69
73
6
Further Information
93
ESIS Volume II
©1990 Dataquest Europe Limited November
0008189
Reference Material—will not be repnUiabed
1
1.2 Government R&D
Figure I
Information, Communication and Industry Technology Programmes
ESPRtT II - ECU 1,600 Midtort
BflFTE - ECl
Jan
Jan
I 1987 I
88
Source: Conmnuioa of the European Commmititei, Dttiqueit (November 1990)
SOURCES OF INFORMATION
The information used in this section was drawn from the following publications:
•
EC Research Funding—A Guide for Applicants
Published by the Commission of the European Communities DGXII
Prepared by Lieselotte Krickau-Richter and Otto Von Schwerin
January 1990
•
ESPRIT—Synopses of Microelectronics Projects
Volume 2 of a series of 8
Published by the Commission of the European Communities
September 1990
•
BRJTE/EURAM Programme
Synopses of current projects 1989-1990
Published by the Commission of the European Communities
•
Research and Development
in Advanced Communications
Europe—RACE '90
Published by the Commission of the European Communities
March 1990
©1990 Dataquest Barapt Limited November
Reference Material—will not be repoblished
Technologies
in
ESIS Volume n
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1.2 Government R&D
R & D in Advanced Road Transport Telematics in Europe—DRIVE '90
Published by the Conmiission of the European Communities.
March 1990
EUREKA Secretariat
19 H Avenue des Arts, Bte. 3
B1040 Brussels
Belgium
KEY TO ABBREVIATIONS
EC Member States
B
D
DK
E
F
GR
I
IRL
L
NL
P
UK
Belgium
Germany
Denmark
Spain
France
Greece
Italy
Ireland
Luxembourg
Netherlands
Portugal
United Kingdom
EFTA Member States
A
CH
ISL
N
S
SF
Austria
Switzerland
Iceland
Norway
Sweden
Finland
Roles (ESPRIT)
M
C
P
S
A
Main Contractor
Coordinator
Partner
Subcontractor
Associate Contractor
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ESPRIT
ESIS Volume II
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ESPRIT
CONTENTS
Page
Introduction to ESPRIT
9
ESPRIT I Project Information
11
Integrated Circuits
Submicron Bipolar Technology—I
Submicron Bipolar Technology—I
Submicron CMOS Technology (SPECTRE)
High-Performance VLSI Packaging for Complex Electronic Systems
Integrated Optoelectronics on Indium Phosphide (InP)
11
12
13
14
15
Semiconductor Equipment and Materials
Compound Semiconductor Materials and Integrated Circuits—I
Compound Semiconductor Materials and Integrated Circuits—II
Automatic Design Validation of Integrated Circuits Using E-Beam (ADVICE)
Substrates for CMOS VLSI Technology
0.5 Micron X-Ray Lithography: Sources, Masks, Resist and Transferred Image
16
17
18
19
20
CAD
High-Level CAD for Interactive Layout and Design
CAD for VLSI Systems (CVS)
European CAD Integration Project (ECIP)
21
22
23
Miscellaneous
Wafer-Scale Integration
High-Density Mass Storage Memories for Knowledge and Information Storage
24
25
ESPRIT II Overview
27
ESPRIT II Project Information
29
Integrated Circuits
Bipolar Advanced Silicon for Europe (BASE)
Advanced PROM Building Blocks (APBB)
Analog/Digital CMOS ICs (ADCIS)
Combined Analog/Digital Integration (CANDI)
A High-Performance CMOS/Bipolar Process for VLSI Circuits (BiCMOS)
ESD Projection for Submicron Technologies
29
30
31
32
33
34
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U Government R&D
Page
A Very Quick 'Hmiaround System for ASIC Design and Manufacturing
Supporting Multiple Design Tools and Implementation Technologies
(QUICKCHIPS)
ASIC 0.5 Micron CMOS (ACCES)
Advanced CMOS Analog/Digital and Digital/Analog Converters (AD 2(X)0)
Joint Logic Project
35
36"
37
38
Semiconductor Equipment and Materials
ASIC Multichamber Rapid Thermal Processing with Microwave Enhancement
Mask and Reticle Technology Development for Advanced High-Density and ASIC
Devices
Process Module Integration for a Multichamber Production System (PROMIMPS)
Integrated Design and Production System (IDPS)
41
42
CAD
Interactive Silicon Compilation for High-Performance Integrated Systems (SPRITE)
Application-Specific Architecture Compilation (ASAC)
JESSI CAD-Frame (JCF)
43
44
45
Miscellaneous
Development of European Magneto-Optical Drives
Optoelectronics with Active Organic Molecules
47
48
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40
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Introduction to ESPRIT
ESPRIT was launched in 1984 and is plaimed to run for a ten-year period. It has three main
objectives:
•
To contribute towards providing the European IT industry with the basic technology it
needs to meet the competitive requirements of the 1990s.
•
To promote European industrial cooperation in IT.
•
To contribute to the development of internationally accepted standards.
Based on these objectives, the first phase of ESPRIT was commenced in 1984—ESPRIT I.
This consisted of 49 projects, most of which have now been completed. In 1988 the second phase
of ESPRIT commenced—ESPRIT II. There are 55 projects now running. The projects in ESPRIT
II can be divided into six categories:
Silicon technology
III-V and other non-silicon technologies
Materials
Equipment and manufacturing
CAD
Peripherals
In this section the important semiconductor programmes are listed. First the ESPRIT I
projects are given, then an introduction to ESPRIT II is provided, followed by the key ESPRIT II
projects. Dataquest has grouped the projects into Integrated Circuits, Semiconductor Equipment
and Materials, CAD, and Miscellaneous.
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ESPRIT I Project Information
INTEGRATED CIRCUITS
Submicron Bipolar Technology—I
Project Number: 243
The overall objective of this programme is to develop specific bipolar submicron technology
suitable for manufacturing very high-performance integrated circuits, such as high-speed circuits
for electronic data processing (EDP) and digital signal processing (DSP).
Two main milestones were scheduled:
•
End of year 3 (March 1988): demonstration of a gate delay capability of 100 ps at a
complexity level of 10,000 gates.
•
End of year 5 (March 1990): demonstration of a gate delay capability of 50 ps at a
complexity level greater than 20,000 gates.
Three of the partners intend to implement the developed technologies progressively following
the achievement of the major milestones in 1988 and 1990. Likely applications are:
•
Gate arrays and programmable ROM, microcells for DSP ASICs and high-speed A/D
and D/A converters
•
Very high-speed ASICs for high bit rate telecommunications
Participants
Country
Role
Plessey Company pic
SGS-Thomson Microelectronics SRL
Cemota
Thomson-CSF
Technische Universitat Berlin
Telefunken Electronic GmbH
UK
I
F
F
D
D
M
P
P
P
P
P
Start Date
I March 1985
Duration
60 months
Status
Finished
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1.2 Government R&D
Submicron Bipolar Technology—II
Project Number: 281
The objective is the development of a bipolar technology for high-speed data and signal
processing products. The generation of bipolar te:chiiology in production at the start of the project
was characterized by minimum featiu-e size of 2 jim, a delay time of about 350 ps and an
integration level for gate arrays of about 2,500 gates.
The production of the ECL gate arrays was started in a new pilot line at Siemens in the first
quarter of 1987. These circuits are primarily intended to be used in advanced computers and are
now available for all other user companies.
The results achieved under this project have enabled Siemens to start the development of a
new family of gate arrays based on an improvement of the design rules previously used to assess
the maturity of the developed technology to produce bipolar gate arrays with 10,000-gate
complexity. These new design rules enable a reduction of the speed-power product by approximately 40 percent and an increase in the packing density of approximately 30 percent. This new
gate array family provides a programmable speed-power product with 3 power steps where power
dissipation amounts to IW per 1,000 gate functions. The complexity of these arrays varies -from
1,500 to 13,000 gate functions. The 13,000 gate array has been available since September 1988.
Participants
Country
Role
Siemens AG/Semiconductor Group
RTC-Compelec
D
F
C
P
Start Date
1 January 1985
Duration
60 months
Status
Finished
12
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ESPRIT I
Submicron CMOS Technology (SPECTRE)
Project Number: 554
The objective is to develop the necessary building blocks for a 0.7 |xm CMOS process,
primarily dedicated to the production of high-speed (within the Umitations imposed by MOS)
digital circuits.
In order to allow the programme to proceed with the best chances of success, two main
phases have been identified and organized: the first refers to an intermediate step at the 1 jim level;
the second to the final 0.7 \\m CMOS family. Two additional tasks were added to the original
project at the end of the first year, making eight tasks now identified to meet the final goal of the
project. These address the topics of architecture (Tl), optical and electron-beam (e-beam)
lithography (T2, T3), MOS structures (T4), isolation (T5), interconnect (T6, T7) and refractory
metal gates (T8). It is the responsibiUty of Task 1 to arrange the pilot-line demonstration
of the 1 p,m and submicron demonstrators. Tasks 2 to 8 provide the technology inputs for this.
At the end of December 1987, the 1 ^im CMOS process results were disseminated throughout
eleven companies and research laboratories located in five European countries.
Additionally, Matra-MHS successfully transferred the SPECTRE CMOS technology into its
fast SRAMs and microprocessor fabrication lines, and selected process steps are being integrated
in the fabrication process of a IM EPROM by SGS-Thomson.
The above are indications of the uses to be made of the technological results which will be
exploited as a result of this project. The objectives are in line with worldwide state-of-the-art
expectations for high-density ICs.
Participants
Country
Role
CNET
British Telecommunications pic
Bull SA
Matra-MHS
SGS Thomson Microelectronics SRL
Universite Catholique de Louvain
Interuniversitair Micro-Electronika Centrum vzw (IMEC)
AERE-Atomic Energy Research
Aarhus Universitet
Telettra SpA
CNR-Istituto Lamel
F
UK
F
F
I
B
B
UK
DK
I
I
C
P
P
P
P
P
P
S
Start Date
31 December 1984
Duration
60 months
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s
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13
1.2 Government R&D
High-Performance VLSI Packaging for Complex Electronic Systems
Project Number: 958
The objective was to exploit the potential advantages of high-density structures on which
VLSI chips will be connected with very dense (100 to 125 ^im pitch) tape automated bonding
(TAB) interconnects on a high-performance multichip substrate.
This project was complementary to project number 830 as part of the "Advanced Packaging"
workprogramme.
Two TAB technologies have been developed: bumped chip TAB and bumped tape TAB
(BTAB). Bumped chip requires additional wafer processing; bumped tape requires an additional
photolithography stage for the tape.
The main application areas for the TAB technology within the telecommunication and
industrial segments are for high-speed switches and processors, display drivers and high-speed
transmission systems.
TAB offers a packaging technique allowing the assembly of VLSI chips in compact modules,
where electrical signals are closely monitored and heat can be efficiently evacuated.
Participants
Country
Role
Bull SA
British Telecommunications pic
GEC Research Ltd Laboratories
F
UK
UK
C
P
P
Start Date
31 January 1986
Duration
36 months
Status
Finished
14
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ESPRIT I
Integrated Optoelectronics on Indium Phospliate (InP)
Project Number: 263
The general objective is significantly to increase the data rate in optical transmission systems,
by the use of high-performance devices with a variety of multiplexing techniques, mainly with the
use of different wavelengths.
The first integrated structure, a distributed feedback (DFB) laser with a tuning section, has
been realized. Good control on laser manufacturing has been demonstrated (threshold current
density <1.5 kA.cm'^, wavelength dispersion <3 run) and short cavity lasers with bandwidth higher
than 8 GHz have been fabricated.
Finite element techniques have been integrated into user-friendly packages to model optically
integrated devices easily and precisely, juid applied to:
•
Design of an optical demultiplexer
•
Evaluation of the guiding properties of the very low-loss structure (0.04 dB/cm),
previously demonstrated.
This is forging a strong Unk also between the modelling and fabrication partners.
Important results have been obtained on operating integrated receiver circuits. The sensitivity
of an optoelectronic IC (OEIC) consisting of an InGaAs PIN detector with a JFET achieved a
world record in sensitivity of -32.5 dBm at 560 Mbit/s. This is a very important result because the
gap between hybrid and monolithic OEIC is beginning to be eroded.
This project, in debugging the optoelectronic monoUthic integration which has been found
more difficult to achieve than forecast, is playing a pilot role in a wide range of projects, dealing
with low-cost optical systems, in the RACE programme.
Participants
Country
Role
Centro Studi e Laboratori Telecomunicazioni SpA (CSELT)
CNET
GEC Research Laboratories
STC Technology Ltd
Thomson-CSF
Standard Elektrik Lorenz AG
CGE-Laboratoires de Marcoussis
Heinrich Hertz Institut
I
F
UK
UK
F
D
F
D
C
P
P
P
P
P
P
P
Start Date
15 December 1984
Duration
60 months
Status
Finished
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1.2 Government R&D
SEMICONDUCTOR EQUIPMENT AND MATERIALS
Compound Semiconductor Materials and Integrated Circuits—I
Project Number: 232
The overall objective of this project was to establish technologies for gallium arsenide digital
integrated circuits technologies using the GaAs MESFET, high electron mobility transistors
(HEMT/TEGFET) and heterojunction bipolar transistors (HBT) as the active circuit elements.
These circuits will be configured to enable the speed and power advantages of GaAs over silicon
to be suitably demonstrated.
This project is now successfully completed.
Participants
Country
Role
Plessey Company pic
Philips-LEP
Siemens AG
Thomson-CSF-DCI
UK
F
D
F
C
P
P
P
Start Date
1 November 1984
Duration
12 months
Status
Finished
16
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ESPRIT I
Compound Semiconductors Materials and Integrated Circuits—II
Project Number: 522
The general objective of the project was to develop advanced aspects of process technology
for GaAs digital integrated circuits and associated expertise to enable the fabrication of fast,
high-performance digital circuits. Demonstrator digital ICs have been developed to evaluate the
performance of the various logic circuit technologies.
There were some good results at the technological level:
•
Assessment of refractory metal gate MESFET process
•
In-depth evaluation of electron resist
•
Demonstration of transistor effect in gallium indium arsenide indium phosphide
(GalnAs-InP) structures
•
Comparison between numeric model and experience for short-gate MESFET and HEMT.
However, the major milestones on demonstrator circuits were missed and the overall objective
of the project was not reached. Consequently the project was discontinued, but some e.ffort has
been made by the partners to achieve the missing milestones on their own resources.
Participants
Country
Role
General Electric Co. pic (GEC)
Bell Telephone Mfg. Co. NV
STC Technology Ltd
Telefunken Electronic GmbH
Farran Technology Ltd
CNET
UK
B
UK
D
IRL
F
C
P
P
P
P
P
Start Date
1 January 1985
Duration
12 months
Status
Finished
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1.2 Government R&D
Automatic Design Validation of Integrated Circuits Using E-Beam
Project Number: 271
The objective is to produce a prototype system capable of automatic error diagnosis of VLSI
devices.
The chosen approach is to be based on utilizing the observability facilities of e-beam
equipment.
The results up until now satisfy all the realistic goals set at the beginning and following the
first phase. These results are at least state-of-the-art as exemplified at the various presentations and
demonstrations given by the partners.
The e-beam design validation and testing technique is a new and very promising one. Its
impact and time horizon for industrial applications depends strongly on the refinement of this or
other competing techniques (e.g. scan design) that may emerge. Approaches have been received
from two independent vendors of such systems with a view to marketing a product based on the
prototype system developed in the project. British Telecom is meanwhile selling waveform
averaging equipment based on one of the results of the project.
Participants
Country
Role
CSELT
British Telecommunications pic
University of Dublin (TCD)
IMAG/LGI
CNET
I
UK
IRL
F
F
C
P
P
P
P
Start Date
1 December 1984
Duration
60 months
Status
Running
18
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ESPRIT I
Substrates for CMOS VLSI Technology
Project Number: 509
The objectives of this project consisted of two parts:
To set up an intrinsic gettering (IG) process for wafers with medium to high oxygen
concentration. The process was to have been independent of the type (p or n) of the
substrate and able to produce:
A highly defective bulk region.
A defect-free denuded zone. A thickness of this zone around 1 to 10 p.m was
identified as an optimum compromise for several factors (such as leakage current
and insensitivity to latch up a soft error).
To characterize epi wafer diameters of 4 and 6 inches. The thickness of the epi layer was
to have been in the range 5 to 10 ^.m, both for p and n substrates. This thickness range is
suitable for submicron CMOS. Finally, IG and epi processes were eventually to match in
order to have intrinsically gettered, low leakage epi wafers for submicron CMOS devices
insensitive to soft errors.
Participants
Country
Role
SGS-Thomson Microelectronics SRL
IMEC vzw
Matra-MHS
I
B
F
C
P
P
Start Date
1 January 1985
Duration
24 months
Status
Finished
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1.2 Government R&D
0.5 Micron X-Ray Lithography: Sources, Masks, Resist and IVansferred Image
Project Number: 1007
The project aimed at a technology compatible with x-rays from 7 A to about 13 A, so that
resolution down to 0.25 ^m may be eventually achieved.
The main tasks of this project were masks, resists and the X-ray lithography process.
Participants
Country
Role
CNR-IESS
CNRS
King's College London
Thomson-CSF
SGS Thomson Microelectronics SRL
I
F
UK
F
I
C
P
P
P
P
Start Date
1 January 1986
Duration
30 months
Status
Finished
20
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ESPRIT I
CAD
High-Level CAD for Interactive Layout and Design
Project Number: 10
The objective was to define and demonstrate a CAD system for the design and layout of
VLSI integrated circuits from the initial specification to the masks. Circuit complexity up
to 1 million transistors was to be addressed. Reduced design times were the overall aim. The main
topics under investigation included high-level design methodology based on Petri nets, hierarchic
floorplanning with a high degree of automation, analog and general cell design, data modelling and
database management.
Overall, the project has achieved its stated objectives in terms of the design and production of
a CAD design. Validation of its performance, however, has not been demonstrated.
The feasibility of describing systems using the Petri net notation and the fact that this can be
automatically translated into circuits and layout has been demonstrated. This translation can
substantially reduce the design time for complex chips.
The work on analog circuits carried out has also made a valuable contribution to the stateof-the-art knowledge in this area, the more so as the mixed analog/digital circuit is gaining in
importance.
Participants
Country
Role
GEC
AEG Aktiengesellschaft
Bull SA
Plessey Company pic
UK
D
F
U
C
P
P
P
Start Date
1 October 1983
Duration
42 months
Status
Finished
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1.2 Government R&D
CAD for VLSI Systems (CVS)
Project Number: 802
The objective is to implement an integrated CAD system capable of coping with the needs of
the 1990s, where improvements in semiconductor technology will allow the production of chips
with about 1 million transistors. Such a CAD system must lead to an improvement in design time
to a factor of 10, based on novel tools for automatic construction of designs at the level of system
which have themselves been constructed automatically from a set of given parameters.
The areas of work therefore include architecture synthesis, digital cell building, analog cell
design, integration of tools and design of demonstration chips. The first prototypes of tools were to
be delivered by the end of 1989.
In order to have maximum impact on industry in general, in addition to internal use by the
partners, it was agreed that the resulting software will be made available to third parties (e.g.
software houses) for the marketing of results. One company (ANACAD) in Germany has already
taken steps to bring some of the results to the marketplace.
Participants
Country
Role
CSELT
AEG Aktiengesellschaft
CIT-Alcatel
Italtel Telematica SpA
SGS-Thomson Microelectronics SRL
Matra-MHS
GMD
CNET
British Telecommunications pic
I
D
F
I
I
F
D
F
UK
C
P
P
P
P
P
P
P
P
Start Date
1 March 1986
Duration
54 months
Status
22
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ESPRIT I
European CAD Integration Project (ECIP)
Project Number: 88712072
ECIP investigates the area of data exchange and infrastructure standards with the objective of
defining and promoting standards within the Em-opean IT industry. The ability to readily
interchange data and CAD tools between companies is a key area for bringing into practical reality
many of the benefits of collaborative tool development in Europe and for making available the
results of ESPRIT to the wider European IT community. The final goal of ECIP is the definition of
a multilayered open model for CAD systems with recommendations for rules and/or standards at
each level.
Following a succesful proposal in 1988, a new ECIP project (2072) with some new partners
and broader terms of reference was started. In addition to amplifying the work started in ECIPl,
ECIP2 will add the important standardization of high-level description languages, and of providing
objective ways of measuring the performance of CAD modules. The work on CAD frameworks,
started in ECIPl, will be greatly expanded covering user interfaces, database interfaces and data
interchange interfaces. In all cases, tools to implement and check the recommended standards will
be provided and these recommendations will be validated in real design environments.
The direct involvement of six major European microelectronics companies and the' indirect
involvement of many other projects will provide the basis to ensure the successful adoption of the
standards on a wide scale. Some impact (adoption of interim recommendations) can be expected
during the project, but the main impact will be on later generations of CAD systems five years
fi-om 1989.
Participants
Country
Role
Bull SA
ICL
Nixdorf Computer AG
Nederlandse Philips Bedrijven BV
SGS-Thomson Microelectronics SA
Siemens AG
Thomson-CSF
SGS-Thomson Microelectronics SRL
Alcatel
Institut National Polytechnique de Grenoble (INPG)
Thomson-CSF/Sinti-a-ASM
UCI Micro61ectronique
SGS-Thomson Microelectronics SA
Institut M6diterran6en de Technologic
Instituto de Engenharia de Sistemas e Computadoras
(INESC)
F
UK
D
NL
F
D
F
I
F
F
F
F
F
F
P
C
P
P (2072 only)
P
P
P
P (2072 only)
P
P (887 only)
A
A
A
A
A
A
Start Date of ECIPl
1 January 1986
Duration
36 months
Status
Finished
Start Date of ECIP2
1 January 1989
Duration
60 months
Status
Running
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1.2 Government R&D
MISCELLANEOUS
Wafer-Scale Inte^ation
Project Number: 824
The objective is to use the wafer-scale integration (WSI) approach to build systems of up to
25 million transistors on a 4-in. wafer using a hierarchical approach to implement tolerance to
end-of-manufacturing defects.
Additionally, two WSI architectures—for a memory and a systolic array—have been proposed
with solutions to the difficult problem of reconfiguration and testability. The first silicon
demonstrating WSI implementation was to be foreseen in early 1989.
The developed know-how in technology will allow correction of end-of-manufacturing
defects and hence improve the ability to realize full custom, one million transistor chips for the
ASIC sector.
From the system point of view, the developed systolic array, as it is more compact and can
contain more processors than any other available system, is opening up a whole new range of uses,
notably for signal processing functions in video applications.
Participants
Country
Role
SGS-Thomson Microelectronics SA
British Telecommunications pic
INPG
National Microelectronics Research Centre (NMRC)
CEA/LETI
Technische Hochschule Darmstadt
F
UK
F
IRL
F
D
C
P
P
P
P
P
Start Date
14 May 1986
Duration
58 months
Status
Finished
24
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ESPRIT I
High'Density Mass Storage Memories for Knowledge and Information Storage
Project Number: 957
The objective was to develop vertical and magneto-optical recording technologies for mass
storage on rotating disks. Compared with classical recording techniques, these technologies are
potentially capable of providing much higher storage densities, as well as higher storage reliability
and more competitive storage costs.
Vertical recording technology was investigated and developed for both floppy and rigid disks.
Addressed topics include media and substrates and read/write heads. A new optical pickup was
designed for magneto-optical recording. In addition to the development of basic components and
technologies, work was carried out for simulation of the mechanical dynamics of the flying heads.
The specific technical objectives achieved in the case of vertical recording were a linear
density of 40,000 fci and a radial density of 1,500 tpi for rigid disks. The magneto-optical system
should provide a linear density of 20,000 bpi and a radial density of 10,000 tpi. In terms of the
capacities, these results for 5.25-in. drives correspond to 150 to 200 MB for vertical rigid disks,
and 400 to 500 MB for magneto-optical disks.
Some of the results pave the way to industrial products in the near future (such as BaFe
floppy disks). The other results, especially on magneto-optical discs and heads, give the partners a
strong background to be used in the ESPRIT II project (number 2013) on magneto-optical disk
drives.
Participants
Country
Role
Bull SA
BASF AG
CEA/LETI
Thomson-CSF
Simulog SA
Glaverbel SA
Bogen Electronic GmbH
F
D
F
F
F
B
D
C
P
P
P
P
P
P
Start Date
1 Feburary 1986
Duration
36 months
Status
Finished
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1.4 The European Economic Environment
THE EUROPEAN ECONOMY
EcoiKjmic Growth
The world stock markets' crash of October 1987 has had less effect on the
economies of Western Europe than anticipated at the beginning of 1988. According to
the IMF (International Monetary Fund), the crash will reduce the industrial countries'
growth rates in 1988 and 1989 by only a quarter of a percentage point. However,
Western Europe's growth performance over the next five years will remain poor
compared with other regions.
Real GNP in OECD (Organization for Eiffopean Cooperation and Development)
Europe grew 2.80 percent in 1987, slightly more than previously forecast, but less than
the United States' growth rate of 2.90 percent. Japan's economy expanded by
4.20 percent in 1987, much more than previously forecast. Nineteen eighty-seven was
the fifth consecutive year that Europe has lagged behind the United States and Japan in
GNP growth. In 1988 and 1989, real GNP in Europe will grow 2.50 percent and
2.00 percent, respectively, whereas the U.S. economy is expected to grow 2.75 percent in
1988 and 2.50 percent in 1989. Japan anticipates 4.25 percent growth in 1988 and
3.75 percent in 1989.
Among the four major European countries, the United Kingdom's growth rate
outranked those of the others in 1987 with 4.50 percent, followed by Italy with
3.10 percent, France with 1.90 percent, and West Germany with 1.70 percent. The
United Kingdom will continue to set the pace, with a 3-50 percent growth rate projected
for 1988 but only 2.25 percent forecast for 1989. Italy is expected to grow by about
2.50 percent in 1988 and just more than 2.00 percent in 1989. West Germany and France
will experience slower growth of about 2.00 percent in 1988, but less than 2.00 percent
growth is expected for these two coimtries in 1989.
In Scandinavia, Finland will achieve growth rates above the European average in
1988 and 1989, followed by Sweden with rates just below the European average.
Denmark and Norway will experience the lowest growth rates in Europe, with 0 to
1 percent growth projected for 1988 and 1989.
The Benelux countries anticipate growth rates below the European average—from
1.50 percent to 2.00 percent for 1988 and 1.75 percent for 1989.
Spain and Portugal have the fastest-growing economies in OECD Europe, with
growth rates of 5.0 percent in 1987, approximately 4.0 percent expected for 1988, and
3.5 percent projected for 1989.
Unemployment
The European economies are not generating sufficient economic growth to reduce
unemployment. Between 1980 and 1987, no net new jobs were created in Europe as a
whole, although the labor force increased by more than 6.0 percent. Unemployment in
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Europe continues to affect 11.0 percent of the labor force. The United States records
only half that rate at 5.5 percent, whereas Japan's unemployment rate of 2.5 percent in
1988 is less than half the rate of the United States. No major changes are anticipated in
these rates for 1989.
To achieve a significant reduction in the jobless total, growth in employment will
have to rise by between 1.5 percent to 2.0 percent a year. The EC Commission
estimates that such employment gains could only be achieved with an overall economic
growth rate from 3.0 to 3.5 percent per annum, provided this growth were employment
intensive.
Only in the United Kingdom is unemployment showing a clear downward trend. The
United Kingdom's unemployment rate of 10.4 percent in 1987, below the European
average for the first time since 1979, is expected to decrease further in 1988 to
9.5 percent of the labor force. West Germany's unemployment rate is predicted to show
a slight increase, from 7.9 percent in 1987 to 8.1 percent in 1988. In France,
unemployment is forecast to increase from 10.8 percent in 1987 to 11.3 percent in 1988.
Italy has the highest unemployment rate among the four major European countries, with
its 11.7 percent rate in 1987 expected to rise to 11.8 percent in 1988.
Only the Scandinavian countries, with the exception of Denmark, as well as
Switzerland and Austria, registered low unemployment rates. Spain and Ireland show the
highest unemployment rates in OECD Europe at approximately 20 percent, followed by
the Netherlands with more than 12 percent and Belgium with 11 percent.
Long-term unemployment has grown more rapidly than the government measures
implemented to deal with it. In major European countries, the long-term unemployed
(those out of work continuously for more than 12 months) constitute 30 to 50 percent of
the total unemployed, whereas the equivalent proportion in the United States is
10 percent or less. Belgium has been hit the hardest by long-term unemployment, with
68.3 percent of the jobless out of work for more than a year, followed by Italy with
63.6 percent and Ireland with 62.2 percent. The Netherlands and Spain are also above
the EC average of 52.3 percent, with 56.4 percent and 56.3 percent, respectively.
The youth unemployment rate is another main area of concern ("youth" generally
refers to the 15 to 24 age group). It continues to be highest in Spain with more than
40 percent in 1987, but expected to be below that rate in 1988 and 1989. Italy's youth
imemployment rate is forecast to increase from 37 percent in 1987 to just more than
40 percent in 1989. Youth unemployment in France is also projected to increase from
23 percent in 1987 to 27 percent in 1989.
Investment
Business confidence seems unshaken by the October 1987 stock market crash. In
Europe, however, businessmen are less optimistic about prospects for growth than those
in the United States and Japan. Investment growth in Europe is expected to slow
somewhat by the end of 1989, because of slower economic growth and high real interest
rates.
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Business investment in Europe is anticipated to rise by an average of less than
5 percent in 1988. The slowdown of the ratio of real business investment to real GNP in
Europe may be pjartly to blame for the persistently high unemployment.
In the United States, private nonresidential investment is projected to ejqjand
9.50 percent in 1988, and in Japan, 10.25 percent.
Eiffopean and U.S. investments are expected to grow less than 3 percent in 1989,
whereas in Japan, investment growth of more than 7 percent is forecast.
Of the four major European countries, the United Kingdom's private nonresidential
investment grew 7.20 percent in 1987, and is expected to increase by 8.00 percent in
1988 and 5.25 percent in 1989. Italy's investment in machinery and equipment, which
e3q)anded 11.50 percent in 1987, is anticipated to grow 5.00 percent in 1988 but only
4.00 percent in 1989. France recorded growth of 4.00 percent in 1987, and expects rates
of 5.50 percent in 1988 and 4.00 percent in 1989. West Germany's investment
performance in 1987 was much less positive than previously forecast, with a growth rate
of 3.20 percent. In 1988 and 1989, West Germany's annual investment rate is expected
to be approximately 3.00 percent.
In Scandinavia, Sweden predicts investment growth of almost 5.00 percent in 1988
but only 2.00 percent in 1989. Finland anticipates investment growth of more than
3.00 percent in 1988, and more than 2.00 percent in 1989. Denmark expects growth of
negative 3.25 percent in 1988 and negative 2.25 percent in 1989, whereas Norway
forecasts high investment growth of 12.00 percent in 1988 but growth of negative
1.75 percent in 1989.
Investment prospects for Spain and Portugal are very positive. Spain's investment
growth is expected to expand almost 11.0 percent in 1988, following growth of
13.7 percent in 1987. Portugal recorded the highest investment growth rate in Europe of
19.0 percent in 1987, and anticipates a 10.0 percent growth rate in 1988. In 1989,
Portugal's growth rate of 8.0 percent will be the highest in OECD Eiorope, followed by
Spain with just more than 7.0 percent investment growth.
Inflation
Inflation in Europe is projected to remain stable, but is expected to increase in the
United States and Japan. The average inflation rate in OECD Europe is expected to be
aRsroximately 4.00 percent in 1988 and less than 4.00 percent in 1989, whereas the
U.S. rate is forecast to increase from 3.25 percent in 1988 to 4.00 percent in 1989.
Japan's inflation rate will rise from 1.75 percent in 1988 to 2.50 percent in 1989.
Among the four major European countries. West Germany will continue to record
the lowest inflation rate of 1.50 percent per annum in 1988 and 1989. France expects to
reduce its 1988 rate of 2.75 to 2.50 percent in 1989, whereas the United Kingdom and
Italy forecast inflation rates of 4.75 percent for 1988. These projections for the United
Kingdom and Italy may decrease in 1989 to 4.50 and 4.25 percent, respectively.
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In Scandinavia, inflation rates for 1988 and 1989 are expected to be above the
European average. Only Denmark anticipates a rate below 4 percent.
Spain's inflation rate in 1988 and 1989 will be in line with the European average, but
Portugal's rate, which is expected to decrease from 9.5 percent in 1987 to less than
6.0 percent in 1989, is still well above the European average.
Private Consumption
Private consumption was an important source of growth in most European countries
in 1987, as household saving ratios declined and consumer borrowing rose rapidly in some
countries.
For 1988, private consumption in the four major European countries will increase
most in the United Kingdom at 5.00 percent, followed by West Germany with
3.25 percent. France and Italy forecast private consumption growth of 2.50 percent for
1988. These rates compare with projected consumption growth of 1.75 percent in the
United States and 4.00 percent in Japan for 1988.
Private consumption rates in the United States and Japan in 1989 are forecast to
increase at about the same rates as in 1988, whereas the four major European countries
expect lower consumption growth of between 1.50 percent and 3.25 percent.
In Scandinavia, Sweden and Finland anticipate that private consumption will rise
approximately 3 percent in 1988 and from 2 to 3 percent in 1989. Denmark and Norway
forecast negative growth in 1988; this negative growth is expected to continue in Norway
in 1989, but Denmark expects low growth of 1 percent in 1989.
Spain and Portugal recorded private consumption growth of 5.2 percent and
7.3 percent, respectively, in 1987, and anticipate growth rates of 4.0 to 5.0 percent in
1988 and 3.5 percent in 1989.
Foreign Trade
Trade
goods and
30 percent
60 percent
plays a bigger role in European countries than in Japan. Japan's exports of
services are equivalent to only 16 percent of its GNP, but the ratio is 25 to
in West Germany, France, the United Kingdom and Italy and more than
in the Netherlands and Belgium.
Europe's economic performance depends heavily on strong foreign markets and
expansion in trade. But Europe's overall real trade balance will decline over the coming
years for the first time since the early 1980s because of the improvement in the external
position of the United States. Export prospects within Europe are limited because no
European country by itself is likely to be a source of substantially higher export growth
for others.
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All European countries, except Denmark and Norway, will increase their imports of
goods and services more than their esqwrts in 1988 and 1989. This situation also applies
to Japan, whereas the United States anticipates higher export than import growth. In
Europe, Spain and Portugal expect imports to grow 13.0 percent and 11.5 percent,
respectively, in 1988, followed by the United Kingdom with import growth of almost
8.0 percent, Italy with almost 7.0 percent, and West Germany with 6.0 percent. This
compares with 14.0 percent growth in Japan for 1988.
Portugal projects imports to increase 9 percent in 1989, followed by Spain with
8 percent, then West Germany and Italy with 5 percent p'owth each. Japan's imports are
forecast to expand almost 9 percent in 1989. Overall, all European countries, except
Denmark and Norway, will experience lower import growth in 1989 than in 1988.
Export growth in Europe in 1988 will be strongest in Portugal with 7,5 percent,
followai by Spain and Italy with 5.5 percent each, and West Germany and France with
just more than 4.0 percent each. This compares with almost 16.0 percent export growth
in the United States and 6.0 percent in Japan for 1988. For 1989, Portugal expects the
highest growth rate again at more than 6.0 percent; followed by Spain with 5.0 percent
growth; Norway with 4.5 percent; and Italy, France, and West Germany with about
4.0 percent each.
In the United States, exports are forecast to rise more than 11 percent in 1989, and
in Japan, more than 5 percent.
The current account balance for OECD Europe is expected to show a decreasing
surplus of $37.5 billion in 1987, $24.0 billion in 1988, and only $9.0 billion in 1989. Only
West Germany, the Benelux countries, Switzerland, and Ireland will contribute positive
current account balances in 1988 and 1989. West Germany's expected surplus for 1989 of
$42 billion will be offset by the combined deficits of the United Kingdom, France, and
Italy, estimated at $21 billion.
In Japan, the surplus is anticipated to decrease from $87 billion in 1987 to
$80 billion in 1989, whereas the United States will continue to record a large but
decreasing deficit of $150 billion in 1988 and $132 billion in 1989.
Competitiveness
Europe continues to experience higher wage increases than the United States and
Japan. In 1987, EC countries' manufacturing earnings increased 5.2 percent—twice as
much as Japan's at 2.6 percent and almost three times the U.S. rate of 1.8 percent.
Unit labor costs in the private sector are expected to increase 6.00 percent in 1988
and 5.00 percent in 1989 in European OECD countries, except in the four major
countries. Of the four major European countries, the United Kingdom and Italy forecast
annual increases of between 4.00 percent and 4.75 percent in 1988 and 1989, whereas
West Germany and France expect unit labor costs to rise only 0.50 percent in 1988 and
from 0.75 percent to 1.50 percent in 1989.
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Japan expects similarly low increases in unit labor costs, with 1.00 percent for 1988
and 1.25 percent for 1989, whereas the United States projects rates of 3.25 percent in
1988 and 4.00 percent in 1989.
Labor productivity, measured as compound annual growth rates of real GNP/private
sector employment, in the 1986 to 1989 time frame is expected to improve by
2.4 percent in the United Kingdom, 2.2 percent in France, 1.7 percent in Italy, and
1.6 percent in West Germany. These rates compare with growth of 3.1 percent in Japan,
but only 0.7 percent in the United States. The largest labor productivity growth rates in
Europe are forecast by Finland, with 3.4 percent, and Ireland, with 2.7 percent.
Although the European average inflation rate is expected to be slightly lower than
the U.S. rate in 1989, it will still be just more than one percentage point higher than
Japan's inflation rate.
The combination of the previously discussed factors and exchange rate effects will
put pressure on the European countries to continue their efforts to reduce labor costs
further and improve labor market flexibility.
• Research and Develc^ment
Programs to stimulate basic research into industrial technologies (BRITE),
information technology (ESPRIT), telecom (RACE), technology transfer (SPRINT) and
high-technology products (EUREKA) have been launched within the EC. Collaboration
between European countries is seen as a possibility to share high research and
development costs. It is also hoped that alliances across Europe will produce a new and
more flexible industrial structure.
In the spring of 1988, nearly Ecu 2 billion for high-technology joint research projects
were approved by EC research ministers. The second phase of the ESPRIT program
scheduled to run until 1993 has been approved. ESPRIT II involves about 500 EC
companies and is the largest program in the European Commission's overall Ecu
5.8 billion research budget for the next four years.
The industrial technology program BRITE is to be funded an extra Ecu 60 million in
addition to the Ecu 65 million for the 1985 to 1989 period. The new funding will be
drawn from the program's Ecu 400 million second stage, which is scheduled to run from
1989 to 1991.
The West German and Dutch governments, scientific institutes, and about 50 West
European companies are involved in a proposed research and development scheme worth
DM3 billion to DM4 billion. This scheme. Joint European Semiconductor Silicon (JESSI),
would be the biggest project jointly undertaken by governments and industry to promote
Europe's competitive position in semiconductor devices.
JESSI, scheduled to start at the end of 1988, would run until 1995. Most of the cost
would be borne by industry, but substantial funding is expected to be provided by the
West German and Dutch governments and the EC.
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Venture Capital
The European venture capital industry continues to grow, and it is nearly half as big
in the EC as it is in the United States, according to the European Venture Capital
Association. The United Kingdom still represents the largest venture capital industry in
Europe, followed by the NetherlaiKls and France. Italy's venture capital industry shows
the fastest rate of growth, but its industry is still small.
The EC decided to provide Ecu 1.9 million in 1987 to fund the Venture Consort
scheme, aimed at promoting cross-border business agreements. The European
Commission is working on the details of a package of tax reforms, investment incentives,
and easier accounting rules to help boost cross-frontier collaboration between small
high-technology businesses. The aim is to attract more private-sector venture capital.
An EC-funded guarantee would insure private ventiffe capital groups against 50 percent
of the investment losses caused by companies qualifying for the scheme. The guarantee
would be partly fiinded by an insurance-tjTse premium, partly paid by the Commission.
Industrial and Entr^H-eneinial Initiatives
The trend toward closer technological collaborations continues, as the EC pushes
ahead with measures to <^en up its internal market. Siemens, Bull, and ICL are making a
joint bid for an Ecu 85 million collaborative research project funded by the EC. This
program is planned under the second phase of the ESPRIT research of information
technology.
CGE of France acquired a controlling interest in the wide-ranging European
telecommunications businesses of ITT.
CGCT, the French public exchange manufacturer, was sold to Ericsson and Matra.
SGS-Ates merged with the nonmilitary semiconductor operations of Thomson to
create a group that can compete internationally. Olivetti took over Triumph-Adler of
West Germany.
Toshiba went into full-scale assembly of its 1 megabit memory device in
BraiMischweig, West Germany, in 1987. Toshiba invested DM60 million and manufactures
about 1.8 million devices a year. A fourth design office operates from Braunschweig; the
other three offices are in Dusseldorf, Stockholm, and the United Kingdom. About
70 percent of the memory products Toshiba sells in Europe now come from this plant.
ES2, the pan-European semiconductor company, is planning to expand by bringing in
more large industrial shareholders. It would like links with a leading company from West
Germany, where it has no shareholders, and with the United States. In the summer of
1987, ES2 took over Lattice Logic, which is a U.K. company based in Edinburgh and is
world leader in silicon compilers.
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The Roundtable of European Industrialists with 29 members set up 6 industrial
"working task forces" in the summer of 1987 to examine issues related to the group's
mission to achieve the kind of European market that industry wants. The group believes
that it is crucial to agree to EC-wide standards before 1992 and to abolish national
standards that inhibit free trade in the EC. It also proposes to remove all barriers to
cross-border mergers and acquisitions and to extend EC research programs beyond the
precompetitive stage to cover products with market potential. The Roundtable group
wants remaining telecommunications monopolies to be abolished.
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INTRODUCTION
The two fundamental reasons that semiconductor vendors sell through franchised
distributors are as follows:
•
To reduce sales costs
•
To improve service levels to small and medium-size companies
1980 TO 1987
Semiconductor distribution in Europe has grown from $1,073 million in 1980 to
$1,919 million in 1987. As such, it represented 30.2 percent of the estimated
$6,355 million European semiconductor market in 1987.
The present market structure in Europe is highly nationalized, with very few
distributors operating in a pan-European mode. Since the early 1980s, distribution has
undergone substantial restructuring caused by a combination of factors including profit
squeezing by manufacturers, manufacturer mergers, and the threat of North American
distribution being brought into the network.
As shown in Table 1, the European distribution market has grown from
$1,073 million in 1980 to $1,919 million in 1987, a compound annual growth rate (CAGR)
of 9.75 percent. Distribution as a percentage of the total European semiconductor
market has ranged from 29.1 percent in 1980 to 32.7 percent in 1986.
Table 1
Estimated European Semiconductor Distribution Market
History and Forecast
(Millions of U.S. Dollars)
Total Semiconductor
Distribution (%)
Distribution
Total Semiconductor
Distribution (%)
Distribution
1980
1981
1982
1983
1984
1985
$3,686
29.1
$1,073
$3,041
29.6
$ 900
$3,167
30.3
$ 960
$3,370
30.9
$1,041
$4,805
32.5
$1,562
$4,720
31.8
$1,501
1987
1988
1989
1990
1991
$6,355
30.2
$1,919
$8,491
28.2
$2,394
$9,221
28.3
$2,610
$9,535
29.9
$2,851
$11,127
31.2
$ 3,472
1992
$14,966
32.4
$ 4,849
Source:
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$5,532
32.7
$1,809
1993
$17,271
33.1
$ 5,717
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1.5 Channel of Distribution
However, an increase in distribution market share, which usually is seen during
growth periods, has not occurred in the 1988 high-growth period. The reasons for this
are outlined in the following section.
1988 SCENARIO
Dataquest estimates that semiconductor distribution will lose substantial market
share in 1988. Our current estimate is that the European semiconductor marketplace
will grow by 33.6 percent from $6,355 million to $8,491 million. We estimate that
distribution will grow at a rate of 8 percentage points behind the market. This is
significant because it will be the first high-growth year in which distribution has lost
market share. Traditionally, distribution, which primarily deals with commodity product
lines such as standard logic, 4000, and 74LS, has been quick to take advantage of market
growth. By buying inventory at a competitive price and then selling it during the
high-growth period of product famine, distributors historically have driven up their
revenue. So what is the difference this time?
An analysis that was carried out during 1987's Electronica in Munich using a sample
of distribution users and semiconductor distributors highlighted the following reasons
why distribution is having difficulty keeping up with the market:
•
Components marketed by distributors generally are profiled toward lower
growth products.
•
The broad-line supermarket approach to distribution is failing to adequately
service the customer base.
•
European distributors are concerned that American distributors might move
into Europe en masse.
Regarding the lower growth portfolio, we estimate that the European semiconductor
market will grow 33.6 percent in dollars in 1988, as stated previously. However, taking
MOS memory and MOS micro out of the growth equation results in a remaining
17 percent growth for other product categories. Unfortunately, distribution has had
limited success in selling MOS memory and micro products. MOS memory never has been
really a distribution product, and during the 1988 shortages, OEM accounts clearly have
been prioritized by the manufacturers.
Dataquest estimates that 16 percent of European microcomponents revenue is a
result of selling via distribution. Popular architectures such as those of Motorola and
Intel command a higher percentage penetration, estimated at 24 percent of combined
architectural revenue during 1988. Because the popular architectures are available
through only a limited number of outlets, the network as a whole has not enjoyed great
success in distributing these components.
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Arguably, the low-growth portfolio is offset to some extent by a higher growth rate
experienced by the smaller, more dynamic companies served by distribution. However,
as our distribution user poll demonstrated, a growing number believe that distribution has
lost focus and no longer meets all requirements of the traditional small businesses it was
set up to service.
In the poll, we received the same complaint several times: Unless a business is of
sufficient volume and value (one user mentioned 10,000 pieces or more) distributors
cannot be bothered with its problems. On a number of occasions, distribution was
charged with being more interested in building up OEM business than in looking after the
mass market. Users preferred local specialist distributors that, both technically and
commercially, were more in touch with the small user's demands.
Overall, the impression was that distribution was failing to adapt quickly enough to
the changing user environment, and that the supermarket/multiline supplier was losing
touch with the needs of the smaller user.
The third point regarding the move of American distributors into Europe is whether
or not this will improve the performance of distributors operating in Europe. It is clear
that the existing distribution network is concerned about companies such as Arrow and
Future obtaining preferential terms from the major North American semiconductor
vendors.. These concerns were brought to a head when Future set up operations in the
United Kingdom and West Germany.
Conceivably, an American distributor, given the right acquisition and a solid local
management team, could achieve efficiency and service levels on a pan-European scale
that would allow effective competition with the existing network. A good analogy is
shown in how Texas Instruments, Motorola, and National Semiconductor gained market
share from Philips, Siemens, and Thomson in the 1970s by setting up organizations that
spanned Europe with synchronized systems and procedures, but with local management
attuned to local needs. Another example is shown in the computing industry, where
American companies are organized to tackle the European market as a whole, and
leading European companies' revenue overwhelmingly generates from their own national
base.
CHANNELS OF DISTRIBUTION
Agents and Representatives
Manufacturers, in using distribution channels such as agents and representatives
(reps), augment their own direct sales force. The agents and reps tend to be one- or
two-person teams who are based in a European country and dealing with the larger
accounts. The agent, who usually represents only one semiconductor franchise, does not
hold inventory. He or she is paid a percentage of the billings that the vendor takes to
the assigned account. The accounts assigned to agents or reps tend to be smaller than
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that serviced by the vendor's own sales force but larger than is typically handled by
franchised distributors. The agent concept is most advanced in the United Kingdom,
West Germany, and Scandinavia.
Franchised Distributors
Semiconductor vendors usually engage a number of franchised distributors for
each country within Europe. These distributors fall into two distinct categories:
"supermarket" and "specialist." The supermarket outlet generally holds a number of
large franchises with strong commodity, logic, linear, and discrete lines. The specialist
distribution concept has grown quickly during the past few years as customers become
more technically advanced, and the need for a distributor to help in the design-in phase
of very large scale integration (VLSI) becomes standard.
These specialist distributors are technically overrated, and many of them specialize
in carrying innovative lines from the smaller semiconductor vendors.
Gray Market Dealers
Terminal-to-terminal communications have made it possible for a seller in the Far
East to contact potential customers almost anywhere in the world and to offer products
for short-term delivery at prices well below the established market price in the buyer's
home territory. The seller may not even have the stock in its current inventory, or ever
take physical possession of it; however, by offering competitive price and short-term
delivery terms, the dealer takes advantage of world pricing differentials and, in doing so,
undercuts local franchised houses.
Regional Distribution
With the move toward 1992 and the breaking down of regional boundaries,
distributors and major vendors are looking at more cost-effective methods of holding
inventory in Europe.
INVENTORY MANAGEMENT ISSUES
Centralized Warehousing
Centralized warehousing is gaining popularity as a method of reducing inventory
holdings costs. Many distributors split their inventory into A, B, and C categories (using
some form of Pareto's Law) based on sales turnover by device. The central warehouse is
stocked with all three types, and branch or local warehouses hold fast-moving A and B
category devices. Exceptions to this may occur because of local requirements of certain
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industries or specific customers. In a pan-European context, distributors limit stock
volume for their entire range of franchises to one major location and invest in smaller
satellite warehouses for holding faster-moving devices, instead of keeping money tied up
in slow-moving inventory in each European country.
Setting Inventory Levels
Inventory level is always a point of contention between vendors and distributors.
Distributors would like to see their stock rotate four or five times per year at resale
price. Suppliers believe that the rotation rate should be three to three and one-half
times per year. At any rate, holding inventory costs money. A balance must be struck
between the cost of financing inventory and the "service level," which usually is defined
as the number of line items that can be shipped from stock and expressed as a
percentage of total line items ordered. Recent research indicates that distributors are
moving toward a service level of 90 percent and adjusting inventory levels to meet this
requirement.
Supporting Just-in-Time (JIT) Delivery Requirements
JIT deliveries are being requested by an increasing number of customers. Some
customers are prepared to place long-term orders (6 to 18 months) for production
programs with the expectation that the distributor will guarantee to meet the required
call-offs, regardless of the current lead-time situation.
The distributor's stock must be adequate and located near the customer to ensure
customer support. Earning the customer's trust is vital—the distributor must establish a
close personal relationship with each customer. To offer this level of service suggests
that a distributor must provide local branch distribution.
Computer Issues
Some suppliers regard unsold inventory as a contingent liability. They want to know
the amount of potential liability and where it is located. Also, inventory movements and
resale bookings and billings are important pieces of market intelligence for the supplier.
The supplier must have real-time access to this information.
The distributor's computer software may have to be changed to meet all reporting
and control requirements. Obviously, each branch must use the same software package.
If the distributor is working on a computer-to-computer basis with the supplier(s), this
will introduce further software and hardware compatibility requirements.
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Export Control and Currency Considerations
Many devices are considered to be strategic and, as such, are under strict export
control regulations. These may be imposed by local authority or NATO. The distributor
must be able to comply with the regulations and demonstrate tight administrative
control of the movement of such devices. In some cases, it may be necessary to
establish a bonded warehouse. A bonded location can also be used for stock imported
from outside the European Community while the distributor waits for a final delivery
point to be established. This warehouse would form a central stocking location for the
pan-European distributor.
The valuation of stock held in two or more locations that use different currencies
may be handled based on the currency of the country where the main stock is held.
However, tax considerations in the branch countries may involve evaluating the
inventory in two currencies.
Centralized warehousing has both good and bad points for the distributor. One
benefit is better control of inventory costs and the possible reduction of these costs.
Better service can be offered to the customer because A and B stock is available as
needed, which results in faster stock rotation. A benefit for the supplier is better
visibility of inventory holdings. However, centralized warehousing requires a highly
sophisticated control system, which will lead to an administrative costs increase.
For the supplier, advantages include fewer ship-to points, fewer small orders, and a
single bill-to point. Selling time and costs also are reduced. The supplier could lose
some visibility on stock inventory location, market use, and local market pricing. These
points require closer cooperation between the distributor and the supplier to be resolved.
Centralized warehousing for multicountry distributors is on its way. The distributor
must develop effective internal control techniques, satisfy the demands of his suppliers,
and comply with export control regulations. This will require careful planning and
execution, but the majority of participants believe that it will be worth it.
1.5-6
© 1989 Dataquest Incorporated June
ESIS Volume II
0003969
ESPRIT II Overview
ESPRIT
European Strategic Programme for Research and
Development in Information Technology
Council decision:
Official Journal L118, dated 6-5-1988
Aims:
Duration:
To develop basic technologies for the European IT industry; to promote European industrial cooperation in precompetitive R&D; to develop internationally accepted
standards.
5 years, December 1987 to November 1992
EC Contribution:
ECU 1,600 million, or $2,105 million
Area of Research:
A. Research and development projects with a long-term
strategic impact:
• Microelectronics and peripheral technologies
(including the development of application-specific
integrated circuits, high-speed integrated circuits, CAD)
• Information processing systems
(including total systems design, parallel architectures, signal and knowledge processing)
• IT application technologies
(including industrial applications (CIM), distributed information processing, business and home systems)
B. Basic research (actions)
• Primarily molecular electronics, artificial intelligence and
cognitive science, the application of solid state physics
to IT, advanced systems design
C. Accompanying measures
• Coordination, information processing and exchange, standardization, technology transfer
ESIS Volume U
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27
1.2 Government R&D
Calls for Proposals:
Deadlines
* R & D projects, Area A
12-4-1988
* Basic research, Area B
13-6-1988
* Superconductivity
13-6-1988
* VLSI
6-1-1989
* Parallel processing
17-4-1989
* Microelectronics
4-9-1988
* R & D projects. Area A
10-1-1990
** To be decided
* Published
** Planned
Scheme of Support:
Shared-cost research contracts
Particularities:
• Projects (area A): Participation of at least two independent industrial partners not established in the same
Member State.
• Actions (area B): Participation of at least two research
institutions not established in the same Member State.
• There are particular calls for proposals in superconductivity, in connection with the SCIENCE progranmie.
28
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ESIS Volume U
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ESPRIT II Project Information
INTEGRATED CIRCUITS
Bipolar Advanced Silicon for Europe (BASE)
Project Number: 2016
The goal of the project is to develop and fully integrate technology expertise in the submicron
range as well as design and CAD achievements.
The development plan proceeds in two phases yielding interim (Yl) and final (Y2) process
versions after year 3 and year 5, with the following target specifications.
Process Characteristics
Process (VI)
Process (V2)
Emitter width (minimum)
Gate delay
Power delay product
No. interconnection layers
Via pitch (minimum)
Transmitter frequency (maximum)
Transmitter count (maximum)
0.7 |im
50 ps
40 f J
3
3.5
15 GHz
1 X 10'
0.3 Vm'
Participants
Philips Gloielampenfabrieken NV
Plessey Company pic
SGS-Thomson Microelectronics SRL
Siemens AG/Semiconductor Group
Telefunken Electronic GmbH
SGS-Thomson Microelectronics SA
Technische Hochschule Darmstadt
Technische Universitat Berlin
IMEC vzw
Royal Signals and Radar Establishment (RSRE)
Communications and Management Systems Unit (CMSU)
University of Dublin (TCD)
Country
NL
UK
I
D
D
F
D
D
B
UK
GR
IRL
Role
C
P
P
P
P
P
A
A
A
A
A
A
Start Date
1 February 1989
Duration
60 months
Status
Running
ESIS Volume n
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40 ps
10 fJ
4
2
25 GHz
5 X 10"
29
1.2 Government R&D
Advanced PROM Building Blocks (APBB)
Project Number: 2039
The objective of this project is the integration of a new generation of reprogrammable,
read-only memory devices (PROMs) into advanced CMOS processes for the application-specific
market. To do this, the necessary CAD tools required to support nonvolatile memory designs will
also be developed.
The work is divided into two phases, the first from years 1 to 3 and the second from years 3
to 5, with an overlap in year 3. In phase one, existing and new memory devices will be evaluated
and developed. Suitable cells will be incorporated into 1 |j,m and low-voltage (1.5V, 2 \\xci design
rule) CMOS processes. In phase two, advanced devices will be integrated into increased-density,
low-voltage (1.5V, 1.5 |im) and submicron (0.7 to 0.8 p.m) CMOS processes.
Participants
Country
Role
Plessey Company pic
SGS-Thomson Microelectronics SRL
SGS-Thomson Microelectronics SA
Deister Electronic GmbH
IMEC vzw
NMRC
Mikron GmbH
Gemplus Card International
IRIS
INESC
Eurosil Electronic GmbH
UK
I
F
D
B
IRL
D
F
I
P
D
C
P
P
A
A
A
A
A
A
A
A
Start Date
15 December 1988
Duration
36 months
Running
30
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Status
ESIS Volume n
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ESPRIT n
Analog/Digital CMOS ICs (ADCIS)
Project Number: 2193
The integration of analog and digital functions on a single chip is necessary for the
development of new systems for information technology for data commimication, industrial and
consumer systems.
During the proposed project a 1 ^im CMOS process will be adapted and characterized for
mixed analog/digital function and an electrical parameter of a submicron CMOS technology will
be extracted. The devices from the digital CMOS technology and the necessary analog-adapted
process modules will be defined and characterized.
At the same time, the development of design tools will be started, with the goal of building a
system capable of being used to produce siUcon compilers involving digital and analog cells. The
CAD tools will be tested and demonstrated, analog cell library and analog basic converter
functional blocks will be developed, and one industrial demonstrator circuit will be designed and
processed.
The circuit considered for the demonstration of the analog-digital CMOS technology is a
component for the ISDN new telecommunications system.
Participants
Country
Role
Matra-MHS
ANACAD-Computer Systems GmbH
Centro Nacional de Microelectrbnica (CNM)
NMRC
Universidad de Sevilla-AICIA
Mietec NV
Instituto Superior Tecnico
CNET
F
D
E
IRL
E
B
P
F
C
P
P
P
P
P
P
P
Start Date
1 January 1989
Duration
36 months
Status
Running
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31
1.2 Government R&D
Combined Analog/Digital Integration (CANDI)
Project Number: 2268
The project aims at the development of the main technologies and implementation techniques
needed for the fabrication of complete analog/digital (A/D) systems on silicon. This includes the
development of a 0.8 \x.m bipolar/CMOS merged technology exploiting the specific advantages of
both bipolar (high-speed components, high driving capability and high-precision analog circuitry)
and CMOS (high integration density and low power consumption) technologies. The associated
design techniques and the appropriate CAD tools covering both analog, digital and mixed
signal A/D applications, as well as effective low-cost tools for complex A/D circuits testing, are
also to be developed.
The final objective is the full integration of technology, design and CAD tools implemented in
the fabrication of prototype system components for major fields of applications such as consumer
electronics and telecommunications.
Participants
Country
Role
SGS-Thomson Microelectronics SA
Telefunken Electronic GmbH
AEG Olympia AG
Thomson-CSF-LER (Laboratoire Electronique de Rennes)
Universite Paris Sud
Universitat Dortmund
Plessey Company pic
Thomson Consumer Electronics
DOSIS GmbH
Alcatel Standard Electrica SA
F
D
D
F
F
D
UK
F
D
E
C
P
A
A
A
A
A
A
A
A
Start Date
1 December 1988
Duration
36 months
Status
Rimning
32
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ESIS Volume n
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ESPRIT n
A High-Performance CMOS/Bipolar Process for VLSI Circuits (BiCMOS)
Project Number: 41212430
The objective of the project is the development of a VLSI technology combining, on a single
chip, MOS circuitry of the highest density currently obtainable with bipolar circuitry of similar
density, but better suited to specific tasks, such as analog interfacing with the external world. The
main effort has been on the technological side, in the development of methods which allow both
bipolar and MOS transistors to be made in compatible process steps, and in dimensions
comparable to those presently obtained in MOS-only technology. In parallel with the technological
work, design methods for this specific type of circuit (mixed analog and digital functions) have
been under development along with studies to determine, for various types of application, the most
appropriate division of subsystems between the two circuit technologies.
The work is presently progressing towards the development of BiCMOS-2 (1.2 ^im feature
size in CMOS and 0.9 to 1.2 jxm in the bipolar part). This is now being carried out
within ESPRIT II Project 2430, which has, as a main objective, in a three-year time frame, the
development of a more advanced process called BiCMOS-3 (0.7 to 0.8 p.m design rules). A
number of circuits are planned to be designed and processed. Among them, a video A/D converter
(of about 200K device complexity) which would not be possible to realize by CMOS alone, and a
3K gate array with an on-chip 16K SRAM, both in BiCMOS-2, are expected at the end of the first
18-month phase,
In the following 18 months several other demonstrators will be designed and processed
including a high-performance A/D converter (30K to 50K transistors), a FIR filter, a video A/D
converter with added functionality and a fast data path unit (or alternatively a network for
packet-switched applications) of lOOK transistors complexity.
Participants
Country
Role
Philips Natuurkundig Lab.
Siemens AG
Entwicklungszentrum fiir Mikroelektronik GmbH*
University of DubUn (TCD)
INESC*
NfL
D
A
IRL
P
C
P
A
A
A
Start Date of Project 412
1 April 1985
Duration
43.5 months
Status
Finished
Start Date of Project 2430
15 November 1988
Duration
36 months
Status
Running
•from IS-11-88
ESIS Volume n
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33
1.2 Government R&D
ESD Protection for Submicron Technologies
Project Number: 5005
The aim of this project is significantly to increase the electrostatic discharge (ESD) hardness
of CMOS technologies in the submicron range by improving the understanding of ESD
phenomena and developing technology-independent guidelines based on a detailed investigation of
relevant parameters and realistic stress models.
The results of the project, in the form of guidelines for circuitry protection of submicron
technologies against ESD, will be transferred to the consortia of the ESPRIT projects ASIC 0.5
Micron CMOS (ACCES), project number 5048, and SOI 0.5 Micron CMOS (SUBSOITEC), project
number 5029. Recommendations will also be provided to ESD test equipment manufacturers.
Participants
Country
Role
Siemens AG
IMEC vzw
Nederlandse Philips Bedrijven BV
Technische Universitat Miinchen
D
B
NL
D
C
P
P
A
Start Date
15 December 1989
Duration
36 months
34
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ESIS Volume n
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ESPRIT n
A Very Quick Turnaround System for ASIC Design and Manufacturing Supporting Design
Tools and Implementation Technologies (QUICKCHIPS)
Project Number: 5047
The QUICKCHIPS project aims to develop a low-cost quick prototyping and small-volume
production system of ASICs (gate array and sea-of-gates) using a DWL-II machine for laser-based
direct write on wafer personalization techniques. Activities will include the development of a
DWL-II machine for very quick turnaround line (VQTL) ASIC fabrication, the development of a
foundry-independent design system (the Uncommitted Design System), and the study of the
commercial exploitation of project results.
Participants
Country
Role
INESC
CPRM
Milano Research Center
P
P
I
C
P
P
Start Date
To be announced
Duration
24 months
ESIS Volume n
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35
1.2 Government R&D
ASIC 0 ^ Micron CMOS (ACCES)
Project Number: 5048
The ACCES project will provide European systems and IT users with multiple-sourced,
submicron CMOS processes offering high packing densities and high speeds. The processes
produced will be state-of-the-art CMOS ASIC technologies at 0.7 and 0.5 )xm dimensions.
The project aims to develop Europe's capability in advanced ASIC CMOS processes.
Submicron CMOS technologies will be developed, demonstrated and qualified at the 0.7 |xm (after
two years) and 0.5 fj.m (after four years) levels. The reduction in dimensions will be optimized to
achieve very high density as well as very high speed for digital custom chips. Packing density
targets are about 5,000 logic gates/mm^ in 0.7 |im CMOS and over 7,000 in 0.5 ^im CMOS.
The partners in the consortium aim to propose common design rules to their potential
customers, resulting in a unique multisourcing capability. This approach is further enhanced by the
specialization of the partners in various production levels (from short cycle time prototyping
through to high-volume deliveries) and application areas (industrial, telecommunications, military,
and so on).
Participants
Country
Role
European Silicon Structures SA (ES2)
CNET
IMEC vzw
Mietec NV
Plessey Company pic
STC Components Ltd
Matra-MHS
British Telecommunications pic
Standard Elektrik Lorenz AG
Telefonica Investigacion y Desarrollo
F
F
B
B
UK
UK
F
UK
D
E
p
p
p
p
p
p
A
A
A
Start Date
1 February 1990
Duration
48 months
36
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ESIS Volume n
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ESPRIT n
Advanced CMOS Analog/Digital and Digital/Analog Converters (AD 2000)
Project Number: 5056
The AD 2000 project aims to develop advanced analog/digital and digital/analog converter
architectures for low-cost CMOS technology capable of addressing the needs of emerging systems
in the communications and consumer electronics industry. As projections of the world market for
ASICs show, the proportion of mixed analog/digital systems will rise steadily. The realization of
high-performance, low-cost converters is crucial for the successful development of commercially
viable products.
AD 2000's main targets are to stretch state-of-the-art performance limits with respect to speed
and resolution, to improve CAD tools for architecture-level synthesis of the converters, and to
address functional testing and characterization issues for improved quality control and reduced
production costs.
The results of the project will be conveyed through a number of IC demonstrators
implemented using standard CMOS technology. The results will be transferred to European
semiconductor manufactures.
Participants
Country
Role
Instituto Superior Tecnico
Italtel SIT
Universidad de Sevilla-AICIA
Universita di Pa via
Fujitsu Espana SA
p
I
E
I
E
C
P
P
P
A
Start Date
To be announced
Duration
36 months
ESIS Volume II
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37
1.2 Government R&D
Joint Logic Project
Project Number: 5080
The overall objective of the Joint Logic project is to develop in a coordinated way the basic
fabrication concept for a competitive 0.5 \xm CMOS technology suitable for logic appUcations.
The specific goaj of this project in its 18-month start-up phase is the development and adaption of
future logic CMOS technologies derived from the different memory technology backgrounds of the
parmers, or based on applicable ESPRIT work.
According to the work-programme, a CMOS processing capability with a high commonahty
at the 0.5 ^im level will be developed by all partners in the consortium, and the developed
processes will be available for the whole range of IC production, from prototype to very high
volume.
Whereas one of the technological foundations of the Joint Logic project is in part supplied by
ongoing and future memory development within the context of JESSI, a second important
contribution will be made by ESPRIT project 5048 (ACCES), the participants of which (ES2,
Mietec, STC, MHS) are not directly involved in the JESSI Memory Project. They will develop
compatible design rules for niche, high-performance or very quick turnaround applications and will
cooperate with several research centers (Plessey, CNET, IMEC) in order to develop basic CMOS
process modules leading to 0.5 iim processes.
Participants
Country
Role
Philips International BV
European Silicon Structures SA (ES2)
Plessey Company pic
Siemens AG
SGS-Thomson Microelectronics SRL
Telefunken Electronic GmbH
STC pic
SGS-Thomson Microelectronics SA
Mietec NV
Matra-MHS
NL
F
UK
D
I
D
UK .
F
B
F
C
P
P
P
P
P
P
P
P
P
Start Date
1 June 1990
Duration
18 months
38
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ESPRIT n
SEMICONDUCTOR EQUIPMENT AND MATERIALS
ASIC Multichamber Rapid Thermal Processing with Microwave Enhancement
Project Number: 2319
The growing pressure on manufacturers to obtain high yields from their wafer fabrication
operations is leading a trend towards single wafer processing. Rapid thermal processing (RTP) has
come to be viewed as the single wafer alternative to furnace tube processing. The project aims at
developing a multichamber RTP machine with improved control of the on-wafer temperature and
including novel microwave-enhanced techniques for precleaning before oxidation or deposition
processes.
Participants
Country
Role
Sitesa Addax
CNRS/LAAS
SGS-Thomson Microelectronics SA
University of Edinburgh
STC Technology Ltd
CEA/LETI
F
F
F
UK
UK
F
C
P
P
P
P
P
Start Date
15 December 1988
Duration
36 months
Status
Running
ESIS Volume n
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39
1.2 Government R&D
Mask and Reticle Technology Development for Advanced High-Density and ASIC Devices
Project Number: 5014
The purpose of the project is to develop essential mask and reticle technology required for
advanced high-density and fast turnaround ASIC requirements to a device complexity level
equivalent to 16M DRAM. The results will include new materials, processes and equipment, which
will make a significant contribution to the ability of the European semiconductor industry to
manufacture advanced devices.
Participants
Country
Role
Compugraphics International Ltd
Balzers AG
Polymer Laboratories Ltd
Siemens AG/Semiconductor Group
Wild Leitz Instruments GmbH
Valvo Unternehmensbereich
Semisystems AG
BMP Plasmatechnologie
IMEC vzw
UK
CH
UK
D
D
D
CH
D
B
C
P
P
P
P
P
P
P
P
Start Date
1 January 1990
Duration
36 months
40
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ESPRIT n
Process Module Integration for a Multichamber Production System (PROMIMPS)
Project Number: 5041
The main aim of the PROMIMPS project is to combine and integrate process steps which are
required for submicron ASIC and memory device fabrication in CMOS, bipolar or BiCMOS
technology.
Using an already developed and tested multichamber equipment platform with up to nine
separate process chambers, the integration of three multistep processes for the fabrication of
multilayer interconnections will be realized within this project.
Participants
Country
Role
Plasmos GmbH
Alcatel CIT
Balzers AG
Consejo Superior de Investigaciones
Cienu'ficas (CSIC)
SGS-Thomson Microelectronics SRL
Siemens AG
Nederlandse Philips Bedrijven BV
Fraunhofer-Gesellschaft IFT
CEA/LETI Atomique
AST Elektronik GmbH
D
F
CH
E
C
P
P
P
I
D
NL
D
F
D
P
P
P
P
P
P
Start Date
15 April 1990
Duration
36 months
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41
1.2 Government R&D
Integrated Design and Production System (IDPS)
Project Number: 5075
Following the completion of the first or definition phase of IDPS (projects 2270 and 2426),
the second phase is now being launched.
IDPS will provide the Community with a state-of-the-art ASIC facility, including a common
library, several design systems and a choice of five foundry services. Phases two and three of the
project will focus on submicron process with 0.7/0.8 um feature sizes which will be available in
time for commercial exploitation of the first IDPS results in the second half of 1992.
The key objectives of IDPS are:
•
Standardization, leading to a European industry standard
•
A "Common Library," recognized as a European multisource library
•
Implementation of the library in the 0.7/0.8 ^im processes
•
Several CAD systems capable of reliable, error-free design of high complexity
(1 to 2 million transistor) ASICs
•
To ensure semi-second sourcing of circuits designed with the common library, and full
second sourcing, at least between the very quick turn around (VQTA) and each of the
quick turn around (QTA) foundries
•
Short turnaround time to prototypes and "right-first-time" designs and prototypes
Participants
Country
Role
Philips International BV
Robert Bosch GmbH
European Silicon Structures SA (ES2)
SGS-Thomson Microelectronics SA
SGS-Thomson Microelectronics SRL
Siemens AG
Plessey UK Ltd
ICL
Bull SA
NL
D
F
F
I
D
UK
UK
F
C
P
P
P
P
P
P
P
P
Start Date
To be announced
Duration
30 months
42
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ESPRIT n
CAD
Interactive Silicon Compilation for High-Performance Integrated Systems (SPRITE)
Project Number: 2260
The goal of this project is the development of a CAD system used in the realization of
real-time information processing subsystems such as image and graphics processing, post-ISDN
home and business peripherals, HDTV, coprocessors, data compression, and so on.
Participants
Country
Role
IMEC vzw
Nederlandse Phihps Bedrijven BV
Racal Research Ltd
Siemens AG
INESC
RSRE
Praxis Systems pic
B
NL
UK
D
P
UK
UK
C
P
P
P
A
A
A
Start Date
1 December 1988
Duration
60 months
Status
Running
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43
1.2 Government R&D
Application-Specific Arcliitecture Compilation (ASAC)
Project Number: 2394
The ASAC project will explore techniques for the creation of system-level design tools to
ensure optimization of hardware performance and hardware/software partitioning.
The goal of the one-year definition phase is to achieve a joint understanding between all
partners of system design problems, which will form the basis upon which to define the
requirements for CAD tools and systems at the system design level.
The results of the ASAC project are to provide a tools bridge between the system design
projects, the lower-level CAD tools and semiconductor process development.
Participant
Country
Role
ICL
Bull SA
Olivetti
SGS-Thomson Microelectronics SA
Siemens AG
UK
F
I
F
D
C
P
P
P
P
Start Date
1 January 1989
Duration
12 months
Status
Finished
44
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ESPRIT n
JESSI CAD-Frame (JCF)
Project Number: 5082
The goal of the project is to provide a standardized framework for CAD tools which will
serve as a general, common software infrastructure for efficiently building, maintaining and
configuring open integrated CAD environments.
The JCF project will provide the JESSI framework to all JESSI CAD projects as a series of
consecutive, stepwise-enhanced releases, which will offer a growing set of services and continuous
increase of performance and efficiency. The project will also offer support to safeguard the
effective use of the JESSI framework. Moreover, the JESSI framework will be available to
ESPRIT projects and external users (under conditions to be specified).
The project is divided into start-up, main and completion phases. The overall goals of the
start-up phase (mid-1990 to mid-1991) are to:
Ensure the European advantage in framework technology
Start, as quickly as possible, on the development of the JESSI framework
Prepare for the main phase of the project
More specifically, the goals of the start-up phase are to:
Evaluate existing frameworks and framework components
Specify framework requirements for future frameworks
Define a common JESSI framework architecture
Define the first working interfaces
Develop a first JESSI framework prototype
The specification of framework requirements will occur in close contact with international
standardization efforts.
Participant
Country
Role
Nixdorf Computer AG
Technische Universiteit Delft
ICL
Swedish Telecom
Siemens AG
SGS-Thomson Microelectronics SRL
Nederlandse Philips Bedrijven BV
BeU Telephone Mfg. Co. NV
University of Manchester
Universitat Paderbom
Femuniversitat Gehamthoogschule in Hagen
Swedish Institute of Microelectronics
D
NL
UK
S
D
I
NL
B
UK
D
D
S
C
P
P
P
P
P
P
A
A
A
A
A
(Qxitinued)
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U Government R&D
Participant
Country
Role
Plessey Company pic
Universitat Karlsruhe
IMEC vzw
GMD
ClSfET
Robert Bosch GmbH
UK
D
B
D
F
D
A
A
A
A
A
A
Start Date
1 May 1990
Duration
15 months
Status
Running
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ESPRIT n
MISCELLANEOUS
Development of European Magneto-Optical Drives
Project Number: 2013
Market research undertaken by the consortium showed that the erasable optical data storage
market will grow in 1991 to 1992 and will be worth ECU 1.5 billion by the mid-1990s, with
mainframe backup and CAD/CAM as key applications. These markets should exceed ECU 150
million each in 1991 to 1992 with a large part of them presently in the hands of overseas
competitors, and will increase exponentially after this.
In the case of CAD/CAM, a data capacity greater than 1 GB is required to cope with the
higher resolution pictures of up to 30 MB per page which will be used. Access time of less than
50ms and data transfer rate of at least 20 Mbit/s are also required.
The objective of this project is to establish the technologies to develop two erasable optical
drives and to give to European companies new opportunities to restore their position in the mass
storage area.
Participants
Country
Role
SAGEM
Hoechst AG
Lexikon
Olivetti
Coventry Polytechnic
CEA/LETI
National Institute for Higher Education (NIHE)
F
D
I
I
UK
F
IRL
C
P
P
A
P
P
A
Start Date
1 June 1989
Duration
60 months
Status
Running
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1.2 Government R&D
Optoelectronics with Active Organic Molecules
Project Number: 2284
Future optical processing and computing systems will require new materials exhibiting faster
and more efficient nonlinear optical properties than presently available. The purpose of this project
is to exploit the vast potential of organic molecular and polymeric materials for applications such
as frequency conversion, paramedic amplification and emission, optical bistability, electro-optic
modulation, real-time holography and beam steering,
Participants
Country
Role
Thomson-CSF
CEA/LETI
Facult^s Universitaires Notre-Dame de la Paix (FUNDP)
ICI
CNET
F
F
B
UK
F
C
P
P
P
P
Start Date
24 January 1989
Duration
36 months
Status
Running
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RACE
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RACE
CONTENTS
Page
RACE Overview
List of Abbreviations
53
54
RACE Project Information
Electro-Luminescent Flat Panel Display for Terminal Applications
Subscriber Coherent Multichannel System
BLNT—Broadband Local Network Technology
ATMOSPHERIC
Domestic Customer Premises Network (DCPN)
Development of Improved Indium Phophide (InP) Substrate Material for
Optoelectronic Device Production
ACCESS—Advanced Customer Connections, an Evolutionary Systems Strategy
Low-Cost Optoelectronic Components
OSCAR—Optical Switching Systems, Components and Applications Research
Wavelength and Time-Division Multiplexed (WTDM) Broadband Customer
Premises Network
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56
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58
59
60
61
62
63
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RACE Overview
RACE
Research and Development in Advanced Communications
Technologies for Europe
Council decision:
Official Journal L16, dated 21-1-1988
Aims:
To contribute towards the introduction of integrated broadband
communication (IBC) taking into account the evolving
Integrated Services Digital Network (ISDN) and natural introduction strategies; new and improved information services; to
prepare for international standards; to develop joint functional
specifications for operators.
Duration:
5 years, June 1987 to May 1992
EC Contribution:
ECU 550 million/$723.7 miUion
Areas of Research:
IBC development and implementation strategies
• IBC strategies
• IBC realization (systems analysis and functional specifications)
• BC use
• Common operational environment
IBC technologies
•
•
•
•
IBC system function techniques
IBC progranuneming infrastructure
IBC usability engineering
Technologies enabling network evolution
J*renonnative functional integration
• Verification tools enabling operational IBC components and
subsystems to be developed
• Development of pilot schemes for IBC applications
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1.2 Government R&D
Calls for Proposals:
Deadlines
* Definition phase
Call for a reserve list
1-10-1987
* Complementary phase
3-10-1988
** To be decided
1990
* Published
** Planned
Scheme of Support:
Shared-cost research contracts
Within the European Community, 11 telecommunications
administrations, 89 universities and research establishments
and over 230 companies (90 of them small companies) are
now involved in the RACE consortia. Organizations from-II
of the 12 European Community countries are represented.
Organizations from several countries in EFTA are also
involved. In addition, 32 organizations from Austria, Finland,
Norway, Sweden and Switzerland participate in 39 consortia.
LIST OF RACE ABBREVATIONS
ATM
asynchronous transfer mode, or automated teller machine
BCPN
broadband customer premises network
BLNT
broadband local network technology
CAC
customer access connection
CATV
cable television
CMC
coherent multichannel
CPN
customer premises network
DCPN
domestic customer premises network
IBC
integrated broadband communications
IBCN
integrated broadband communications network
WTDM
wavelength and time-division multiplexed
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RACE Project Information
Electro-Luminescent Flat Panel Display for Terminal Applications
Project Number: R1004
The overall objective is to ensxire the availability of high-performance, fully European, flat
panel terminals for future telecommunications applications.
Participants
Country
Lohja Corporation Electronic Industries*
SGS-Thomson Microelectronics SRL
University of Ghent
Matra Communication
SF
I
B
F
Start Date
1 January 1988
Duration
4 years
Estimated Costs
ECU 1.63 mimon/$2.14 miUion
* Prime contractor
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IJ. Government R&D
Subscriber Coherent Multichannel System
Project Number: RIOIO
The main objective of this project is to demonstrate the technical and techno-economic
feasibility of coherent multichannel (CMC) in the customer access connection (CAC) and the
customer premises network (CPN). The results of the project are intended to show that the use of
coherent transmission allows for a very transparent andflexibleevolution from a first generation of
optical local networks to future generations, at the same time accepting almost any service
scenario.
Apart from providing evidence for the technical feasibility, the project also participates in
discussions on the introduction and evolution of optical networks, based on the available expertise
in system-related issues. The transparency and flexibility mentioned above is the basis of these
ongoing discussions.
Participants
Country
Nederlandse Philips Bedrijven BV*
Heinrich Hertz Institut
Plessey UK Ltd
Siemens AG
IMEC vzw
Laboratoires d'Electronique Philips (LEP)
^fL
D
UK
D
B
F
Start Date
1 January 1988
Duration
4 years
Estimated Costs
ECU 15.23 milUon/$20.02 million
* Prime contractor
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RACE
BLNT—Broadband Local Network Technology
Project Number: R1012
The objective of the project is to develop a low-cost local loop and switch technology which
is capable of supporting a range of narrow-band and broadband services in a flexible and efficient
manner.
Participants
Country
Plessey Research Roke Manor Limited*
Societa Italiana Telecomunicazioni SpA
Siemens AG
UK
I
D
Start Date
1 January 1988
Duration
3 years
Estimated Costs
ECU 15.28 million/$20.11 mUlion
* Prime conttactor
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1.2 Government R&D
ATMOSPHERIC
Project Number: R1014
ATMOSPHERIC is concerned with the architecture, techniques and technologies which are
required to implement switching and multiplexing functions within an IBCN, Its focus is the.
transition phase leading to the ATM-based network.
The main objective of the ATMOSPHERIC project is to identify network configurations and
solutions which will accommodate the uncertiiin service growth and mix arising during the
introductory phase, interwork with existing public networks and support access from existing
terminals and subscriber premises networks. They will allow reuse of resources to permit
economic introduction and evolution strategies.
In particular, these strategies will permit the early introduction of a limited amount of revenue
funding broadband services in markets whose needs can be economically met prior to the
implementation of major technical advances.
Verification and evaluation of the recommended solutions will be supported by the construction of a Demonstrator model in order to assess:
•
•
•
Technology performance requirements of switching and multiplexing elements of the
IBCN
The flexibility and compatibility of the network architectural concepts and design options
to meet the needs of the configuration required to support evolving market demand
The ability of ATMOSPHERIC solutions to address economically the key aspect of
upgrading the local distribution network to provice IBC capability
Participants
Country
Matra-Ericsson Telecommunications (MET)*
Telefonaktiebolaget L M Ericsson (Ericsson Telecommunication)
Televerket (Swedish Telecommunications Adminisa°ation)
General Electric Company pic
Matra-Space
Aktieselskabet Nordiske, Kabel «fe Traadfabriker
EMI Electromagnetics Institute
National Technical University of Athens
STC pic
Telef6nica de Espafla SA
SOS-Thomson Microelectronics SRL
F
S
S
UK
F
DK
DK
OR
UK
E
I
Start Date
1 January 1988
Duration
3 years
Estimated Costs
ECU 6.56 million/$8.63 million
* Prime camractor
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RACE
Domestic Customer Premises Network (DCPN)
Project Number: R1015
The domestic CPN is a strategic area for the whole IBCN, because a rapid penetration of
broadband services in the domestic environment will be the main motivation for a new pubUc
telecommunication network.
The main intention of the project is to prepare economic, technically practical, and ergonomic
solutions for the future CPNs in the domestic area.
Participants
Country
Thomson-CSF*
Standard Elektrik Lx)renz AG
FATME SpA
Systek
HUSAT
BED
Thomsen LEREA
F
D
I
D
UK
D
F
Start Date
1 January 1988
Duration
2 years
Estimated Costs
ECU 3.07 million/$4.04 million
* Prime contractor
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1.2 Government R&D
Development of Improved Indium Phosphide (InP) Substrate Material for Optoelectronic
Device Production
Pwject Number: R1029
This project is directed at the development of improved InP substrate manufacturing
technology, with demonstrated benefits for discrete and integrated optoelectronic device yield and
hence cost.
Participants
Country
MCP Wafer Technology Ltd*
Thomson-CSF
Thomson Hybrides et Microondes SA
University de Sciences et Techniques du
Languedoc
UK
F
F
F
Start Date
1 January 1988
Duration
3 years
Estimated Costs
ECU 1.09 miUion/$1.43 miUion
* Prime contractor
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RACE
ACCESS—Advanced Customer Connections, an Evolutionary Systems Strategy
Project Number: R1030
The main objectives of the ACCESS project is to investigate the CAC based on digital
transmission on single-mode optical fibre, with a view to implementation in the early phases of the
IBCN. The investigation will lead to identification of one or more preferred CAC implementations.
The main criterion used is the minimal total cost of the CAC. An additional objective is to study
alternative means for enabUng early broadband connections to the domestic customers for
provision of CATV and telephony services only.
Participants
Country
Aktieselskabet Nordiske Kabel & Traadfabriker*
AEG Kabel AG
ANT—Nahrichtentechnik GmbH
British Telecommunications pic
Thomson Hybrides et Microondes SA
Telef6nica de Espana SA
Souriau et Cie.
Societe Anonyme de Telecommunications
Etat Francais—Ministfere des PTT
Centre National d'Etudes des Telecommunications
General Electric Company pic
SGS-Thomson Microelectronics SA
Telefonaktiebolaget L M Ericsson
Televerket (Swedish Telecommunications Administration)
DK
D
D
UK
F
E
F
F
F
F
UK
F
S
Start Date
1 January 1988
Duration
4 years
S
Estimated Costs
ECU 17.15 million/$22.57 million
* Piinie contractor
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1.2 Goverament R&D
Low-Cost Optoelectronic Components
Project Number: R1031
The project's objective is the development of manufacturing technologies and device designs
compatible with the production of large volumes of low-cost active optoelectronic components in
line with the IBC network requirements.
Participants
Country
Standard Elektrik Lorenz AG*
STC pic
AT&T en Philips Telecommunicatie Bedrijven BV
Nederlandse Philips Bedrijven BV
RTC-Compelec
Siemens AG
ANT—Nahrichtentechnik GmbH
Compagnie Deutsch
D
UK
NL
NL
F
D
D
F
Start Date
1 January 1988
Duration
4 years
Estimated Costs
ECU 9.67 million/$ 12.72 million
* Prime contractor
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RACE
OSCAR—Optical Switching Systems, Components and Applications Researcli
Project Number: R1033
OSCAR aims to develop the key switching technologies required for the evolution towards
integrated optical networks. In particular, building blocks with zero optical loss are expected to be
realized. OSCAR is making extensive use of practical test beds as tools to verify its results both at
the components and the system concept level.
Participants
Country
Philips—LEP*
General Electric Company pic
Thomson-CSF
Thomson-Sintra
IMEC vzw
British Telecommunications pic
Dr Neher Laboratories
Standard Elektrik Lorenz AG
Universitat Dortmund
AT&T en Philips Telecommunicatie Bedrijven BV
Plessey UK Ltd
Swiss Federal Institute of Technology
Ascom Holding Ltd (Research and New Technologies Division)
Telefonaktiebolaget L M Ericsson
Televerket (Swedish Telecommunications Administration)
F
UK
F
F
B
UK
ML
D
D
NL
UK
CH
CH
S
S
Start Date
1 January 1988
Duration
4 years
Estimated Costs
ECU 6.14 mimon/$8.09 miUion
* Prime contractor
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1.2 Gk>vernment R&D
Wavelength and Time-Division Multiplexed (WTDM) Broadband Customer Premises
Network
Project Number: R1036
The aim of this project is to develop a broadband customer premises network (BCPN)
suitable for broadband service providers and for a wide range of oUier corporate applications.
Participants
Country
British Broadcasting Corporation*
STC pic
Research Neher Laboratories of the Netherlands PTT
General Electric Company pic
Alcatel Standard E16ctrica SA
Thomson-CSF
Instruments SA
SGS-Thomson Microelectronics SA
STC Technology Ltd
UK
UK
NL
UK
E
F
F
F
UK
Start Date
1 January 1988
Duration
3 years
Estimated Costs
ECU 3.63 million/$4.78 million
* Prime contractor
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DRIVE
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DRIVE Overview
DRIVE
Dedicated Road Infrastructure for Vehicle Safety in Europe
Council decision:
Official Journal L206, dated 30-7-1988
Aims:
The development of information technologies to improve road
transport efficiency and road safety; to reduce the environmental
impact of road transport.
Duration:
3 years, June 1988 to May 1991
EC Contribution:
ECU 60 million, or $78.9 million
Areas of Research:
Road transport informatics (RTI) technologies
• Enabling and supporting RTI technologies (specific components,
communications options, vehicle-to-vehicle communications)
• RTI software technologies (software systems, development tools)
• The human factor and the human/machine interface
• Fault tolerance
Evaluation of strategic options
• Refinement of objectives
• Evaluation tools
• Outline of implementation scenarios
Specifications, protocols and standardization proposals
• Definition of requirements and specific objectives
• Use of the evaluation tools
• Development of functional specifications and standardization
proposals
• Drafting guidelines for drawing up regulations
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1 ^ Government R&D
Calls for Proposals:
* General call
17-10-1988
• Partial call
12-5-1989
** To be decided
* Published
** Planned
Scheme of Support:
68
Deadline
Shared-cost research contracts
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BRITE/EURAM
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BRITE/EURAM Overview
BRITE/EURAM
Basic Research in Industrial Technology for Europe/
European Research in Advanced Materials
Council decision:
Aims:
Official Journal L98, dated 11-4-1989
To strengthen the competitiveness of the European
manufacturing industry, including small and medium-size
enterprises (SMEs), in world markets; to establish the
necessary technological base for the development of
new products and processes.
Duration:
4 years, 1989 to 1992
EC Contribution:
ECU 499.5 milUon, or $657.2 milUon
Areas of Research:
I. Advanced materials technologies
Metallic materials and metallic matrix composites
Materials for magnetic, optical, electrical and superconducting applications
High-temperature nonmetallic materials
Polymers and polymer matrix composites
Materials for specialized applications
I. Design methodology and quality assurance for
products and processes
Quality, reliability and maintainability in industry
Reliability of processes and products
II. Application of manufacturing technologies
Advancing conventional manufacturing practices
Manufacturing processes for flexible materials
IV. Technologies for manufacturing processes
•
•
•
•
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Surface techniques
Shaping, assembly and joining
Chemical processes
Powder processes and powder metallurgy
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1.2 Government R&D
V. Aeronautics
•
•
•
•
Calls for Proposals:
Aerodynamics
Acoustics
Airborne systems and equipment
Propulsion systems
Deadlines
* Expressions of interest
(26.7.1988)
3-1989
* Feasibility awards
14-4-1989
* Areas I to IV
(Types 1 and 2)
12-5-1989
* Area V Aeronautic research
9-6-1989
** Areas I to IV
31-8-1990
* Feasibility
2-3-1990
** To be decided
* Published
** Planned
Scheme of Support:
Shared-cost research contracts
Concerted actions
Scholarships
Particularities:
• Type 1 projects, applied industrial research: participation of at least two industrial enterprises from different Member States
• Type 2 projects, focused fundamental research: participation of at least two universities from different
Member States with endorsement by two industrial
enterprises
• Feasibility awards for SMEs (Area I to IV); grants of
up to 75 percent (to a maximum of ECU 25000) of
the cost of research projects, which can last up to 6
months and must serve to establish the feasibiUQ^ of
a device, process or concept
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EUREKA
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EUREKA
CONTENTS
Page
EUREKA Overview
77
EUREKA Project Information
Integrated Circuits
New Designs and Technologies for High-Power Semiconductor Devices
ATA (Analog Transistor Array) Fast Prototypeable Analog Transistor Array
(EPROM) Multi-Megabit Non Volatile Memories
JESSI
79
80
81
83
Semiconductor Equipment and Materials
The Development of an All Dry Single-Layer Photolithography Technology
for Submicron Devices
Automatic Design and Production of Custom Chips Using Direct Printing on
Silicon Wafers
0.1 Micrometer Ion Projection
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91
92
75
EUREKA Overview
EUREKA
European REsearch Coordination Agency
Created in 1985 as the result of a French-German initiative. With
the active participation of the European Commission, EUREKA
has developed parallel to EC research. Both initiatives have the
same basic aims: the promotion of cross-border cooperation in
European research and technology. However, their procedures are
different. This is intentional; Community research and EUREKA
should complement, not compete with each other.
Basic approach:
Whereas EC research is mainly concerned with precompetitive and
basic research, EUREKA projects are nearer to the market.
However, there are certain EUREKA projects concerned with
basic research.
Countries involved:
EUREKA consists of the EC countries and the Commission, as
well as the EFTA countries and Turkey (a total of 20 partners).
Organization:
Whereas EC research is based on fixed institutional rules and
jointly agreed long-term specific aims, EUREKA projects arise
spontaneously without detailed overall planning.
Financing:
The national governments of the partners concerned decide whether
support will be given, and fix the extent of the subsidy. This
offers the advantage of greater flexibility, but there are limits on
the degree to which a coherent strategy is possible. The funding
given to EUREKA projects has now reached the sum of approximately ECU 1 billion per annum ($1.3 billion).
From the beginning, the Commission of the European Communities
has supported this new form of European cooperation in research
work, and has also participated financially, for example, in two
of the most important EUREKA projects: HDTV (European standard for high-definition television) and JESSI (Development of
64M memories and their applications).
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EUREKA Project Information
INTEGRATED CIRCUITS
New Designs and Technologies for High-Power Semiconductor Devices
Project Number: 97
Technological constraints of semiconductor devices are preventing not only further optimization in existing applications, but also the penetration of power semiconductors in the field of
energy utilization; for example, in cases where the power control of motors could be introduced to
advantage.
In order to achieve further development in power semiconductor technology iuid thus a
possible breakthrough in the application of these elements in the environmentally acceptable
utilization of energy, new techniques and new designs of components must be introduced. These
are already available to some extent in the IC industry, but require considerable investment to
adapt them; other techniques and structures have to be newly developed to achieve the desired
functions and combinations of parameters economically.
Participants
Country
Asea Brown Boveri AG*
Asea Drives
Institut for Mikrovacsteknik
Centre Suisse d'Electronique et de Microtechnique SA (CSEM)
CH
S
S
CH
Estimated Costs
Revised estimate as at 1/4/89; ECU 2.5 million (approx. $3.28 million)
Time Scale
Revised estimate as at 1/4/89; April 1987 to December 1989
* Main contractor
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1.2 Government R&D
ATA—Analog IVansistor Array
Fast Prototypable Analog Transistor Array
Project Number: 222
An analog ASIC will be developed which:
•
Is prototypable by direct write laser (DWL), and therefore guarantees extremely short
prototype and production turnaround time.
•
Is of different layout philosophy than existing analog transistor arrays (ATAs). This
enables a considerable speed-up of layout time, more effective use of standard analog
cell libraries and a better use of silicon area. The first two arguments speed up chip
development time, the third decreases production cost for both small and large production volumes.
Analog microelectronics is indispensable in instrumentation (all measurements, sensor interfaces), telecommunications, power electronics and interfacing computers to the "real world."
Participants
Country
Lasarray SA*
Interest expressed by Favag SA Microelectronic
CH
CH
Estimated Costs
Total value of project as at 1/4/89: ECU 1.8 million
($2.37 million)
Time Scale
16 months
* Main contractor
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EUREKA
EPROM—Multi-Megabit Nonvolatile Memories
Project Number: 102
This project has two major objectives:
•
Study, development and industrialization of integrated circuit nonvolatile memory
(EPROM) having a storage capacity of 4M
•
Feasibility study of technology and architecture of integrated circuit nonvolatile memory
(EPROM) having a storage capacity of 16M
Participants
Country
SGS-Thomson Microelettronica SpA
Italy
Estimated Costs
Over a 5-year period
Revised total as at 1/4/89: ECU 227.5 million
(approx. $299.34 million)
Time Scale
April 1987 to December 1991
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JESSI Overview
JESSI
Joint European Submicron Silicon Programme
Project Number: 127
The JESSI programmes should be viewed in relation to the work done before in the field of
semiconductors at the Community level (ESPRIT I
and II) as well as through binational initiatives.
Moreover, JESSI will support the achievements of
applications programmes (e.g. HDTV).
JESSI follows the MEGA project, which is an
independent research programme between Philips
and Siemens, with the participation of the Dutch
and German governments. The timescale was five
years, ending in 1989 with an investment of
$1.2 billion over that period. The objective was
to develop the submicron process, IM SRAM by
Philips and 4M DRAM by Siemens and design,
manufacturing and test automations.
Achievements of the MEGA Project
8Kx8 SRAM—in production
256K SRAM production using MEGA
Process—mid-1990
4M DRAM—into production 1989
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1.2 Government R&D
OVERVIEW
In 1986, European companies found themselves in a situation where, with no effective
advantage in their home market, they were having to compete against companies who not only had
more money to spend individually but who also had access to the results of nationwide,
coordinated R&D efforts which were also becoming much more vertically integrated and crossdisciplinary.
It was under these conditions that JESSI was established, to meet the challenge from outside
Europe and to guarantee future technology which would support not just the electronics industry
but all of Europe's industry in its entirety.
The project was first outhned in March 1986, and by the end of that year JESSI received the
EUREKA approval for its definition phase. The next two years were taken up in the planning
phase. In 1988 the JESSI Green Book was released and defined a project which is the most
ambitious within the EUREKA programme. From a cost point of view alone, it is equal to all the
other EUREKA projects put together.
After publication of the Green Book, JESSI was declared a EUREKA project in 1989. It is a
research and development programme targeted on the technologies and equipment needed to
integrate advanced systems on silicon and their applications into advanced systems.
The JESSI programme has been allocated a total budget of over ECU 3.8 billion ($5 billion)
for its eight-year life span. The JESSI programme will involve 21,400 man-years split between
technology, equipment and materials, applications, and basic and long-term research.
JESSI aims to help the whole of the European electronics industry to grow in a unified and
coordinated way: from basic research to materials; from production equipment to CAD; and to the
final application of devices within electronics systems.
The basic structure of JESSI has thus been set to facilitate industry-wide coordination and
growth with four major areas being specifically designated. These areas are addressed by four
separate subprogrammes to cover:
•
Technology
•
Equipment and materials
•
Applications
•
Basic and long-term research
These four subprogrammes, operating at an industry level, all report to the JESSI board
which, with the help of a special support group and office is responsible for acceptance of projects
and the overall administration of the programme.
Within this basic framework, JESSI has the following objectives:
ti
•
Development of the advanced process steps, advanced devices architectures and
implementation of competitive production technologies for submicron CMOS technologies to be ready for the mid-1990s.
•
The realization of flexible tools and procedures, applicable throughout Europe, for the
development of high-complexity integrated circuits and their implementation in electronic systems.
©1990 Dataquest Eurqw Limited November
Reference Kfatecul—^will not be repabluhed
ESIS Volume n
0008189
JESSI
•
Long-term applied research convergent on industrial objectives in the areas of materials,
technologies and CAD.
•
Development of advanced microelectronics production equipment and methodologies in
selected sectors of the European industry.
Before its completion, JESSI will give Europe its own submicron technology within a time
frame that will allow Europe to become and remain truly competitive with the rest of the world.
Starting from 0.7 (im technology, the ultimate aim of the programme is to realize a 0.3 p,m
technology using 64-Mbit memories as the test vehicle.
In July 1989 the JESSI board was designated. To date the foiu- subprogramme management
boards within the JESSI programme have examined a total of 224 projects covering technology,
equipment and materials, applications and basic long term research. Of these, 53 have already been
given the JESSI label which entitles them to financing from individual governments and the
European Commission.
Definition Phase:
People from 29 institutions and companies from 6 European countries took part (Belgium,
France, West Germany, Italy, the Netherlands and the United Kingdom).
Execution Phase:
More than 100 companies, including among others:
Participants
Country
Philips, Nederlandse Philips Bedrijven BV*
Robert Bosch GmbH
Siemens AG
Philips, Untemehmensbereich Bauelemente
SGS-Thomson Microelectronics SA
SGS-Thomson Microelectronics SRL
Plessey Company pic
Interest expressed by Belgium
NL
D
D
D
F
I
UK
* Main contractor
Estimated Costs
The overall JESSI programme cost is ECU 3.8 billion (approx. $5 billion). The 4 subprogrammes will respectively represent 41 percent, 13 percent, 32 percent and 14 percent of this
cost (ECU 1,550, 500, 1,200, and 550 mUlion).
Time Scale
8 years, 1989 to 1996
ESIS Volume n
©1990 Dataquest Europe Limited November
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Reference Materia^-^will not be repoblished
85
1.2 Government R&D
Major Events
March 1986
Plans for JESSI first outlined.
Jan.-Dec. 1988
Definition and Planning phases
Four subprogrammes established: Technology, Equipment and Materials,
Application, and Basic and Long-Term Research
June 1989
JESSI is declared an official EUREKA project.
July 1989
JESSI board designated.
Feb 1990
JESSI acknowledges IBM-Siemens joint development project for 64M
DRAM.
March 1990
JESSI and SEMATECH start common projects.
April 1990
Dr. Ing. Raimondo Paletto is nominated as the new Chairman of the
JESSI Board.
April 1990
Nine new JESSI projects approved.
May 1990
JESSI and JEMI (Joint Equipment Manufacturers Initiative), France
focus on common goals—the Equipment and Materials subprogramme
was backed by JEMI.
June 1990
CAD Project starts under ESPRIT
The first and central CAD Project of the JESSI programme is started
as an ESPRIT Project (number 5082).
July 1990
JESSI decides on more projects—start-up programme nearly completely
launched.
A ftirther 13 projects have been selected in the area of applications of
microelectronics, bringing the total to 49.
Sept 1990
Philips withdraws from the Joint Memory Project
This will not have a major impact on the overall JESSI programme.
The Joint Memory Project was quite a large programme which had
1,535 man-years allocated over 3 years; the withdrawal has reduced
this to UOCK) man-years and should be considered in the light of the
total of 21,400 man-years so far allocated to the programme. Philips'
lack of participation is capable of being supplemented by inputs from
companies such as SGS-ITiomson or Matra-MHS.
86
©1990 Dataquest Europe Limited November
Refetence Material—^will not be repabUshed
ESIS Volume n
0008189
JESSI
JESSI Subprogramme Technology—JESSI Labelled Projects
ID No. Title
JESSI
Label
Date
No. of
Partners
Technology
Tl
Joint Memory Project
T2
Joint Logic Project
8-11-89
23-1-90
3
9
T3
23-1-90
9
3-4-90
11
F, D
3-4-90
10
F, D, UK
80
23-1-90
12
F, D, I, NL,
UK
90
13-6-90
3
D
42
23-1-90
I
D
23
23-1-90
4
D, I
25
23-1-90
7
F, D
31
23-1-90
23-1-90
23-1-90
2
4
2
NL
D
53
36
56
23-1-90
8
B, D, I, NL
235
13-6-90
5
F, D, I
53
3-4-90
3-4-90
6-7-90
2
6
6
D
D, I, NL
F, D
176
27
25
13-6-90
4
D, NL, UK
61
Manufacturing Science and Technology
Equipment and Materials
E2A
Ultra I*ure Wet Chemicals and Supply
Systems for Semiconductor Processing
E2B
Gases Technology: Ultra Clean Technology
in Gases and Chemicals for Ultra
Large-Scale Integrated Semiconductor
Manufacturing
E5
Planarized Metallization Based On Al, Cu
and TiN CVD
E9
High Lead Count Ceramic Package for High
Reliability
Ell
Equipment for the production of Si crystals
by the CCZ/MCZ Process
E15
Elymat Technique for In-Line Monitoring of
Metal Contamination
E20
MEGA Clean—FuUy Automated ULSI
Cleaning System
E29
Advanced Chip Encapsulation
E31
Thermal Vertical Reactor
E39
New Technologies for Half Micron and
Subhalf Micron Stepper Optics
E60
1-Line Production Lithography for 0.5
Micron
E64A
Automatic Metrology Tool for the 0.3
Micron ICs
E66
Silicon Wafers for Submicron Technology
E74
Target Materials for Submicron Metallization
E77C
Development of Contamination Free
Distribution Components for the Transport
of Ultra Pure Chemicals
E104
Electron Beam Metrology System
Countries
F, D,
B, F,
NL,
B, F,
NL,
I, NL
D, I,
UK
D, I,
UK
D
ESIS Volume II
©1990 Dataquest Europe Limited November
0008189
Reference Material—will not be republished
ManYears
1990-92
1,535
588
567
87
1.2 Government R&D
JESSI Subprogramme Technology—JESSI Labelled Projects (Continued)
ID No. Title
JESSI
Label
Date
No. of
Partners
Countries
ManYears
1990-92
E106
13-6-90
4
B, F, I, NL
47
6-7-90
6-7-90
5
3
F, D, UK
F, I, UK
66
6
Applications
ACl
JESSI CAD-Frame
8-11-90
16
AC3
HDL Component Modelling and Libraries
23-1-90
10
AC4
High-Performance Simulation Environment
23-1-90
7
ACS
Development of a EMC Workbench for
Microelectronic Application
Test Generation and Design for Testability
Support
3-4-90
24
23-1-90
7
23-1-90
16
3-4-90
11
3^-90
6-7-90
9
8
B, F,
NL,
F, D,
UK
F, D,
UK
B, F,
NL,
F, D,
UK
B. F,
NL,
F, D.
UK
B, F,
B, D
6-7-90
3-4-90
23-190
6-7-90
4
6
8
F, D, UK
F. D, NL
F, D
177
210
189
4
B. F
83
23-1-90
8
F, D, NL
140
23-1-90
5
B, F, D
82
23-1-90
8
F, D, I, NL,
UK
220
E183B
El86
AC6
Wavelength-Dispersive X-Ray Fluorescence
Wafer-Analyzer
Automatic Mixed VLSI Tester
Ultra Clean Process Environment in the
Precleaning Oxidizing, Nitriding and
Metalization Steps of ULSI Chips
Manufacturing
AC8
Synthesis, Optimization and Analysis
AC 12
Analog Expert Design System
AC41
AC50
Technology Assessment (prev. AE41)
Layout Verification System for Submicron
riesigns
AC61 Euro-CAD Project for Board Design
AEIO
HDTV
AEU
Ultra Large-Scale Integration of a Control
Unit for Safety-Critical Systems
AE13B Advanced VLSI Conq>onents for the GSM
Pan-European Digital Cellular Radio
System
AE14
Implementation of Prototype Building Blocks
for a DAB Standard
AE15
Advanced VLSI Components for B-ISDN
ATM Networks
AE23
Small and Medium-Size Industries Siq)port
88
©1990 Dataquest Europe Limited November
Reference Material—will not be lepobUsbed
D, I,
UK
I, NL,
299
I, NL.
165
D, I,
UK
I, NL,
109
362
253
D, I,
UK
NL,
287
D. NL
112
67
244
ESIS Volume n
0008189
JESSI
JESSI Subprogramme Technology—JESSI Labelled Projects (Continued)
ID No. Title
JESSI
Label
Date
No. of
Partners
AE31B Mobile Cellular Radio
6-7-90
2
AE36
Digital Control for High-Resolution Display
AE45B Improved Quality Television
AE55B Advanced VLSI Chip Set for ISDN
Videophone
AE56
Europroject Signal Processing for SD/HD
VCR
AE60
High-Density Reconfigurable Computer
Memory Components
6-7-90
6-7-90
6-7-90
Bacis and Long-Term Research
BD2
System and Technology Related Circuit
Design
BEM
Circuit Simulation
4
3
6
CH, F, SW,
UK
F, D, I
D. I
F, D
63
84
91
6-7-90
5
F, D, NL
93
6-7-90
3
F, D, UK
75
23-1-90
22
346
3-4-90
15
F, D, I, NL,
UK
F, D, NL,
UK
CH, F, D, I,
NL
B, F, D, I,
NL, UK
B, F, D, I,
NL, UK
BD5
Advanced Neural Circuits and Networks
6-7-90
12
BTl
Advanced Technology for 0.25 Micron
CMOS and Below
Altemative Devices
23-1-90
26
23-1-90
11
BT2
Countries
ManYears
1990-92
ESIS Volume n
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Reference Material—will not be lepiibUsbed
61
116
65
1086
263
89
1.2 Government R&D
SEMICONDUCTOR EQUIPMENT AND MATERIALS
The Development of an All-Dry Single-Layer Photolithography Technology for Submicron
Devices
Project Number: 38
With the planned production of megabit and multimegabit devices, an urgent need exists for a
relatively simple, economically attractive and reliable photolithography process in the submicron
region. Processes such as e-beam or X-ray lithography have a disadvantage of high investment,
low throughput or delicate mask making. Multilayer photolithography allows the use of conventional exposer equipment in order to achieve submicron resolution but due to process complexity,
suffers from uneconomic low yields.
UCB has applied for a worldwide patent covering a single-layer photoresist, which after
irradiation is submitted to a gas-phase silylation reaction followed by treatment with a reactive
oxygen ion plasma.
Preliminary results have shown that submicron resolution can be achieved and reproduced to
a level of 0.5 jim without significant yield loss.
The objective of this EUREKA project is an optimization of:
•
Chemical structures of the photoresist and silylation agent
•
Synthesis and purification
•
Exposure, silylation, dry development and resist-stripping steps
•
Silylation equipment
•
Plasma equipment
This optimlization is a prerequisite to the potential exploitation of this photolithography
process.
Participants
Country
UCB Electronics NV*
Interuniversitair Micro-Elektronica Centrum vzw (IMEC)
Plasma Technology UK Limited
B
B
UK
Estimated Costs
Revised cost at 1/4/89: ECU 35 million ($46.0 million)
Time Scale
3 years
* Main contractor
90
©1990 Dataquest Europe Limited November
Reference Material—will not be republished
E5IS Volume U
0008189
JESSI
Automatic Design and Production of Custom Chips Using Direct Printing on Silicon Wafers
Project Number: 16
The aim of the project is to offer a new service to the market which will enable engineers
designing electronic systems to carry out electronic operations on the basis of custom chips defined
using specialized software (silicon compilers); these chips are to be produced in a semiconductor
fabrication plant organized in such a way as to minimize the production cycle time by means of
direct printing on silicon wafers. It is edmed to supply the chips in under two weeks.
Participants
Country
European Silicon Structures (ES2)*
Nordic VLSI AS
Asea Brown Boveri AG
European Silicon Structures
Interest expressed by Ireland and Turkey
F
N
CH
UK
Estimated Costs
ECU 81.4 million ($107.1 million)
* Main contractor
ESIS Volume n
©1990 Dataquest Europe Limited November
0008189
Reference Material—will not be fepablisbed
91
1.2 Government R&D
0.1 Micrometer Ion Projection
Project Number: 50
The development in telecommunications and data processing systems for applications such as
robots calls for an increasing degree of integration of electronic components, aiming at cost
reduction and improved systems reliability.
The aim is to develop ion projection lithography for use in integrated circuit manufacture and
to overcome the limitations of conventional optical, e-beam or X-ray lithography by using ion
projection. The ion projection technique would allow the throughput of conventional optical or
X-ray lithography, with a resolution of 0.1 fxm for suitably large chip sizes.
Participants
Country
lonen Mikrofabrikations Systeme GmbH (IMS)*
Technische Universitat Wien
Fraunhofer Institut fiir Mikrostrukturtechnik
Siemens AG
Interest expressed by EC
A
A
D
D
Estimated Costs
Total amount: ECU 5 million (approx. $6.58 million)
Time Scale
Project dates: July 1986 to June 1989
* Main contractor
92
©1990 Dataquest Basope Limited November
Refoeace Material—will not be republistied
ESIS Volume n
0008189
Information
ESPRIT
European Strategic Programme for Research and Development in Information Technologies
Mr. Ian CUison
Information Desk
Commission of the European Communities
DG XIII-ESPRIT Information
200, Rue de la Loi
B-1049 Brussels
Belgium
Telephone: +32/2/2362067
+32/2/2351603
EUREKA
European Research Coordination Agency
Secretariat Eureka
19 H Av. des Arts, Bte. 3
B-1040 Brussels
Belgium
Telephone: +32/2/2170030
Telex: 29340 EUREKA B
Fax: +32/2/2187906
Mr. David Saunders
RTP/DTI (Room 205)
Ashdown House
123 Victoria Street
London SWIE 6RB
England
Telephone: 071/215 6615
Telex: 8813148 DTHQ G
Fax: 071/821 1298
Mr. Cormac Gordon
The Irish Science and Technology Agency (EOLAS)
Glasnevin
IRL-Dublin 9
Republic of Ireland
Telephone: 01/370101
Telex: 32501 EI
Fax: 01/379620
ESIS Volume n
®1990 Dataquest Europe Limited November
0008189
Refefcace Material—will not be repoblisfaed
93
1.2 Government R&D
EUREKA—DATABASE (free of charge)
Detailed information on projects carried out in the framework of the EUREKA progranmie;
sharing of the financing participants; status of agreement between participants; location of work;
application/market; partners sought; status of the project; and so on.
Database Producer: EUREKA Secretariat in collaboration with national project coordinators,
Coverage: Approx. 250 project records. Regular updating.
User Aids: Online guidance with the command INFO EUREKA.
Access to all listed databases through the ECHO_HOST Service of the Commission of the
European Communities.
Information:
ECHO Customer Service
177, Route d'Esch
L-1023 Luxembourg
Telephone: +352/488041 (ECHO Help Desk)
Fax: +352/488040
Telex: 2181 eurolu
NUA: 270 448112
JESSI
Joint European Submicron Silicon Initiative
JESSI Press Office
c/o Siemens AG
Box 801709
D-8000 Munchen 80
West Germany
Telephone: +49 89 41448480
RACE
Research and Development in Advanced Communications Technologies for Europe
Jiirgen Rosenbaum
Commission of the European Communities
DG XIII-RACE Programme
200, Rue de la Loi
B-1049 Brussels
Belgium
Telephone: +32/2/2359235
94
©1990 Dataquest Europe Limited November
Reference Material—will not be iqmbluhed
ESIS Volume n
0008189
Information
DRIVE
#
Dedicated Road Infrastructure for Vehicle Safety in Europe
Fotis Karamitsos
Programme Manager
Commission of the European Communities
DG XIII-F/5-DRIVE Programme
200, Rue de la Loi
B-1049 Brussels
Belgium
Telephone: +32/2/2363461
BRITE/EURAM
Basic Research in Industrial Technology for Europe/European Research in Advanced
Materials
Telephone: +32/2/2353707
Telephone: +32/2/2355290
Telephone: +32/2/2354055
Peter Evans (BRITE/EURAM)
Joseph Wurm (BRITE/EURAM)
Herbert Allgeier (Aeronautics)
Commission of the European Communities
DG XII-BRITE/EURAM Programme
200, Rue de la Loi
B-1049 Brussels
Belgium
ESIS Volume H
©1990 Dataquest Europe Limited November
0008189
Reference Material—will not be iqniblisbed
95
Semiconductor Devh
Markets
Dataquest
tLuropean Semiconductor
Consumption Forecast
1985-1995
I
European Semiconductor
Consumption History and Forecast
1985-1995
>
I
Published by Dataquest Eurcpe Limited
Dataquest cannot and does not guarantee the accuracy aiul completeness of the data used in the compilation of this report and
shall not be liable for any loss or damage sustained by users of this review.
Printed in the United Kingdom. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or
transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfDming, videotape, or
otherwise—without the prior written permission of the publisher.
© 1991 Dataquest Europe limited
September 1991
0009897
i
Table of Contents
List of Tables
Page
INTRODUCTION
ASSUMPTIONS
CHANGES FROM 1990 FORECAST
PRODUCT ANALYSIS
COUNTRY ANALYSIS
GRAPHICAL ANALYSIS
1
1
4
European Currency Exchange Rates
1 European Semiconduaor Market by
Country
5
7
9
2 European Quarterly Semiconduaor
Revenue
3 International Economic Forecast
4 Attraction of Foreign Investment in
Electronics Production
5 ^plications Splits by Region—1990
6 Total All European Regions—^History
(Dollars)
List of Figures
Figure
1 Semiconduaof Shipment Model
2 Estimated 1990 European Regional
Semiconduaor Markets
3 Estimated 1990 European Country
Semiconduaor Markets
4 Total Semiconductor European Market
1985-1995
5 Total Semiconductor European Growth
1985-1995
6 Exchange Rate—Dollars to ECUs
7 Relative Exchange Rate—Dollars to
Local Currency
8 Growth Share Matrix—European
Products
9 Growth Share Matrix—Eurofsean
Regions
Table
P^e
2
10
10
11
11
12
12
13
13
Page
iv
1
3
3
4
4
14
7 Total All European Regions—Forecast
(Dollars)
8 Total All European Regions—History
(ECUs)
9 Total All Europ>ean Regions—Forecast
(ECUs)
10 Benelux Region—History
17
18
11
12
13
14
Benelux Region—Forecast
France Region—History
France Region—^Forecast
Italy Region—History
19
20
21
22
15
16
17
18
Italy Region—Forecast
Nordic Countries—History
Nordic Countries—Forecast
UK and Eire Region—History
23
24
25
26
19
20
21
22
23
UK and Eire Region—Forecast
Germany Region—History
Germany Region—Forecast
Rest of Europe Region—History
Rest of Europe Region—Forecast
27
28
29
30
31
15
16
European Sexolconductor Consumption History and Forecast 1985-1999
i
European Cturency Exchange Kates
Against the Dollar
Region
Currency
Benelux
Gulden OO
France CPF)
Lire a )
Swedish Krona (SKr)
France
Italy
Nordic
UK/Eire
W. Germany
UK Pound ( i )
Deutsche Mark (DM)
ROE
Peseta OPta)
ECU
Bi^on
Benelux
Currency
Gulden (F)
France
France CFF)
Italy
Nordic
Lire a )
Swedish Krona (SKr)
1985
3.32
8.98
1986
1987
1988
2.45
6.92
1.91
8.60
1.49
7.12
2.03
6.01
1.30
1.98
5.96
1.30
6.34
0.77
2.94
0.68
0.61
6.13
0.56
1.80
1.76
1.88
170.05
2.17
139.97
0.56
1.62
123.56
116.96
118.55
102.03
1.32
1.02
0.87
0.85
0.91
0.78
1991
1.90
5.70
1992
1.96
1993
1.96
1994
1.96
1995
1.96
5.87
5.87
1.26
1.30
1.30
5.87
1.30
5.87
1.30
6.31
0.59
6.31
0.59
6.31
0.59
6.31
0.59
105.20
1.73
109.10
1.73
109.10
1.73
109.10
1.73
109.10
0.82
0.85
0.85
0.85
0.85
UK/Eire
UK Pound (£)
6.13
0.57
W. Germany
ROE
Deutsche Mark (DM)
1.68
Peseta (Pta)
ECU
Source: Dataquest (September 1991)
1989
2.12
6.39
1.37
6.45
0.61
1990
1.82
5.44
1.20
5.92
4
I
i
0009787
©1991 Dataquest Europe Limited September—Reproduction Prohibited
European Semiconductor
Consumption
History and Forecast 1985-1995
Introduction
Exchange Rates
This booklet presents Dataquest's European
regional history and forecast for semiconductor
products for the period 1985 to 1995. For the first
time, the European history and forecast is given in
European currency units (ECU), as well as US
dollars. The ECU is used to reflect local trading
conditions, and will indicate underlying trends
independent of exchange rate variations against
the US dollar. There are of course variations
between the local currencies and the ECU, but
these are small. This data is given in the exchange
rate table opposite.
The exchange rates used for the forecast are those
in place during the third quarter of 1991- These
rates are assumed to be unchanged for the duration of the forecast. Table 2 shows the effects of
the exchange rate variations on market growth
when calculated in both dollars and ECU.
Table 1
European Semiconductor Market by Country
Region
Total Europe
Dataquest defines the semiconductor market as
representing all merchant market business, plus
the in-house business that exists for those semiconductor manufacturers which also participate in
the merchant market This element of in-house
business between a manufacturer and its equipment divisions or subsidiaries is valued at merchant market prices. This gives a true reflection of
the total available semiconductor market to merchant semiconductor suppliers. Figure 1 shows
the shipment model used by Dataquest in the
definition of the total semiconductor market.
Assumptions
The semiconduaor forecast is made assuming certain fectors and conditions. The size of the semiconductor market may alter as a result of changes
in our basic assumptions, which include:
1990
($M)
$10,661
Benelux
Belgium
Netherlands
Luxembourg
1990
(LC M)
$559
190
358
11
BF 6,346
F 652
F 367
France
$1,531
FF 8,329
Italy
$1,179
a K) 1,411
Nordic Countries
Denmark
Finland
Iceland
Norway
Sweden
UK and Eire
England
Scotland
Wales
Northern Ireland
Eire
$691
59
84
0
33
515
$2,730
1,884
546
109
27
164
DKr 365
EMk 321
IKr 0
NKr 206
SKr 3,049
£1,055
£306
£61
£15
£98
• Exchange rates
Germany
3,077
DM 4,985
• Political environments
Rest of Europ)e
Austria
Greece
Malta
Portugal
Spain
Switzerland
Turkey
$894
224
36
18
11
197
265
143
S 2,554
Dr 6,624
LM 57
Esc 1,566
Pta 20,094
SFr 368
Lt 373.030
• Economic conditions
• Technologies
• Semiconductor production capacity
• End-use applications
Table 1 gives semiconductor consumption by
country for 1990.
LC - Local currenq?
Souree: Dataquest (September 1991)
European Semiconductor Consumption History and Forecast 1985-1995
Figure 1
Semiconductor Shipment Model
Supplier 1
Supplier f=inishes
Product
Completed Fabrication
by Supf^iw
Dataquast Total
SomicoTKtuctor Rsvsnue
Estimate
Subcontract
Customer
Merchant Sales
Supplier 3
Supplier 4
Captive 'Sales'
C^38v© "Sales" Only
Souree: Dataquest (September 1991)
Political Conditions
Economic Conditions
Political conditions can include the unification of
east and west Germany, the Gulf war, or reference
prices for memory devices. Those factors likely to
affect products (such as reference prices) are
explained in the produa analysis, li is assumed
that there will be no major polidcal changes
within Europe. The changes that are in place, and
are likely to have a notable impact on the European semiconductor market, are the unification of
east and west Germany, the liberalizadon of the
rest of Eastern Europe, possible new members of
the European Community (Sweden, Turkey, Austria), the results of the General Agreement on
Tariffs and Trade (GATT) discussions, and trade
barriers. Assumptions associated with these factors are dealt with in the regional and product
analysis.
Economic conditions vary significantly, and the
expected changes in these conditions are
explained in the regional analysis of this text. The
basis for the economic growth of the relevant
countries is shown in Table 3. This is the economic forecast prepared by our parent company,
Dun & Bradstreet, in July 1991.
0009897
Other economic factors include the ability of the
various governments to attract foreign investment
into their countries. The growth of the electronic
production segment of the GDP for these countries is more related to this foreign investment
than the general growth of the country. Much of
the current and future foreign investment will
have a large impact on the potential growth of this
country. Dataquest's view of the relative success
©1991 Dataquest Europe Limited September—Reproduction Prohibited
ESB
i
European Semiconductor Consumptioa History and Forecast 1985-1995
Table 2
European Quarterlf Semiconductor Revenues
(MilUons of Dollars and ECUs)
Qi
QGR
Q2
Q4
QGR
Total Year
AGR
0.0%
-6.1%
2,794
2,040
0.73
5.1%
-0.3%
10,661
8,383
0.78
9.3%
-6.1%
2,491
2,113
0.85
-10.7%
-10.5%
2,573
2,183
0.85
3.3%
3.3%
10,828
8,890
0.82
1.6%
6.0%
2,847
2,414
0.85
-1.5%
-1.4%
3,074
2,606
0.85
8.0%
8.0%
11,558
9,799
0.85
6.7%
10.2%
QGR
<3
2,657
2,179
0.82
4.1%
2.9%
2,658
2,047
0.77
6.5%
9.5%
2,789
2,361
0.85
-6.3%
5.7%
6.8%
6.7%
2,889
2,449
0.85
5.1%
5.1%
1990
Dollars
ECU
Rate
2,552
2,118
0.83
8.2%
-3.0%
1991
Dollars
ECU
Rate
2,975
2,233
0.75
1992
Dollars
ECU
Rate
2,748
2,330
0.85
QM
QGK - Penjeni quarterty growth rate
AGR • Percent annual growth rate
Source: Dalaquest (September 1991>
Table 3
International Economic Forecast
GNF/GDP GroTTth Rates
R^om
United States
Japan
France
Germany (west)
Italy
Netherlands
Spain
Sweden
United Kingdom
i n or Near
Recession?
Yes
Yes
Yes
Yes
Yes
AGR
1989
2.5%
4.7%
4.5%
3.9%
3.2%
4.1%
4.9%
2.1%
1.7%
1990
1.0%
5.7%
2.8%
4.5%
2.0%
3.5%
3.5%
0.3%
0.5%
1991
0.0%
3.8%
1.4%
3.1%
1.4%
2.4%
2.6%
-0.6%
-1.8%
1992
2.5%
4.0%
2.5%
3.0%
2.5%
3.0%
3.2%
1.2%
1-9%
1993
3.0%
4.6%
3.3%
3.4%
2.7%
3.3%
3.9%
1.6%
2.9%
1994
2.4%
5.0%
3.0%
3.7%
2.8%
3.1%
3.7%
2.3%
3.4%
AGR " Annual growth rate
Source: Dun & Bradstreet Corporation Economic Analysis Department Qxily 1991)
of countries in attracting foreign investment, and
the outlook for these countries in attracting future
foreign investment is shown in Table 4.
the UK and Eire electronics market is partly
related to its production of data processing equipment within the region. Table 5 shows the applications splits in 1990 that have been used as the
basis for this forecast.
Applications
TTie strength of the applications within a region
can also have a modiying effect on the overall
market size, and cause a country to grow in a
maimer not related to its GDP. The data processing segment, for example, has been a major
growth application in the past; and the strength of
ESIS
Technologies
The basic technologies used for semiconductor
manufacture are silicon bipolar, BiCMOS and
MOS. Gallium arsenide and other ni-V materials
are growing in use, but these are unlikely to have
a major impact on the semiconductor market.
©1991 Dataquest Europe Limited September—Reproduction Prohibited
0009897
Europeaa Setnicoaductor Consumiitioa History and Forecast 1985-1995
18.2 percent. The 1990 actual growth in US dollars
was 9.3 percent, and the forecast for the CAGR
1990 to 1995 has been reduced to 9.0 percent.
Table 4
Attraction of Fore^;a Investment in Electronics
Production
Region
Benelux
France
Germany (west)
Italy
Nordic
UK and Eire
Rest of Europe
Spain/Portugal
Austria/Switzerland
Past
Performance
Low
Low
Medium
Low
Low
High
Future
Outlook
Increasing
Low
Medium
Low
Low
High
High
Low
High
Low
The long-range forecast made in 1990 was based
on a certain set of assumptions, and these
assumptions have now changed for the foUowing
reasons:
• The economic gloom, apparent in the United
States in 1990, spread to the United Kingdom in
1991. This had an effect on economic growth,
and from the fourth quarter of 1990 the United
Kingdom has been in economic recession. This
is expected to improve by the end of 1991, but
the rise out of recession is expected to be slow.
The recession is spreading into mainland
Europe, with France, Italy and Sweden also
suffering from low economic growth.
Source; Dataquesi (September 1991)
Production Capacity
Capadty of worldwide semiconductor production
is expected to remain above semiconductor
demand throughout the duration of this forecast,
though Europe is expeaed to remain a substantial
net imponer of semiconduaors for the next five
years.
Changes from 1990 Forecast
The previous forecast for the European semiconductor market, July 1990, gave a growth of
9.5 percent in US dollars for 1990, and a compound annual growth rate (CAiGR) out to 1995 of
• The unification of Germany is proving to be
very expensive. There are signs of inflationary
pressures creeping into the German economy;
as a result, the German government has
increased taxes, and the Bundesbank is increasing interest rates. This will impact further on
the European economies as the ECU is heavily
weighted towards the value of the deutsche
mark.
• Over the past two or three years, Europe has
experienced a considerable influx of electronics manufacturing from the Far East. This has
included printers, computers, and televisions.
However, local purchasing of semiconductors
has not increased as fast as w^as originally
expected.
Table 5
Applications Split by R^on—^1990
(Percent of Total Semiconductor)
Re^on
Benelux
France
Germany
EDP
Comms.
Ind.
Cons.
25%
24%
27%
24%
22%
25%
18%
21%
16%
15%
23%
18%
7%
23%
Italy
40%
Nordic
UK and Eire
Rest of Europe
15%
23%
44%
39%
18%
19%
15%
15%
19%
MiL
6%
12%
13%
11%
1%
4%
6%
15%
45%
5%
4%
Trans.
1%
7%
14%
5%
1%
4%
11%
EDP - Electtonic Data Proces^g
Coirans. - Communications
Ind. - Industrial
Cons. - Consumer
MiL - Militaty
Trans. - Ttansportalion
Source: t)ataquest (September 1991)
0009897
©1991 Dataquest Europe Umited September—^Reproduction Prohibited
^IS
European Semiconductor Consumptioa History and Forecast 1985-1995
• The uptake of the 4M DRAM has been a lot
slower than expected. This has been partly
caused by a slowdown in demand for DRAMs
because of the soft PC market, which has
extended the life of the IM DRAM. Prices of the
IM DRAM have fallen, delaying the point at
which the 4M becomes economically desirable.
• ASIC revenue per design is lower than was
previously projected. This is because of severe
price competition for low gate-count gate
arrays, coupled with the increasing integration
of several smaller ASICs into one ASIC. This,
combined with the lower-than-expected number of designs, has led to a reduction in tiie
ASIC revenue forecast.
• The demand for consumer goods has slowed
because of economic conditions, causing consumer analog demand to decline. Thomson,
one of Europe's major consumer goods
manufacturers, is also moving consumer goods
manufacturing out of Europe because of the
lower costs possible in Far Eastern labor markets. We expect this trend to continue as Philips
and Nokia also move some manufacturing out
of Europe.
• In spite of the success of military electronics in
the Gulf w^ar, the outbreak of peace in Eastern
Europe is resulting in major cutbacks in military
spending. The military market accounts for
only 4.4 percent of the total European semiconductor market, but much process and product
research and development is military-fimded.
All these factors have combined to reduce the
expected 1995 European semiconductor market to
$16,368 million. This is a CAGR of 9-0 percent
over the period 1990 to 1995.
Product Analysis
Bipolar Memory
The bipolar memory market peaked in 1986, and
has been declining ever since. The main reason
for the use of bipolar memory is speed; and the
advantage gained through the use of bipolar is
rapidly declining as CMOS and BiCMOS memories
achieve similar speeds. The major bipolar memory
market of mainframes has also had very slow
growth. The bipolar memory market will decline
significantly over the next five years.
EStS
Bipolar Logic
The bipolar logic market is gradually being superseded by MOS, as the power and integration
advantages offered by CMOS outweigh the speed
advantages provided by bipolar. The standard
logic market is losing sh^e to the CMOS alternatives to 74LS products, and to CMOS and bipolar
ASICs.
Bipolar ASICs will also decline, with emittercoupled logic (ECL) gate arrays being replaced by
BiCMOS arrays in many speed-critical applications. Bipolar programmable logic devices (PLDs)
are also in decline, with MOS PtDs now offering
comparable speeds for many PLD applications. In
1990, the CMOS PLD market exceeded the bipolar
PLD market for the first time.
The other logic market is also in decline. This
category includes application-specific standard
products, bit-slice arithmetic logic units (ALUs),
multipliers, floating-point processors, and digital
filters.
In general, the bipolar market will decline, as
CMOS and BiCMOS products replace bipolar
products in all but the most speed-critical applications. The biggest threat to the bipolar market
comes from BiCMOS, which offers a better compromise of speed and power than bipolar in most
applications. Only some special, very high-speed
applications will maintain the ECL market, where
BiCMOS is unable to compete.
MOS M e m o r y
The MOS memory market is the most volatile of
all of the semiconductor market segments. The
high return required on the massive investment in
manufacturing plants needed to participate in
much of the MOS memory market, together with
the number of suppliers, make memory prices
very unstable. An effort to introduce some
stability, and give European suppliers a chance to
compete in the memory market, was attempted
when tfie European Commission introduced price
controls for Japanese memory suppliers. This has
allowed European suppliers to compete and gain
market share, but has failed to stabilize prices.
MOS memory represented 20 percent of the European semiconductor market in 1990, a decline
from 1989, where MOS memory represented
26 percent of the market. The decline is due to
the fall in unit prices, as bit growth rates remained
strong. The MOS memory market will grow at an
©1991 Dataquest Europe Limited September—Reproduction Prohibited
0009897
^European Seadcondnctar Consumption HJstory and Forecast 1985-1995
above-average rate, increasing its share to 23 percent by 1995.
The largest product group in MOS memory is
DRAM; and it is also the most volatile. The large
revenue decline in the MOS memory market is
due to the fall in DRAM prices. The delay in the
take-up of 4M DRAMs by users forced 4M unit
prices down, and hence the overall market size.
The outlook for the DRAM market is, however,
more optimistic, with above-average growth for
the next five years.
The future of DRAM supply will be dictated by a
combination of new produa introductions and
local manufacture. The 16M DRAM is expected by
the end of 1992, and the 64M by 1996. Prior to
this, Europe will be able to supply around half of
its DRAM consumption, as seven DRAM suppliers
will have fabs on stream by the end of 1993The largest user of DRAM is the ubiquitous PC,
and the growth tn the use of the PC is one of the
major drivers to this market. However, the PC
growth is slowing, and this is one of the reasons
why the growth of the DRAM market is now
expeaed to be lower than previously forecast.
The SRAM market is about one-third the size of
the DRAM market, but has many more suppliers.
The market is typified by the quest for speed and
low power. The products with the highest margins
are those with the highest speed. Ixjw-power
SRAMs find applications in portable products such
as laptop and hand-held PCs. Competition for
slower devices is fierce, and there have been
several casualties in this market in recent years.
This market grew in 1990, but is expected to
decline by 2 percent in US dollars in 1991. The
five-year growth for the SRAM market is above
DRAM, and above the average for MOS memory.
The nonvolatile memory market is composed of
EPROM, EEPROM, ROM and flash memory. Of
these, EPROM represents more than 80 percent of
the total nonvolatile memory market. The decline
in the market in 1991 is mainly due to price
erosion on IM devices.
MOS ROM consumption in Europe is only 2 percent of the world market. The main application
for MOS ROM is in games cartridges and font
cartridges for laser printers, the majority of which
are made in Japan. This market is expected to
remain stable diroughout the duration of this
forecast.
0009897
Flash memory is emerging as a popular nonvolatile memory, and is expected ultimately to replace
EPROMs and EEPROMs as the cost per bit for
flash continues to drop. Some major applications
include zero-power memory cards, solid-state
replacement for floppy-disk drives in portable
computers, and ROM BIOS in PCs.
MOS Microcomponent
MOS microcomponent is composed of microprocessor, tnicroconiroller and microperipheral.
The microcomponent market has enjoyed high
growth to date, and this high growth is forecast to
continue.
The microprocessor market is dominated by a few
suppliers, and this lack of competition between
the supphers has kept prices relatively higher than
is apparent in the memory market. The largest
single use of microprocessors, the PC, has stimulated very high growth in this market. The unit
growth of PC sales is slowing, however, but the
price of the processor used in this device is
increasing, as PC users opt for more powerful
machines. This market will continue to grow well
above the European semiconductor average, and
the dominance of the few suppliers is set to
continue.
The microcontroller market will also grow "well
above the European semiconductor average. The
increase in the use of more pow^erful 8-, 16- and
32-bit microcontrollers in control applications will
stimulate market growth. The largest unit shipments in Europe are for 4-bit controllers, but the
higher prices commanded by 8- and l6-bit controllers mean they achieve higher revenue. The
lower unit shipments for devices of longer word
length give greater capacity for growth, and this
will come especially in telecoms, consumer and
automotive applications.
The microperipheral market will exhibit the
lowest growth of the microcomponent market.
Most microperipheral devices are attached to
microprocessors, and the increased integration
capabilities of microprocessors allows the inclusion of the microperipheral devices into the
microprocessor chip. However, growth is
provided through the development of new, highly
integrated, graphics chip sets; and the increase in
the use of local area networks gives a high growth
to the market for LAN chips. The high growth in
the past has come from the development of PC
chip sets, but competition here is cutting prices,
and the development of processor chip sets such
©1991 Dataquest Europe Limited September—Reproduction Prohibited
E53S
European Semiconductor Consumption History and Forecast 1985-1995
as Intel's laptop 386SL is also reducing the market
size.
M OS Logic
The MOS logic market is composed of ASIC, standard logic and other logic. The ASIC market is
forecast to continue its high growth, with a
growth rate above the European average. Much of
this growth comes from cell-based ICs (CBIC) and
PLD, with PLD showing the highest growth. In
1990, MOS PLD revenue overtook bipolar PLD
revenue for the first time. The new fieldprogrammable gate arrays will show the highest
growth, and will become the preferred choice for
many low gate-count designs.
Standard logic includes the 7400 logic families,
and this market has been suffering from price
erosion. The decline in the market has, however,
been balanced by the growth achieved at the
expense of bipolar logic. The HC and AC logic
fainilies give a better speed and power trade-off,
so are more likely to be chosen for new designs
than bipolar 7400 logic families. The standard
logic market is now becoming profiable, as the
move away from simple gates and towards octal
drivers moves the unit price up for the devices.
The introduction of the BiCMOS-based BC and
BCT families, which focus on the more profitable
8-, 9- and 10-bit word lengths, will also add to
longer-term profitability and growth for this market.
Other MOS logic includes application-specific
standard products (ASSPs), digital filters, barrel
shifters, and other building blocks. Many of these
products are used in DSP designs for teleconis
applications, and are likely to be replaced by
specialized designs targeted at specific applications. The growth of this market is forecast at
average growth, as the complex, and higherpriced devices replace the lower-priced, highervolimie, building blocks.
Analog
The analog market is forecast to grow below the
average rate for the semiconductor market over
the five years, 1990 to 1995. Much of the analog
ICs sold in Europe are for industrial, consumer
and telecoms applications, and the wide variations
in growth in the consumer market are balanced
by the lower, and more steady growth of the
telecoms and industrial markets. Much of the
£SIS
future of the telecoms market is with digital
equipment, hence the below-average growth for
the analog section. "Hie wide range of other applications for analog ICs also gives stability, but
lower-than-average growth to the analog market.
Dlsctetes and Optoelectrojoics
Discretes and optoelectronics are similar to analog
products in that the market has a wide range of
applications. Tlais also gives low growth and
stability to the market. Over half of the discrete
market is for transistors; it is composed of lowpower, servo-assisted control systems, and higherpower motor control and regulators. Higher
growth is seen for very high-power applications
such as traction in passenger transport systems,
and in automotive applications for motor control.
The growth of the discrete market is below that of
the semiconductor market as a whole.
Country Analysis
Dataquest has made estimates for the size of the
semiconductor markets of each of the 22 countries that comprise Western Europe. These countries, grouped by region, are Belgium, the Netherlands, Luxembourg, France, Italy, Denmark,
Finland, Iceland, Norway, Sweden, England, Scotland, Wales, Northern Ireland, Eire, Germany,
Austria, Greece, Malta, Portugal, Spain, Switzerland, and Turkey. See Table 1 for 1990 semiconductor market sizes. Figure 2 shows Europiean
semiconductor markets by region, and Figure 3
shows European semiconductor markets by country. These and the remainder of the figures and
tables have been placed at the end of the analysis
for presentation purposes,
Benelux
The Belgian market has a small base of mainly
telecoms and some consumer end users which
grew •well above the European average between
1989 and 1990. It represents approximately onethird of the Benelux market. By contrast, the
Netherlands' semiconductor market, consisting of
mainly consumer and some telecoms and EDP
end users, represents almost two-thirds of the
Benelux market, but grew below the European
average in 1990. Luxembourg has very litde semiconductor demand.
©1991 Dataquest Europe limited September—Reproduction Prohibited
0009897
European Semiconductor Consumption History and Forecast 1985-1995
France
United Kingdom and Eire
The French market is expected to grow below the
European average. The current economic conditions in France are contributing to low short-term
growth, and France's failure to attract foreign
investment, in particular Japanese investment, is
contributing to long-term lower growth. France is
the home of Alcatel, the world's largest telecoms
manufacturer, so the higher growth for telecoms
products would be expected to increase the size
of the French market. However, Alcatel has little
switch manufacture in France, and switches are
one of the areas of highest growth for new telecoms applications. France also has the largest
military market in Europe, and the reductions in
military manufacture will affect the French market
significantly.
The English semiconductor market has end users
across a broad base of segments, but is weighted
towards EDP, industrial, and telecoms. This country represents over two-thirds of the total market
for this region. Scotland, the next-largest consuming country in this region, accounts for 20 percent.
End users are weighted towards EDP and consumer. "Wales and Northern Ireland between them
account for around 5 percent of this region, and
are weighted in consumer end users. Eire has
mainly EDP end users, and accounts for the
remaining share.
Italy
The Italian market is dominated by the EDP market, and Olivetti in particular (whose recent health
was below that of the general computer market).
The decline in the memory market therefore had a
major impact on the Italian market. The future of
the Italian market is also tied closely to the EDP
sector, as Hewlett-Packard will shortly be
manufacturing laser printers in Italy, and IBM is
now manufacmring AS/400s there.
The weakness of the automotive sector is also
affecting the Italian market, as new car sales have
slumped. However, the longer-term outlook is for
high growth in automotive applications as the
electronic content of cars rises.
Nordic Countries
The Danish semiconductor market represents less
than a tenth of the Nordic regional market. This
country has a small number of consumer, telecoms, and EDP end users. However, it is distribution rather than OEM business that features here.
The Finnish semiconductor market is approximately 40 percent larger than the Danish market,
and has a base of telecoms, EDP and consumer
manufacturers. The Norwegian market is the
smallest of the four Nordic markets, with end
users in telecoms and EDP. The largest and
representative market of this region is Sweden.
This country accounts for nearly three-quarters of
the Nordic semiconductor market, with end users
mainly in telecoms, but also in EDP, consumer,
and industrial.
0009897
Germany
Germany is the largest semiconductor maiket in
Europe, followed closely by the United Kingdom
and Eire. The most significant event affecting the
German market was the unification of east and
west Germany in 1990. This gave a boost to
consumer sales, as east Germans spent their newfound deutsche marks. This consumer boom is
now over, however, and the German market is
attempting to absorb east German demands.
The greatest area for future growth is in telecoms,
as the telecoms infrastructure in eastern Germany
needs considerable investment. Siemens and
Alcatel will be the major beneficiaries of this. The
automotive seaor has been strong in the past, but
growth here is slowing. Thtis is related to lower
car exports to the United States.
We forecast the German market to grow at the
European average over the next five years, as the
telecoms infrastructure is rebuilt in east Germany,
and access to the rest of the Eastern European
markets is gained through Germany.
Rest of Europe
Ttiis region comprises all other remaining Western
European countries not already covered. The Austrian market is one of the larger ones in this
group, accounting for around one-quarter of total
semiconductor demand. End users are biased
towards telecoms and. industrial segments. The
Greek semiconductor market is relatively underdeveloped and represents a minor market in this
group, with a bias towards low-end consumer.
The same applies to the Maltese market, which is
half the size of ± e Greek market. The Portuguese
market is the least substantial, with a weighting
towards consumer and telecoms. Spain has a
©1991 Daiaquest Europe Limited September—BepioducUon Prohibited
ESS
European Semiconductor Consumption History and Forecast 1985-1995
market of similar size to Austria, around onequarter the size for the totaJ grciup, with the
majority of users from the consumer, telecoms,
and EDP segments. The Swiss market is the hrgesi
market of this region, accounting for nearly onethird of the total group, with end users based in
the segments of EDP, telecoms, and industrial.
Finally, the l^irkish market is biased towards consumer and telecoms, with a market nearly four
times the size of Greece.
Graphical Analysis
The following figures provide a graphical analysis
behind the European forecast, and give an indication of the key trends in this market.
The revenue for the European semiconductor
market in both US dollars and ECU is shown in
Figure 4. It demonstrates the impaa of the change
in exchage rates between the US dollar and the
ECU on the size of the European market (This
impact is made more dear in Figure 5 showing
the growth of the European market when measured in ECUS and US dollars.) The years 1986,
1987 and 1990 show revenue growth when measured in US dollars, but when measured in local
currency (ECU) the market actually declined. The
gradual weakening of the dollar against the ECU
has masked a decline in the semiconductor market for this period. Figure 6 shows the exchange
rate betsveen the ECU and the dollar, and over the
six-year period, 1985 to 1991, the dollar has
declined by nearly 40 percent.
The ECU is a European currency tied to the values
of the other European currencies. These curencies
have all strengthened against the US doUar, but at
different rates relative to each other. Figure 7
shows the relative exchange rates of the local
currencies by setting their 1985 value to 100, and
by monitoring the exchange rate to the dollar. The
wide spread of exchange rates between the Dutch
gulden and the UK pound will impact the value of
each of the regions, and may also mask tme local
market variations. It is because of this that the
regional forecasts are presented in US dollars,
ECUS and local currency.
ESIS
Product and Market Analysis
The Boston Consulting Group identified a method
for analysing the performance of a particular
produa by plotting the growth and market share
of this produa. By drawing a growth/share matrix
it is possible to classify a product, and position it
against a standard product.
It is also possible to perfonn this analysis on
markets, and regions. Figures 8 and 9 show the
relative performance of the product categories
when measured in ECUs. The growth plotted is
the 1990 to 1995 CAGR, and the market share is
for 1990. The average share for the products is
obtained by dividing the total semiconductor market by six, for the six categories: digital bipolar,
MOS memory, MOS microcomponent, MOS logic,
analog, and discretes and optoelectronics. The
average growth is the European total semiconductor CAGR, 1990 to 1995.
The Boston Consulting Group matrix identifies the
four elements of the matrix as: Problem Children
(for high growth, low share). Stars (for high
growth, high share). Dogs (for low growth, low
share), and Cash Cows (for low growth, h i ^
share). Analysis of the matrix gives no surprises,
as the MOS memory, microcomponent and JVIOS
digital products are the stars of the product
pottfolio. The dogs are bipolar digital products,
the cash cows are analog, and discrete and optoelectronic products, and the problem child is
logic—as the decline in standard products is offset
by the rise in ASIC.
Analysis of the regions in a similar way also yields
the expected result. France and Germany are the
cash cows, the United Kingdom and Eire is the
rising star, Italy and the Rest of Europe are the
problem children, and the dogs are the Nordic
and Benelux regions.
©1991 Oataquest Europe Limited September—Reproduction Prohibited
0009897
10
European SemicoDductor Consmnptlon History and Forecast 1985-1995
Figure 2
Estimated 1990 Eiiropean Regional
Semiconductor Markets
UK and Eire 26%
Benelux 5%
<"
Nordic 7%
France 14%
Rest of Europe 8%
Italy 11%
Total 1990
$10.6 Billion
Source: Dataquest (September 1991)
Figure 3
Estimated 1990 European Country
Semiconductor Markets
Country
Belgium
Netherlands
Luxemtxiurg
France
Italy
Denmark
Rniand
Iceland
Norway
Sweden
England
Scotland
Wales
Northern Ireland
Eire
Germany
Austria
Greece
IM
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1 ^
1
^^^^^
.1
i
t:
I
i
1.
f
1
I
t
m
••i
•
i
i
t
T
:•
•}
-
I'
j.
j
i
$0.5
$1
••
Malta —
Portugal
Spain $0
Switzerland
Source: Dataquest (September 1991) Turkey
0009897
;
,
1
i
•
-.
:
j _
$1.5
$2
Billions of Dollars
,
$2.5
>
$3
©1991 Dataquest Europe limited September—Reproduction Prohibited
1
$3.5
European Semiconductor Consumption History and Forecast 1985-1995
I
11
Vigare 4
Total Semiconductor
European Market 1985-1995
European Revenue (Billions)
20
-•-
Revenue {ECU)
—\— Revenue (Dotare)
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
Sotxrce: Dataquest (September 1991>
>
F^iure 5
Total Semiconductor
European Growth 1985-1995
Growth
40%
30%
20%
10%
-10%
1985 1986 1987 1988
1989 1990 1991 1992 1993 1994 1995
Source: Dataquest CSeptember 1991)
ESIS
©1991 Dataquest Europe Limited September—Reproduction Prohibited
0009897
Baropean Semlcottdnctor CoosumptlaD History and Forecast 1985-1995
12
Figure 6
Exchange Rate
X>ol)ars t o ECU
Rate
1985
1986
1987
1988
1989
1990
1991
Source: Dataquest (September 1991)
i
Figure 7
Relative E3:chai]^e Rates
Dollars to Local Currency
Relative Exchange Rate (1985 = 100)
100;
—
Benelux (F)
-1-
France (FF)
-*-
Italy (L)
-B-
Nordc (Kr)
-"Xr- UK/Eire (£)
1985
1986
1987
1988
1989
-$-
Germany (DM)
- z ^
Rest of Europe (Pta)
-*-
ECU
1990 1991
i
Source; Dataquest (September 1991)
0009897
©1991 Dataquest Europe Limited September—Reproduction Prohibited
ESIS
European Semiconductor Consumptlan History and Forecast 1985-1999
13
Figure 8
Growth Share Matrix
European Products
Growth
25%
Problem Child
20%
''•'"
Star
Micro
Logic
*
15%
MOS Digital
*
Memory
. Ayerage Growth,.
Cash Cow
Dog
10%
-
•
*
^ Discrete and Opto
5%
0%
Average Share
-5% I-
Bipolar Digital
*
-10%
0%
5%
10%
15%
20%
25% 30%
Share (1990)
35%
40%
45%
50%
55%
Source: Dataquest (September 1991)
F^^ure 9
Growth Bate Matrix
European Regions
Growth
20%
Problem Child
18% 16%
Star
*
Rest of Etirope
-^
Average Growth
UK and Eire
-.-..-*
-tte^
^
Dog
14%
Cash Cow
*..
12%
*•
Germany
France
Nordic
Average Share
10% * *
Benelux
8%
5%
_L_
7%
9%
J_
r
.-. .
L
J
L
1 1 % 13% 15% 17% 19% 2 1 % 23% 25% 27% 29%
Share (1990)
Source: Dataquest (September 1991)
ESIS
©1991 Dataquest Europe limited Septemijer—Reproduction Prohibited
0009897
14
European Semiconductor Consumption History and Forecast 1985-1995
Table 6
Estimated Semiconductor Consumption—History
Total All European Regions
(Millions of Dollars)
History
Total Semiconduaor
Total Integrated Circuit
Bip)olar Digital
TTL
ECL
Bipolar Digital
Memory
Logic
ASIC
Std. Logic
Other Logic
MOS Digital
CMOS
BiCMOS
NMOS and Other
MOS Digital
Memory
DRAM
SRAM
Nonvolatile
Other
Microcomp>onent
MPU
MCU inc. DSP
MPR
Logic
ASIC
Std. Logic
Other Logic
Analog
Monolithic
Amplifiers
Regulators
Data Conversion
Interface
Special Consumer
ASIC
Other
Hybrid
Total Discrete
Transistor
Diode
Thyristor
Other
Total Optoelectronic
LED Lamp
LED Display
Optocoupler
Other
1985
$4,720
$3,556
$709
641
68
$709
157
552
NA
NA
NA
$1,953
702
NA
1,251
$1,953
$750
NA
NA
NA
NA
$485
NA
NA
NA
$718
NA
NA
NA
$894
$894
144
54
157
80
318
NA
141
NA
$954
463
342
100
49
iiio
55
6i2
41
52
1986
$5,532
$4,088
$782
705
77
$782
172
610
230
376
4
$2,280
976
NA
1,304
$2,280
$822
262
252
308
NA
$578
95
249
234
$880
443
157
280
$1,026
$975
166
62
185
94
360
NA
108
51
$1,153
540
432
125
56
$291
76
87
56
72
1987
$6,355
$4,693
$725
564
161
$725
85
640
210
410
20
$2,753
1,284
24
1,445
$2,753
$838
402
117
319
NA
$794
217
339
238
$1,121
485
229
407
$1,215
$1,153
180
71
96
120
417
NA
269
62
$1,384
655
431
183
115
$278
57
48
68
105
1988
$8,491
$6,669
$772
624
148
$772
74
698
241
394
63
$4,364
2,491
56
1,817
$4,364
$1,797
1,062
262
473
NA
$1,212
341
473
398
$1,355
711
287
357
$1,533
$1,416
200
90
116
145
475
NA
390
117
$1,516
709
473
210
124
$306
46
38
64
158
1989
$9,755
$7,794
$640
501
139
$640
72
568
260
282
26
$5,458
3,412
60
1,986
$5,458
$2,548
1,646
368
519
15
$1,469
409
640
420
$1,441
877
263
301
$1,696
$1,560
248
111
131
151
525
NA
394
136
$1,594
817
516
179
82
$367
57
43
75
192
1990
$10,661
$8,326
$577
430
147
$577
58
519
216
248
55
$5,403
4,032
39
1,332
$5,403
$2,154
1,216
396
515
27
$1,836
511
799
526
$1,413
926
230
257
$2,346
$2,187
199
125
160
88
625
189
801
159
$1,915
933
618
233
131
$420
79
60
112
169
CAGR
17.7%
18.5%
-4.0%
-7.7%
16.7%
-4.0%
-18.1%
-1.2%
NA
NA
NA
22.6%
41.9%
NA
1.3%
22.6%
23.5%
NA
NA
NA
NA
30.5%
NA
NA
NA
14.5%
NA
NA
NA
21.3%
19.6%
6.7%
18.3%
0.4%
1.9%
14.5%
NA
41.5%
NA
15.0%
15.0%
12.6%
18.4%
21.7%
14.9%
7.5%
-0.7%
22.3%
26.6%
CAGR - Compound aninsJ gnwdi rale 1985-1990
NA - Not Available
Note: figures may not add to totals due to lotmding.
Source: Dataquest (September 1991)
0009897
©1991 Dataquest Europe Limited September—Reproduction Prohibited
ESIS
European Semiconductor Consumption History and Forecast 1985-1995
I
15
Table 7
Estimated Semiconductor Consumptioti—Forecast
Total All European R ^ o n s
(Millions of Dollars)
>
Forecast
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
TTL
ECL
Bipolar Digital
Memory
Logic
ASIC
Std. Logic
Other Logic
MOS Digital
CMOS
BiCMOS
NMOS and Other
MOS Digital
Memory
DRAM
SRAM
Nonvolatile
Other
Microcomponent
MPU
MCU inc. DSP
MPR
Logic
ASIC
Std Logic
Other Logic
Analog
Monolithic
Amplifiers
Regulators
Data Conversion
Interface
Special Consumer
ASIC
Other
Hybrid
Total Discrete
Transistor
Diode
Thyristor
Other
Total Optoelectronic
LED Lamp
LED Display
Optocoupler
Other
1990
$10,661
$8,326
$577
430
147
$577
58
519
216
248
55
$5,403
4.032
59
1,332
$5,403
$2,154
1,216
396
515
27
$1,836
511
799
526
$1,413
926
230
257
$2,346
$2,187
199
125
160
88
625
189
801
159
$1,915
933
618
233
131
$420
79
60
112
169
1991
$8,683
$489
352
137
$489
49
440
1^
204
47
$5,777
4,307
104
1,366
$5,776
$2,094
1,208
389
461
36
$2,219
615
989
615
$1,463
988
219
256
$2,418
$2,255
193
123
161
87
646
201
844
163
$1,750
856
565
211
118
$395
72
55
107
161
1992
$11,556
$9,478
$425
289
136
$425
41
384
175
171
38
$6,596
4,911
189
1,496
$6,597
$2,445
1,411
489
503
42
$2,529
683
1,163
683
$1,622
1,120
216
276
$2,456
$2,292
184
119
159
85
657
211
877
164
$1,682
825
543
201
113
$396
70
54
109
163
1993
$13,777
$11,475
$395
250
145
$395
40
355
176
145
34
$8,302
6.173
327
1,802
$8,304
$3,204
1,897
630
626
51
$3,085
833
1.451
801
$2,014
1,442
238
334
$2,776
$2,591
196
127
176
91
743
246
1,012
185
$1,864
916
603
221
124
$438
75
59
122
182
1994
$15,335
$12,897
$361
209
152
$361
32
329
174
124
31
$9,452
7,022
473
1,957
$9,455
$3,604
2,066
757
722
59
$3,532
978
1,621
933
$2,318
1,705
239
374
$3,081
$2,877
204
134
190
96
825
281
1,147
204
$1,954
962
633
230
129
$484
81
65
136
202
1995
$16,368
$13,847
$317
162
155
$317
25
2<>2
170
95
27
$10,260
7,613
624
2,023
$10,263
$3,832
2,093
852
819
68
$3,885
1,112
1,769
1,004
$2,545
1,917
223
405
$3,267
$3,051
203
136
195
97
873
308
1,239
216
$2,013
997
651
234
131
$508
83
66
145
214
CAGR
9.0%
10.7%
-11.3%
-17.7%
1.1%
-11.3%
-15.5%
-10.9%
-4,7%
-17.5%
*13.3%
13.7%
13.6%
74.1%
8.7%
13.7%
12.2%
11.5%
16.6%
9.7%
203%
16.2%
16.8%
172%
13.8%
12.5%
15.7%
-0.6%
9.5%
6.8%
6.9%
0.4%
1.7%
4.0%
2.0%
6.9%
10.3%
9.1%
6.3%
1.0%
1.3%
1.0%
0.1%
0.0%
3.9%
1.0%
1.9%
5.3%
4.8%
CAGR - Compound annual growth rate 1990-1995
Note: Figures may not add to totals due to rounding.
Source Dataquest (September 1991)
ESIS
©1991 Dataquest Europe limited September—Reproduction Prohibited
0009897
16
European Semiconductor Consumption Hlstorjr and Forecast 1985-1995
Table 8
Estimated SemJconductor Consumptioii—History
Total All European R ^ o n s
(Millions of ECUS)
History
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
TTL
ECL
Bipolar Digital
Memory
Logic
ASIC
Std. Logic
Other Logic
MOS Digital
CMOS
BiCMOS
NMOS and Other
MOS Digital
Memory
DRAM
SRAM
Nonvolatile
Other
Microcomponent
MPU
MCU inc. DSP
MPR
Logic
ASIC
Std. Logic
Other Logic
Analog
Monolithic
Amplifiers
Regulators
Etata Conversion
Interface
Special Consumer
ASIC
Other
Hybrid
Total Discrete
Transistor
Diode
Thyristor
Other
Total Optoelectronic
LED lamp
LED Display
Optocoupler
Other
Rate (ECU: $)
1985
6,230
4,694
936
846
90
936
207
729
NA
NA
NA
2,578
927
NA
1,651
2,578
990
NA
NA
NA
NA
640
NA
NA
NA
948
NA
NA
NA
1,180
1,180
190
71
207
106
420
NA
186
NA
1,259
611
451
132
65
277
73
82
54
69
1986
5,643
4,170
798
719
79
798
175
622
235
384
4
2,326
996
NA
1,330
2,326
838
267
257
314
NA
590
97
254
239
898
452
160
286
1,047
995
169
63
189
96
367
NA
110
52
1,176
551
441
128
57
297
78
89
57
73
1987
5,529
4,083
631
491
140
631
74
557
183
357
17
2,395
1,117
21
1,257
2,395
729
350
102
278
NA
691
189
295
207
975
422
199
354
1,057
1,003
157
62
84
104
363
NA
234
54
1,204
570
375
159
100
242
50
42
59
91
1988
7,217
5,669
656
530
126
656
63
593
205
335
54
3,709
2,117
48
1,544
3,709
1,527
903
223
402
NA
1,030
290
402
338
1,152
604
244
303
1,303
1,204
170
77
99
123
404
NA
332
99
1.289
603
402
179
105
260
39
32
54
134
1989
8,916
7,124
585
458
127
585
66
519
238
258
24
4,989
3,119
55
1,815
4,989
2,329
1,504
336
474
14
1.343
374
585
384
1,317
802
240
275
1,550
1,426
227
101
120
138
480
NA
360
124
1,457
747
472
164
75
335
52
39
69
175
1990
8,380
6,544
454
338
116
454
46
408
170
195
43
4,247
3,169
31
1,047
4,247
1,693
956
311
405
21
1.443
402
628
413
1,111
728
181
202
1,844
1,719
156
98
126
69
491
149
630
125
1,505
733
486
183
103
330
62
47
88
133
1.32
1.02
0.87
0.85
0.91
0.78
CAGR
6.1%
6.9%
-13.5%
-16.8%
5.2%
-13.5%
-26.0%
-11.0%
NA
NA
NA
10.5%
27.9%
NA
-8.7%
10.5%
11.3%
NA
NA
NA
NA
17.7%
NA
NA
NA
3.2%
NA
NA
NA
9.3%
7.8%
-3.9%
6.7%
-9.5%
-8.2%
3.2%
NA
27.6%
NA
3.6%
3,7%
1.5%
6.8%
9.6%
3.6%
-3.2%
-10.5%
10.3%
14.0%
CAGR - Compound annual growth rate 1985-1990
NA - Not Available
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1991)
0009897
©1991 Dataquest Europe Limited September—Reproduction Prohibited
ESIS
I
European Semiconductor Consumption History and Forecast 1985-1995
17
Table 9
Estimated Semiconductor Consumption—Forecast
Total All European Regions
(MlUions of ECUS)
I
Forecast
Total Semiconductor
Total Integrated Circuit
BifHslar Digital
TTL
ECL
Bipolar Digital
Memory
Logic
ASIC
Std. Logic
Other Logic
MOS Digital
CMOS
BiCMOS
NMOS and Other
MOS Digital
Memory
DRAM
SRAM
Nonvolatile
Other
Microcomponent
MPU
MCU inc. DSP
MPR
Logic
ASIC
Std. Logic
Other Logic
Analog
Monolithic
Amplifiers
Regulators
Data Conversion
Interface
Special Consumer
ASIC
Other
Hybrid
Total Discrete
Transistor
Diode
Thyristor
Other
Total Optoelectronic
LED Lamp
LED Display
Optocoupler
Other
Rate OSCU: $)
1990
8,380
6,544
454
338
116
454
46
408
170
195
43
4,247
3,169
31
1,047
4,247
1,693
956
311
405
21
1,443
402
628
413
1,111
728
181
202
1,844
1,719
156
98
126
69
491
149
630
, 125
1,505
733
486
183
103
330
62
47
88
133
0.78
1991
8,890
7,129
401
289
112
401
40
361
155
167
39
4,743
3,536
85
1,121
4,742
1,719
992
319
378
30
1,822
505
812
505
1,201
811
180
210
1,985
1,851
158
101
132
71
530
165
693
134
1,437
703
464
173
97
324
59
45
88
132
1992
9,799
8,037
360
245
115
360
35
326
148
145
32
5,593
4,165
l60
1,269
5,594
2,073
1,197
415
427
36
2,145
579
986
579
1,375
958
183
234
2,083
1,944
156
101
135
72
557
179
744
139
1,426
700
460
170
96
336
59
46
92
138
1993
11,683
9,731
335
212
123
335
34
301
149
123
29
7,040
5,235
277
1,528
7,042
2,717
1,609
534
531
43
2,6l6
706
1,230
679
1,708
1,223
202
283
2,354
2,197
166
108
149
77
630
209
858
157
1,581
777
511
187
105
371
64
50
103
154
1994
13,004
10,937
306
177
129
306
27
279
148
105
26
8,015
5,955
401
1,660
8,018
3,056
1,752
642
612
50
2,995
829
1,375
791
1,966
1,446
203
317
2,613
2,440
173
114
161
81
700
238
973
173
1,657
816
537
195
109
410
69
• 55
115
171
1995
13,880
11,742
269
137
131
269
21
248
144
81
23
8,700
6,456
529
1,716
8,703
3,250
1,775
722
695
58
3,294
943
1,500
851
2,158
1,626
189
343
2,770
2,587
172
115
165
82
740
261
1,051
183
1,707
845
552
198
111
431
70
56
123
181
0.82
0.85
0.85
0.85
0.85
CAGR
10.6%
12.4%
-9.9%
-16.5%
2.5%
-9.9%
-14.5%
-9.5%
-3.3%
-16.1%
-11.8%
15.4%
15.3%
76.4%
10.4%
15.4%
13.9%
13.2%
18.3%
11.4%
22.5%
17.9%
18.6%
19.0%
15.6%
14.2%
17.4%
0.9%
11.2%
8.5%
8.5%
- 2.0%
3.3%
5.5%
3.5%
8.6%
11.9%
10.8%
7.9%
2.6%
2.9%
2.6%
1.6%
1.5%
5.5%
2.5%
3.6%
6.9%
6.4%
CAGR - Compound annual growth rate 1990-1995
Note: Tigates may not add to totals due to rounding.
Source: Dataquest (September 1991)
ESIS
©1991 Dataquest Europe Limited September-Reproduction Prohibited
0009897
18
European Semiconductor Consumption History and Forecast 1985-1995
Table 10
Estimated Semiconductor Consuinption History
Benelux R ^ o n
mstory ($M)
m
$18
1987
$403
$303
$43
5
38
$184
42
64
78
$76
76
NA
$82
$18
1988
$496
$361
$45
4
41
$213
72
73
68
$103
103
NA
$107
$28
1989
$498
$365
$37
4
33
$230
77
78
75
$98
98
NA
$104
$29
1990
$559
$400
$31
3
28
$224
67
91
66
$145
135
10
$127
$32
CAGR
13.0%
11.2%
-8.0%
-22.9%
-4.9%
11.7%
6.5%
22.5%
7.0%
19.7%
18.0%
NA
17.8%
19.7%
1985
401
310
62
15
48
170
65
44
62
78
78
NA
74
17
1986
365
279
53
12
41
158
58
40
60
68
68
NA
67
18
1987
351
264
37
4
33
160
37
56
68
66
66
NA
71
16
1988
422
307
38
3
35
181
61
62
58
88
88
NA
91
24
1989
455
334
34
4
30
210
70
71
69
90
90
NA
95
27
1990
439
314
24
2
22
176
53
72
52
114
106
8
100
25
CAGR
1.8%
0.3%
-17.0%
-30.5%
-14.3%
0.7%
-4.0%
10.4%
-3.5%
7.9%
6.4%
NA
6.2%
7.9%
1.32
1.02
0.87
0.85
0.91
0.79
1985
1,009
780
156
37
120
428
163
110
156
196
196
NA
186
43
1986
877
671
127
29
98
380
140
96
145
164
164
NA
162
44
1987
818
615
87
10
77
374
85
130
158
154
154
NA
166
37
1988
982
715
89
8
81
422
143
145
135
204
204
NA
212
55
1989
1.056
774
78
8
70
488
163
165
159
208
208
NA
220
61
1990
1,017
728
56
5
51
408
122
166
120
264
246
18
231
58
3.3
2.5
2.0
2.0
2.1
1.8
Total Setniconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$304
$235
$47
11
36
$129
49
33
47
$59
59
NA
$56
$13
19S6
$358
$274
$52
12
40
$155
57
39
59
$67
67
NA
Historr CECU M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (ECU: $)
Historv CF M>
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (F; $)
CAGR
0.2%
-1.4%
-18.4%
-31.6%
-15.7%
-1.0%
-5.6%
8.6%
-5.1%
6.1%
4.6%
NA
4.5%
6.2%
CAGR - Compound annual growth rate 1985-1990
NA " Not Available
Note: Bgures may not add to totals due to rotinding.
Source; Dataquest (September 1991)
0009897
©1991 t)ataqu?st Europe Limited Septetrfoer—Reproduction Prohibited
ESI5
European Semiconductor Consumption History and Forecast 1985-1995
19
Table 11
Estimated Semiconductor Consumption—Forecast
Benelux Region
Forecast C$M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcotrponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$559
$400
31
3
28
$224
67
91
(£
$145
135
10
$127
$32
1991
$551
$416
27
3
24
$226
60
108
58
$163
152
11
$108
$27
1992
$565
$427
22
2
20
$235
58
119
58
$170
159
12
$108
$30
1993
$647
$491
21
2
19
$282
68
142
72
$188
177
12
$123
$33
1994
$690
$528
19
2
17
$312
71
152
89
$197
184
12
$129
$33
1995
$704
$538
16
2
14
$346
87
164
95
$176
165
10
$131
$35
CAGR
4.7%
6.1%
-12.4%
-7.8%
-12.9%
9.1%
5.4%
12.5%
7.6%
4.0%
4.1%
0.0%
0.6%
1.8%
Forecast OECU M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
439
314
24
2
22
176
53
72
52
114
106
8
100
25
1991
452
342
22
2
20
186
'^9
89
48
134
125
9
89
22
1992
479
362
19
2
17
199
^')
101
49
144
135
10
92
25
1993
549
4l6
18
2
16
239
58
120
61
159
150
10
104
28
1994
585
448
16
2
14
265
60
129
75
167
156
10
109
28
1995
597
456
14
2
12
293
74
139
81
149
140
8
111
30
CAGR
6.3%
7.7%
-11.0%
0.0%
-11.6%
10.8%
7.0%
142%
9.2%
5.5%
5.7%
1.5%
2.2%
3.4%
0.79
0.82
0.85
0.85
0.85
0.85
1990
1,017
728
56
5
51
408
122
166
120
264
246
18
231
58
1991
1,047
790
51
6
46
429
114
205
110
310
289
21
205
51
1992
1,107
837
43
4
39
461
114
233
114
333
312
24
212
59
1993
1,268
962
41
4
37
553
133
278
141
368
347
24
241
65
1994
1,352
1,035
37
4
33
612
139
298
174
386
361
24
253
65
1995
1,380
1,054
31
4
27
678
171
321
186
345
323
20
257
69
1.8
1.9
2.0
2.0
2.0
2.0
Rate: (ECU: $)
Forecast (F IMO
Total Semiconduaor
Total Integrated Circuit
Bip>olar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (F: $)
CAGR
6.3%
7.7%
-11.1%
-4.4%
-11.6%
10.7%
6.9%
142%
9.2%
5.5%
5.6%
1.5%
2.1%
3.3%
CAGR - Compound annual growth rate 1990-1995
Note: Hgures may not add to totals due to lounding.
Source Dataquest (September 1991)
ESIS
©1991 Dataquest Europe Umited September—Reproduction Prohibited
0009897
20
Emropean Setnlcoaductcir Consumptioti History and Forecast 1985-1995
Table 12
Estimated Semiconductor Consumption—History
France Re^on
Efistory C$M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$671
$503
$101
23
78 •
$276
107
68
101
$126
126
NA
$135
$33
1986
$801
$591
$114
26
88
$328
121
82
125
$149
141
8
$165
$45
1987
$940
$716
$109
13
96
$422
126
127
169
$185
176
9
$185
$39
1988
$1,210
$977
$115
10
105
$631
232
182
217
$231
214
17
$196
$37
1989
$1,386
$1,122
$83
8
75
$777
350
207
220
$262
237
25
$220
$44
1990
$1,532
$1,217
$78
7
71
$780
300
262
218
$359
337
22
$266
$49
CAGR
18.0%
19.3%
-5.0%
-21.2%
-1.9%
23.1%
22.9%
31.0%
16.6%
23.3%
21.7%
NA
14.5%
8.2%
History CECU M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelecttonic
1985
886
664
133
30
103
364
141
90
133
166
166
NA
178
44
1986
817
603
116
27
90
335
123
84
128
152
144
8
168
46
1987
818
623
95
11
84
367
110
110
147
161
153
8
161
34
1988
1,029
830
98
9
89
536
197
155
184
196
182
14
167
31
1989
1,267
1,026
76
7
69
710
320
189
201
239
217
23
201
40
1990
1,204
957
61
6
56
613
236
206
171
282
265
17
209
39
CAGR
6.3%
7.6%
-14.4%
-28.9%
-11.5%
11.0%
10.8%
18.1%
5.1%
11.2%
9.8%
NA
3.2%
-2.4%
1.32
1.02
0.87
0.85
0.91
0.79
1985
6,026
4,517
907
207
700
2,478
961
611
907
1,131
1,131
NA
1,212
296
1986
5,543
4,090
789
180
609
2,270
837
567
865
1,031
976
55
1,142
311
1987
5,649
4,303
655
78
577
2,536
757
763
1,016
1,112
1,058
54
1,112
234
1988
7,212
5,823
685
60
626
3,761
1,383
1,085
1,293
1,377
1,275
101
1,168
221
1989
8,857
7,170
530
51
479
4,965
2,237
1,323
1,406
1,674
1,514
160
1,406
281
1990
8,334
6,620
424
38
386
4,243
1,632
1,425
1,186
1,953
1,833
120
1,447
267
9.0
6.9
6.0
6.0
6.4
5.4
Rate (ECU: $)
History CFF M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Kate (FF: $)
CAGR
6.7%
7.9%
-14.1%
-28.7%
-11.2%
11.4%
11.2%
18.5%
5.5%
11.5%
10.1%
NA
3.6%
-2.1%
CAGR - Compound mnua] growth rate 1S85-1990
NA - Not Availahia
Note: Figutes may not add to totals due to rounding.
Source: Dataquest (September 1990
0009897
©1991 Dataquest Europe Limited September—^Reproduction Prohibited
ESIS
European Seniicoiiductor Consumption History and Forecast 1985-1995
21
Table 13
Estimated Semiconductor Consumptioii—Forecast
France Region
Forecast ($M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcon^x>nent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$1,532
$1,217
78
7
71
$780
300
262
218
$359
337
22
$266
$49
1991
$1,391
$1,133
60
5
55
$757
264
294
199
$316
297
19
$218
$40
1992
$1,502
$1,248
50
4
46
$859
300
337
222
$339
318
20
$213
$41
1993
$1,811
$1,526
50
4
46
$1,089
389
418
282
$387
364
22
$239
$46
1994
$2,037
$1,734
46
4
42
$1,251
440
479
332
$437
413
26
$253
$50
1995
$2,199
$1,897
39
2
37
$1,395
484
543
368
$463
436
27
$251
$51
CAGR
7.5%
9.3%
-12.9%
-22.2%
-12.2%
12.3%
10.0%
15.7%
11.0%
5.2%
5.3%
4.2%
-1.2%
0.8%
Forecast CECU M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
1,204
957
61
6
56
613
236
206
171
282
265
17
209
39
1991
1,142
930
49
4
45
621
217
241
163
259
244
16
179
33
1992
1,274
1,058
42
3
39
728
254
286
188
287
270
17
181
35
1993
1,536
1,294
42
3
39
923
330
354
239
328
309
19
203
39
1994
1,727
1,470
39
3
36
1,061
373
406
282
371
350
22
215
42
1995
1,865
1,609
33
2
31
1,183
410
460
312
393
370
23
213
43
CAGR
9.1%
11.0%
-11.6%
-21.0%
-10.9%
14.0%
11.7%
17.5%
12.7%
6.8%
6.9%
5.8%
0.4%
2.3%
0.79
0.82
0.85
0.85
0.85
0.85
1990
8,334
6,620
424
38
386
4,243
1,632
1,425
1,186
1,953
1,833
120
1,447
267
1991
7,929
6,458
342
29
314
4,315
1,505
1,676
1,134
1,801
1,693
108
1,243
228
1992
8,817
7,326
294
23
270
5,042
l,76l
1,978
1,303
1,990
1,867
117
1,250
241
1993
10,631
8.958
294
23
270
6,392
2,283
2,454
1,655
2,272
2,137
129
1,403
270
1994
11,957
10.179
270
23
247
7,343
2,583
2,812
1,949
2,565
2,424
153
1,485
294
1995
12,908
11,135
229
12
217
8.189
2,841
3,187
2.160
2,718
2,559
158
1,473
299
5.4
5.7
5.9
5.9
5.9
5.9
Rate (ECU: $)
Forecast OFF M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate OFF: $)
CAGR
9.1%
11.0%
-11.6%
-21 0%
-10.9%
14.1%
11.7%
17.5%
12.7%
6.8%
6.9%
5.8%
0.4%
2.3%
CA.GR - Omipound annual growth rate 1990-1995
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1990
ESIS
©1991 Dataquest Europe limited September—^Reproduction Prohibited
0009897
European Semiconductor Consumption History a n d Forecast 198$-1995
22
Table 14
Estiinated Semicoaductor Consumptioii—History
Italy Region
History ($M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$451
$345
$68
15
53
$190
72
48
70
$87
87
NA
$88
$18
1986
$534
$404
$77
16
61
$225
80
58
87
$102
97
5
$106
$24
1987
$660
$493
$79
9
70
$294
92
79
123
$120
114
6
$139
$28
1988
$982
$791
$79
8
71
$560
253
145
162
$152
141
11
$160
$31
1989
$1,082
$845
$58
8
50
$625
315
170
140
$162
150
12
$205
$32
1990
$1,181
$897
$57
7
50
$612
255
214
143
228
215
13
$248
$36
CAGR
21.2%
21.1%
-3.5%
-l4.^o^
-1.2%
26.4%
28.8%
34.8%
15.4%
21.3%
19.8%
NA
23.0%
14.9%
H i s t o r y (ECU M )
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
595
455
90
20
70
251
95
63
92
115
115
NA
116
24
1986
545
412
79
16
62
230
82
59
89
104
99
5
108
24
1987
574
429
69
8
61
256
80
69
107
104
99
5
121
24
1988
835
672
67
7
60
476
215
123
138
129
120
9
136
26
1989
989
772
53
7
46
571
288
155
128
148
137
11
187
29
1990
928
705
45
6
39
481
200
168
112
179
169
10
195
28
CAGR
9.3%
9.1%
-13.0%
-22.6%
-10.9%
13-9%
16.1%
21.6%
4.0%
9.3%
8.0%
NA
10.9%
3.6%
1.32
1.02
0.87
0.85
0.91
0.79
1985
861
659
130
29
101
363
137
92
134
166
166
NA
168
34
1966
796
602
115
24
91
335
119
86
130
152
145
7
158
36
1987
855
639
102
12
91
381
119
102
159
156
148
8
180
36
1988
1,278
1,029
103
10
92
729
329
189
211
198
183
14
208
40
1989
1,486
l,l6l
80
11
69
859
433
234
192
223
206
16
282
44
1990
1,414
1,074
68
8
60
733
305
256
171
273
257
16
297
43
1.5
1.3
1.3
1.4
1.2
Rate CECU: $)
H i s t o r y (L B)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolidiic
Hybrid
Total Discrete
Total Optoelectronic
1.9
Rate (L: $)
CAGR - Ccmpoucid annitaJ growth taie 1985-1990
NA - Hot Available
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1991)
0009897
©1991 Dataquest Europe Limited September—^Reproduction Prohibited
CAGR
10.4%
10-3%
-12.1%
-21.8%
-10.0%
15.1%
17.3%
22.8%
5.1%
10.4%
9.2%
NA
12,1%
4.6%
ESIS
23
European SemlcondDctor Consiunptiati EClstory and Forecast 1985-1995
Table 15
Estimated Semjconductor Consumption—Forecast
Italy Region
Forecast ($M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Aiialog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$1,181
$897
57
7
50
$6X2
255
214
143
$228
215
13
$248
$36
1991
$1,091
$863
42
5
37
$608
230
243
135
$213
202
11
$197
$31
1992
$1,169
$953
36
4
32
$707
275
280
152
$210
199
12
$186
$30
1993
$1,402
$1,169
36
4
32
$894
356
340
198
$239
228
12
$201
$32
1994
$1,566
$1,318
33
4
29
$1,017
396
397
224
$268
253
15
$212
$36
1995
$1,678
$1,415
28
3
25
$1,108
421
446
241
$279
266
15
$226
$37
OVGR
7.3%
9.5%
-13.3%
-15.6%
-12.9%
12.6%
10.5%
15.8%
11.0%
41%
4.3%
2.9%
-1.8%
0.5%
Forecast (ECU M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
MicrocompKDnent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
928
705
45
6
39
481
200
168
112
179
169
10
195
28
1991
896
709
34
4
30
499
189
200
111
175
166
9
162
25
1992
991
808
31
3
27
600
233
237
129
178
169
10
158
25
1993
1,189
991
31
3
27
758
302
288
168
203
193
10
170
27
1994
1,328
1,118
28
3
25
862
336'
337
190
227
215
13
180
31
1995
1,423
1,200
24
3
21
940
357
378
204
237
226
13
192
31
CAGR
8.9%
11.2%
-11.9%
-14.3%
-11.6%
14.3%
12.2%
17.6%
12.7%
5.7%
5.9%
4.5%
-0.3%
2.1%
0.79
0.82
0.85
0.85
0.85
0.85
1990
1,414
1,074
68
8
60
733
305
256
171
273
257
16
297
43
1991
1,370
1,084
53
6
46
764
289
305
170
268
254
14
247
39
1992
1,520
1,239
47
5
42
919
358
364
198
273
259
16
242
39
1993
1,823
1.520
47
5
42
1,162
463
442
257
311
296
16
261
42
1994
2,036
1,713
43
5
38
1,322
515
516
291
348
329
20
276
47
1995
2,181
1,839
36
4
33
1,440
547
580
313
363
346
20
294
48
1.2
1.3
1.3
1.3
1.3
1.3
Rate (ECU: $)
Forecast (L B)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate CL B: $)
CAGR
9.1%
11.4%
-11.8%
-14.2%
-11.5%
14.5%
12.4%
17.7%
12.8%
5.8%
6.1%
4.6%
-0.2%
2.2%
CAGR " Compound annual growth fate 1990-1995
Note: Figures may not add to totals due to rounding.
Source: Dataquest (Septembef 1991)
ESIS
©1991 Dataquest Europe Uinited September—^Reproduction Prohibited
0009897
24
European Semiconductor Consumption History and Forecast 1985-1995
Table 16
Estimated Semiconductor Consumption—History
Nordic Cotmtries
History C$M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$391
$306
$60
12
48
$169
63
44
62
$77
77
NA
$71
$14
1986
$426
$328
$61
14
47
$184
66
48
70
$83
79
4
$80
$18
1987
$458
$351
$57
5
52
$205
59
56
90
$89
84
5
$90
$17
1988
$625
$508
$70
7
63
$313
108
97
108
$125
114
11
$96
$21
1989
$682
$549
$52
7
45
$371
148
109
114
$126
115
11
$111
$22
1990
$691
$547
$44
5
39
$336
117
119
100
$167
157
10
$122
$22
CAGR
12.1%
12.3%
-6.0%
-16,1%
-4.1%
14.7%
13.2%
22.0%
10.0%
16.7%
15.3%
NA
11.4%
9.5%
History (ECU M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
516
404
79
16
63
223
83
58
82
102
102
NA
94
18
1986
435
335
62
14
48
188
67
49
71
85
81
4
82
18
1987
398
305
50
4
45
178
51
49
78
77
73
4
78
15
1988
531
432
60
6
54
266
92
82
92
106
97
9
82
18
1989
623
502
48
6
41
339
135
100
104
115
105
10
101
20
1990
543
430
35
4
31
264
92
94
79
131
123
8
96
17
CAGR
1.0%
1.3%
-15.3%
-24.3%
-13.5%
3.4%
2.0%
10.0%
-0.8%
5.2%
4.0%
NA
0.5%
-1.3%
1.32
1.02
0.87
0.85
0.91
0.79
1985
3.363
2,632
516
103
413
1,453
542
378
533
662
662
NA
611
120
1986
3,033
2,335
434
100
335
1,310
470
342
498
591
562
28
570
128
1987
2.904
2,225
361
32
330
1,300
374
355
571
564
533
32
571
108
1988
3,831
3,114
429
43
386
1,919
662
595
662
766
699
67
588
129
1989
4,399
3,541
335
45
290
2,393
955
703
735
813
742
71
716
142
1990
4,091
3,238
260
30
231
1,989
693
704
592
989
929
59
722
130
8.6
7.1
6.3
6.1
6.5
5.9
Rate (ECU: $)
History (SKr M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (SKr: $)
CAGR.
4.0%
4.2%
-12.8%
-22.1%
-11.0%
6.5%
5.0%
13.2%
2.1%
8.3%
7.0%
NA
3.4%
1.6%
CAGR - Compound annual growth rate 1985-1990
NA - Not Available
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1991)
0009897
©1991 Daaquest Europe Limited September—Reproduction Prohibited
ESIS
European Semiconductor Consumption History and Forecast 1985-1995
25
Table 17
Estimated Semiconductor Consumption—Forecast
Noridc Countires
Forecast ($M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microconponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$691
$547
44
5
39
$336
117
119
100
$167
157
10
$122
$22
1991
$639
$518
Forecast OECU M)
Total Setniconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
543
430
Rate (ECU: $)
Forecast (SKr M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Kate (SKr: $)
5
31
$324
101
128
95
$158
148
9
$100
$21
1992
$666
$547
29
3
26
$355
113
139
103
$163
153
9
$100
$19
1993
$776
$641
27
3
24
$425
133
161
131
$189
178
12
$111
$24
1994
$839
$701
25
2
23
$476
144
192
140
$200
187
12
$113
$25
1995
$872
$741
22
2
20
$526
155
213
158
$193
183
13
$108
$23
CAGR
4.8%
6.3%
-12.9%
-16.7%
-12.5%
9.4%
5.8%
12.3%
9.6%
2.9%
3.1%
5.4%
-2.4%
0.9%
4
31
264
92
94
79
131
123
8
96
17
1991
525
425
30
4
25
266
83
105
78
130
122
7
82
17
1992
565
464
25
3
22
301
96
118
87
138
130
8
85
16
1993
658
544
23
3
20
360
113
137
111
160
151
10
94
20
1994
711
594
21
2
20
404
122
163
119
170
159
10
96
21
1995
739
628
19
2
17
446
131
181
134
164
155
11
92
20
CAGR
6.4%
7.9%
-11.6%
-15.5%
-11.2%
11.1%
7.4%
14.1%
11.3%
4.5%
4.7%
7.0%
-0.9%
2.4%
0.79
0.82
0.85
0.85
0.85
0.85
1990
4,091
3,238
260
30
231
1,989
693
704
592
989
929
59
722
130
1991
3,917
3,175
221
31
190
1,986
619
785
582
969
907
55
613
129
1992
4,202
3,452
183
19
164
2,240
713
877
650
1,029
965
57
631
120
1993
4,897
4,045
170
19
151
2,682
839
1,016
827
1,193
1,123
76
700
151
1994
5,294
4,423
158
13
145
3,004
909
1,212
883
1,262
1,180
76
713
158
1995
5,502
4,676
139
13
126
3,319
978
1,344
997
1,218
1,155
82
681
145
5.9
6.1
6.3
6.3
6.3
6.3
35
36
CAGR
6.1%
7.6%
-11.8%
-15.7%
-11.4%
10.8%
7.1%
13.8%
11.0%
4.3%
4.m
6.7%
-1.2%
2.2%
CAGR - Compound annual growth rate 1990-1995
Note: Rgures may not add to totals due to rounding.
Source Dataquest (September 1991)
ESIS
©1991 Dataquest Europe limited September—Reproduction Prohibited
0009897
26
£iuiopean Setniconductor Consomptioa History and Forecast 198S-1995
Table 18
Estimated Semiconductor Consumptiaa—History
UK and Eire Region
Htetory (;$M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$1,198
$959
$193
1986
$1,288
$1,016
$195
1987
$1,570
$1,203
$188
19S8
$2,230
$1,852
$206
1989
$2,614
$2,225
$177
1990
$2,729
$2,283
$152
44
149
44
151
22
166
18
188
19
158
16
136
$525
$565
$741
$1,294
$1,634
$1,587
202
130
193
200
145
220
251
199
291
(M
303
325
804
424
406
661
533
393
$241
$256
$274
$352
$414
$544
241
NA
243
13
260
14
326
26
387
27
507
37
$192
$211
$306
$312
$290
$47
$61
$61
$66
$99
$333
$113
History (ECU M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
1,581
1,266
1986
1,314
1,036
1987
1,366
1,047
1988
1,896
1,574
1989
2,389
2,034
1990
2,145
1,794
255
58
197
693
267
172
255
318
318
NA
253
62
199
45
154
576
204
148
224
261
248
13
215
62
164
19
144
645
218
173
253
238
226
12
266
53
175
15
160
162
17
144
119
13
107
1,100
1,493
1,247
566
258
276
299
277
22
265
56
735
388
371
378
354
25
265
90
520
419
309
428
399
29
262
89
1.32
1.02
0.87
0.85
0.91
0.79
1985
1986
1987
922
738
149
34
115
404
156
100
149
186
186
NA
148
36
876
691
133
30
103
384
136
99
150
174
165
9
143
41
958
734
115
13
101
452
153
121
178
167
159
9
187
37
1988
1,249
1,037
1989
1,595
1,357
1990
1,528
1,278
CAGR
10.6%
115
10
105
725
373
170
182
197
183
15
175
37
108
12
96
997
490
259
248
253
236
16
177
60
85
9
76
889
370
298
220
305
284
21
186
63
-10.5%
-23.4%
-7.9%
17.1%
18.9%
24.4%
8.2%
10.4%
8.9%
0.8
07
0.6
0£
0,6
06
Rate (ECU: $)
History (A M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Raie (£: $)
CAGR
17.9%
18.9%
-4.7%
-18.3%
-1.8%
24.8%
26.8%
32.6%
15.3%
17.7%
l6.0%
NA
11.6%
19.2%
CACSi
6.3%
7.2%
-14.1%
-26.4%
-11.5%
12.5%
14.3%
19.5%
3.9%
6.1%
4.6%
NA
0.6%
7.4%
11.6%
NA
4.8%
11.8%
CAGR - Compound annual growth rate 1985-1990
NA - Not Available
Note: Figures may not add to totals due to rounding.
Sovjrce: Dataquest (September 1991)
0009897
©1991 Dataquest Europe Liinited September—^Reproduction Prohibited
ESIS
European Semiconductor Consumption History and Forecast 1985-1995
Z7
Table 19
Estimated Semiconductor Consumption—Forecast
UK and Eire Region
1995
$4,508
$4,021
89
6
83
$3,146
1,212
1,173
761
$786
735
51
$349
$138
CAGR
10.6%
12.0%
-10.2%
-17.8%
-9.4%
14.7%
12.9%
17.1%
14.1%
7.6%
7.7%
6.6f/o
0.9%
4.1%
1994
3.540
3,144
81
7
75
2,461
988
895 .
578
602
563
40
283
112
1995
3,823
3,410
75
5
70
2,668
1,028
995
645
667
623
43
296
117
CAGR
12.3%
13-7%
•8.8%
-16.6%
-8.0%
16.4%
14.6%
18.9%
15.9%
9.3%
9-4%
8.3%
2.5%
5.7%
0.85
0.85
0.85
1992
1,810
1,581
67
7
60
1,178
464
439
274
336
314
22
168
61
1993
2,185
1,933
64
7
57
1,499
614
542
344
371
345
25
184
68
1994
2.463
2,188
57
5
52
1,712
687
622
402
419
392
28
197
78
1995
2,660
2,372
53
4
49
1,856
715
692
449
464
434
30
206
81
0.6
0.6
0.6
0.6
Forecast C$M>
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
MemoryLogic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$2,729
$2,283
152
16
136
$1,587
661
533
393
$544
507
37
$333
$113
1991
$2,841
$2,425
126
12
114
$1,728
660
649
419
$571
532
38
$310
$106
1992
$3,068
$2,680
114
12
102
$1,996
787
744
465
$570
533
38
$285
$103
1993
$3,704
$3,277
108
12
96
$2,541
1,040
918
583
$628
584
42
$312
$115
Forecast (ECU M)
Total Semiconductor
Total Integrated Qrcuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
2,145
1,794
119
13
107
1,247
520
419
309
428
399
29
262
89
1991
2,332
1,991
103
10
94
1,419
542
533
344
469
437
31
255
87
1992
2,602
2,273
97
10
86
1,693
667
631
394
483
452
32
242
87
1993
3.141
2.779
92
10
81
2,155
882
778
494
533
495
36
265
98
0.79
0.82
0.85
1990
1,528
1,278
85
9
76
889
370
298
220
305
284
21
186
63
1991
1,619
1,382
72
7
65
985
376
370
239
325
303
22
177
60
0.6
0.6
Rate (ECU: $)
Forecast Ci M3
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (£: $)
1994
$4,174
$3,708
96
8
88
$2,902
1,165
1,055
682
$710
664
47
$334
$132
CAGR
11.7%
13.2%
-9.2%
-17.0%
-8.5%
15.9%
14.1%
18.3%
15.3%
8.8%
8.8%
7.7%
2.0%
5.2%
CAGK - Compound annual growth rate 1990-1995
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September I990
ESIS
©1991 Dataquest Europe limited September—Reproduction Prohibited
0009897
European Semlcondnctor Consumption History and Forecast 1985-1995
28
Table 20
Estimated Semiconductor Consumptioa—History
Germany Region
History ($M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$1,318
$905
$180
39
141
$497
188
125
184
$228
228
NA
$343
$70
1986
$1,628
$1,095
$211
45
166
$6ll
220
154
237
$273
259
14
$435
$98
1987
$1,890
$1,342
$216
24
192
$735
218
214
303
$391
372
19
$458
$90
1988
$2,250
$1,673
$201
20
181
$1,013
359
315
339
$459
425
34
$482
$95
1989
$2,6^
$2,087
$209
22
187
$1,377
595
390
392
$501
465
36
$480
$116
1990
$3,078
$2,345
$195
17
178
$1,429
529
504
396
$721
679
42
$598
$135
CAGR
18.5%
21.0%
1.6%
-15.3%
4.8%
23.5%
23.0%
32.2%
16.6%
25.9%
24.4%
NA
11.8%
14.0%
History CECU Ml
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
1,740
1,195
238
51
186
656
248
165
243
301
301
NA
453
92
1986
1,661
1,117
215
46
169
623
224
157
242
278
264
14
444
100
1987
1,644
1,168
188
21
167
639
190
186
264
340
324
17
398
78
1988
1,913
1,422
171
17
154
861
305
268
288
390
361
29
410
81
1989
2,452
1,908
191
20
171
1,259
544
356
358
458
425
33
439
106
1990
2,419
1,843
153
13
140
1,123
416
396
311
567
534
33
470
106
CAGH
6.8%
9.1%
-8.4%
-23.6%
-5.5%
11.4%
10.9%
19.1%
5.1%
13.5%
12.1%
NA
0.8%
2.8%
1.32
1.02
0.87
0.85
0.91
0.79
1985
3,875
2,661
529
115
415
1,461
553
368
541
670
670
NA
1,008
206
1986
3.533
2,376
458
98
360
1,326
477
334
514
592
562
30
944
213
1987
3,402
2,416
389
43
346
1,323
392
385
545
704
670
34
824
162
1988
3,960
2,944
354
35
319
1,783
632
554
597
808
748
60
848
167
1989
5,044
3,924
393
41
352
2,589
1,119
733
737
942
874
68
902
218
1990
4,986
3,799
316
28
288
2,315
857
816
642
1,168
1,100
68
969
219
2.9
2.2
1.8
1.8
1.9
1.6
Rate (ECU: $)
History (DM M)
Total Semiconductor
Total Integrated Circuit
Bip>olar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (DM: $)
CAGR
5.2%
7.4%
-9.8%
-24.8%
-7.0%
9.6%
9.2%
17.3%
3.5%
11.7%
10.4%
NA
-0.8%
1.2%
CAGR - Compound annual growth rate 1985-1990
NA - Not Available
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1991)
0009897
© 1 9 9 1 Daiaquest Europe Limited September—^Reproduction Prohibited
ESIS
European Semiconductor Consumption History and Forecast 1985-1995
29
Table 21
Estimated Semiconductor Consumption—Forecast
Germany Region
Forecast ($M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcortponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$3,078
$2,345
195
17
178
$1,429
529
504
396
$721
679
42
$598
$135
1991
$3,347
$2,619
179
16
163
$1,646
556
648
442
$794
748
46
$590
$138
1992
$3,520
$2,814
156
12
144
$1,868
647
734
487
$790
746
45
$567
$139
1993
$4,131
$3,357
136
12
124
$2,323
862
879
582
$898
848
51
$623
$151
1994
$4,527
$3,723
124
8
116
$2,611
966
993
652
$988
933
55
$638
$166
1995
$4,761
$3,942
109
7
102
$2,779
1,020
1,057
702
$1,054
994
58
$650
$169
CAGR
9.1%
10.9%
-11.0%
-16.3%
-10.5%
14.2%
14.0%
16.0%
12.1%
7.9%
7.9%
6.7%
1.7%
4.6%
Forecast (ECU M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
MicrocomfXjnent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
2,419
1,843
153
13
140
1,123
416
396
311
567
534
33
470
106
1991
2,748
2,150
147
13
134
1,351
456
532
363
652
614
38
484
113
1992
2,985
2,386
132
10
122
1,584
549
622
413
670
633
38
481
118
1993
3,503
2,847
115
10
105
1,970
731
745
494
762
719
43
528
128
1994
3,839
3,157
105
7
98
2,214
819
842
553
838
791
47
541
141
1995
4,037
3,343
92
6
86
2,357
865
896
595
894
843
49
551
143
CAGR
10.8%
12.6%
-9.6%
-15.0%
-9.2%
16.0%
15.8%
17.7%
13.8%
9.5%
9.6%
8.3%
3.2%
6.2%
0.79
0.82
0.85
0.85
0.85
0.85
1990
4,986
3,799
316
28
288
2,315
857
816
642
1,168
1,100
68
969
219
1991
5,623
4,400
301
27
274
2,765
934
1,089
743
1,334
1,257
77
991
232
1992
6,090
4,868
270
21
249
3,232
1,119
1,270
843
1,367
1,291
78
981
240
1993
7,147
5,808
235
21
215
4,019
1,491
1,521
1,007
1,554
1,467
88
1,078
261
1994
7,832
6,441
215
14
201
4,517
1,671
1,718
1,128
1,709
1,614
95
1,104
287
1995
8,237
6,820
189
12
176
4,808
1,765
1,829
1,214
1,823
1,720
100
1,125
292
1.6
1.7
1.7
1.7
1.7
1.7
Rate (ECU: $)
Forecast (DM M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (DM: $)
CAGR
10.6%
12.4%
-9.8%
-15.2%
-9.4%
15.7%
15.5%
17.5%
13.6%
9.3%
9.3%
8.1%
3.0%
6.0%
CAGR - Compound annual growth rate 1990-1995
Note: figures majr not add to totals due to rounding.
Source: Dataquest (September 1991)
ESIS
©1991 Dataquest Europe Limited September—Reproduction Prohibited
0009897
European Semiconductor Consumption History and Forecast 1985-1995
30
Table 22
Estimated Semiconductor Consumption—History
Rest of Etu-ope Region
History ($M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
$387
$303
$60
13
47
$167
69
37
61
$76
76
NA
$69
$15
1986
$494
$377
$72
15
57
$212
78
52
82
$93
89
4
$90
$27
1987
$430
$281
$33
7
26
$172
50
55
67
$76
71
5
$124
$25
1988
$690
$499
$56
7
49
$340
107
97
136
$103
93
10
$163
$28
1989
$801
$592
$24
4
20
$444
259
91
94
$124
108
16
$184
$25
1990
$894
$639
$22
4
18
$436
225
113
98
$181
156
25
$222
$33
CAGR
18.2%
16.1%
-18.2%
-21.0%
-17.5%
21.2%
26.7%
25.0%
9.9%
19.0%
15.5%
NA
26.3%
17.1%
History (ECU M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1985
511
400
79
17
62
220
91
49
81
100
100
NA
91
20
1986
504
385
73
15
58
216
80
53
84
95
91
4
92
28
1987
374
244
29
6
23
150
44
48
58
(6
62
4
108
22
1988
587
424
48
6
42
289
91
82
116
88
79
9
139
24
1989
732
541
22
4
18
406
237
83
86
113
99
15
168
23
1990
703
502
17
3
14
343
177
89
77
142
123
20
174
26
CAGR
6.6%
4.7%
-26.2%
-28.8%
-25-6%
9.2%
14.2%
12.7%
-0.9%
7.2%
4.1%
NA
13.9%
5.5%
1.32
1.02
0.87
0.85
0.91
0.79
1985
65,809
51,525
10,203
2,211
7,992
28,398
11,733
6,292
10,373
12,924
12,924
NA
11,733
2,551
1986
69,145
52,769
10.078
2,100
7,978
29,674
10,918
7,278
11,478
13,017
12,457
560
12,597
3,779
1987
53,131
34,720
4,077
865
3,213
21,252
6,178
6,796
8,279
9.391
8,773
618
15,321
3.089
1988
80,702
58,363
6,550
819
5,731
39,766
12,515
11,345
15,907
12,047
10,877
1,170
19,064
3,275
1989
94,959
70,182
2,845
474
2,371
52,636
30,704
10,788
11,144
14,700
12,803
1,897
21,813
2,964
1990
91,215
65,197
2,245
408
1,837
44,485
22,957
11,529
9,999
18,467
15,917
2,551
22,651
3,367
170.1
140.0
123.6
117.0
118.6
102.0
Rate (ECU: $)
History (Pta M)
Total Semiconduaor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (Pta: $)
CAGB
6.7%
4.8%
-26.1%
-28.7%
-25.5%
9.4%
14,4%
12.9%
-0.7%
7.4%
4.3%
NA
14.1%
5.7%
CAGR - Compound annual growth fate 1985-1990
NA. - Not Available
Note: Hgures may not add to totals due to rounding.
Source: Dataquest CSeptember 1991)
0009S97
©1991 Dataquest Europe Limited September—Bepioduction Prohibited
ESIS
European Semiconductor Conmumption History and Forecast 1985'1999
31
Table 23
Estimated Semiconductor Consumption—Forecast
Rest of Europe R ^ o n
Forecast ($M)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microconq>onent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1990
$894
$639
22
4
18
$436
225
113
98
$181
156
25
$222
$33
1991
$968
$709
20
4
16
$487
224
148
115
$202
175
28
$226
$33
1992
$1,066
$809
18
4
14
$578
266
176
136
$213
183
28
$223
$34
1993
$1,308
$1,015
17
3
14
$751
356
228
167
$247
213
35
$255
$38
1994
$1,500
$1,183
16
3
13
$886
423
265
198
$281
243
38
$274
$43
1995
$1,647
$1,293
14
2
12
$964
454
289
221
$315
272
42
$299
$55
CAGR
13.0%
15.1%
-S.6%
-12.9%
-7.8%
17.2%
15.1%
20.7%
17.7%
11.7%
11.8%
10.9%
6.1%
10.8%
Forecast (ECU M)
Total Semiconductor
Total Integrated Qrcuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
MicrocompKJnent
Logic
Analog
Monolithic
HyiDrid
Total Discrete
Total Optoelectronic
1990
703
502
17
3
14
343
177
89
77
142
123
20
174
26
1991
795
582
16
3
13
400
184
122
94
166
144
23
186
27
1992
904
686
15
3
12
490
226
149
115
181
155
24
189
29
1993
1,109
861
14
3
12
637
302
193
142
209
181
30
32
1994
1,272
1,003
14
3
11
751
359
225
168
238
206
32
232
36
1995
1,397
1,096
12
2
10
817
385
245
187
267
231
36
254
47
CAGR
14.7%
16.9%
-7.2%
-11.6%
•6.4%
19.0%
16.8%
22.5%
19.5%
13.4%
13.5%
12.6%
7.8%
12.5%
0.79
0.82
0.85
0.85
0.85
0.85
1990
91,215
65,197
2,245
408
1,837
44,485
22,957
11,529
9,999
18.467
15,917
2,551
22,651
3367
1991
101,834
74.587
2,104
421
1,683
51,232
23,565
15,570
12,098
21,250
18,410
2.946
23,775
3,472
1992
116,301
88,262
1,964
436
1,527
63,060
29,021
19,202
14,838
23,238
19,965
3,055
24,329
3,709
1993
142,703
110.737
1,855
327
1,527
81,934
38,840
24,875
18,220
26,948
23,238
3,819
27,821
4,146
1994
163,650
129,065
1,746
327
1,418
96,663
46,149
28,912
21,602
30,657
26,511
4,146
29,893
4,691
1995
179,688
141,066
1,527
218
1,309
105,172
49,531
31,530
24,111
34,367
29,675
4,582
32,621
6,001
102.0
105.2
109.1
109.1
109.1
109.1
Rate (ECU: $)
Forecast (Pta M;>
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
Rate (Pta: $)
2l6
CAGR
14.5%
16.7%
-7.4%
-11,8%
-6.5%
18.8%
16.6%
22.3%
19.2%
13.2%
13.3%
12.4%
7.6%
12.3%
CAGR » Compound annual growth rate 1990-1995
Note: Figures may not add to totals due to rounding.
Source: Dataquest (September 1991)
ESIS
©1991 Dataquest Europe Limited September—Reproduction Prohibited
0009897
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DATAQUEST
EUROPEAN COMPONENTS GROUP
These tables represent ESIS European regional semiconductor
consumption, history and forecast, and correspond to the tables in
ESIS Volume 2, Section 2.0.1 Semiconductor Device Markets.
Regional consumption is expressed in U.S. dollars to make the
tables useful in comparing different regions. However, estimates in
the local currency of each country can be made based on the exchange
rates detailed in the Exchange Rate Quarterly Newsletter published
June 1989 (ESIS Code: Newsletters 1988-1989, 1989-16).
The following changes in the technology categories have been made
compared to last year
0
Other Bipolar is now included in TTL
0
PMOS is now included in Other Bipolar
0
BiCMOS is a new category.
0
The "Appendix-A" tables include market estimates of
other products ESIS analysts observe.
INDEX TO ESIS EUROPEAN SEMICONDUCTOR
CONSUMPTION ESTIMATES
Table 2.0.1-1
Table 2.0.1-1(a)
Table 2.0.1-1(b)
Table 2.0.1-2
Table 2.0.1-2(a)
Table 2.0.1-2(b)
Table 2.0.1-3
Table 2.0.1-3(a)
Table 2.0.1-3(b)
Table 2.0.1-4
Table 2.0.1-4(a)
Table 2.0.1-4(b)
Table 2.0.1-5
Table 2.0.1-5(a)
Table 2.0.1-5(b)
Table 2.0.1-6
Table 2.0.1-6(a)
Table 2.0.1-6(b)
Table 2.0.1-7
Table 2.0.1-7(a)
Table 2.0.1-7(b)
Table 2.0.1-8
Table 2.0.1-8(a)
Table 2.0.1-8(b)
Appendix
European Semiconductor Consumption
History: 1982-1988
History: 1982-1988
1
2
Benelux Semiconductor Consumption
History: 1982-1988
History: 1982-1988
3
4
French Semiconductor Consumption
History: 1982-1988
History: 1982-1988
5
6
Italian Semiconductor Consumption
History: 1982-1988
History: 1982-1988
7
8
Scandinavian Semiconductor Consumption
History: 1982-1988
History: 1982-1988
9
10
U.K. & Irish Semiconductor Consumption
History: 1982-1988
History: 1982-1988
11
12
West German Semiconductor Consumption
History: 1982-1988
History: 1982-1988
13
14
Rest of Europe Semiconductor Consumption
History: 1982-1988
History: 1982-1988
J5
16
Appendix-A Tables
Estimated European Semiconductor Consumption History
Estimated European Semiconductor Consumption Forecast
II
17
18
Table 2.0.1-l(a)
ESTIMATED EUROPEAN SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1983
im.
1251
12M
19?7
1988
$3,167
$3,370
$4,805
$4,720
$5,532
$6,355
$8,491
$1,988
$2,323
$3,634
$3,556
$4,088
$4,693
$6,669
Bipolar
TTL
ECL
$ 434
394
40
$ 483
446
37
$ 724
659
65
$ 709
641
68
$ 782
705
77
$ 725
564
161
$ 772
624
148
Bipolar
Memory
Logic
$ 434
100
334
$ 483
107
376
$ 724
149
575
$ 709
157
552
$ 782
172
610
$ 725
85
640
$ 772
74
698
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 948
650
214
0
84
$1,227
824
353
0
50
$2,092
1,443
617
0
32
$1,953 $2,280 $2,753
1,434
1,294
1,232
1,284
702
976
24
0
0
11
19
10
$4,364
1,759
2,491
56
58
MOS
Memory
Micro
Logic
$ 948
469
168
311
$1,227
581
239
407
$2,092
995
465
632
$1,953
750
485
718
$2,280
822
578
880
$2,753
838
794
1,121
$4,364
1,797
1,212
1,355
Linear
Monolithic
Hybrid
$ 606
606
0
$ 613
613
0
$ 818
818
0
$ 894
894
0
$1,026
975
51
$1,215
1,153
62
$1,533
1,416
117
Total Discrete
$1,011
$ 866
$ 963
$ 954
$1,153
$1,384
$1,516
Total Optoelectronic
$ 168
$ 181
$ 208
$ 210
$ 291
$ 278
$ 306
mi
Total Semiconductor
Total Integrated Circuit
Source: Dataquest
August 1989
Ref: 0889-08
Page 1
Table 2.0.1-l(b)
ESTIMATED EUROPEAN SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1988
1989
1990
1991
1992
1993
1994
Total Semiconductor
$8,491
$9,839
$10,368
$12,006
$15,481
$18,770
$20,572
Total Integrated Circuit
$6,669
$7,880
$ 8,488
$ 9,968 $13,068
$16,123
$17,664
Bipolar
TTL
ECL
$ 772
624
148
$ 762
612
150
$
730
577
153
$
781
605
176
$
867
668
199
$
965
730
235
$ 1,025
772
253
Bipolar
Memory
Logic
$ 772
74
698
$ 762
72
690
$
730
65
665
$
781
70
711
$
867
73
794
$
965
71
894
$ 1,025
67
958
MOS
NMOS
CMOS
BiCMOS
Other IC
$4,364
1,759
2,491
56
58
$5,518
2,023
3,354
106
35
$ 6,050
2,104
3,727
195
24
$ 7,227
2,222
4,637
351
17
$ 9,843 $12,408 $13,616
2,555
2,836
2,893
6,663
8,509
9,293
613
1,055
1,424
12
8
6
MOS
Memory
Micro
Logic
$4,364
1,797
1,212
1,355
$5,518
2,501
1,350
1,667
$ 6,050
2,788
1,425
1,837
$ 7,227
3,320
1,718
2,189
$ 9,843 $12,408
6,179
4,462
2,870
2,432
3,359
2,949
$13,616
6,478
3,475
3,663
Linear
Monolithic
Hybrid
$1,533
1,416
117
$1,600
1,486
114
$ 1,707
1,598
109
$ 1,960
1,856
104
$ 2,358
2,262
96
$ 2,750
2,657
93
$ 3,023
2,935
88
Total Discrete
$1,516
$1,667
$ 1,601
$ 1,740
$ 2,052
$ 2,229
$ 2,417
Total Optoelectronic
$ 306
$ 292
$
$
$
$
$
280
298
361
418
491
Source: Dataquest
August 1989
Ref: 0889-08
Page 2
Tabic 2.0.1-2(a)
ESTIMATED BENELUX SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
19?2
1983
iiM
mi
1986
mi
19??
$184
$208
$306
$304
$351
$407
$504
$117
$149
$237
$235
$277
$307
$369
Bipolar
TTL
ECL
$26
14
2
$ 31
28
3
$47
42
5
$ 47
42
5
$ 52
47
5
$43
33
10
$ 45
36
9
Bipolar
Memory
Logic
$ 26
6
20
$ 31
7
24
$ 47
9
38
$ 47
11
36
$52
12
40
$ 43
5
38
$ 45
4
41
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 56
38
13
0
5
$ 79
53
23
0
3
$137
94
41
0
2
$129
82
46
0
1
$155
90
64
0
1
$184
91
90
2
1
$213
85
126
2
0
MOS
Memory
Micro
Logic
$ 56
28
10
18
$ 79
38
15
26
$137
65
30
42
$129
49
33
47
$155
57
39
59
$184
42
64
78
$213
72
73
68
Analog
Monolithic
Hybrid
$ 35
35
0
$ 39
39
0
$ 53
53
0
$ 59
59
0
$ 70
70
0
$ 80
76
4
$111
103
8
Total Discrete
$ 58
$ 49
$ 56
$ 56
$ 56
$ 82
$107
Total Optoelectronic
$ 9
$ 10
$ 13
$ 13
$ 18
$ 18
$ 28
Total Semiconductor
Total Integrated Circuit
Source: Dataquest
August 1989
Ref: 0889-08
Page 3
Table 2.0.1-2(b)
ESTIMATED BENELUX SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
19§?
1989
1990
1991
1992
mi
$504
$560
$590
$671
$836
$991
$1,068
$369
$426
$456
$534
$674
$813
$ 867
Bipolar
TTL
ECL
$ 45
36
9
$ 44
35
9
$42
32
10
$ 45
34
11
$ 47
35
12
$ 51
38
13
$
56
41
15
Bipolar
Memory
Logic
$ 45
4
41
$ 44
4
40
$ 42
4
38
$45
4
41
$ 47
4
43
$ 51
3
48
$
56
3
53
MOS
NMOS
CMOS
BiCMOS
Other IC
$213
85
126
2
0
$266
97
166
3
0
$290
97
187
6
0
$347
102
235
10
0
$457
114
323
20
0
$564
121
408
35
0
$ 600
130
427
43
0
MOS
Memory
Micro
Logic
$213
72
73
68
$266
101
81
84
$290
112
86
92
$347
133
104
110
$457
171
143
143
$564
234
167
163
$ 600
235
195
170
Analog
Monolithic
Hybrid
$111
103
8
$116
108
8
$124
116
8
$142
135
7
$170
164
6
$198
192
6
$ 211
205
6
Total Discrete
$107
$110
$113
$123
$145
$159
$ 163
Total Optoelectronic
$ 28
$ 24
$ 21
$ 14
$ 17
$ 19
$ 38
Total Semiconductor
Total Integrated Circuit
1994
Source: Dataquest
August 1989
Ref: 0889-08
Page 4
Table 2.0.1-3(a)
ESTIMATED FRANCE SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1982
1983
1984
mi
1986
1987
198?
$615
$585
$690
$771
$801
$940
$1,210
$412
$419
$520
$603
$591
$716
$ 977
Bipolar
TTL
ECL
$90
82
8
$ 87
81
6
$104
95
9
$101
91
10
$114
102
12
$109
85
24
$ 115
94
21
Bipolar
Memory
Logic
$ 90
21
69
$ 87
19
68
$104
22
82
$101
23
78
$114
26
88
$109
13
96
$ 115
10
105
MOS
NMOS
CMOS
BiCMOS
Other IC
$196
135
44
0
17
$221
148
64
0
9
$298
203
89
0
6
$276
174
99
0
3
$329
187
139
0
3
$422
218
198
4
2
$ 631
266
347
8
10
MOS
Memory
Micro
Logic
$196
97
35
64
$221
105
43
73
$298
142
66
90
$376
207
68
101
$328
121
82
125
$422
126
127
169
$ 631
232
182
217
Linear
Monolithic
Hybrid
$126
126
0
$111
111
0
$118
118
0
$126
126
0
$149
149
0
$185
176
9
$ 231
214
17
Total Discrete
$171
$134
$138
$135
$165
$185
$ 196
Total Optoelectronic
$32
$ 32
$32
$ 33
$ 45
$ 39
$
Total Semiconductor
Total Integrated Circuit
37
Source: Dataquest
August 1989
Ref: 0889-08
'
Page 5
Table 2.0.1-3(b)
ESTIMATED FRANCE SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1991
mi
1993
1994
$1,440
$1,644
$2,088
$2,476
$2,734
$1,126
$1,199
$1,379
$1,773
$2,136
$2,382
$ 115
94
21
$ 114
93
21
$ 108
87
21
$ 117
92
25
$ 127
99
28
$ 140
108
32
$ 146
113
33
Bipolar
Memory
Logic
$ 115
10
105
$ 114
10
104
$ 108
9
99
$ 117
10
107
$ 127
10
117
$ 140
10
130
$ 146
9
137
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 631
266
347
8
10
$ 770
302
447
15
6
$ 834
305
498
27
4
$ 967 $1,290 $1,581 $1,800
314
345
383
414
601
857
1,048
1,186
49
86
149
199
3
2
1
1
MOS
Memory
Micro
Logic
$ 631
232
182
217
$ 770
304
200
266
$ 834
335
211
288
$ 967
398
241
328
$1,290
523
333
434
$1,581
704
388
489
$1,800
747
491
562
Linear
Monolithic
Hybrid
$ 231
214
17
$ 242
225
17
$ 257
241
16
$ 295
280
15
$ 356
342
14
$ 415
401
14
$ 436
424
12
Total Discrete
$ 196
$ 202
$ 207
$ 224
$ 265
$ 283
$ 296
Total Optoelectronic
$
$
$
$
1988
•1989
$1,210
$1,363
$ 977
Bipolar
TTL
ECL
•
Total Semiconductor
Total Integrated Circuit
37
$
35
•
1990
$
34
•
$
41
50
57
56
Source: Dataquest
August 1989
Ref: 0889-08
Page 6
Table 2.0.1-4(a)
ESTIMATED ITALY SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
Total Semiconductor
Total Integrated Circuit
1984
1987
1988
$534 $ 660
$ 982
$ 203 $ 221 $ 368 $ 345 $404 $493
$ 791
1982
1983
1985
$ 319 $ 320 $ 480 $451
1986
Bipolar
TTL
ECL
$ 44 $
40
4
46
42
4
$ 74 $ 68 $ 77 $ 79
61
66
69
62
7
17
8
8
$ 79
64
15
Bipolar
Memory
Logic
$ 44 $
10
34
46 $ 74 $ 68 $ 77 $ 79
10
16
15
16
9
36
53
58
61
70
$ 79
8
71
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 97 $ 117 $ 212 $ 190 $ 225 $ 294 $ 560
78
149
66
145
203
120
128
34
141
22
63
340
69
96
0
3
0
0
7
0
0
5
1
9
4
10
1
1
MOS
Memory
Micro
Logic
$ 97 $ 117 $ 212 $ 190 $ 225 $ 294 $ 560
48
55
253
92
101
72
80
17
145
23
48
58
79
47
32
162
39
87
70
123
64
Linear
Monolithic
Hybrid
$62 $
62
0
58 $
58
0
82 $
82
0
87 $ 102 $ 120 $ 152
87
141
102
114
0
11
0
6
Total Discrete
$ 99 $
81 $ 92 $
88 $ 106 $ 139 $ 160
Total, Optoelectronic
$ 17 $
18 $ 20 $
18 $ 24 $ 28
$
31
Source;: Dataquest
August 1989
Ref: 0889-08
Page 7
Table 2.0.1-4(b)
ESTIMATED ITALY SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1993
1994
$ 982 $1,133 $1,161 $1,394 $1,828 $2,253
$2,512
$ 791 $ 938 $ 964 $1,179 $1,575 $1,972
$2,202
1988
Total Semiconductor
Total Integrated Circuit
•
im.
•
122Q
1992
.1991
Bipolar
TTL
ECL
$ 79 $
64
15
78 $
63
15
74 $
59
15.
79 $
61
18
88 $
68
20
97
75
2
$ 107
81
26
Bipolar
Memory
Logic
$ 79 $
8
71
78 $
8
70
74 $
7
67
79 $
7
72
88 $
8
80
97
7
90
$ 107
7
100
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 560 $ 701 $ 719 $ 905 $1,252 $1,601 $1,787
340
243
316
270
356
203
234
448
1,268
852 1,103
586
340
448
24
178
82
46
141
7
13
4
1
2
3
1
10
6
MOS
Memory
Micro
Logic
$ 560 $ 701 $ 719 $ 905 $1,252 $1,601
566
414
797
253
340
335
297
206
356
145
161
162
389
285
448
162
200
222
$1,787
907
427
453
Linear
Monolithic
Hybrid
$ 152 $ 159 $ 171 $ 195 $ 235 $ 274
160
265
141
185
226
148
11
11
9
10
9
11
$ 308
299
9
Total Discrete
$ 160 $ 166 $ 169 $ 184 $ 217 $ 239
$ 260
Total Optoelectronic
$
31 $
29 $
28 $
31 $
36 $
42
$
50
Source: Dataquest
August 1989
Ref: 0889-08
Page 8
Table 2.0.1-5(a)
ESTIMATED SCANDINAVIA SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1987
1988
$ 229 $ 245 $ 395 $ 391 $ 426 $ 458
$ 625
$ 141 $ 170 $ 310 $ 306 $ 328 $ 351
$ 508
1982
Total Semiconductor
Total Integrated Circuit
1983
1984
1985
m§.
Bipolar
TTL
ECL
$ 31 $
28
3
6 $
3
3
60 $
54
6
60 $
54
6
61 $
55
6
57
46
11
$
70
57
13
Bipolar
Memory
Logic
$ 31 $
7
24
6 $
8
28
60 $
11
49
60 $
12
48
61 $
14
47
57
5
52
$
70
7
63
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 67 $
46
15
0
6
90 $ 179 $ 169 $ 184 $ 205
105
112
60
123
106
78
90
26
54
60
0
2
0
0
0
1
1
4
2
3
$ 313
123
176
4
10
MOS
Memory
Micro
Logic
$ 67 $
33
12
22
90 $ 179 $ 169 $ 184 $ 205
66
59
63
43
85
56
44
48
40
17
90
62
70
54
30
$ 313
108
97
108
Linear
Monolithic
Hybrid
$ 43 $
43
0
44 $
44
0
71 $
71
0
77 $
77
0
83 $
83
0
89
84
5
$ 125
114
11
Total Discrete
$ 76 $
63 $
71 $
71 $
80 $
90
$
96
Total Optoelectronic
$ 12 $
12 $
14 $
14 $
18 $
17
$
21
Source: Dataquest
August 1989
Ref: 0889-08
Page 9
Table 2.0.1-5(5)
ESTIMATED SCANDINAVIA SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1988
Total Semiconductor
Total Integrated Circuit
m9
1990
1991
1992
^1994
1993
••
$
625 $ 713 $ 755 $ 864 $1,099 $1,294 $1,399
$
508 $ 593 $ 633 $ 732 $ 943 $1,122 $1,222
Bipolar
TTL
ECL
$
70 $ 68 $
56
57
12
13
65 $ 64 $
50
53
14
12
71 $
57
14
77 $
60
17
88
69
19
Bipolar
Memory
Logic
$
70 $ 68 $
6
7
62
63
65 $ 64 $
6
5
58
60
71 $
7
64
77 $
6
71
88
6
82
MOS
NMOS
CMOS
BiCMOS
Other IC
$
313 $ 395 $ 431 $ 510 $ 681 $ 824 $ 904
154
164
191
148
162
144
123
325
466
598
577
237
263
176
28
49
114
16
84
8
4
3
2
1
4
1
6
10
MOS
Memory
Micro
Logic
$
313 $ 395 $ 431 $ 510 $ 681 $ 824 $ 904
202
269
366
170
359
153
108
137
182
262
114
210
109
97
171
230
276
147
255
133
108
Linear
Monolithic
Hybrid
$
125 $ 130 $ 137 $ 158 $ 191 $ 221 $ 230
149
182
222
128
213
120
114
9
9
8
9
8
10
11
Total Discrete
$
96 $ 100 $ 102 $ HI
$
Total Optoelectronic
$
21
20 $ 20 $ 21
$
$
131 $ 143 $ 144
25 $ 29
$
33
Source: Dataquest
August 1989
Ref: 0889- 08
Page 10
Table 2.0.1-6(a)
ESTIMATED U.K. & IRISH SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1982
1984
12S2
^19?5
-1986
1987
ISM
$ 703 $ 833
$1,240 $1,198
$1,288 $1,570
$2,230
$ 439 $ 6 1 9
$ 999
$ 959
$1,016 $1,203
$1,852
Bipolar
TTL
ECL
$ 96 $ 129
120
87
9
9
$ 198
183
15
$ 193
$
195 $ 188
178
147
17
41
$ 206
169
37
Bipolar
Memory
Logic
$ 96
22
74
$ 129 $ 198
29
40
100
158
$ 193
$
44
149
195 $ 188
22
44
166
151
$ 206
18
188
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 209
144
47
0
18
$ 327 $ 575
220
406
94
162
0
0
13
7
$ 525
$ 565 $ 741
$1,294
558
706
21
9
MOS
Memory
Micro
Logic
$ 209
103
37
69
$ 327 $ 575
155
274
64
128
108
173
$ 525
$ 565 $ 741
202
130
193
251
199
291
Linear
Monolithic
Hybrid
$ 134
134
0
$ 163 $ 226
163
226
0
0
$ 241
Total Semiconductor
Total Integrated Circuit
Total Discrete
$ 228 $ 172 $
Total Optoelectronic
$ 36
$ 42
176
17
331
189
0
5
241
0
192
$
49
$
$
200
145
220
$ 256 $ 274
$ 61
$1,294
666
303
325
260
14
$ 352
326
. 26
$ 306
$ 312
$
$
256
0
192 $ 211
47
385
347
6
3
319
244
0
2
61
66
Source: Dataquest
August 1989
Ref: 0889-08
Page 11
Table 2.0.1-6(b)
ESTIMATED U.K. & IRISH SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1988
1989
1990
1991
1992
1993
1294
$2,230
$2,598
$2,784
$3,246
$4,201
$5,115
$5,627
$1,852
$2,212
$2,393 $2,820
$3,695
$4,559
$5,023
Bipolar
TTL
ECL
$ 206
169
37
$ 205 $ 196 $ 217
172
166
156
39
45
40
$ 240
187
53
$ 265 $ 275
208
205
67
60
Bipolar
Memory
Logic
$ 206
18
188
$ 205 $ 196
16
18
180
187
$ 217
18
199
$ 240
18
222
$ 265
19
246
$ 275
17
258
MOS
NMOS
CMOS
BiCMOS
Other IC
$1,294
558
706
21
9
$1,641
645
951
39
6
$1,805
669
1,061
71
4
$2,152
695
1,326
128
3
$2,913
789
1,900
222
2
$3,660
836
2,439
383
2
$4,057
920
2,616
520
1
MOS
Memory
Micro
Logic
$1,294
666
303
325
$1,641
906
335
400
$1,805
1,008
355
442
$2,152
1,196
431
525
$2,913
1,596
603
714
$3,660
2,169
700
791
$4,057
2,329
857
871
Linear
Monolithic
Hybrid
$ 352
326
26
$ 366
341
25
$ 392
368
24
$ 451
428
23
$ 542
521
21
$ 634
614
20
$ 691
672
19
Total Discrete
$ 312
$ 322
$ 329
$ 358
$ 423
$ 458
$ 497
Total Optoelectronic
$
$
$
$
$
$
$ 107
Total Semiconductor
Total Integrated Circuit
66
64
62
68
83
98
Source: Dataquest
August 1989
Ref: 0889-08
Page 12
Table 2.0.1-7(a)
ESTIMATED WEST GERMAN SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1982
Total Semiconductor
Total Integrated Circuit
1983
1984
1985
1986
1987
1988
$ 895 $ 937 $1,300 $1,318 $1,628 $1,890 $2,250
$ 533 $ 572 $ 892 $ 905 $1,095 $1,342 $1,673
Bipolar
TTL
ECL
$ 116 $ 118 $ 178 $ 180 $ 211 $ 216 $ 201
105
109
163
163
190
169
159
11
9
15
17
21
47
42
Bipolar
Memory
Logic
$ 116 $ 118 $ 178 $ 180 $ 211 $ 216 $ 201
27
26
37
39
45
24
20
89
92
141
141
166
192
181
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 254 $ 302 $ 513 $ 492 $ 611 $ 735 $1,013
174
204
350
314
344
387
388
57
86
154
178
264
338
594
0
0
0
0
0
7
12
23
12
9
0
3
3
19
MOS
Memory
Micro
Logic
$ 254 $ 302 $ 513 $ 497 $ 611 $ 735 $1,013
126
142
244
188
220
218
359
45
59
116
125
154
214
315
83
101
153
184
237
303
339
Linear
Monolithic
Hybrid
$ 163 $ 152 $ 201 $ 228 $ 273 $ 391 $ 459
163
152
201
228
273
372
425
0
0
0
0
0
19
34
Total Discrete
$ 310 $ 309 $ 344 $ 343 $ 435 $ 458 $ 482
Total Optoelectronic
$
52 $
56 $
64 $
70 $
98 $ 90 $ 95
Source: Dataquest
August 1989
Ref: 0889-08
Page 13
Table 2.0.1-7(b)
ESTIMATED WEST GERMAN SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1988
ma.
1990
1991
1992
1993
1994
$2,250
$2,518
$2,663
$3,022
$3,818
$4,554
$4,910
$1,673
$1,928
$2,068
$2,377
$3,062
$3,725
$4,027
Bipolar
TTL
ECL
$ 201
159
42
$ 198
155
43
$ 192
148
44
$ 203
153
50
$ 229
172
57
$ 255
178
77
$ 254
185
69
Bipolar
Memory
Logic
$ 201
20
181
$ 198
19
179
$ .192
18
174
$ 203 $ 229
19
19
184
210
$ 255
19
236
$ 254
17
237
MOS
NMOS
CMOS
BiCMOS
Other IC
$1,013
388
594
12
19
$1,251
445
771
24
11
$1,365
463
851
43
8
$1,587 $2,133
477
547
1,029
1,459
76
123
5
4
$2,654
577
1,863
211
3
$2,905
594
1,996
313
2
MOS
Memory
Micro
Logic
$1,013
359
315
339
$1,251
499
339
413
$1,365
555
356
454
$1,587
617
429
541
$2,133
808
611
714
$2,654
1120
721
813
$2,905
1214
829
862
Linear
Monolithic
Hybrid
$459
425
34
$ 479
446
33
$ 511
480
31
$ 587
557
30
$ 700
672
28
$ 816
789
27
$ 868
844
24
Total Discrete
$ 482
$ 499
$ 509
$ 553
$ 645
$ 701
$ 737
Total Optoelectronic
$ 95
$
$
$
$ HI
$ 128
$ 146
Total Semiconductor
Total Integrated Circuit
91
86
92
Source: Dataquest
August 1989
Ref: 0889-08
Page 14
Table 2.0.1-8(a)
ESTIMATED REST OF EUROPE SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
Total Semiconductor
Total Integrated Circuit
1982
1983
1984
1985
1986
mi
1988
$222
$242
$394
$387
$440
$430
$690
$ 143 $ 173 $ 308 $ 303 $ 323 $ 281 $ 499
Bipolar
TTL
ECL
$ 31
28
3
$ 36
33
3
$ 63 $ 60
56
54
7
6
$ 72
64
8
$ 33
22
11
$ 56
45
11
Bipolar
Memory
Logic
$ 31
7
24
$ 36
8
28
$ 63
14
49
$ 72
15
57
$ 33
7
26
$ 56
7
49
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 69
47
16
0
6
$ 91 $ 178 $ 167 $ 212 $ 172 $ 340
122
121
92
136
105
61
54
91
80
202
61
26
0
0
0
2
0
0
2
0
0
0
1
4
MOS
Memory
Micro
Logic
$ 69
34
12
23
$ 9 1 $ 178 $ 167 $ 158 $ 172 $ 340
50
69
84
78
43
107
55
37
38
52
18
97
67
61
56
28
30
136
Linear
Monolithic
Hybrid
$ 43
43
0
$ 46
46
0
$ 67
67
0
$ 76
76
0
$ 93
93
0
Total Discrete
$ 69
$ 58
$ 70
$ 69
$ 90 $ 124 $ 163
Total Optoelectronic
$ 10
$ 11
$ 16
$ 15
$ 27
$ 60
13
47
$ 76 $ 103
93
71
10
5
$ 25
$ 28
Source: Dataquest
August 1989
Ref: 0889-08
Page 15
Table 2.0.1-8(b)
ESTIMATED REST OF EUROPE SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
19??
Total Semiconductor
$690
^1991
1992
1993
1224
$ 854 $ 975 $1,165
$1,611
$2,087
$2,322
$1,346
$1,796
$1,941
ma.
1990
$ 499 $657
$ 774
$ 947
Bipolar
TTL
ECL
$ 56
45
11
$ 55
44
11
$ 53
42
11
$
56
44
12
$
65
50
15
$
80
66
14
$
99
75
24
Bipolar
Memory
Logic
$ 56
7
49
$ 55
7
48
$ 53
6
47
$
56
6
50
$
65
7
58
$
80
7
73
$
99
8
91
MOS
NMOS
CMOS
BiCMOS
Other IC
$ 340 $ 494 $ 606
179
157
136
419
333
202
8
4
2
0
0
0
$ 759 $1,117
281
210
805
535
31
14
0
0
$1,524
400
1,071
53
0
$1,563
304
$1,202
57
0
$ 340 $494 $606
198
273
107
125
141
97
171
192
136
$ 759
360
170
229
$1,117
529
263
325
$1,524
796
328
400
$1,563
680
414
469
Linear
Monolithic
Hybrid
$ 103 $ 108 $ 115
98
93
105
10
10
10
$ 132
122
10
$ 164
155
9
$ 192
183
9
$ 279
269
10
Total Discrete
$ 163 $ 168 $ 172
$ 187
$ 226
$ 246
$ 320
Total Optoelectronic
$ 28
$
$
$
Total Integrated Circuit
MOS
Memory
Micro
Logic
$ 29
$ 29
$
31
39
45
Source: Dataquest
August 1989
Ref: 0889-08
Page 16
61
Appendix-A
ESTIMATED EUROPEAN SEMICONDUCTOR CONSUMPTION HISTORY
(Millions of Dollars)
1982
1983
.
1984
1985
1986
.1987
1988
$3,167
$3,370
$4,805
$4,720
$5,532
$6,355
$8,491
$1 ,988
$2,323
$3,634
$3,556
$4,088
$4,693
$6,669
$ 434
394
40
$ 483
446
37
$ 724
659
65
$ 709
641
68
$
$ 725
564
161
$
Bipolar
Memory
Logic
Other Logic
Std. Logic
ASIC
$ 434
100
334
$ 483
107
376
$ 724
149
575
$ 709
157
552
$
$ 725
85
640
20
410
210
$
MOS
$ 948
650
214
0
84
$1.227
824
353
0
50
S2,092
1,443
$1,953
1,232
702
0
19
$2,280
1,294
$2,753
1,434
1,284
24
11
$4,364
1,759
2,491
S 948
$ 469
$1,227
$ 581
$2,092
$1 ,953
$ 750
$2,280
$ 822
$2,753
$4,364
$1,797
1062
Total Semiconductor
Total Integrated Circuit
Bipolar
TTL
ECL
NMOS
CMOS
BiCMOS
Other IC
MOS •
Memory
DRAM
SRAM
ROM/other
Micro
MPU
MCU
MPR (inc. OSP)
Logic
Std. Logic
other Logic
ASIC
617
0
32
$ 995
782
705
77
782
172
610
4
376
230
976
0
10
262
252
308
s
168
s
311
$ 239
$465
$ 485
$
578
95
249
234
$ 407
$ 632
$ 718
$
880
437
443
$ 606
$ 606
103
36
85
55
224
103
0
$
S 613
$ 613
104
37
92
55
227
98
0
$
$ 818
$ 818
137
50
130
72
298
131
% 0
$ 894
$ 894
144
54
157
80
318
141
$
0
Total Discrete
Transistor
Diode
Thyristor
Other Discrete
$1 ,011
468
391
105
47
$ 866
408
327
91
40
t
963
450
358
103
52
$ 954
463
342
100
49
$1,153
Total Optoelectronic
LED Lamps
LED Displays
Optical Couplers
Other
t
s
$ 208
55
70
40
43
$ 210
55
62
41
52
$
L i near
Monolithic
Amplifiers
Voltage Regulators
Data Conversion
Interface
Special Consumer
other
Hybrid
168
44
65
28
31
181
45
66
32
38
$1,026
$ 975
166
62
185
94
360
108
$
51
540
432
125
56
291
76
87
56
72
$ 838
402
117
319
$ 794
217
339
238
$1 .121
229
407
485
772
624
148
772
74
698
63
3^4
241
56
58
262
473
$1,212
341
473
398
$1,355
287
357
711
$1,215
$1 .153
180
71
96
49
417
340
$ 62
$1,533
$1,416
$1 .384
655
431
183
115
$1,516
$ 278
57
48
68
105
$
200
90
101
52
475
498
$
117
709
473
210
124
306
46
38
64
158
Source: Dataquest
August 1989
Page 17
Appendix-A
ESTIMATED EUROPEAN SEMICONDUCTOR CONSUMPTION FORECAST
(Millions of Dollars)
1988
1989
1990
1991
1992
1992
1994
$8,491
$9,839
$10,368
$12,006
$15,481
$18,770
$20,572
S6,669
$7,880
$ 8,488
$ 9,968
$13,068
$16,123
$17,664
Bipolar
TTL
ECL
$
772
624
148
$
762
612
150
$
730
577
153
$
$
$
965
730
235
$ 1,025
772
253
Bipolar
Memory
Logic
Other Logic
Std. Logic
ASIC
$
772
74
698
63
394
241
$
762
72
690
60
382
248
$
730
65
665
61
372
232
$781
70
711
64
391
256
$ 867
73
794
72
430
292
$965
71
894
82
485
327
$ 1,025
67
958
93
495
370
MOS
NMOS
CMOS
BiCMOS
Other IC
$4,364
1,759
2,491
56
58
$5,518
2,023
3,354
106
35
$6,050
2,104
3,727
195
24
$ 7,227
2,222
4,637
351
17
$ 9,843
2,555
6,663
613
12
$12,408
2,836
8,509
1,055
8
$13,616
2,893
9,293
1,424
6
MOS
Memory
DRAM
SRAM
ROM/Other
Micro
MPU
MCU
HPR (inc. DSP)
Logic
std. Logic
other Logic
ASIC
Linear
Monolithic
Amplifiers
Voltage Regulators
Data Conversion
Interface
Special Consuner
other
Hybrid
$4,364
$1,797
1,062
262
473
$1,212
341
473
398
$1,355
287
357
711
$5,518
$2,501
1,466
430
605
$1,350
365
549
436
$1,667
317
538
812
$6,050
$2,788
1,725
439
624
$1,425
380
587
458
$1,837
324
630
883
$ 7,227
$ 3,320
2,003
518
799
$ 1,718
448
720
550
$ 2,189
349
797
1,043
$ 9,843
$ 4,462
2,660
724
1,078
$ 2,432
638
1,044
750
$ 2,949
377
1,284
1,288
$12,408
$ 6,179
3,936
927
1,316
$ 2,870
746
1,274
850
$ 3,359
401
1,433
1,525
$13,616
$ 6,478
4,035
982
1,461
$ 3,475
888
1,555
1,032
$ 3,663
418
1,519
1,726
$1,533
$1,416
200
90
101
52
475
498
$ 117
$1,600
$1,486
204
91
110
53
496
532
$ 114
$1,707
$1,598
206
95
117
54
537
589
$ 109
$ 1,960
$ 1,856
207
101
134
58
634
722
$
104
$ 2,358
$ 2,262
238
118
152
67
799
888
$
96
$ 2,750
$ 2,657
257
130
170
72
918
1,110
$
93
$ 3,023
$ 2,935
272
140
187
78
937
1,321
$
88
Total Discrete
Transistor
Diode
Thyristor
other Discrete
$1,516
709
473
210
124
$1,667
741
578
218
130
$1,601
759
474
227
141
$ 1,740
812
488
257
183
$ 2,052
946
552
298
256
$ 2,229
985
557
336
351
$ 2,417
1,004
563
373
477
Total Optoelectronic
LED Lamps
LED Displays
Optical Couplers
Other
$
$
$
$
$
$
$
Total Semiconductor
Total Integrated Circuit
306
46
38
64
158
292
35
31
54
172
280
28
23
50
179
781
605
176
298
27
23
51
197
667
668
199
361
28
24
59
250
418
30
27
66
295
Source: Dataquest
August 1989
Page
18
491
32
29
76
354
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DataQuest
hiuropean Semiconductor
Consumption Forecast
1983-1995
EUROPEAN SEMICONDUCTOR CONSUMPTION
FORECAST 1983-1995
EUROPEAN COMPONENTS GROUP
^
Note: This booklet replaces the last forecast dated August 1989, and should
be filed in Volume II behind the 2.0 Semiconductor Device Markets tab.
European Semiconductor Consumption Forecast 1983-1995
TABLE OF CONTENTS
Page
Introduction
Forecast Overview
Product Overview
Regional Overview
Product and Regional Analysis
Figures
Tables
3
3
3
10
16
18
22
List of Figures
1
2
3
4
5
6
7
8
European
European
European
European
European
European
European
European
Semiconductor Market
Semiconductor Market Relative to World
Semiconductor Market Annual Growth Rates
Semiconductor Market by Major Product Family
Semiconductor Market Trends by Region
IC Market Trends by Region
Discrete Market Trends by Region
Optoelectronic Market Trends by Region
List of Tables
0
la
lb
2a
2b
3a
3b
4a
4b
5a
5b
6a
6b
7a
7b
8a
8b
European Currency Exchange Rates to the US Dollar
European Semiconductor Consumption History
European Semiconductor Consumption Forecast
Benelux Semiconductor Consumption History
Benelux Semiconductor Consumption Forecast
France Semiconductor Consumption History
France Semiconductor Consumption Forecast
Italy Semiconductor Consumption History
Italy Semiconductor Consumption Forecast
Nordic Countries Semiconductor Consumption History
Nordic Countries Semiconductor Consumption Forecast
UK and Ireland Semiconductor Consumption History
UK and Ireland Semiconductor Consumption Forecast
West Germany Semiconductor Consumption History
West Germany Semiconductor Consumption Forecast
Rest of Europe Semiconductor Consumption History
Rest of Europe Semiconductor Consumption Forecast
(
©1990 Dataquest Europe Limited July
ESIS Volume n
0006099
i
European Semiconductor Consumption Forecast 1983-1995
INTRODUCTION
This booklet presents Dataquest's latest European regional history and forecast for semiconductor products for the 1983 to 1995 period. Dataquest tracks local currency exchange rates for all
the major European countries on a monthly basis and generates a weighted average basket of
European currencies (see ESIS Exchange Rate Quarterly newsletter), which provides a translation
from local currencies to US dollars.
We forecast at constant exchange rates. This forecast is based on a fixed-level exchange rate
factor calculated from local currency exchange rate data for the year 1990 up to the month of June.
Growth in all subsequent years is therefore effectively in local currency. Table 0 shows the
exchange rates for the major European currencies. The US dollar European semiconductor market
growth of 9.5 percent in 1990 is based on a local currency growth of minus 0.1 percent. See Tables
la and lb for our detailed forecast of the European semiconductor market.
Dataquest defines the semiconductor market as representing all merchant market business,
plus the captive business that exists for those semiconductor manufacturers which also participate
in the merchant market. This element of captive business between a manufacturer and its
equipment division/s and/or subsidiaries is valued at merchant market prices.
FORECAST OVERVIEW
R^ional EiTects
The European semiconductor market over the past five years has been characterized by the
dynamics of its two largest regions—West Germany, and UK and Ireland. These two regions
combined account for an estimated 54 percent of the European total available market (TAM).
Investment in, and expansion of, electronic equipment manufacturing facilities by large
multinationals have ensured that these two regions maintain their dominance of the European
semiconductor TAM in the medium-term future.
Economic and political changes within different European countries can have significant
effects on the course of semiconductor demand. Two examples are the financial incentives offered
to equipment manufacturers in the form of government subsidies, and the monetary union of East
and West Germany.
Product Effects
The integrated circuit (IC) has progressively replaced discrete semiconductors in electronic
equipment designs. ICs represented 75 percent of the European semiconductor TAM in 1985, and
is forecast to reach 85 percent by 1995. The four-year cycle of increase in density of DRAMs
therefore has an increasingly profound effect on the total semiconductor forecast.
PRODUCT OVERVIEW
Bipolar Memory
The market for bipolar memory reached its peak in 1986, and has since been stagnating. The
reason for this is the increasingly higher speeds and densities attainable with low-power CMOS
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and BiCMOS SRAMs, which have stolen a significant proportion of business from bipolar
memory suppliers. Bipolar SRAMs remain popular in many supercomputing and mainframe
applications, in which there is relatively small European activity, while bipolar PROMs are often
used in military applications, where government spending has been cut back. Effectively, the
requirement for bipolar memory in the European market is diminishing, and is characterized by a
compound annual growth rate (CAGR) of minus 6 percent over the forecast period 1990 to 1995.
Bipolar Logic
The bipolar logic market comprises the product families of application-specific IC (ASIC),
standard logic, and other logic. The bipolar logic market owes much of its growth to bipolar ASIC
products, which have now attained the same market size as bipolar standard logic.
Bipolar ASIC
The largest product market within bipolar ASIC is in ECL gate arrays, which are reaching
higher speeds and are stiU being used in mainframes and in fiber-optic communications. Also, TTL
programmable logic array (PLA) devices are in strong demand by manufacturers of 80386-based
PCs, while future demand for mixed analog-digital cell-based ICs (CBICs) is expected to increase.
The five-year (1990 to 1995) CAGR for the bipolar ASIC market is 8 percent.
Bipolar Standard Logic
The bipolar standard logic market has been eroded by CMOS standard logic and CMOS gate
array solutions, which has resulted in the poor performance of this market. The five-year (1990 to
1995) CAGR for bipolar standard logic is 4 percent, which is well below the average.
Other Bipolar Logic
This market includes application-specific standard products (ASSPs), bipolar bit-slice, arithmetic logic units (ALUs), multipliers, floating point, and digital filters. It is a market that is
growing above the bipolar logic average, but from a small base. The five-year outlook CAGR
is 8 percent.
MOS Memory
MOS memory is one of the most volatile product areas for a semiconductor vendor today, and
represents an estimated 28 percent of the European IC market in 1990. Factors contributing to the
instability of this segment include:
•
The short life-cycle of most MOS memory product
•
The rapid price erosion associated with this
•
The relatively high growth of the European PC industry which consumes a large
proportion of DRAM products
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•
•
The array of tariffs, dumping duties, and floor prices imposed on various MOS memory
products by the European Commission and individual governments
The huge profits (or losses) to be made in this business
DRAM
The largest single product group is DRAM, which is expected to account for nearly
13 percent of the European semiconductor TAM, or 56 percent of the MOS memory TAM, in
1990. Overwhelming demand for the IM DRAM in 1988 was a major driving force behind the
34 percent total semiconductor market growth experienced in Europe that year. Acute shortages of
the IM DRAM had given rise to inflated prices, thereby artificially boosting the value of the
DRAM market which grew by an estimated 164 percent in 1988. Conversely, when production
overtakes demand the reverse occurs.
In fact, price erosion is a major factor behind our forecast of an 18 percent decline in the
European DRAM TAM in 1990. The outlook for DRAM, however, is strong in the long term. We
forecast a CAGR of 30 percent over the period 1990 to 1995. This is the strongest CAGR of any
product tracked, and is driven by strong demand from users in the data processing segment.
SRAM
The SRAM market is about one-third the size of the DRAM market, although there are almost
twice as many suppliers. This typifies the diversity of this particular market. High speed,
low-power consumption, and no requirement for regular memory refresh are three of the main
benefits of SRAM over DRAM, but there is a premium to pay. Roughly speaking, the price of a
given density of SRAM is close to four times the price an equivalent DRAM. Therefore, SRAM is
used where either high speed is a priority (such as in cache memory or high-performance
computers), where low-power consumption is important (such as in laptop PCs), or where it is
beneficial to avoid needing a memory refresh controller (such as in LAN cards). Growth in the
SRAM TAM is strong, with a five-year outlook CAGR of 23 percent, as application segments for
SRAM are generally healthy.
Nonvolatile MOS Memory
The nonvolatile (NV) MOS memory market includes EPROM, EEPROM, ROM, and Flash
products. This market is also expected to grow above the European average, with a five-year
outlook CAGR of nearly 19 percent. The main products of this market are discussed below.
EPROM. It is estimated that the EPROM family represents more than 80 percent of the
European NV memory TAM in 1990, and is second in size after DRAM. This market has
historically been stable in comparison to the volatile memory market (that is, DRAM and SRAM),
but recent competition in the European market has caused the IM EPROM price to plummet. The
European Commission has been asked to investigate alleged dumping of EPROMs in the European
market. If the Commission finds evidence of this, it is possible that an EPROM reference price
may be introduced. Europe had the world's lowest prices for the IM part throughout the second
quarter of 1990, according to contract pricing analysis by DataquesL Nevertheless, the outlook for
the EPROM market is healthy, as applications for EPROM are in the growth equipment segments
of data processing and telecommunications.
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EEPROM. The EEPROM market is the next largest NV memory market after EPROM
in 1990, and represents about 12 percent of the NV MOS memory TAM. The EEPROM is the
most expensive type of commodity MOS memory, and is consequently implemented in equipment
where either a small EEPROM can be justified (such as in advanced consumer electronics
applications) or in equipment where cost is not a major issue (such as military or high-end
automotive applications). The high cost of EEPROM therefore makes it most attractive in niche
appUcations that cannot match the high-volume mass markets of its cheaper counterparts.
MOS ROM. Demand for MOS ROM in Europe is relatively weak. It is best
implemented in very high-volume applications, where the initial cost of the mask can be recouped
by large unit shipments. Typical applications are in laser printer font cartridges and video games
machine cartridges. Bearing in mind the suppUer base for these types of equipment, it is not
surprising that Japan consumes more than 80 percent of the worldwide supply of MOS ROMs, and
Europe less than 2 percent. The medium-term outlook for the European MOS ROM market is flat.
Flash Memory. The last product of the NV MOS memory family is Flash. This product
is the youngest of all the commodity MOS memory family, first appearing in 1985, and its
applications have not yet been fully identified. There are two branches of Rash memory, one based
on EPROM and the other on EEPROM. The former is simpler in design, meaning it is also
cheaper. Potential mass-market uses of Flash memory are as a solid-state alternative to mechanical
disk drives in pocket computers and in zero-power memory cards. There are potentially many
other applications for Flash that are currently served by EPROM or EEPROM, Much depends on
volume demand to bring prices down to competitive levels, as well as increasing the performance
and density of Flash. Dataquest believes that the European Flash memory market will grow very
fast.
Microcomponent
The microcomponent market comprises three main segments: microprocessor (MPU),
microcontroller (MCU and DSP), and microperipheral (MPR).
Microprocessor
The European microprocessor market is dominated by a small number of proprietary
suppliers—80 percent of the market is controlled by five suppliers—and is therefore not subject to
the competition and rapid price erosion that other semiconductor products experience. It is a
market that is closely related to the PC industry, which is particularly healthy in Europe. Therefore,
as the European PC industry outlook is fundamentally strong, the microprocessor market is
expected to have an above-average five-year outlook CAGR of 20 percent.
Microcontroller
The microcontroller market, including digital signal processors (DSPs), comprises many
embedded controllers. This is an area in which Europe is strong, driven by applications in
automotive electronics, data processing, and telecommunications. There are also potential applications for MCUs in consumer electronics equipment such as VCRs and compact disc. As there is
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less concentration on supplier market shares, so competition is stronger than for the microprocessor market, and price erosion is more of an influence. However the MCU market, which is more
than 50 percent larger than the MPU market, is forecast to grow at the same 20 percent CAGR as
the MPU market over the period 1990 to 1995.
Microperipheral
The microperipheral market includes PC chip sets, which are increasingly popular with OEMs
to reduce PC chip count. This has led to aggressively competitive price wars, and is affecting the
intrinsic value of the European TAM. The medium-term outlook is for strong growth in unit
shipments, but with associated price erosion which is expected to weaken the 1990 to 1995 CAGR
to just about average, namely 18 percent.
MOS Logic
The MOS logic market consists of the product families of ASIC, standard logic, and other
logic. The MOS logic market is almost three times the size of the bipolar logic market, and is
growing three times as fast. The benefits of low power consumption and higher gate density are
two of the greatest assets of MOS over bipolar in the logic area.
MOS ASIC
The European MOS ASIC market is the strongest-growing segment of the MOS logic market,
with ASIC solutions continuing to replace commodity standard logic, as well as power-hungry
bipolar alternatives. The MOS ASIC category consists of gate array, CBICs (or standard cells),
programmable logic devices (PLDs), and full custom. MOS PLD is one of the fastest growing
product categories that Dataquest tracks. CMOS gate arrays, in particular, are replacing bipolar
standard logic solutions. The outlook is very healthy, with a five-year outlook CAGR of more than
21 percent.
MOS Standard Logic
The MOS standard logic market has been suffering from price erosion which has limited the
growth of its TAM. The outlook for this product family is below average, with a CAGR
of 11 percent over the period 1990 to 1995.
Otiier MOS Logic
This category includes ASSPs, digital filters, barrel shifters, and other building blocks. Many
of these devices are applied in digital telecommunications (including ISDN) and consumer
electronics equipment. The five-year outlook for this large category of products is for belowaverage growth of 13 percent.
Analog
The analog market is expected to account for 18 percent of the European semiconductor TAM
in 1990, and to grow above the European average growth for this year. This market is split into
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monolithic analog products and hybrid analog products. Monolithic analog represents over
90 percent of the total European analog market. Our hybrid analog market estimates only represent
sales by manufacturers who also supply non-hybrid semiconductor products to the merchant
market, and do not count resides from non-semiconductor manufacturers.
Monolithic Analog
Applications for monolithic analog ICs are wide and diversified, which has given this market
a level of stability greater than almost any other semiconductor product. Consequently, we can
expect the analog market to ride above industry downturns, but below the upturns, maintaining a
steady growth. The use of mixed analog-digital devices in PCs for graphics and disk drives is
expected to increase strongly, as is their use in the transportation segment.
The largest application of monolithic analog is in consumer electronics equipment, which is
also one of the fastest growing analog products in our forecast. Growth is also strong in
mixed-mode (analog-digital) ICs, which are included in this segment when the analog component
is dominant by area.
Hybrid Analog
The market for hybrid analog is primarily in the military and industrial application segments,
although demand from data processing and consumer end users is growing. Major product
implementations of hybrid analog are as amplifiers, power controllers, and data converters. This
market is expected to grow below the semiconductor average, with a CAGR of 16 percent in the
five-year outlook.
Discrete
The transistor market comprises the product families of transistor, diode, thyristor, and other
discrete. The European discrete market is under attack from ICs, particularly "smart power" ICs,
and is forecast to shrink from representing an estimated 17 percent of the European semiconductor
TAM in 1990, to about 12 percent in 1995. However, like the analog market, there is an inherent
stability in the discrete market which Dataquest believes will provide for steady positive growth at
about half the European average over the period 1990 to 1995.
Transistor
The transistor market represents an estimated 50 percent of the European discrete TAM in
1990, and comprises a wide range of power-rated devices. Small signal applications include
low-power servo-assisted systems for disk drives, VCRs, automatic cameras, and automotive
equipment. High-power applications include motor control, regulators, power invertors, power
supply switching, and traction. Traction is becoming a very important growth apphcation for
power transistors, particularly in modem passenger transport systems such as subway trains and
monorail.
While some of these apphcations are being targeted by IC manufacturers, there are many
others that cannot be targeted, due to die harsh envkonments in which they are required to operate,
as well as the need for high current ratings. This market is expected to show the healthiest growth
in the discrete segment, with a five-year outlook CAGR of aknost 11 percent.
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Diode
Diodes are likewise classified by power rating. Small signal diodes are found in low-current
power supply rectification and as detectors in low-end frequency circuits in radios and televisions.
Power diodes are used in microwave ovens and television main circuit boards. Other types of
diode are the Schottky barrier diode, found in computer and peripheral power supplies, and the
zener diode, found in voltage regulators, operational ampUfiers and converters. The European
diode market is forecast to show steady positive growth, with a five-year outiook CAGR
of 10 percent, generally following the trends of the transistor market.
Thyristor
The thyristor market, including triacs and diacs, mainly serves the consumer and industrial
application segments. In the industrial segment, high power ratings and harsh environments are
common. Positive but unremarkable growth is forecast for this product family over the 1990 to
1995 period.
Optoelectronic
The optoelectronic market comprises light-emitting diodes (LEDs), LED displays (such as,
alphanumeric), optocouplers, and other optoelectronic devices. The European optoelectronic
market is relatively stable, and does not exhibit the same swings in TAM as the IC market. The
1990 optoelectronic TAM is expected to grow above the European average, although the 1990 to
1995 CAGR is forecast to be a Uttle below the European average, at 15 percent,
LED and LED Display
LED-based devices are the commodity parts of the optoelectronic industry, and are used in a
very wide range of appUcations for indication and data readout. They are also used in facsimile
machines and printers. New developments in very bright LEDs may open further applications. A
five-year outlook CAGR of between 8 and 10 percent is forecast for these two product groups.
Optocoupler
Optocouplers are used in more demanding applications, such as high-performance relays,
position sensors, optical encoders, and voltage isolators for connection of sensitive logic circuits to
power devices. It is the optocoupler market which is expected to show the highest growth in the
optelectronics segment over the 1990 to 1995 period, with a CAGR of 18 percent.
Other Optoelectronic
Other optoelectronic products include photodiodes, phototransistors, solar cells, and semiconductor lasers. There are growing applications for these products in the application segments of
compact disc equipment, remote controls for audio and visual equipment, facsimiles, photocopiers,
laser printers, and fiber-optic communications.
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REGIONAL OVERVIEW
Benelux
This region comprises Belgium, the Netherlands, and Luxembourg, The general five-year
outlook is of below-average growth, with a CAGR of 13 percent. The exception is 1990, which is
expected to grow slightly above the European average due to the fact that the Benelux countries
are not affected by price erosion in DRAMs as much as other European regions. See Tables
2a and 2b.
Belgium
This country has a population equivalent to one-fifth that of West Germany or the United
Kingdom. The Belgian semiconductor market is dominated by users from the telecommunications
and consumer segments. Etemand from this user base is expected to increase, as European
telecommunications networks are upgraded or expanded and the markets in the Eastern bloc open
up. Demand is also expected in the consumer electronics equipment segment as it migrates toward
the high end. However, new manufacturing plants are expected to be located outside Belgium,
thereby diverting much of new semiconductor requirement to other regions. The five-year oudook
for Belgium is for weak growth.
Netherlands
This country's population is also approximately one-fifth that of West Germany or the United
Kingdom. The Netherlands is heavily biased toward the consumer application segment. Demand
for analog and discrete devices is expected to be generally above the European average, while
bipolar and MOS IC devices are expected to be below. The continuing influx of Japanese and
Korean consumer electronics equipment is expected to weaken the future growth of the semiconductor TAM in the Netherlands. Also, some manufacturing operations are begiiming to be located
outside the Netherlands to take advantage of lower wage costs. The five-year outlook for the
Netherlands is therefore reasonable, but below the European average.
Luxembourg
Luxembourg is one of the smallest of the countries tracked, having a population equivalent to
a small city. It is very active in the financial sector, as well as in the iron and steel industry.
AlUiough it is a wealthy country, it does not have an indigenous electronics equipment manufacturing industry of any note, nor is one expected in the medium term.
France
France is a relatively large region of Europe, having a similar population to the United
Kingdom and West Germany, but with a semiconductor TAM about half the value of these regions,
as shown in Tables 3a and 3b. The reasons for this are partly seated in the ability or desire for
attracting foreign investment. France in particular does not appear to compete very strongly in this
area, and consequently has a relatively small number of foreign electronics equipment manufacturers operating within its borders. Manufacturing strength in the domestic electronics equipment
market is spread across telecommunicatioiK, military, consumer, and industrial application
segments.
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The telecommunications segment is strong, and the French-owned company, Alcatel, is the
world's largest electronics equipment manufacturer in this segment. However, the military segment
is beginning to shrink as East-West relationships improve; the consumer segment is increasingly a
domain for Japanese suppliers; and the industrial segment is growing slower than other segments.
Therefore, the outlook for France is generally below European average growth. Yet its strength in
the analog and MOS digital product families means that the French five-year outlook CAGR is not
much below the European average, at 17 percent.
Italy
Italy, like France, has a similar population to the United Kingdom and West Germany, but less
than half the semiconductor TAM of these regions, as can be seen in Tables 4a and 4b. However,
Italy is very much a developing region, and the prospects for future growth are optimistic. Italy's
strengths lie in data processing, telecommunications, and automotive applications.
The DP and telecommunications markets in Europe are strong, as the export markets begin to
open up in Eastern Europe. Therefore Italy is well placed to take advantage of these opportunities.
The It^an automotive industry is now targeting the economy high-volume market for automotive
electronics, as well as continuing with its traditional high end. Dataquest believes that bipolar logic
and the MOS digital segment will show above-average growth in the medium term, thereby
driving the overall Italian semiconductor TAM ahead of the European average, with a five-year
outlook CAGR of 19 percent.
Nordic Countries
This region comprises Sweden, Denmark, Finland, Norway, and Iceland, with a combined
population around one-third of the United Kingdom or West Germany. The relatively high costs of
labor and materials in Nordic countries, together with the small domestic markets, has discouraged
much foreign investment. This has meant that nearly all the semiconductors consumed in this
region are by indigenous industries. These industries are mainly concentrated in telecommunications, as well as industrial, consumer, and some data processing. Below-average growth is
expected in the five-year outlook, with a CAGR of 16 percent, as shown in Tables 5a and 5b.
Sweden
This country is the largest of the Nordic region, and represents a third of the region's
population. Not surprisingly, it also has the strongest electronics industry. However, investment in
domestic production capacity has been curtailed in the last few years, caused by shortages in
skilled labor and increasing wage costs. Instead, investment is being made in production capacity
in other European countries, which will make sales to external markets easier.
Sweden is not a member country of the European Community (EC), but is already well
positioned to take advantage of the 1992 market unification. Sweden's major semiconductor
end-use segments are telecommunications and industrial, which mainly consume analog and MOS
logic products. However, major product families such as MOS memory and microcomponents,
where most of the European semiconductor market growth is derived, are in little demand.
Consequently, we see a five-year outlook below the European average growth.
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Denmark
The Danish population is the next highest of the Nordic countries, although it has only a tenth
of the land area of any of its neighbors. It is unusual to note that very few Danish manufacturers
have pan-European operations, let alone intematiijnal ones, as they are mainly small to mediumsize companies. This has meant that investment in manufacturing operations have been on a scale
to support domestic demand, rather than export capacity.
Denmark's major semiconductor end-use segments are consumer audio and instrumentation.
Semiconductor distribution is also an important element of the market. Denmark is the only Nordic
member of the EC, although it is not apparent whether it is well prepared to take advantage of this
position. The five-year outlook is for limited semiconductor TAM growth.
Finland
Finland has the next highest population in the region, after Sweden and Denmark. It is also in
the best position to do business with COMECON (Council for Mutual Economic Assistance)
member countries as it borders with the Soviet Union. With the opening of Eastern bloc markets,
there should be many opportunities for further trade, including electronics equipment.
The country's main electronics equipment markets are in data processing, consumer, and
telecommunications. However, there are few indigenous equipment manufacturers, and unless they
are able to penetrate the EC (Finland is not a member country) and international markets as well as
COMECON ones, the medium-term outlook for the Finnish semiconductor market is for weak
growth.
Norway
The Norwegian semiconductor market is very much geared towards the data processing
apphcation segment. There are three major manufacturers of data processing equipment in Norway,
although by global standards they are small. This country is not a member country of the EC,
although as the European PC market is growing strongly, it is expected that this will have an effect
on demand for semiconductors in Norway. Therefore, the medium-term outlook for the Norwegian
semiconductor market is optimistic, although from a comparatively small base.
Iceland
This coimtry, which became independent from Denmark in 1944, has the disadvantage of
being the most geographically isolated in Europe. This is compounded by the fact that it has very
few natural resources except fish, which is the country's major export product. There is negligible
semiconductor demand, and the outlook is fiat.
UK and Ireland
This region comprises England, Wales, Scotland, Northern Ireland, and Ireland. The semiconductor markets of this region are growing more strongly than in all other European regions, with a
five-year outlook CAGR of 20 percent, shown in Tables 6a and 6b. This strong growth is partly
due to the manufacturing investment in this region made by some of the world's largest computer
and consumer equipment manufacturers.
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It is believed that one of the reasons why the UK and Ireland have attracted so much foreign
investment is because English is the most commonly used language in the world, making
recruitment apparently easier, and business with external markets simpler. There have also been
attractive government subsidies for equipment manufacturers setting up manufacturing facilities in
this region. However, strong dependence on the data processing industry means this region is
forecast to be the largest market for ICs in Europe, and therefore exposed to the cyclic shortages
and prices changes in DRAMs and microprocessors. Another observation is that transportation
applications are only a third of the the European average proportion.
England
This country represents over 80 percent of the UK population, and consequently has the
largest industrial base of the region, with a broad infrastructure to support the needs of its
manufacturing base. The end-user segments are broady based, although the transportation segment
is weaker than in other European regions. The telecommunications application market is partly
dependent on one major domestic user, British Telecom. However, export markets for telecommunication equipment are growing strongly, especially in developing countries.
In the data processing market, some smaller manufacturing companies suffered during the
DRAM shortage, and are still recovering, but the medium-term outlook is optimistic. The
consumer applications market is expected to grow, as production of consumer equipment increases,
helped by the growing investment from the Far East. The overall medium-term outlook is for
strong growth.
Wales
The relatively small country of Wales has half the population of Scotland and is not a major
user of semiconductors. However, it does have a few manufacturers which are strong in consumer
and electronic printer production, as well as subcontractors providing board assembly services for
the aforementioned companies. This is enough to provide Wales with strong growth from a small
base in the five-year outlook period.
Scotland
The Scottish population represents about 10 percent of the UK total. There has been strong
foreign investment in this country from equipment manufacturers in the data processing segment,
aided by government subsidies. Plans by other data processing suppliers to locate major manufacturing facilities in Scotland could give the country a very strong demand for MOS memory and
microcomponent devices. There are also several subcontracting board assembly facilities in
Scotland serving the data processing segment. The medium-term outlook for semiconductor
demand in Scotland is related to the European computer industry, and is therefore strong.
Northern Ireland
Northern Ireland has half the population of Wales and has little electronic equipment
manufacturing capacity. The medium-term outlook is flat.
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Ireland
Ireland became independent from the United Kingdom in 1922. The country's population is
less than one-tenth of that of the United Kingdom, but its area is equivalent to one-third of the total
UK area. Investment from semiconductor and electronics equipment manufacturers has been
encouraged by government subsidies, as in the United Kingdom, and the country is now host to
some of the world's largest suppUers in the field of data processing.
Consumption of memory and microcomponents is therefore a major proportion of the Irish
semiconductor TAM, more probably than in any other European country. This has had the effect of
providing for strong TAM growth when DRAM prices are inflating, but for decline when DRAM
prices are eroding. The medium-term outlook is for strong growth, following the trends of the
European computer market.
West Germany
West Germany easily has the largest semiconductor market of any single country in Europe,
which can be seen in Tables 7a and 7b. Consumption is fairly evenly spread across all application
segments, though transportation appUcations are twice the European proportional average, and
military applications are only a third. There are many large electronics equipment manufacturers in
West Germany, some of which have their own captive supply of semiconductors.
One of this country's main strengths is in the telecommunications segment, where business
with Eastern bloc countries has been expanding recently; the data processing segment is also
strong. However, application segments in which West Germany particularly excels are industrial,
consumer, and automotive. This has had the effect of maintaining a very strong market for discrete
and optoelectronic semiconductors. In fact, it is estimated that West Germany accounts for more
than 30 percent of the European TAMs in both these product families in 1990, giving it a strong
lead over any other European region. The West German IC TAM, though, is being just exceeded
by that of the United Kingdom over the forecast period.
The recent monetary union of East and West Germany has major implications for the West
German market, although the net effect is yet unclear, and is largely dependent on the reaction of
the populations of these countries to such changes. One likely chain of events is that East Germans
will purchase West German data processing and consumer electronics equipment that cannot be
sourced in their own market This will initially boost the West German electronics equipment and
semiconductor markets. However, it will result in East German industries losing business to West
Germany, and being faced with the prospect of cutbacks or closure.
Large subsidies from the West German government will help keep these industries afloat so
that they can catch up with Western standards and compete on the open market. The subsidies will
affect interest rates in West Germany, which will increase inflation and limit domestic spending;
this could overbalance the influx of new spending from East Germany. This scenario suggests that
the West German semiconductor market will grow at a European average rate, although the
product spUt may alter with time due to gradual changes in the end-user base.
Rest of Europe
This region consists of all the remaining Western European countries not already covered,
including Spain, Switzerland, Austiia, Portugal, Greece, Turkey, and Malta. The territories are
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geographically, poUtically, and industrially diverse, which means their combined semiconductor
consumption is also somewhat diverse. However, one consistent factor is that this regional
category is experiencing above-average growth over the medium-term outlook, which is shown in
Tables 8a and 8b. This is mainly due to investment by foreign equipment manufacturers in these
countries, attracted by the relatively low wage costs.
Spain
Spain has a population about two-thirds that of West Germany, and is the major semiconductor market of this regional category. Several major data processing, telecommunications, and
consumer electronics manufacturers have placed production facilities in Spain, attracted by low
wages and cheap land.
Unemployment has been a major problem for Spain in recent years, and the influx of
manufacturers together with the requirement for offices and homes has given a boost to one of its
major industries, construction. Another boost to the Spanish economy is expected in the buildup to
the Olympic Games in Barcelona in 1992, which will attract much business in support communications and data processing. Also, Europe hopes to use the event to parade its Wgh-definition TV
prototypes. Therefore, the medium-term outlook for Spain, as a newly industrializing economy, is
for strong growth.
Switzerland
The population of Switzerland is about one-tenth that of West Germany or the United
Kingdom, but represents the next largest semiconductor market in this region. Switzerland is not a
member of the EC, but does have strong business ties with West Germany. The major application
segments in this small country are industrial and consumer, and it has one of the highest national
proportions of expenditure on R&D in high technology in the world. Switzerland is probably most
famous for the consumer segment, where it has a worldwide reputation in sophisticated electronic
watches and clocks. The medium-term outlook for Switzerland is healthy.
Austria
Austria has a similar population to Switzerland and is also not a member country of the EC. It
has had a strong economy in recent years, partly through the restructuring of its larger loss-making
nationalized industries and the partial privatization of some of the smaller industries. Austria's
main semiconductor application segments are in the industrial, consumer and transportation
segments. The country is well positioned for trade with the opening up of Eastern European
markets. The medium-term outlook is for above-average growth.
Portugal
Portugal has a population about one-fifth that of West Germany or the United Kingdom, and
it has benefited from an influx of investment from electronics equipment manufacturers in the
segments of data processing and consumer. This newly industrializing economy is expected to
show strong growth in the medium-term outlook.
ESIS Volume 11
0006099
©1990 Dataquest Europe Limited July
15
European Semiconductor Consumption Forecast 1983-1995
Greece
The Greek population is around one-sixth that of West Germany, and has remained heavily
dependent on traditonal labor-intensive industries such as textiles, clothing, agriculture, and metals.
There has been little activity in technology-based industries, either domestically or through inward
foreign investment. The medium-term outlook is flat.
T\irkey
The population of Turkey is similar to that of West Germany or the United Kingdom, with a
land area 40 percent greater than these two regions combined. Turkey has undergone substantial
restructuring this century, including the replacement of its alphabet, and is still restructuring today
in an effort to become more Westernized. About half its total civiUan workforce is still involved in
agriculture, followed by textiles, clothing, and its metal industry.
Turkey's application for membership of the EC is still pending. The government has initiated
a program of privatization of nationalized industries, and there are indications that Turkey is
starting to invest in high-technology industries through expansion and acquisition. The mediumterm outlook for Turkey is therefore for high growth from a very small base.
Malta
The Republic of Malta has a population similar to that of Luxembourg, or less than one
percent of that of West Germany or the United Kingdom. The major industry of this country is
tourism, followed by textiles, clothing and agriculture. Malta plans to apply for membership of the
EC in 1990. There are a few semiconductor test and assembly operations in Malta, but little
semiconductor consumption. Investment from equipment manufacmrers has been negligible. The
five-year outlook is therefore flat.
PRODUCT AND REGIONAL GRAPHIC ANALYSIS
The following figures provide graphical analysis of key trends in the European semiconductor
market by product and region.
Figure 1 tracks the size the European semiconductor market over the period 1978 to 1989,
with the forecast years 1990 to 1995 added for reference. The annual growth rates of this market
over the same period in US dollars and local cunency are shown in Figure 2. As can be seen from
this graph, Dataquest does not expect the market to experience any negative growth over the
forecast period, although we do expect cycles of positive growth.
Figure 3 shows the European semiconductor market as a percentage of the worldwide
semiconductor market over the period 1978 to 1994. This graph shows a sharp dechne in the
European representation in the worldwide market over die period 1980 to 1984, which is mainly
due to the rise of the Japanese semiconductor market. In 1980, Japan represented 24 percent of the
worldwide market; by 1984 this had increased to 31 percent.
The short-lived peak in 1985 was caused by the catastrophic fall of the North American
semiconductor market, which was affected by the worldwide industry decline of that year more
than any other region.
16
©1990 Dataquest Europe Limited July
^
*^
"
ESIS Volume n
0006099
European Semiconductor Consumption Forecast 1983-1995
The European semiconductor market is forecast to gain gound in the worldwide scenario over
the period 1990 to 1994, driven by strong foreign investment in equipment manufacturing
facilities.
Figure 4 shows the change over time in the proportions that the three main semiconductor
segments represent of the total market. As can be seen, the IC market is steadily advancing on
discretes. The notable rise in the IC market in 1988 was caused by the inflation of the DRAM
market.
Figures 5 through 8 analyse the movement in two variables in each of the European regions
over the forecast period 1990 to 1995. The first variable is the relative market size of each region,
expressed as a percentage of the total European market, and is plotted along the X-axis for 1990
and 1995. The second variable is the five-year compound annual growth rate (CAGR) for each
region, which is plotted along the Y-axis for the five-year periods ending in 1990 and 1995.
Therefore, a point can be plotted for each region for 1990 and 1995, and a line drawn between
them to show the direction of movement. In this way, changes in size and growth of each region
can be compared.
Figure 5 provides this analysis for the total semiconductor market, Figure 6 shows the IC
market. Figure 7 shows the discrete market, and Figure 8 shows the optoelectronic market.
From these graphs, it can be seen that the UK and Irish market is forecast to show the greatest
increase in relative market size, together with a jump in semiconductor CAGR, driven
predominantly by demand in IC market. The Italian market is expected to see a slowdown in
CAGR, mainly in the discrete market, although it is still expected to gain overall in relative
semiconductor market size as its CAGR is maintained higher than the European average. The
Nordic countries, on the other hand, are forecast to see an increase in CAGR, coupled with a
decrease in relative market size. This decrease is a result of its below-average CAGR, even after
the increase.
The Rest of Europe region is forecast to experience two opposing trends. Its IC market is
expected to see the strongest increase in CAGR of all the European regions, with a consequential
increase in relative market size. However, its discrete market is expected to see the sharpest drop in
CAGR, albeit from a very high level, which allows it to gain a little relative market share. The net
effect of these strong opposite trends is to leave the total semiconductor market almost entirely
unchanged in terms of growth and relative market size.
The West German and UK and Irish markets are forecast to experience inverse trends in the
IC segment. The West German market is expected see a slowdown in CAGR, coupled with a
decline in relative market size, while the UK and Irish market is expected to see a pickup in
CAGR, driving an increase in relative market size. However, both markets are forecast to have
above-average CAGRs and relative market sizes in 1995.
The Benelux market is expected to see the lowest semiconductor CAGR rates and smallest
relative market size of any region. It is expected to experience an increase of CAGR in the IC
market, although still remaining the slowest-growing region. Meanwhile, its discrete market is
forecast to see a sharp slowdown in CAGR, which is in line with the overall European trend,
therefore maintaining a steady relative market size.
The French semiconductor market appears as the most stable region when measured by these
variables. However, while its IC market shows stability, its discrete and optoelectronic markets are
expected to exhibit opposite trends. Its discrete market is forecast to decline in CAGR, while its
optoelectronic market is forecast to increase in CAGR, with the net effect of a balance.
ESIS Volume n
0006099
©1990 Dataquest Europe Limited July
17
European Semiconductor Consumption Forecast 1983-1995
Figure 1
European Semiconductor Mari^et
1978 to 1995
Billions of US Dollars
Source: Dataquest (July 1990)
Figure 2
European Semiconductor Market, Annual Growth Rates
1978 to 1995
i
Percent Annual Growth Rate
70
M l USDofara
LocddBTBoey
60
50
m "•"-
40
30
-
^
-
-
—
1-
/
•
20
10
0
-10
-20
I_
1
1
1
1
{
1
l^fifll
1
1
78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95
Year
Source: Dataquest (My 1990)
18
©1990 Dataquest Europe Limited My
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Figure 3
European Semiconductor Market as a Percentage of World Market
1978 to 1994
>
Percent
Source: Dataquest (July 1990)
Figure 4
European Semiconductor Market by Major Product Family
1985 to 1995
Percent
100
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
Souice: Dalaquest (July 1990)
ESIS Volume n
0006099
©1990 Dataquest Europe Limited July
19
European Semiconductor Consumption Forecast 1983-1995
Figure 5
European Semiconductor Market Trends
1990 to 1995
Compound Annual Growth Rate
20%
w
1S%
#.
* *
0%
5%
10%
15%
20%
25%
*
-B-^
-^
-A-S-
West Gennany
•G-
Rest of Europe
Benelux
Franco
Italy
Nordic Countries
UK & Ireland
30%
Relative Market Size
ScHUce: Dataquest (My 1990)
Figure 6
European IC Market Trends
1990 to 1995
Compound Annual Growth Rate
•>K-
19%
-
#.
17%
15%
-
*
-B-
Franc*
->«-
Italy
-^
-AS-
Nordic Countries
•e0%
S%
10%
16%
20%
26%
Benelux
UK & Ireland
West Gennany
Rest of Europe
3D%
Relative Market Size
Souice: Dataqoest (July 1990)
20
©1990 Dataquest Europe Limited July
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Figure 7
European Discrete Market Trends
1990 to 1995
^
Compound Annual Growth Rate
22%
20%
18%
•
12%
§4
10%
10%
15%
20%
25%
*
-
Benelux
-B-^
Francs
-e-
Nordic Countries
Italy
-A-
UK & Ireland
-s-e-
West Germany
Rest of Europe
30%
Relative Market Size
Source: Dataquest (July 1990)
Figure 8
European Optoelectronic Market Trends
1990 to 1995
Compound Annual Growth Rate
16%
14%
12%
•
10%
0%
5%
10%
15%
20%
2S%
30%
*
•
Benelux
•e-
Franco
-X-^
-A-
Nordic Countries
Sr
West Gemany
-e-
Rest of Europe
Italy
UK & Ireland
35%
Relative Market Size
Source: Dataquest (July 1990)
ESIS Volume H
0006099
©1990 Dataquest Europe Limited July
21
Table 0
European Currency Exchange Rates Against the US Dollar
rt
a
Region
Main Currency
Benelux
France
Italy
Nordic Countries
UK & Ireland
"West Germany
Rest of Europe
Dutch Florin
French Franc
Italian Lire
Swedish Krona
UK Pound
Deutsche Mark
Spanish Peseta
16-Country Weighted Average
(Base 1980 = 100.00)
Jjt
g
O
I
"S
n
p.
t
to
to
*EstiDiates based on data up to lone 1990
Source: IMF, Dalaquest (July 1990)
1983
1984
1985
1986
1987
2.85
7.62
1,518.9
7.67
0.66
2.55
143.43
3.21
8.74
1,757.0
8.27
0.75
2.85
160.76
3.32
8.98
1,909.5
8.60
0.77
2.94
170.05
2.45
6.92
1,490.0
7.12
0.68
2.17
139.97
2.03
6.01
1,296.1
6.34
0.61
1.80
123.56
157.59
178.06
184.70
145.89
125.52
1
European Semiconductor Consumption Forecast 1983-1995
Table la
Estimated Semiconductor Consumption—History
Total All European Regions
(Millions
of U.S.
Dollars)
1987
1986
1985
1984
1983
•
Product
Total Semiconductor
Total Integrated Circuit
Bipolar Digital (Tech.)
TTL
ECL
Bipolar Digital (Function)
Memory
Logic
ASIC
Std. Logic
Other Logic
MOS Digital (Tech.)
CMOS
BiCMOS
NMOS and Other
MOS Digital (Function)
Memory
DRAM
SRAM
Nonvolatile
Odier
Microcomponent
MPU
MCU inc. DSP
MPR
Logic
ASIC
Std. Logic
Other Logic
Analog
Monolithic
Amplifiers
Regulators
Data Conversion
Interface
Special Consumer
Other
Hybrid
Total Discrete
Transistor
Diode
Thjoistor
Other
Total Optoelectronic
LED Lamp
LED Display
Optocoupler
Other
$3,370
$2,323
$483
446
37
$483
107
376
NA
NA
NA
$1,227
353
0
874
$1,227
$581
NA
NA
NA
NA
$239
NA
NA
NA
$407
NA
NA
NA
$613
$613
104
37
92
55
227
98
NA
$866
408
327
91
40
$181
45
66
32
38
$4,805
$3,634
$724
659
65
$724
149
575
NA
NA
NA
$2,092
617
0
1,475
$2,092
$995
NA
NA
NA
NA
$465
NA
NA
NA
$632
NA
NA
NA
$818
$818
137
50
130
72
298
131
NA
$963
450
358
103
52
$208
55
70
40
43
$4,720
$3,556
$709
641
68
$709
157
552
NA
NA
NA
$1,953
702
0
1,251
$1,953
$750
NA
NA
NA
NA
$485
NA
NA
NA
$718
NA
NA
NA
$894
$894
144
54
157
80
318
141
NA
$954
463
342
100
49
$210
55
62
41
52
$5,532
$4,088
$782
705
77
$782
172
610
230
376
4
$2,280
976
0
1,304
$2,280
$822
262
252
308
NA
$578
95
249
234
$880
443
157
280
$1,026
$975
166
62
185
94
360
108
$51
$1,153
540
432
125
56
$291
76
87
56
72
$6,355
$4,693
$725
564
161
$725
85
640
210
410
20
$2,753
1,284
24
1,445
$2,753
$838
402
117
319
NA
$794
217
339
238
$1,121
485
229
407
$1,215
$1,153
180
71
96
120
417
269
$62
$1,384
655
431
183
115
$278
57
48
68
105
1988
$8,491
$6,669
$772
624
148
$772
74
698
241
394
63
$4,364
2,491
56
1,817
$4,364
$1,797
1,062
262
473
NA
$1,212
341
473
398
$1,355
711
287
357
$1,533
$1,416
200
90
116
145
475
390
$117
$1,516
709
473
210
124
$306
46
38
64
158
1989
$9,755
$7,794
$640
501
139
$640
72
568
260
282
26
$5,458
3,412
60
1,986
$5,458
$2,548
1,646
368
519
15
$1,469
409
640
420
$1,441
877
263
301
$1,696
$1,560
248
111
131
151
525
394
$136
$1,594
817
516
179
82
$367
57
43
75
192
NA = Not available
Source: Dataquest (July 1990) Ref: 0790-09
ESIS Volume H
0006099
©1990 Dataquest Europe Limited July
23
European Semiconductor Consumption Forecast 1983-1995
Table lb
Estimated Semiconductor Consumption—Forecast
Total All European Regions
(Millions
of1991
U.S. Dollars)
1990
1992
1989
1994
1993
Product
Total Semiconductor
Total Integrated Circuit
Bipolar Digital (Tech.)
TTL
ECL
Bipolar Digital (Function)
Memory
Lx)gic
ASIC
Std. Logic
Other Logic
MOS Digital (Tech.)
CMOS
BiCMOS
NMOS and Other
MOS Digital (Function)
Memory
DRAM
SRAM
Nonvolatile
Other
Microcomponent
MFU
MCU inc. DSP
MPR
Logic
ASIC
Std, Logic
Other Logic
Analog
MonoUthic
Amplifiers
Regiilators
Data Conversion
Interface
Special Consumer
Other
Hybrid
Total Discrete
Transistor
Diode
Thyristor
Other
Total Optoelectronic
LED Lamp
LED Display
Optocoupler
Other
$9,755
$7,794
$640
501
139
$640
72
568
260
282
26
$5,458
3,412
60
1,986
$5,458
$2,548
1,646
368
519
15
$1,469
409
640
420
$1,441
877
263
301
$1,696
$1,560
248
111
131
151
525
394
$136
$1,594
817
516
179
82
$367
57
43
75
192
$10,682
$8,455
$696
530
166
$696
80
616
286
299
31
$5,809
3,679
100
2,030
$5,809
$2,383
1,346
424
592
21
$1,704
479
750
475
$1,722
1,070
302
350
$1,950
$1,794
250
116
147
163
602
516
$156
$1,812
932
592
197
91
$415
65
46
84
220
$12,727
$10,194
$771
570
201
$756
83
673
315
325
33
$7,138
4,765
173
2,200
$7,138
$3,120
1,886
515
694
25
$1,985
550
885
550
$2,033
1.290
330
413
$2,300
$2,116
259
125
164
178
713
677
$184
$2,047
1,058
668
221
100
$486
69
50
95
272
$15,653
$12,657
$834
614
220
$834
86
748
362
350
36
$9,086
6,296
283
2,507
$9,086
$4,207
2,651
668
855
33
$2,420
680
1,080
660
$2,459
1,638
370
451
$2,737
$2,518
278
140
187
196
856
861
$219
$2,416
1,254
787
257
118
$580
77
60
125
318
$20,163
$16,830
$887
650
237
$887
77
810
390
380
40
$12,576
9,143
453
2.980
$12,576
$6,250
4,210
897
1,098
45
$3,244
893
1,510
841
$3,082
2,097
435
550
$3,367
$3,097
310
163
224
220
1,055
1,125
$270
$2,657
1,390
867
272
128
$676
88
65
135
388
$21,889
$18,417
$886
641
245
$886
68
818
400
377
41
$13,889
10,227
675
2,987
$13,889
$6,787
4,467
1,018
1,244
58
$3,641
1,010
1,670
961
$3,461
2.429
458
574
$3,642
$3,349
315
165
239
227
1,192
1,211
$293
$2,743
1,441
898
276
128
$729
88
69
155
417
1995
$24,661
$20,882
$890
638
252
$890
60
830
420
365
45
$15,918
11,814
965
3,139
$15,918
$7,773
5,100
UIO
1,398
65
$4,163
1,192
1.895
1.076
$3,982
2,820
519
643
$4,074
$3,742
336
174
262
247
1,357
1.366
$332
$2,950
1,554
959
299
138
$829
94
73
191
471
CAGR
18.2%
19.8%
5.0%
3.8%
8.7%
5.0%
(5.6%)
6.1%
8.0%
4.1%
7.7%
22.3%
26.3%
57.4%
9.1%
22.3%
26.7%
30.5%
23.3%
18.8%
25.4%
19.6%
20.0%
20.4%
17.8%
18.3%
21.4%
11.4%
12.9%
15.9%
15.8%
6.1%
8.4%
12.3%
8.7%
17.7%
21.5%
16.3%
10.2%
10.8%
10.1%
8.7%
8.7%
14.8%
7.7%
9.7%
17.9%
16.4%
CAGR = Con^und annual growtb rate, 1990-1995
Source: Dataqnest (July 1990) Ref: 0790-09
24
©1990 Dataquest Europe Limited July
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Table 2a
Estimated Semiconductor Consumption—History
Benelux Region
(Millions of U.S. Dollars)
'oduct
1983
1984
1985
1986
1987
1988
1989
>tal Semiconductor
$208
$306
$304
$361
$407
$504
$507
Total Integrated Circuit
$149
$237
$235
$277
$307
$369
$374
Bipolar Digital
Memory
Logic
$31
7
24
$47
9
38
$47
11
36
$52
12
40
$43
5
38
$45
4
41
$37
4
33
M O S Digital
Memory
Microcomponent
Logic
$79
38
15
26
$137
65
30
42
$129
49
33
47
$155
57
39
59
$184
42
64
78
$213
72
73
68
$230
77
78
75
Analog
MonoUthic
Hybrid
$39
39
0
$53
53
0
$59
59
0
$70
70
0
$80
76
4
$111
103
8
$107
98
9
Total Discrete
$49
$56
$56
$66
$82
$107
$104
Total Optoelectronic
$10
$13
$13
$18
$18
$28
$29
Source: Dataquest (July 1990) Ref: 0790-09
Table 2b
Estimated Semiconductor Consumption—^Forecast
Benelux Region
(Millions of U.S. Dollars)
Product
1989
1990
1991
1992
1993
1994
1995
CAGR
Total Semiconductor
$507
$556
$636
$736
$907
$920
$1,023
13.0%
$374
$402
$467
$532
$678
$697
$772
13.9%
$37
4
33
$38
4
34
$40
4
36
$43
4
39
$49
3
46
$47
3
44
$46
3
43
(5.6%)
4.8%
MOS Digital
Memory
Microcomp<»ient
Logic
$230
$242
$268
$299
$396
$422
$495
77
78
75
75
86
81
89
93
86
99
109
91
135
146
115
139
149
134
180
163
152
Analog
Monolithic
Hybrid
$107
$122
$159
$190
$233
$228
$231
98
9
112
10
147
12
176
14
216
17
213
15
215
16
13.6%
13.9%
9.9%
$104
$122
$133
$159
$177
$175
$195
9.8%
$29
$32
$36
$45
$52
$48
$56
11.8%
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
3.9%
15.4%
19.1%
13.6%
13.4%
CAGR = Compound anoual growth rate, 1990-1995
Source: Dataquest (July 1990) Ref: 0790-09
ESIS Volume U
0006099
©1990 Dataquest Europe Limited July
25
European Semiconductor Consumption Forecast 1983-1995
Table 3a
Estimated Semiconductor Consumption--History
France Region
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$585
$690
$671
$801
$940
$1,210
$1,386
$419
$520
$503
$591
$716
$977
$1,122
$87
19
68
$104
22
82
$101
23
78
$114
26
88
$109
13
96
$115
10
105
$83
8
75
MOS Digital
Memory
Microcomponent
Logic
$221
105
43
73
$298
142
66
90
$276
107
68
101
$328
121
82
125
$422
126
127
169
$631
232
182
217
$777
350
207
220
Analog
Monolithic
Hybrid
$111
111
0
$118
118
0
$126
126
0
$149
149
0
$185
176
9
$231
214
17
$262
237
25
$134
$138
$135
$165
$185
$196
$220
$32
$32
$33
$45
$39
$37
$44
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
Source: Dataquest (July 1990) Ref 0790-09
Table 3b
Estimated Semiconductor Consumption—Forecast
France Region
(Millions of U.S. Dollars)
Product
1989
1990
1991
1992
1993
1994
1995
CAGR
$1,386
$1,507
$1,757
$2,145
$2,783
$2,955
$3,354
17.4%
$1,122
$1,213
$1,427
$1,752
$2,347
$2,512
$2,887
18.9%
$83
8
75
$92
9
83
$99
9
90
$108
9
99
$121
9
112
$117
8
109
$117
7
110
4.9%
(4.9%)
5.8%
MOS Digital
Memory
Microcomponent
Logic
$777
350
207
220
$828
327
240
261
$998
424
273
301
$1,242
547
332
363
$1,728
815
452
461
$1,860
857
491
512
$2,171
1,013
559
599
21.3%
25.4%
18.4%
18.1%
Analog
Monolithic
Hybrid
$262
237
25
$293
272
21
$330
304
26
$402
371
31
$498
460
38
$535
499
36
$599
563
36
15.4%
15.7%
11.4%
$220
$247
$275
$328
$361
$366
$384
9.2%
t/i/i
^p'l'i
$47
$55
$65
$75
$77
$83
12.0%
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
CAGR = ConqxHuid amiual growth rate, 1990-1995
Source: Dataquest (July 1990) Ref: 0790-09
26
©1990 Dataquest Europe Limited July
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Table 4a
Estimated Semiconductor Consumption--History
Italy Region
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$320
$480
$451
$534
$660
$982
$1,082
$221
$368
$345
$404
$493
$791
$845
$46
10
36
$74
16
58
$68
15
53
$77
16
61
$79
9
70
$79
8
71
$58
8
50
$117
55
23
39
$212
101
47
64
$190
72
48
70
$225
80
58
87
$294
92
79
123
$560
253
145
162
$625
315
170
140
$58
58
0
$82
82
0
$87
87
0
$102
102
0
$120
114
6
$152
141
11
$162
150
12
Total Discrete
$81
$92
$88
$106
$139
$160
$205
Total Optoelectronic
$18
$20
$18
$24
$28
$31
$32
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
MicrocompcHient
Logic
Analog
Monolithic
Hybrid
Source: Dataquest (July 1990) Ref 0790-09
Table 4b
Estimated Semiconductor Consumption—^Forecast
Italy Region
(Millions of U.S. Dollars)
1989
1990
1991
1992
1993
1994
1995
CAGR
$1,082
$1,165
$1,400
$1,754
$2,238
$2,452
$2,774
18.9%
$845
$900
$1,108
$1,412
$1,873
$2,064
$2,345
21.1%
$58
8
50
$67
9
58
$73
9
64
$80
9
71
$88
8
80
$88
8
80
$88
7
81
5.6%
(4.9%)
6.9%
MOS Digital
Memory
Microcomponent
Logic
$625
315
170
140
$646
278
196
172
$815
378
230
207
$1,072
528
289
255
$1,470
760
381
329
$1,630
821
439
370
$1,871
944
509
418
23.7%
27.7%
21.0%
19.4%
Analog
Monolithic
Hybrid
$162
150
12
$187
174
13
$220
205
15
$260
241
19
$315
292
23
$346
321
25
$386
360
26
15.6%
15.7%
14.9%
$205
$230
$251
$294
$310
$328
$362
9.5%
$32
$35
$41
$48
$55
$60
$67
13.9%
Product
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
CAGR = Compotmd annual growth rate, 1990-1995
Source: Dataquest (July 1990) Ref: 0790-09
ESIS Volume H
0006099
©1990 Dataquest Europe Limited July
27
European Semiconductor Consumption Forecast 1983-1995
Table 5a
Estimated Semiconductor Consumption-—History
Nordic Countries
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$245
$395
$391
$426
$458
$625
$682
$170
$310
$306
$328
$351
$508
$549
Bipolar Digital
Memory
Logic
$36
8
28
$60
11
49
$60
12
48
$61
14
47
$57
5
52
$70
7
63
$52
7
45
MOS Digital
Memory
Microcomponent
Logic
$90
43
17
30
$179
85
40
54
$169
63
44
62
$184
66
48
70
$205
59
56
90
$313
108
97
108
$371
148
109
114
tAA
44
0
$71
71
0
$77
77
0
$83
83
0
$89
84
5
$125
114
11
$126
115
11
Total Discrete
$63
$71
$71
$80
$90
$96
$111
Total Optoelectronic
$12
$14
$14
$18
$17
$21
$22
Total Integrated Circuit
Analog
Monolithic
Hybrid
kP'I'l
Source: Dataquest (July 1990) Ref 0790-09
Table 5b
Estimated Semiconductor Consumption—Forecast
Nordic Countries
(Millions of U.S. Dollars)
Product
1989
1990
1991
1992
1993
1994
1995
CAGR
Total Semiconductor
$682
$748
$878
$1,049
$1,351
$1,401
$1,566
15.9%
$549
$599
$709
$851
$1,121
$1,175
$1,327
17.2%
$52
7
45
$58
8
50
$63
8
55
$69
61
$76
7
69
$77
6
71
$72
6
66
4.4%
(5.6%)
5.7%
MOS Digital
Memory
Microcomponent
Logic
$371
148
109
114
$390
140
119
131
$468
175
138
155
$568
231
156
181
$770
323
207
240
$820
333
233
254
$958
386
278
294
19.7%
22.5%
18.5%
17.5%
Analog
Monolithic
Hybrid
$126
115
11
$151
140
11
$178
165
13
$214
199
15
$275
254
21
$278
256
22
$297
274
23
14.5%
UA%
15.9%
$111
$125
$141
$165
$189
$187
$195
9.3%
$22
$24
$28
$33
$41
$39
"644
12.9%
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
8
CAGR = Compound annual growth rate, 1990-1995
Source: Dataquest (July 1990) Ref: 0790-09
28
©1990 Dataquest Europe Limited My
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Table 6a
Estimated Semiconductor Consumption—History
UK and Ireland Region
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$833
$1,240
$1,198
$1,288
$1,570
$2,230
$2,614
$619
$999
$959
$1,016
$1,203
$1,852
$2,225
Bipolar Digital
Memory
Logic
$129
29
100
$198
40
158
$193
44
149
$195
44
151
$188
22
166
$206
18
188
$177
19
158
MOS Digital
Memory
MicrocompcHient
Logic
$327
155
64
108
$575
274
128
173
$525
202
130
193
$565
200
145
220
$741
251
199
291
$1,294
666
303
325
$1,634
804
424
406
Analog
Monolithic
$163
163
0
$226
226
0
$241
241
0
$256
256
0
$274
260
14
$352
326
26
$414
387
27
$172
$192
$192
$211
$306
$312
$290
$42
$49
$47
$61
$61
$66
$99
Total Integrated Circuit
Hybrid
Total Discrete
Total Optoelectronic
Source: Dataqnest (July 1990) Ref: 0790-09
Table 6b
Estimated Semiconductor Consumption—Forecast
UK and Ireland Region
(Millions of U.S. Dollars)
Product
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
Total Discrete
Total Optoelectronic
1989
1990
1991
1992
1993
1994
1995
CAGR
$2,614
$2,745
$3,309
$4,163
$5,363
$5,998
$6,806
19.9%
$2,225
$2,322
$2,829
$3,604
$4,754
$5,330
$6,072
21.2%
$177
19
158
$182
22
160
$198
23
175
$222
25
197
$229
22
207
$234
19
215
$246
16
230
6.2%
(6.2%)
7.5%
$1,634
804
424
406
$1,692
725
491
476
$2,101
965
569
567
$2,751
1,346
707
698
$3,785
1,981
935
869
$4,259
2,181
1,073
1,005
$4,861
2,451
1.237
1,173
23.5%
27.6%
20.3%
19.8%
$414
387
27
$448
412
36
$530
488
42
$631
581
50
$740
684
56
$837
768
69
$965
881
84
16.6%
16.4%
18.5%
$290
$312
$351
$406
$432
$467
$504
10.1%
$99
$111
$129
$153
$177
$201
$230
15.7%
CAGR = Compound annual growth rate, 1990-1995
Souice: Dataquest (July 1990) Ref: 0790-09
ESIS Volume H
0006099
©1990 Dataquest Europe Limited July
29
European Semiconductor Consumption Forecast 1983-1995
Table 7a
Estimated Semiconductor Consumption-—History
West Germany Region
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$937
$1,300
$1,318
$1,628
$1,890
$2,250
$2,683
$572
$892
$905
$1,095
$1,342
$1,673
$2,087
Bipolar Digital
Memory
Logic
$118
26
92
$178
37
141
$180
39
141
$211
45
166
$216
24
192
$201
20
181
$209
22
187
MOS Digital
Memory
Microcomponent
Logic
$302
142
59
101
$513
244
116
153
$497
188
125
184
$611
220
154
237
$735
218
214
303
$1,013
359
315
339
$1,377
595
390
392
Analog
Monolithic
Hybrid
$152
152
0
$201
201
0
$228
228
0
$273
273
0
$391
372
19
$459
425
34
$501
465
36
$309
$344
$343
$435
$458
$482
$480
$56
$64
$70
$98
$90
$95
$116
Total Integrated Circuit
Total Discrete
Total Optoelectronic
Source: Dataquest (July 1990) Ref: 0790-09
Table 7b
Estimated Semiconductor Consumption—Forecast
West Germany Region
(Millions of U.S. Dollars)
1989
1990
1991
1992
1993
1994
1995
CAGR
$2,683
$3,023
$3,588
$4,383
$5,665
$6,108
$6,819
17.7%
$2,087
$2,335
$2,798
$3,441
$4,607
$5,018
$5,639
19.3%
$209
22
187
$232
23
209
$253
24
229
$278
24
254
$289
22
267
$286
19
267
$287
17
270
4.3%
(5.9%)
5.3%
$1,377
595
390
392
$1,514
576
462
476
$1,853
752
543
558
$2,352
1,014
659
679
$3,297
1,582
886
829
$3,629
1,723
991
915
$4,109
1,953
1,118
1,038
22.1%
27.7%
19.3%
16.9%
$501
465
36
$589
549
40
$692
645
47
$811
756
55
$1,021
950
71
$1,103
1.022
81
$1,243
1.147
96
16.1%
15.9%
19.1%
Total Discrete
$480
$556
$633
$754
$838
$851
$911
10.4%
Total Optoelectronic
$116
$132
$157
$188
$220
$239
$269
15.3%
Product
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
Memory
Logic
MOS Digital
Memory
Microcomponent
Logic
Analog
Monolithic
Hybrid
CAGR = Compound annual growth rate, 1990-199!s
Source: Dataquest (July 1990)
30
©1990 Dataquest Europe Limited July
ESIS Volume H
0006099
European Semiconductor Consumption Forecast 1983-1995
Table 8a
Estimated Semiconductor Consumption—History
Rest of Europe Region
(Millions of U.S. Dollars)
Product
1983
1984
1985
1986
1987
1988
1989
Total Semiconductor
$242
$394
$387
$494
$430
$690
$801
$173
$308
$303
$377
$281
$499
$592
Bipolar Digital
Memory
Logic
$36
8
28
$63
14
49
$60
13
47
$72
15
57
$33
7
26
$56
7
49
$24
4
20
MOS Digital
Memory
Microcomponent
Logic
$91
43
18
30
$178
84
38
56
$167
69
37
61
$212
78
52
82
$172
50
55
67
$340
107
97
136
t/i/i/t
kP'i'i'1
Analog
Monolithic
Hybrid
$46
46
0
$67
67
0
$76
76
0
$93
93
0
$76
71
5
$103
93
10
$124
108
16
Total Discrete
$58
$70
$69
$90
$124
$163
$184
Total Optoelectronic
$11
$16
$15
$27
$25
$28
$25
Total Integrated Circuit
259
91
94
Source: Dataquest (July 1990) Ref: 0790-09
Table 8b
Estimated Semiconductor Consumption—Forecast
Rest of Europe Region
(Millions of U.S. Dollars)
Product
1989
1990
1991
1992
1993
1994
1995
CAGR
Total Semiconductor
$801
$938
$1,159
$1,423
$1,856
$2,055
$2,319
19.8%
$592
$684
$856
$1,065
$1,450
$1,621
$1,840
21.9%
$24
4
20
$27
5
22
$30
6
24
$34
7
27
$35
6
29
$37
5
32
$34
4
30
4.7%
(4.4%)
6.4%
MOS Digital
Memory
Microcomponent
Logic
tAAA
MI'I'I 1
259
91
94
$497
262
110
125
$635
337
139
159
$802
442
168
192
$1,130
654
237
239
$1,269
733
265
271
$1,453
846
299
308
23.9%
26.4%
22.1%
19.8%
Analog
Monolithic
Hybrid
$124
108
16
$160
135
25
$191
162
29
$229
194
35
$285
241
44
$315
270
45
$353
302
51
17.1%
17.5%
15.3%
$184
$220
$263
$310
$350
$369
$399
12.6%
$25
$34
$40
$48
$56
$65
$80
18.7%
Total Integrated Circuit
Bipolar Digital
Memory
Logic
Total Discrete
Total Optoelectronic
CAGR = Compouod annual growth rate, 1990-199S
Source: Dataquest (July 1990) Ref: 0790-09
ESIS Volume H
0006099
©1990 Dataquest Europe Limited July
31
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DataQuest
LLuropean Semiconductor
Market Share Estimates
Final 1989
Final 1989 European Semiconductor Market Share Estimates
European Components Group
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
Final 1989 European Semiconductor Market Share Estimates
INTRODUCTION
This booklet contains final estimates of semiconductor market shares in the European market
for calendar year 1989. It is intended as reference material, with more detailed analysis to follow in
the form of Research Newsletters.
{
SUMMARY
Figure 1 shows the European semiconductor market share by vendor base from 1978 to 1989.
The North American vendors' share of the semiconductor market in Europe has been declining,
while the Japanese vendors' share is rising year on year. The European vendors maintained a
steady market share in their own home territory until 1987, but they too are beginning to lose their
grip. This is in part due to the fact that, with the exception of Siemens, the European vendors
(Philips, SGS-Thomson, plus the next sixteen largest) have no significant DRAM revenue. Since
1986 we have also seen Korean, and now Taiwanese, companies beginning to make an impact on
the competitive scene in Europe. Figure 2 shows the worldwide semiconductor market share by
vendor base for the same period.
It was a watershed year in 1989 in the European semiconductor market. Philips, which has
held number 1 position over the past decade, was almost toppled by Siemens. Contrary to popular
belief, Siemens' growth did not come from DRAMs alone; high growth also occurred in its MOS
logic, analog and discrete sales. Siemens rose from position 5 to position 2 and hence displaced
SGS-Thomson, Motorola, and Texas Instruments into third, fourth and fifth places respectively.
Another fundamental change was the brand new entry in the top 10 of Hitachi. Yet again the
contributory factors behind this growth are DRAMs in part, but also the fact that the Japanese have
been diversifying away from memory products. NEC managed to regain its position over Toshiba
in Europe, this time due to declining prices of DRAMs which affected Toshiba more than NEC.
In integrated circuits, the most spectacular result is that Siemens in 1989 moved up seven
positions to become Europe's number 1 integrated circuit vendor, displacing Philips into second
position. Texas Instruments was the third largest IC supplier, followed by SGS-Thomson. The rest
of the vendor positioning remained the same, all falling by one position due to displacement by
Siemens. The exceptions were Toshiba and AMD, which held their ninth and tenth positions in the
IC rankings. With an average market growth of 17 percent the only other rising star was
SGS-Thomson with 18.4 percent growth; this, however, was mainly due to its acquisition of
Inmos.
In bipolar technology both AMD and National Semiconductor moved their position up by
one, although Texas Instruments is still the clear leader. In MOS technology, Intel remained in the
number 1 slot with its leadership in MOS microprocessors. In MOS memory, Siemens became a
clear leader, displacing TI into second position, and Samsung became the fifth largest vendor. In
analog ICs, Philips, SGS-Thomson and National Semiconductor remained as the three leading
suppliers, followed by Siemens. In discrete there was no change in the top five vendors, with
Philips holding the number 1 position followed by Motorola, SGS-Thomson, Siemens and ITT.
International Rectifier moved up two positions to number 6. In optoelectronics Hewlett-Packard
took over the number 1 slot from Telefunken Electronic, which fell two places to number 3;
Siemens remained at number 2.
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
g
Final 1989 European Semiconductor Market Share Estimates
TABLE OF CONTENTS
Figure
Eiuropean Semiconductor Market Share by Vendor Base
Figure
Worldwide Semiconductor Market Share by Vendor Base
Table 1
European Companies Worldwide Semiconductor Market Share Rankings
Table 2
European Semiconductor Market Share Rankings
Table 3
European Integrated Circuit Market Share Rankings
Table 4
European Bipolar Digital IC Market Share Rankings
Table 5
European Bipolar TTL Market Share Rankings
Table 6
European Bipolar ECL Market Share Rankings
Table 7
European Bipolar Memory Market Share Rankings
European Bipolar Logic Circuit Market Share Rankings
Table 8
European
Bipolar ASIC Market Share Rankings
Table 9
European
Bipolar Standard Logic Market Share Rankings
Table 10
European
Bipolar Other Logic Market Share Rankings
Table 11
European
Digital
MOS IC Market Share Rankings
Table 12
European
NMOS
IC Market Share Rankings
Table 13
European
CMOS
IC
Market Share Rankings
Table 14
European
BiCMOS
IC
Market Share Rankings
Table 15
European
Other
MOS
IC
Market Share Rankings
Table 16
European
MOS
Memory
Market
Share Rankings
Table 17
European
MOS
Microcomponent
Market Share Rankings
Table 18
European
MOS
Logic
Market
Share
Rankings
Table 19
European
MOS
ASIC
Market
Share
Rankings
Table 20
European MOS Standard Logic Market Share Rankings
Table 21
European Other MOS Logic Market Share Rankings
Table 22
European
Total Analog Market Share Rankings
Table 23
Eiuropean
Monolithic
Analog Market Share Rankings
Table 24
European
Hybrid
Analog
Market Share Rankings
Table 25
European
Total
Discrete
Market
Share Rankings
Table 26
European
Transistor
Market
Share
Rankings
Table 27
European Diode Market Share Rankings
Table 28
European Thyristor Market Share Rankings
Table 29
European Other Discrete Market Share Rankings
Table 30
European Optoelectronic Market Share Rankings
Table 31
to the Tables
Footnotes
Page
4
4
5
6
8
10
11
12
13
14
15
16
17
18
20
21
23
24
25
26
27
29
30
31
32
34
36
37
39
40
41
42
43
44
Notes to the Tables
Colimin 1
shows market share ranking position in 1988
Column 2
shows market share ranking position in 1989
Column 3
shows the change in ranked position between 1988 and 1989
Colimin 4
shows ranked company's name
Column 5
shows company's 1988 revenue
6
Column 7
shows company's 1989 revenue
Column
shows annual growth in revenue in 1989 from 1988
Column 8
shows cumulative market share revenue in 1989
Colimm 9
shows percentage market share of TAM in 1989
Column 10
shows cumulative percentage market share of TAM in 1989
Each of the tables also gives a summary showing the sum of aU revenues split by vendor regional
base. This gives a final estimate for the TAM in each featured product category.
TAM = Toal Available Market
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
Final 1989 European Semiconductor Market Share Estimates
Figure 1
European Semiconductor Market Share by Vendor Base
Percent of Market
60
50
40
-
30
....... ....... ,,.,...
20
-
-
*
•
—
.
.,...>.
10
• " • — "
0
European
North American
Japanese
Asia/PadlkyROW
Total Market $M
Sum of Percent
1978
1979
1980
1981
1982
1963
1984
1985
1986
1987
1988
1989
45.5
52
^S
0
2339
100
43.3
53.7
3
0
3,018
100
40.4
55.7
3.9
0
3,686
100
42.2
52.5
5.3
0
3,041
100
40.9
523
6.8
0
3,167
100
40.3
49.6
9.9
0
3,370
100
35.8
51.5
127
0
4,805
100
38.3
50.4
11.3
0
4,720
100
42
45.9
12
0.1
5.532
100
42.7
43.2
13.3
0.8
6,355
100
37.6
43.2
17.3
1.9
8,491
100
36.5
41.3
19.6
2.4
9,755
100
European
l^cnh American
Japanese
Asla/Padfk^OW
Source: Dataquest (June 1990)
Figure 2
Worldwide Semiconductor Market Share by Vendor Base
1
Percent of Market
60 1
. j-i^i..
50
40
• - • - - - -
-
-
-
•
-
—
30
,....-,', ^_. ,.,
20
^ ,...... ... ^..-..
..•,..^. V+—-..•
—*—
10
.
0
1978
European
North Ametlcffii
Japanese
Asla/Padnc^OW
Total Market $M
+.--.,*•....
161
5S.3
2a4
0.2
8.963
1979
1980
1981
1982
1983
1984
1985
p
¥
1986
1987
1988
1989
16.1
15.2
129
11.7
11.2
11
126
11.3
11.1
9.7
8.5
57.9
57.2
51.4
51.4
41.5
49
45.4
39
36.5
34.9
48.4
25.8
27.4
35.4
41.7
3S.3
45.9
38.8
39.7
48.2
51
521
0.2
0.2
0.3
0.7
0.9
0.8
1.2
1.4
1.8
28
3.5
11,106 14,098 14.801 15,231 19,537 28,825 24,341 30,834 38,251 50.859 57.213
European
Nortti American
Japanese
Asla/Padfk^ROW
Souice: Dataquest (June 1990)
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
i
Final 1989 European Semiconductor Market Share Estimates
Table 1
1989 European Companies Worldwide Semiconductor Market Share Rankings
(Millions of U.S. Dollars)
1988
Rank
1989
Rank
Change
in Rank
10
12
20
31
32
62
67
72
79
71
81
143
117
53
92
97
100
101
107
55
10
13
16
30
34
59
64
68
71
73
77
79
82
88
98
100
109
115
116
0
0
(1)
4
1
(2)
3
3
4
8
(2)
4
64
35
(35)
(6)
(3)
(9)
(14)
(9)
Ranked Companies
1988
Sales
($M)
1989
Sales
($M)
1988-89
Annual
Growth
(Percent)
1989
Market
Share
(Percent)
Philips
SGS-Thomson
Siemens
Telefiinken Electronic
Plessey Semiconductors
Semikron
Matra MHS
MEDL
Austria Mikro Systeme
Ericsson Components
Mietec
ABB-IXYS
TMS
ABB-HAFO
EurosU Electronic
Fagor Electrotecnica
TAG
STC Components
European Silicon Structures
Inmos
1,738
1,087
784
289
284
91
71
51
44
52
42
0
0
113
29
27
23
22
13
110
1,716
1,301
1,194
299
240
95
85
60
56
54
52
50
45
37
30
29
22
19
18
0
(1)
20
52
3
(15)
4
20
18
27
4
24
NA
NA
(67)
3
7
(4)
(14)
38
(100)
3.0
2.3
2.1
0.5
0.4
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
NA = Not Applicable
Souice: Dataquest (June 1990)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
Final 1989 European Semiconductor Market Share Estimates
Table 2
1989 European Semiconductor Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
5
2
4
3
6
8
7
9
12
10
11
13
16
20
17
41
14
25
19
27
22
26
21
23
64
28
24
36
30
39
32
34
31
NA
29
NA
35
40
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Change
in Rank
0
3
(1)
0
(2)
0
1
(1)
0
2
(1)
(1)
0
2
5
1
24
(4)
6
(1)
6
0
3
(3)
(2)
38
1
(4)
7
0
8
0
1
(3)
(7)
(3)
1
Ranked Companies
Philips
Siemens
SGS-Thomson*
Motorola
Texas Instruments
Intel
NEC
Toshiba
National Semiconductor
Hitachi
AMD
m
Telefunken Electronic
Samsung
Mitsubishi
Fujitsu
Harris*
Plessey Semiconductors*
Hewlett-Packard
Analog Devices
Matsushita (Panasonic)
LSI Logic
Matra MHS*
International Rectifier
Oki Electric
Micron Technology*
Austria Mikro Systeme
Semikron
VLSI Technology
Mietec
NMB*
Marconi Electronic Devices
Ericsson Components
Siliconix
ABB-DCYS*
Burr-Brown
TMS*
IDT
Powerex
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
1,018
569
652
616
647
485
387
390
386
246
277
246
217
140
87
135
28
198
53
96
46
60
52
66
58
2
44
56
36
42
30
41
40
41
43
39
28
964
937
751
658
648
530
429
423
381
291
287
250
215
201
201
198
145
138
96
95
95
73
73
71
69
60
56
55
55
52
51
45
42
41
40
39
38
36
33
(5.3)
64.7
15.2
6.8
0.2
9.3
10.9
8.5
(L3)
18.3
3.6
1.6
(0.9)
43.6
131.0
46.7
417.9
(30.3)
81.1
(1.0)
106.5
21.7
40.4
7.6
19.0
2,900.0
27.3
(L8)
52.8
23.8
70.0
9.8
5.0
0.0
(9.3)
(7.7)
17.9
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
964
1,901
2,652
3310
3,958
4,488
4,917
5,340
5,721
6,012
6,299
6,549
6,764
6,965
7,166
7,364
7,509
7,647
7,743
7,838
7,933
8,006
8,079
8,150
8,219
8,279
8,335
8,390
8,445
8,497
8,548
8,593
8,635
8,676
8,716
8,755
8,793
8,829
8,862
9.9
9.6
7.7
6.7
6.6
5.4
4.4
4.3
3.9
3.0
2.9
2.6
2.2
2.1
2.1
2.0
1.5
1.4
1.0
1.0
1.0
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.3
9.9
19.5
27.2
33.9
40.6
46.0
50.4
54.7
58.6
61.6
64.6
67.1
69.3
71.4
73.5
75.5
77.0
78.4
79.4
80.3
81.3
82.1
82.8
83.5
84.3
84.9
85.4
86.0
86.6
87.1
87.6
88.1
88.5
88.9
89.3
89.7
90.1
90.5
90.8
(CcMitinued)
©1990 Dataquest Europe Limited Jime
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 2 (Continued)
1989 European Semiconductor Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
50
37
61
18
44
38
59
52
43
55
42
54
47
51
60
45
49
48
53
57
58
63
46
15
33
56
62
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
NA
NA
NA
NA
Change
in Rank
10
(4)
19
(25)
0
(7)
13
5
(5)
6
(8)
3
(5)
(2)
6
(10)
(7)
(9)
(5)
(2)
(2)
2
(16)
Ranked Companies
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
General Instrument
Sprague*
Sony*
ABB-HAFO*
Cypress*
Precision Monolithics
Sharp*
Western Digital
Fagor Electrotecnica
Rohm Electronics*
STC Components
Unitrode*
TAG
AT&T*
European Silicon Structures
Zilog
Rockwell*
Sanyo*
Raytheon*
Mitel Semiconductor*
Eurosil Electronic
Goldstar
Seiko Epson
GE Sohd State*
Inmos*
Honeywell Solid State*
TRW*
18
32
9
100
21
30
12
17
21
16
21
16
18
18
12
19
18
18
17
14
13
4
19
141
40
15
8
33
32
31
30
30
29
27
23
22
22
19
19
17
17
17
16
16
15
14
14
14
9
8
83.3
0.0
244.4
(70.0)
42.9
(3.3)
125.0
35.3
4.8
37.5
(9.5)
18.8
(5.6)
(5.6)
41.7
(15.8)
(11.1)
(16.7)
(17.6)
0.0
7.7
125.0
(57.9)
(100.0)
(100.0)
(100.0)
(100.0)
8,895
8,927
8,958
8,988
9,018
9,047
9.074
9,097
9,119
9,141
9,160
9,179
9,196
9,213
9,230
9,246
9,262
9.277
9,291
9,305
9,319
9,328
9,336
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
91.2
91.5
91.8
92.1
92.4
92.7
93.0
93.3
93.5
93.7
93.9
94.1
94.3
94.4
94.6
94.8
94.9
95.1
95.2
95.4
95.5
95.6
95.7
European Others
North American Others
Japanese Others
Rest of World Others
42
131
13
21
37
291
64
27
(11.9)
122.1
392.3
28.6
9,373
9,664
9,728
9,755
0.4
3.0
0.7
0.3
96.1
99.1
99.7
100.0
8.491
3,196
3,664
1,466
165
9,755
3,562
4,032
1,924
237
14.9
11.5
10.0
31.2
43.6
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
* See Footnotes (page 44)
NA = Not Applicable
Source: Dalaquest (June 1990)
ESIS Volume
(XX)6080
1989
1989
1989
Cum.
Market
Cum.
Share
Sum
Sum
($M) (Percent) (Percent)
©1990 Dataquest Europe Limited June
100.0
36.5
41.3
19.7
2.4
Final 1989 European Semiconductor Market Share Estimates
Table 3
1989 E u r o p e a n Integrated Circuit M a r k e t S h a r e Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
7
(1)
(1)
(1)
(1)
(1)
(1)
(1)
0
0
0
2
6
1
(2)
(4)
17
(1)
(1)
0
1
8
(2)
32
(2)
3
(2)
5
(2)
(6)
(3)
5
19
8
1
2
3
4
5
6
7
9
10
11
14
19
15
13
12
34
17
18
20
22
30
21
56
23
29
25
33
27
24
28
37
52
NA
32
36
31
43
51
(3)
0
(6)
5
12
Ranked Companies
Siemens
Philips
Texas Instruments
SGS-Thomson
Intel
Motorola
NEC
National Semiconductor
Toshiba
AMD
Hitachi
Samsung
Mitsubishi
Fujitsu
m
Plessey Semiconductors
Harris
Analog Devices
Telefunken Electronic
LSI Logic
Matra MHS
Matsushita (Panasonic)
Oki Electric
Micron Technology
Austria Mikro Systeme
VLSI Technology
Mietec
NMB
Ericsson Components
Burr-Brown
IDT
Cypress
Sony
TMS
Precision Monolithics
Marconi Electronic Devices
Sprague
Westem Digital
Sharp
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
373
683
602
485
485
415
381
381
321
277
233
139
79
135
143
160
28
96
86
60
52
31
57
2
44
36
42
30
40
43
39
21
9
30
23
30
17
11
707
649
610
574
530
460
410
376
358
287
278
198
181
170
145
138
117
95
82
73
73
72
69
60
56
55
52
51
42
39
36
30
30
30
29
28
25
23
23
89.5
(5.0)
1.3
18.4
9.3
10.8
7.6
(1.3)
11.5
3.6
19.3
42.4
129.1
25.9
1.4
(13.8)
317.9
(1.0)
(4.7)
21.7
40.4
132.3
21.1
2,900.0
27.3
52.8
23.8
70.0
5.0
(9.3)
(7.7)
42.9
233.3
(3.3)
21.7
(16.7)
35.3
109.1
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
707
1,356
1,966
2,540
3,070
3,530
3,940
4,316
4,674
4,961
5,239
5,437
5,618
5,788
5,933
6,071
6,188
6,283
6,365
6,438
6,511
6,583
6,652
6,712
6,768
6,823
6,875
6,926
6,968
7,007
7,043
7,073
7,103
7,133
7,162
7,190
7,215
7,238
7,261
9.1
8.3
7.8
7.4
6.8
5.9
5.3
4.8
4.6
3.7
3.6
2.5
2.3
2.2
1.9
1.8
1.5
1.2
1.1
0.9
0.9
0.9
0.9
0.8
0.7
0.7
0.7
0.7
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
9.1
17.4
25.2
32.6
39.4
45.3
50.6
55.4
60.0
63.7
67.2
69.8
72.1
74.3
76.1
77.9
79.4
80.6
81.7
82.6
83.5
84.5
85.3
86.1
86.8
87.5
88.2
88.9
89.4
89.9
90.4
90.7
91.1
91.5
91.9
92.3
92.6
92.9
93.2
(Continued)
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 3 (Continued)
1989 European Integrated Circuit Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
)
35
38
50
39
42
41
44
48
49
45
46
55
40
53
54
NA
16
26
47
Change
in Rank
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
NA
NA
NA
(5)
(3)
8
(4)
(2)
(4)
(2)
1
1
(4)
(4)
4
(12)
0
0
Ranked Companies
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
25
20
12
19
18
18
17
14
13
16
15
4
19
6
6
21
17
17
16
16
16
14
14
14
13
9
9
8
8
8
1
(16.0)
(15.0)
41.7
(15.8)
(11.1)
(11.1)
(17.6)
0.0
7.7
(18.8)
(40.0)
125.0
(57.9)
33.3
33.3
ABB-HAFO
STC Components
European Silicon Structures
Zilog
Rockwell
Siliconix
AT&T
Mitel Semiconductor
Eurosil Electronic
Raytheon
Sanyo
Goldstar
Seiko Epson
Unitrode
Rohm Electronics
Intemational Rectifier
GE SoUd State
Inmos
Honeywell Solid State
1(^
40
15
European Others
North American Others
Japanese Others
Rest of World Others
28
116
6
17
23
237
47
25
(17.9)
104.3
683.3
47.1
6,669
2,126
3,050
1,333
160
7,794
2,523
3,325
1,714
232
16.9
18.7
9.0
28.6
45.0
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
0006080
7,282
7,299
7,316
7,332
7,348
7,364
7,378
7.392
7,406
7.419
7,428
7,437
7,445
7,453
7,461
7,462
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.0
93.4
93.6
93.9
94.1
94.3
94.5
94.7
94.8
95.0
95.2
95.3
95.4
95.5
95.6
95.7
95.7
7,485
7,722
7,769
7,794
0.3
3.0
0.6
0.3
96.0
99.1
99.7
100.0
(100.0)
(100.0)
(100.0)
NA = N<« Applicable
Source: Dataquest (June 1990)
ESIS Volume 3
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
©1990 Dataquest Europe Limited June
100.0
32.4
42.7
22.0
3.0
Final 1989 European Semiconductor Market Share Estimates
Table 4
1989 European Bipolar Digital IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
3
4
2
5
7
6
14
9
15
12
NA
8
10
13
17
19
NA
18
11
16
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
NA
NA
0
1
1
(2)
0
1
(1)
6
0
5
1
(5)
(4)
(2)
1
2
(1)
Ranked Companies
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
142
97
79
66
66
51
48
28
13
8
7
7
5
4
4
2
2
2
1
Texas Instruments
AMD
National SenMconductor
Philips
Plessey Semiconductors
Siemens
Motorola
NEC
Fujitsu
Hitachi
Raytheon
Mitsubishi
Telefunken Electronic
SGS-Thomson
STC Components
Toshiba
Goldstar
AT&T
Matsushita (Panasonic)
Intel
Honeywell Solid State
189
112
110
117
60
28
55
6
12
6
9
European Others
North American Others
8
1
4
4
(50.0)
300.0
772
250
491
30
1
640
200
379
59
2
(17.1)
(20.0)
(22.8)
96.7
100.0
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
19
11
7
3
1
3
10
5
(24.9)
(13.4)
(28.2)
(43.6)
10.0
82.1
(12.7)
366.7
8.3
33.3
(22.2)
(73.7)
(63.6)
(42.9)
(33.3)
100.0
(66.7)
(100.0)
(100.0)
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
142
239
318
384
450
501
549
577
590
598
605
612
617
621
625
627
629
631
632
22.2
15.2
12.3
10.3
10.3
8.0
7.5
4.4
2.0
1.3
1.1
1.1
0.8
0.6
0.6
0.3
0.3
0.3
0.2
22.2
37.3
49.7
60.0
70.3
78.3
85.8
90.2
92.2
93.4
94.5
95.6
96.4
97.0
97.7
98.0
98.3
98.6
98.8
636
640
0.6
0.6
99.4
100.0
100.0
31.3
59.2
9.2
0.3
NA = Not ^ppUcaUe
Source: Dataquest (Jun 1990)
10
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 5
1989 European Bipolar TTL Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
4
3
10
5
13
14
11
NA
9
12
6
7
16
NA
15
NA
8
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
NA
0
0
1
(1)
5
(1)
6
6
2
(2)
0
(7)
(7)
1
(2)
Ranked Companies
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
142
85
62
58
47
24
24
14
7
7
6
6
5
4
2
2
1
1
Texas Instruments
AMD
National Semiconductor
Philips
Plessey Semiconductors
Motorola
NEC
Siemens
Hitachi
Mitsubishi
Raytheon
Fujitsu
Telefunken Electronic
SGS-Thomson
Goldstar
AT&T
Matsushita (Panasonic)
Toshiba
Intel
189
111
95
105
7
38
5
4
6
European Others
North American Others
5
1
3
1
(40.0)
0.0
624
151
452
20
1
501
131
322
46
2
(19.7)
(13.2)
(28.8)
130.0
100.0
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
8
6
19
11
1
3
(24.9)
(23.4)
(34.7)
(44.8)
571.4
(36.8)
380.0
250.0
16.7
(25.0)
0.0
(73.7)
(63.6)
100.0
(66.7)
1989
1989
1989
Cum.
Cum.
Market
Sum
Share
Sum
($M) (Percent) (Percent)
142
227
289
347
394
418
442
456
463
470
476
482
487
491
493
495
496
497
28.3
17.0
12.4
11.6
9.4
4.8
4.8
2.8
1.4
1.4
1.2
1.2
1.0
0.8
0.4
0.4
0.2
0.2
28.3
45.3
57.7
69.3
78.6
83.4
88.2
91.0
92.4
93.8
95.0
96.2
97.2
98.0
98.4
98.8
99.0
99.2
500
501
0.6
0.2
99.8
100.0
(100.0)
10
100.0
26.1
64.3
9.2
0.4
NA = Not Api^cable
Source: Dataquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
11
Final 1989 European Semiconductor Market Share Estimates
Table 6
1989 European Bipolar ECL Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
NA
1
1
(2)
0
7
(1)
0
(2)
2
(1)
(1)
2
3
1
4
12
5
7
6
11
9
10
NA
8
Ranked Companies
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
24
17
53
15
1
12
6
7
1
3
1
European Others
North American Others
3
1
3
(66.7)
148
99
39
10
139
69
57
13
(6.1)
(30.3)
46.2
30.0
Total
Total
Total
Total
All Companies
European
North American
Japanese
37
24
19
17
12
8
7
4
4
1
1
1
54.2
41.2
(64.2)
13.3
1,100.0
(33.3)
16.7
(42.9)
300.0
(66.7)
0.0
Siemens
Motorola
Plessey Semiconductors
National Semiconductor
AMD
Philips
Fujitsu
STC Components
NEC
Toshiba
Raytheon
Hitachi
Honeywell Solid State
1989
1989
1989
Cum.
Cum.
Market
Share
Sum
Sum
($M) (Percent) (Percent)
37
61
80
97
109
117
124
128
132
133
134
135
26.6
17.3
13.7
12.2
8.6
5.8
5.0
2.9
2.9
0.7
0.7
0.7
26.6
43.9
57.6
69.8
78.4
84.2
89.2
92.1
95.0
95.7
96.4
97.1
136
139
0.7
2.2
97.8
100.0
(100.0)
5
100.0
49.6
41.0
9.4
NA = Not Applicable
Source: Dataquest (Juiu; 1990)
12
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 7
1989 European Bipolar Memory Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
3
2
4
6
8
7
5
9
Change
in Rank
1
2
3
4
5
6
7
NA
NA
0
1
(1)
0
1
2
0
Ranked Companies
AMD
National Semiconductor
Philips
Fujitsu
NEC
Hitachi
Raytheon
Texas Instraments
Motorola
European Others
Total
Total
Total
Total
All Companies
European
North American
Japanese
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
29
10
14
7
3
2
2
5
1
27
15
12
7
7
3
1
27
42
54
61
68
71
72
37.5
20.8
16.7
9.7
9.7
4.2
1.4
37.5
58.3
75.0
84.7
94.4
98.6
100.0
(100.0)
1
74
15
47
12
(6.9)
50.0
(14.3)
0.0
133.3
50.0
(50.0)
(100.0)
(100.0)
19«9
1989
1989
Cum.
Cum.
Market
Sum
Share
Sum
($M) (Percent) (Percent)
72
12
43
17
(2.7)
(20.0)
(8.5)
41.7
100.0
16.7
59.7
23.6
NA = Not Applicable
Source: Dataquest (June 1990)
ESIS Volume 3
0006080
©1990 Dataquest Eiu-ope Limited June
13
Final 1989 European Semiconductor Market Share Estimates
Table 8
1989 European Bipolar Logic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
NA
NA
0
2
2
(1)
(3)
1
(1)
9
1
4
5
3
2
7
6
17
NA
12
14
8
15
9
11
16
19
NA
18
10
13
2
3
(4)
2
(5)
(4)
0
2
(1)
Ranked Companies
1988-89
1988 1989
Annual
Sales Sales
Growth
($M) ($M) (Percent)
Texas Instruments
AMD
Plessey Semiconductors
National Semiconductor
Philips
Siemens
Motorola
NEC
Mitsubishi
Raytheon
Fujitsu
Telefunken Electronic
Hitachi
SGS-Thomson
STC Components
Toshiba
Goldstar
AT&T
Matsushita (Panasonic)
Intel
Honeywell SoUd State
184
83
60
100
103
28
54
3
European Others
North American Others
7
1
4
4
(42.9)
300.0
698
235
444
18
1
568
188
336
42
2
(18.6)
(20.0)
(24.3)
133.3
100.0
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
7
5
19
4
11
7
3
1
3
10
5
142
70
66
64
54
51
48
21
7
6
6
5
5
4
4
2
2
2
1
(22.8)
(15.7)
10.0
(36.0)
(47.6)
82.1
(11.1)
600.0
(14.3)
20.0
(73.7)
25.0
(63.6)
(42.9)
(33.3)
100.0
(66.7)
(100.0)
(100.0)
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
142
212
278
342
396
447
495
516
523
529
535
540
545
549
553
555
557
559
560
25.0
12.3
11.6
11.3
9.5
9.0
8.5
3.7
1.2
1.1
1.1
0.9
0.9
0.7
0.7
0.4
0.4
0.4
0.2
25.0
37.3
48.9
60.2
69.7
78.7
87.1
90.8
92.1
93.1
94.2
95.1
96.0
96.7
97.4
97.7
98.1
98.4
98.6
564
568
0.7
0.7
99.3
100.0
100.0
33.1
59.2
7.4
0.4
NA = Not Applicable
Source: Dataquest (June 1990)
14
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 9
1989 European Bipolar ASIC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
[lank Rank
2
3
1
NA
10
4
7
5
9
6
12
8
13
NA
NA
NA
11
14
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
NA
NA
1
1
(2)
5
(2)
0
(3)
0
(4)
1
(4)
0
Ranked Companies
1988-89
1988 1989 Annual
Sales Sales Growth
($M) ($M) (Percent)
54
51
49
20
15
14
12
11
6
5
5
4
2
2
2
1
25.6
82.1
(12.5)
Plessey Semiconductors
Siemens
AMD
NEC
Motorola
Philips
Texas Instruments
National Semiconductor
Raytheon
Telefunken Electronic
Fujitsu
STC Components
Toshiba
Mitsubishi
AT&T
Hitachi
Honeywell Solid State
SGS-Thomson
43
28
56
European Others
North American Others
4
3
4
0.0
260
241
126
108
7
260
132
98
30
7.9
4.8
(9.3)
328.6
Total
Total
Total
Total
All Companies
European
North American
Japanese
5
24
15
20
7
19
4
7
3
200.0
(41.7)
(20.0)
(45.0)
(14.3)
(73.7)
25.0
(42.9)
(33.3)
1989
1989
1989
Cum. Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
54
105
154
174
189
203
215
226
232
237
242
246
248
250
252
253
20.8
19.6
18.8
7.7
5.8
5.4
4.6
4.2
2.3
1.9
1.9
1.5
0.8
0.8
0.8
0.4
20.8
40.4
59.2
66.9
72.7
78.1
82.7
86.9
89.2
91.2
93.1
94.6
95.4
96.2
96.9
97.3
257
1.2
1.5
100.0
98.8
(100.0)
(100.0)
5
1
100.0
50.8
37.7
11.5
NA = Not Applicable
Source: Dataquest (June 1990)
ESIS Volume 3
0006080
©1990 Dataquest Eiuope Limited June
15
Final 1989 European Semiconductor Market Share Estimates
Table 10
1989 European Bipolar Standard Logic Marliet Share Ranltings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
4
5
6
8
NA
11
7
9
10
12
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
0
0
0
0
0
0
1
2
(3)
(2)
(2)
(1)
Ranked Companies
Texas Instruments
Nationd Semiconductor
Philips
Motorola
AMD
SGS-Thomson
Hitachi
Mitsubishi
Goldstar
Plessey Semiconductors
NEC
Matsushita (Panasonic)
Fujitsu
European Others
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
169
76
52
49
17
10
4
1
6
3
3
1
130
53
37
33
11
4
4
4
2
1
1
1
1
3
394
71
311
11
1
(23.1)
(30.3)
(28.8)
(32.7)
(35.3)
(60.0)
0.0
100.0
(83.3)
(66.7)
(66.7)
0.0
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
130
183
220
253
264
268
272
276
278
279
280
281
282
46.1
18.8
13.1
11.7
3.9
1.4
1.4
1.4
0.7
0.4
0.4
0.4
0.4
46.1
64.9
78.0
89.7
93.6
95.0
96.5
97.9
98.6
98.9
99.3
99.6
100.0
(100.0)
282
42
227
11
2
(28.4)
(40.8)
(27.0)
0.0
100.0
100.0
14.9
80.5
3.9
0.7
NA = Not A{q)licable
Source: Dataquest (JuiK! 1990)
16
©1990 Dataquest Europe Limited Jime
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 11
1989 European Bipolar Other Logic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989 Change
Rank Rank in Rank
2
4
1
NA
3
5
1
2
3
4
NA
NA
1
2
(2)
Ranked Companies
1988-89
1988 1989 Annual
Sales Sales Growth
($M) ($M) (Percent)
Plessey Semiconductors
AMD
Philips
Mitsubishi
Intel
National Semiconductor
11
10
27
North American Others
1
1
0.0
63
38
25
26
14
11
1
(58.7)
(63.2)
(56.0)
Total
Total
Total
Total
All Companies
European
North American
Japanese
11
10
3
1
10
4
0.0
0.0
(88.9)
1989
1989
1989
Cum. Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
11
21
24
25
42.3
38.5
11.5
3.8
42.3
80.8
92.3
96.2
26
3.8
100.0
(100.0)
(100.0)
100.0
53.8
42.3
3.8
NA = Not Applicable
Souice: Dataquest (Jvme 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
17
Final 1989 European Semiconductor Market Share Estimates
Table 12
1989 European Digital MOS IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
^ank Rank
1
8
2
3
6
4
7
5
9
11
10
15
13
12
14
17
19
42
18
29
49
25
20
21
26
23
24
30
28
46
34
40
NA
27
39
31
35
37
36
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Change
in Rank
0
6
(1)
(1)
1
(2)
0
(3)
0
1
(1)
3
0
(2)
(1)
1
2
24
(1)
9
28
3
(3)
(3)
1
(3)
(3)
2
(1)
16
3
8
(7)
4
(5)
(2)
(1)
(3)
Ranked Companies
Intel
Siemens
NEC
Texas Instruments
SGS-Thomson
Toshiba
Motorola
Philips
Hitachi
Samsung
AMD
Mitsubishi
Fujitsu
National Semiconductor
ITT
LSI Logic
Matra MHS
Harris
Oki Electric
Matsushita (Panasonic)
Micron Technology
VLSI Technology
Plessey Semiconductors
Mietec
NMB
Austria Mikro Systeme
DDT
Cypress
Marconi Electronic Devices
Sony
Westem Digital
Shaq)
TMS
ABB-HAFO
European Silicon Structures
Zilog
Telefunken Electronic
Eurosil Electronic
AT&T
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
475
243
372
308
264
301
255
285
221
137
148
79
123
131
102
60
52
10
57
22
2
36
51
42
30
40
39
21
23
5
17
11
25
12
19
15
13
15
530
522
378
368
344
334
313
267
264
188
168
153
148
137
118
73
73
70
69
67
60
55
54
52
51
47
36
30
26
26
23
23
23
21
17
16
15
14
12
11.6
114.8
1.6
19.5
30.3
11.0
22.7
(6.3)
19.5
37.2
13.5
93.7
20.3
4.6
15.7
21.7
40.4
600.0
21.1
204.5
2,900.0
52.8
5.9
23.8
70.0
17.5
(7.7)
42.9
13.0
420.0
35.3
109.1
(16.0)
41.7
(15.8)
0.0
7.7
(20.0)
1989
1989
1989
Market
Cum.
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
530
1,052
1,430
1,798
2,142
2,476
2,789
3,056
3,320
3,508
3,676
3,829
3,977
4,114
4,232
4,305
4,378
4,448
4.517
4,584
4,644
4,699
4,753
4,805
4,856
4,903
4,939
4,969
4,995
5,021
5,044
5,067
5,090
5,111
5,128
5,144
5,159
5,173
5,185
9.7
9.6
6.9
6.7
6.3
6.1
5.7
4.9
4.8
3.4
3.1
2.8
2.7
2.5
2.2
1.3
1.3
1.3
1.3
1.2
1.1
1.0
1.0
1.0
0.9
0.9
0.7
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.2
9.7
19.3
26.2
32.9
39.2
45.4
51.1
56.0
60.8
64.3
67.4
70.2
72.9
75.4
77.5
78.9
80.2
81.5
82.8
84.0
85.1
86.1
87.1
88.0
89.0
89.8
90.5
91.0
91.5
92.0
92.4
92.8
93.3
93.6
94.0
94.2
94.5
94.8
95.0
(Continued)
18
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 12 (Continued)
1989 European Digital MOS IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
33
43
47
32
44
45
48
38
16
22
41
40
41
42
43
44
45
46
47
NA
NA
NA
Change
in Rank
(7)
2
5
(11)
0
0
2
(9)
Ranked Companies
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
1989
1989
1989
Cum.
Market
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
Rockwell
STC Components
Sprague
Seiko Epson
Ericsson Components
Analog Devices
Goldstar
Sanyo
GE SoUd State
Inmos
Honeywell Solid State
18
9
3
18
6
6
3
12
73
40
10
9
8
8
7
7
6
6
4
(50.0)
(11.1)
166.7
(61.1)
16.7
0.0
100.0
(66.7)
(100.0)
(100.0)
(100.0)
5,194
5,202
5,210
5,217
5,224
5,230
5,236
5.240
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
95.2
95.3
95.5
95.6
95.7
95.8
95.9
96.0
European Others
North American Others
Japanese Others
Rest of World Others
18
66
4
17
17
136
40
25
(5.6)
106.1
900.0
47.1
5,257
5,393
5,433
5,458
0.3
2.5
0.7
0.5
96.3
98.8
99.5
100.0
4,364
1,138
1,814
1,255
157
5,458
1,507
2,168
1,564
219
25.1
32.4
19.5
24.6
39.5
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
100.0
27.6
39.7
28.7
4.0
NA = Not Applicable
Source: Dalaquest (June 1990)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
19
Final 1989 European Semiconductor Market Share Estimates
Table 13
1989 E u r o p e a n N M O S IC Market S h a r e Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
3
2
4
10
6
5
15
7
9
11
12
26
13
8
14
NA
16
18
22
21
20
17
19
23
NA
28
NA
24
25
27
29
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
NA
NA
NA
NA
0
1
(1)
0
5
0
(2)
7
(2)
(1)
0
0
13
(1)
(7)
(2)
(2)
(1)
2
0
(2)
(6)
(5)
(2)
1
Ranked Companies
Intel
Siemens
Texas Instruments
SGS-Thomson
Hitachi
NEC
AMD
Mitsubishi
Philips
Toshiba
Samsung
m
Micron Technology
Fujitsu
Motorola
National Semiconductor
Matsushita (Panasonic)
Oki Electric
Telefunken Electronic
Sharp
Austria Mikro Systeme
Plessey Semiconductors
ZUog
Rockwell
Mietec
TMS
STC Components
Goldstar
Sanyo
Matra MHS
Inmos
Sprague
European Others
North American Others
Japanese Others
Rest of World Others
Total
Total
Total
Total
Total
AU Companies
European
North American
Japanese
Rest of World
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
257
177
194
137
73
124
127
26
117
80
62
47
2
44
108
40
22
15
7
8
10
15
11
7
1
282
233
223
152
128
122
100
94
88
87
52
52
52
47
39
30
29
26
15
15
11
10
9
9
7
5
2
2
9.7
31.6
14.9
10.9
75.3
(1.6)
(21.3)
261.5
(24.8)
8.8
(16.1)
10.6
2,500.0
6.8
(63.9)
(25.0)
18.2
0.0
114.3
37.5
0.0
(40.0)
(18.2)
0.0
100.0
282
515
738
890
1,018
1,140
1,240
1,334
1,422
1,509
1,561
1,613
1,665
1,712
1,751
1,781
1,810
1,836
1,851
1,866
1,877
1,887
1,896
1,905
1,912
1,917
1,919
1,921
14.2
11.7
11.2
7.7
6.5
6.2
5.0
4.7
4.4
4.4
2.6
2.6
2.6
2.4
2.0
1.5
1.5
1.3
0.8
0.8
0.6
0.5
0.5
0.5
0.4
0.3
0.1
0.1
14.2
26.0
37.2
44.9
51.3
57.5
62.5
67.3
71.7
76.1
78.7
81.3
84.0
86.3
88.3
89.8
91.3
92.6
93.3
94.1
94.7
95.2
95.6
96.1
96.4
96.7
96.8
96.9
1,927
1,965
1,983
0.3
1.9
0.9
97.2
99.1
100.0
(100.0)
(100.0)
(100.0)
(100.0)
5
3
2
1
6
38
18
0.0
40.7
1,700.0
(100.0)
1,759 1,983
529
483
834
829
382
566
65
54
12.7
9.5
0.6
48.2
(16.9)
6
27
1
3
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
100.0
26.7
42.1
28.5
2.7
NA =: Not Applicable
Source: Dataquest (June 1990)
20
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 14
1989 European CMOS IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
llank Rank
13
5
1
3
2
6
4
7
11
8
9
10
16
14
37
29
17
15
21
24
18
22
27
19
23
28
26
43
31
32
25
NA
35
34
33
45
NA
30
41
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Change
in Rank
12
3
(2)
(1)
(3)
0
(3)
(1)
2
(2)
(2)
(2)
3
0
22
13
0
(3)
2
4
(3)
0
4
(5)
(2)
2
(1)
15
2
2
(6)
2
0
(2)
9
(8)
2
Ranked Companies
Siemens
Motorola
NEC
Intel
Toshiba
SGS-Thomson
Philips
Texas Instruments
Samsung
Hitachi
National Semiconductor
Fujitsu
Matra MHS
LSI Logic
Harris
AMD
ITT
Mitsubishi
VLSI Technology
NMB
Plessey Semiconductors
Oki Electric
Matsushita (Panasonic)
IDT
Austria Mikro Systeme
Cypress
Marconi Electronic Devices
Sony
Western Digital
Mietec
ABB-HAFO
TMS
European Silicon Structures
EurosU Electronic
AT&T
Sharp
Micron Technology
Seiko Epson
Ericsson Components
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
65
147
230
218
221
127
168
108
73
99
90
79
49
59
10
21
48
53
36
30
40
35
22
39
32
21
23
5
17
17
25
12
13
15
4
18
6
289
274
256
248
246
184
179
142
136
135
103
98
73
72
70
68
63
59
55
51
44
43
38
36
36
30
26
26
23
22
21
18
17
14
12
8
8
7
7
344.6
86.4
11.3
13.8
11.3
44.9
6.5
31.5
86.3
36.4
14.4
24.1
49.0
22.0
600.0
223.8
31.3
11.3
52.8
70.0
10.0
22.9
72.7
(7.7)
12.5
42.9
13.0
420.0
35.3
29.4
(16.0)
41.7
7.7
(20.0)
100.0
(61.1)
16.7
1989
1989
1989
Market
Cum.
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
289
563
819
1,067
1,313
1,497
1,676
1,818
1,954
2,089
2,192
2,290
2,363
2,435
2,505
2,573
2,636
2,695
2,750
2,801
2,845
2,888
2,926
2,962
2,998
3,028
3,054
3,080
3,103
3,125
3,146
3,164
3,181
3,195
3,207
3,215
3,223
3,230
3,237
8.5
8.0
7.5
7.3
7.2
5.4
5.2
4.2
4.0
4.0
3.0
2.9
2.1
2.1
2.1
2.0
1.8
1.7
1.6
1.5
1.3
1.3
1.1
1.1
1.1
0.9
0.8
0.8
0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.2
0.2
0.2
0.2
8.5
16.5
24.0
31.3
38.5
43.9
49.1
53.3
57.3
61.2
64.2
67.1
69.3
71.4
73.4
75.4
77.3
79.0
80.6
82.1
83.4
84.6
85.8
86.8
87.9
88.7
89.5
90.3
90.9
91.6
92.2
92.7
93.2
93.6
94.0
94.2
94.5
94.7
94.9
(Continued)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
21
Final 1989 European Semiconductor Market Share Estimates
Table 14
1989 European CMOS IC Market Share Rankings
(Millions of U.S. Dollars) (Continued)
1988 1989
Rank Rank
44
42
38
46
39
12
20
36
40
47
Change
in Rank
40
41
42
43
44
NA
NA
NA
NA
NA
4
1
(4)
3
(5)
Ranked Companies
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
1989
1989
1989
Cum.
Market
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
Zilog
Analog Devices
Sanyo
Goldstar
STC Components
GE Solid State
lomos
Honeywell Solid State
Rockwell
Sprague
4
6
7
3
6
66
38
10
6
2
7
6
4
4
3
75.0
0.0
(42.9)
33.3
(50.0)
(100.0)
(100.0)
(100.0)
(100.0)
(100.0)
3,244
3,250
3,254
3,258
3,261
0.2
0.2
0.1
0.1
0.1
95.1
95.3
95.4
95.5
95.6
European Others
North American Others
Japanese Others
Rest of World Others
12
39
3
14
11
93
22
25
(8.3)
138.5
633.3
78.6
3,272
3,365
3,387
3,412
0.3
2.7
0.6
0.7
95.9
98.6
99.3
100.0
2,491 3,412
944
633
962 1,310
993
806
165
90
37.0
49.1
36.2
23.2
83.3
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
100.0
27.7
38.4
29.1
4.8
NA = Not Applicable
Source; Dataquest (Jmu; 1990)
22
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 15
1989 European BiCMOS IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
2
NA
NA
7
5
6
NA
3
8
NA
1
4
Change
in Rank
1
2
3
4
5
6
7
8
9
10
NA
NA
1
3
0
0
(5)
(1)
Ranked Companies
Mietec
SGS-Thomson
Sprague
National Semiconductor
Texas Instraments
STC Components
Fujitsu
Hitachi
LSI Logic
Toshiba
NEC
GE Solid State
1988-89
1988 1989
Annual
Sales Sales
Growth
($M) ($M) (Percent)
18
1
2
2
7
1
18
7
North American Others
Total
Total
Total
Total
All Companies
European
North American
Japanese
23
8
8
4
3
3
3
1
1
1
27.8
300.0
50.0
50.0
(85.7)
0.0
23
31
39
43
46
49
52
53
54
55
38.3
13.3
13.3
6.7
5.0
5.0
5.0
1.7
1.7
1.7
38.3
51.7
65.0
71.7
76.7
81.7
86.7
88.3
90.0
91.7
60
8.3
100.0
(100.0)
(100.0)
•5
56
20
11
25
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
60
34
21
5
7.1
70.0
90.9
(80.0)
100.0
56.7
35.0
8.3
NA = Not Applicable
Source: Dalaquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
23
Final 1989 European Semiconductor Market Share Estimates
Table 16
1989 European Other MOS IC Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
2
1
3
4
5
6
7
Change
in Rank
1
NA
NA
NA
NA
NA
NA
1
Ranked Companies
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
ITT
Hitachi
Texas Instruments
Samsung
Siemens
Rockwell
Plessey Semiconductors
7
42
4
2
1
1
1
3
(57.1)
(100.0)
(100.0)
(100.0)
(100.0)
(100.0)
(100.0)
100.0
Total
Total
Total
Total
Total
58
2
12
42
2
3
(94.8)
(100.0)
(75.0)
(100.0)
(100.0)
100.0
All Companies
European
North American
Japanese
Rest of World
3
100.0
100.0
NA = Not Applicable
Sowce: Dataquest (June 1990)
24
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 17
1989 European MOS Memory Market Share Rankings
(Millions of U.S. Dollars)
1988
Rank
1989
Rank
Change
in Rank
5
3
1
2
6
4
9
7
10
8
11
17
16
29
13
12
14
18
25"
15
23
20
21
NA
32
31
NA
27
26
NA
19
22
24
28
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
NA
NA
NA
NA
NA
4
1
(2)
(2)
1
(2)
2
(1)
1
(2)
0
5
3
15
(2)
(4)
(3)
0
6
(5)
2
(2)
(2)
7
5
(1)
(3)
Ranked Companies
Siemens
Texas Instiuments
Toshiba
NEC
Samsung
Hitachi
SGS-Thomson
Fujitsu
Mitsubishi
Intel
AMD
Matsushita (Panasonic)
Motorola
Micron Technology
NMB
Oki Electric
National Semiconductor
Matra MHS
Sony
IDT
Sharp
Cypress
Philips
m
Goldstar
ESIS Volume 3
0006080
1989
Sales
($M)
130
216
228
223
128
138
84
102
71
97
56
22
25
2
30
38
30
20
5
27
10
16
14
338
250
247
232
186
172
129
120
104
102
71
67
60
60
51
48
30
28
26
24
22
21
20
9
4
3
2
1
1
1
19
1
1
1988-89
Annual
Growth
(Percent)
1989
Cum.
Sum
($M)
1989
Market
Share
(Percent)
1989
Cum.
Sum
(Percent)
160.0
15.7
8.3
4.0
45.3
24.6
53.6
17.6
46.5
5.2
26.8
204.5
140.0
2,900.0
70.0
26.3
0.0
40.0
420.0
(11.1)
120.0
31.3
42.9
338
588
835
1,067
1,253
1,425
1,554
1,674
1,778
1,880
1,951
2,018
2,078
2,138
2,189
2,237
2,267
2,295
2,321
2,345
2,367
2,388
2,408
2,417
2,421
2,424
2,426
2,427
2,428
2,429
(100.0)
13.3
9.8
9.7
9.1
7.3
6.8
5.1
4.7
4.1
4.0
2.8
2.6
2.4
2.4
2.0
1.9
1.2
1.1
1.0
0.9
0.9
0.8
0.8
0.4
0.2
0.1
0.1
0.0
0.0
0.0
13.3
23.1
32.8
41.9
49.2
55.9
61.0
65.7
69.8
73.8
76.6
79.2
81.6
83.9
85.9
87.8
89.0
90.1
91.1
92.0
92.9
93.7
94.5
94.9
95.0
95.1
95.2
95.3
95.3
95.3
2,490
2,529
2,548
2.4
1.5
0.7
97.7
99.3
100.0
300.0
200.0
Marconi Electronic Devices
Plessey Semiconductors
Harris
VLSI Technology
Sanyo
Itunos
Seiko Epson
GE SoUd State
Austria Mikro Systeme
STC Components
11
8
4
1
European Others
North American Others
Japanese Others
Rest of World Others
2
18
1
11
61
39
19
(100.0)
238.9
3,800.0
72.7
1,797
275
503
879
140
2^48
520
690
1,129
209
41.8
89.1
37.2
28.4
49.3
Total
Total
Total
Total
Total
NA = Not I \.ppUcable
5ouieei Bala;quest -(Jime
1988
Sales
($M)
All Companies
European
North American
Japanese
Rest of World
4
4
(75.0)
(75.0)
(100.0)
(100.0)
(100.0)
(100.0)
100.0
20.4
27.1
44.3
8.2
^
1990)
©1990 Dataquest Europe Limited June
25
Final 1989 European Semiconductor Market Share Estimates
Table 18
1989 European MOS Microcomponent Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
NA
NA
0
0
0
0
0
1
(1)
0
12
(1)
0
(2)
1
10
2
(1)
5
8
(6)
1
2
3
4
5
7
6
8
21
9
11
10
14
24
17
15
22
26
13
NA
20
19
25
NA
31
23
30
NA
18
28
29
27
12
16
(1)
(3)
2
6
(3)
3
(11)
(2)
(2)
(5)
Ranked Companies
Intel
Motorola
NEC
SGS-Thomson
Hitachi
Siemens
Philips
Texas Instniments
Mitsubishi
National Semiconductor
Toshiba
AMD
Western Digital
Harris
Matra MHS
Oki Electric
nr
VLSI Technology
Zilog
TMS
Fujitsu
Rockwell
Analog Devices
LSI Logic
AT&T
BDT
Cypress
Plessey Semiconductors
Sanyo
Marconi Electronic E>evices
EurosU Electronic
Sharp
Inmos
GE Solid State
North American Others
Rest of World Others
Total
Total
Total
Total
Total
AU Companies
European
North American
Japanese
Rest of World
1988
Sales
($M)
1989
Sales
($M)
351
150
109
77
71
51
55
48
8
40
27
33
17
6
14
16
7
5
19
416
179
122
101
75
67
62
60
48
45
35
34
23
21
20
18
18
17
16
11
10
9
6
6
4
3
2
2
1
1
1
1
9
11
6
1
6
1
12
1
1
1
21
15
1988-89
Annual
Growth
(Percent)
1989
Cum.
Sum
($M)
1989
Market
Share
(Percent)
1989
Cum.
Sum
(Percent)
18.5
19.3
11.9
31.2
5.6
31.4
12.7
25.0
500.0
12.5
29.6
3.0
35.3
250.0
42.9
12.5
157.1
240.0
(15.8)
416
595
717
818
893
960
1,022
1,082
1,130
1,175
1,210
1,244
1,267
1,288
1,308
1,326
1,344
1,361
1,377
1,388
1.398
1,407
1,413
1,419
1,423
1,426
1,428
1,430
1.431
1,432
1,433
1,434
28.3
12.2
8.3
6.9
5.1
4.6
4.2
4.1
3.3
3.1
2.4
2.3
1.6
1.4
1.4
1.2
1.2
1.2
1.1
0.7
0.7
0.6
0.4
0.4
0.3
0.2
0.1
0.1
0.1
0.1
0.1
0.1
28.3
40.5
48.8
55.7
60.8
65.4
69.6
73.7
76.9
80.0
82.4
84.7
86.2
87.7
89.0
90.3
91.5
92.6
93.7
94.5
95.2
95.8
96.2
96.6
96.9
97.1
97.2
97.3
97.4
97.5
97.5
97.6
1,465
1,469
2.1
0.3
99.7
100.0
11.1
(18.2)
0.0
300.0
(50.0)
100.0
(91.7)
0.0
0.0
0.0
(100.0)
(100.0)
19
4
31
4
63.2
0.0
1,212
220
735
253
4
1,469
265
890
310
4
21.2
20.5
21.1
22.5
0.0
100.0
18.0
60.6
21.1
0.3
NA = Not Applicable
Somce: Dataquest (June 1990)
26
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
,
i
Final 1989 European Semiconductor Market Share Estimates
Table 19
1989 European MOS Logic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
5
2
3
4
7
8
6
12
11
13
9
NA
15
16
20
14
19
18
24
26
23
21
25
17
NA
32
22
29
35
30
33
34
36
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Change
in Rank
0
3
(1)
(1)
(1)
1
1
(2)
3
1
2
(3)
1
1
4
(3)
1
(1)
4
5
1
(2)
1
(8)
5
(6)
0
5
(1)
1
1
2
Ranked Companies
Philips
Siemens
SGS-Thomson
rrr
Motorola
LSI Logic
AMD
National Semiconductor
Texas Instruments
Toshiba
Mietec
Plessey Semiconductors
Harris
Austria Mikro Systeme
VLSI Technology
Matra MHS
NEC
Marconi Electronic Devices
ABB-HAFO
Fujitsu
European Silicon Structures
Hitachi
Telefimken Electronic
Eurosil Electronic
Intel
TMS
IDT
AT&T
STC Components
Sprague
Seiko Epson
Ericsson Components
Cypress
Oki Electric
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
216
62
103
95
80
60
59
61
44
46
42
51
36
27
18
40
21
25
12
12
12
15
12
27
6
14
8
3
7
6
4
3
185
117
114
91
74
67
63
62
58
52
52
50
48
47
37
25
24
22
21
18
17
17
15
13
12
12
9
8
8
8
7
7
7
3
(14.4)
88.7
10.7
(4.2)
(7.5)
11.7
6.8
1.6
31.8
13.0
23.8
(2.0)
30.6
37.0
38.9
(40.0)
4.8
(16.0)
50.0
41.7
41.7
0.0
8.3
(55.6)
50.0
(42.9)
0.0
166.7
0.0
16.7
75.0
0.0
1989
1989
1989
Cum.
Market
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
185
302
416
507
581
648
711
773
831
883
935
985
1,033
1,080
1,117
1,142
1,166
1,188
1,209
1,227
1,244
1,261
1,276
1,289
1,301
1,313
1,322
1,330
1,338
1,346
1,353
1,360
1,367
1,370
12.8
8.1
7.9
6.3
5.1
4.6
4.4
4.3
4.0
3.6
3.6
3.5
3.3
3.3
2.6
1.7
1.7
1.5
1.5
1.2
1.2
1.2
1.0
0.9
0.8
0.8
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.2
12.8
21.0
28.9
35.2
40.3
45.0
49.3
53.6
57.7
61.3
64.9
68.4
71.7
74.9
77.5
79.3
80.9
82.4
83.9
85.1
86.3
87.5
88.5
89.5
90.3
91.1
91.7
92.3
92.9
93.4
93.9
94.4
94.9
95.1
(Continued)
ESIS Volume 3
0006080
©1990 Dataquest Eiu'ope Limited June
27
Final 1989 European Semiconductor Market Share Estimates
Table 19
1989 European MOS Logic Market Share Rankings
(Millions of U.S. Dollars) (Continued)
1988 1989
Rank Rank
Change
in Rank
35
36
37
38
NA
NA
NA
(7)
1
28
37
NA
NA
10
27
31
Ranked Companies
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
Samsung
Goldstar
Sanyo
Mitsubishi
GE Solid State
HcHieywell Solid State
Rockwell
50
10
7
European Others
North American Others
Japanese Others
Rest of World Others
16
29
3
2
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
2
2
2
1
9
2
(77.8)
0.0
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
1,372
1,374
1,376
1,377
0.1
0.1
0.1
0.1
95.2
95.4
95.5
95.6
1,394
1,438
1,439
1,441
1.2
3.1
0.1
0.1
96.7
99.8
99.9
100.0
(100.0)
(100.0)
(100.0)
17
44
1
2
6.3
51.7
(66.7)
0.0
1,355 1,441
722
643
576
588
123
125
6
13
6.3
12.3
2.1
1.6
(53.8)
100.0
50.1
40.8
8.7
0.4
NA = Not Applicable
Source: Dataquest (June 1990)
28
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Pinal 1989 European Semiconductor Market Share Estimates
Table 20
1989 European MOS ASIC Market Share Rankings
(Millions of U.S. Dollars)
1988
Sank
1989
Rank
Change
in Rank
1
2
9
3
4
5
7
6
10
11
8
13
12
18
17
15
NA
19
21
14
20
NA
27
22
25
31
26
29
30
28
33
16
32
NA
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
NA
NA
0
0
6
(1)
(1)
(1)
0
(2)
1
1
(3)
1
(1)
4
2
(1)
1
2
(6)
(1)
4
(2)
0
5
(1)
1
1
(2)
2
(16)
(1)
1988-89
Annual
Growth
(Percent)
1989
Cum.
Sum
($M)
1989
Market
Share
(Percent)
1989
Cum.
Sum
(Percent)
(4.2)
13.6
96.4
23.8
22.0
40.0
42.4
17.6
48.0
40.0
0.0
4.3
(16.0)
50.0
42.9
35.7
91
158
213
265
315
364
411
451
488
523
553
577
598
619
639
658
677
695
712
727
740
752
763
773
781
789
796
803
810
815
820
824
827
828
10.4
7.6
6.3
5.9
5.7
5.6
5.4
4.6
4.2
4.0
3.4
2.7
2.4
2.4
2.3
2.2
2.2
2.1
1.9
1.7
1.5
1.4
1.3
1.1
0.9
0.9
0.8
0.8
0.8
0.6
0.6
0.5
0.3
0.1
10.4
18.0
24.3
30.2
35.9
41.5
46.9
51.4
55.6
59.6
63.1
65.8
68.2
70.6
72.9
75.0
77.2
79.2
81.2
82.9
84.4
85.7
87.0
88.1
89.1
90.0
90.8
91.6
92.4
92.9
93.5
94.0
94.3
94.4
838
877
1.1
4.4
95.6
100.0
1988
Sales
($M)
1989
Sales
($M)
ITT
LSI Logic
Siemens
Mietec
Toshiba
Plessey Semiconductors
Austria Mikro Systeme
SGS-Thomson
VLSI Technology
Texas Instruments
National Semiconductor
NEC
ABB-HAFO
Marcotii Electronic Devices
Matra MHS
Philips
Harris
Fujitsu
European Silicon Structures
Telefunken Electrotiic
Eurosil Electronic
TMS
Hitachi
Intel
AT&T
Sprague
Seiko Epson
Ericsson Components
Cypress
STC Components
AMD
Motorola
Oki Electric
Goldstar
GE Solid State
Honeywell Solid State
95
59
28
42
41
35
33
34
25
25
30
23
25
14
14
14
91
67
55
52
50
49
47
40
37
35
30
24
21
21
20
19
19
18
17
15
13
12
11
10
8
8
7
7
7
5
5
4
3
1
European Others
North American Others
Japanese Others
10
19
1
10
39
0.0
105.3
(100.0)
711
300
317
94
877
403
360
113
1
23.3
34.3
13.6
20.2
Ranked Companies
Total
Total
Total
Total
Total
AU Companies
European
North American
Japanese
Rest of Worid
12
12
15
12
7
11
9
3
7
6
4
6
2
14
3
11
10
50.0
41.7
0.0
8.3
57.1
(9.1)
(11.1)
166.7
0.0
16.7
75.0
(16.7)
150.0
(71.4)
0.0
(100.0)
(100.0)
100.0
46.0
41.0
12.9
0.1
NA = Not Applicable
Source: Dataquest (June 1990)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
29
Final 1989 European Semiconductor Market Share Estimates
Table 21
1989 European MOS Standard Logic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
NA
5
6
7
9
11
13
8
10
14
NA
4
12
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
NA
NA
0
0
0
0
0
0
1
2
3
(3)
(2)
1
Ranked Companies
1988-89
1988 1989 Annual
Sales Sales Growth
($M) ($M) (Percent)
AMD
Philips
Motorola
Harris
National Semiconductor
Texas histiuments
SGS-Thomson
IDT
Hitachi
STC Components
Samsung
Toshiba
Goldstar
Mitsubishi
GE Solid State
AT&T
39
5
European Others
North American Others
Rest of Worid Others
6
3
2
7
3
2
16.7
0.0
0.0
287
74
190
10
13
263
74
175
9
5
(8.4)
0.0
(7.9)
(10.0)
(61.5)
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
57
48
40
21
19
18
6
5
2
9
5
2
58
46
33
29
22
21
18
9
6
3
2
2
1
1
1.8
(4.2)
(17.5)
4.8
10.5
0.0
50.0
20.0
50.0
(77.8)
(60.0)
(50.0)
1989
1989
1989
Cum. Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
58
104
137
166
188
209
227
236
242
245
247
249
250
251
22.1
17.5
12.5
11.0
8.4
8.0
6.8
3.4
2.3
1.1
0.8
0.8
0.4
0.4
22.1
39.5
52.1
63.1
71.5
79.5
86.3
89.7
92.0
93.2
93.9
94.7
95.1
95.4
258
261
263
2.7
1.1
0.8
98.1
99.2
100.0
(100.0)
(100.0)
100.0
28.1
66.5
3.4
1.9
'
NA = Not Applicable
Source: Dataquest (June 1990)
30
©1990 Dataquest Eiuope Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 22
1989 European Other MOS Logic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
3
2
4
8
11
7
NA
NA
6
10
5
9
12
13
14
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
NA
NA
NA
NA
NA
0
1
(1)
0
3
5
0
(4)
(1)
Ranked Companies
Philips
Siemens
SGS-Thomson
Motorola
National Semiconductor
Matra MHS
Intel
Sanyo
Texas Instruments
Plessey Semiconductors
Marconi Electronic Devices
NEC
Rockwell
Austria Mikro Systeme
VLSI Technology
LSI Logic
North American Others
Japanese Others
Total
Total
Total
Total
All Companies
European
North American
Japanese
1988-89
1988 1989
Annual
Growth
Sales Sales
($M) ($M) (Percent)
154
34
51
26
10
4
16
16
7
17
7
3
2
1
120
62
56
37
10
5
2
2
2
1
1
(22.1)
82.4
9.8
42.3
0.0
25.0
(87.5)
(93.8)
(85.7)
(100.0)
(100.0)
(100.0)
(100.0)
(100.0)
7
2
2
1
(71.4)
(50.0)
357
269
69
19
301
245
53
3
(15.7)
(8.9)
(23.2)
(84.2)
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
120
182
238
275
285
290
292
294
296
297
298
39.9
20.6
18.6
12.3
3.3
1.7
0.7
0.7
0.7
0.3
0.3
39.9
60.5
79.1
91.4
94.7
96.3
97.0
97.7
98.3
98.7
99.0
300
301
0.7
0.3
99.7
100.0
100.0
81.4
17.6
1.0
NA = Not Applicable
Source: Dataquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
31
Final 1989 European Semiconductor Market Share Estimates
Table 23
1989 European Total Analog Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
0
0
0
2
(1)
(1)
0
0
8
0
1
2
(2)
4
4
1
2
3
6
4
5
7
8
17
10
12
14
11
18
19
NA
9
15
16
20
31
28
NA
23
22
NA
NA
21
25
26
29
24
27
30
(8)
(3)
(3)
0
10
6
(1)
(3)
(7)
(4)
(4)
(2)
(8)
(6)
(4)
Ranked Companies
Philips
SGS-Thomson
National Semiconductor
Siemens
Texas Instruments
Motorola
Analog Devices
Telefunken Electronic
Harris
Burr-Brown
Ericsson Components
Precision Monolithics
m
Toshiba
AMD
Mitsubishi
Plessey Semiconductors
Sprague
Siliconix
Mitel Semiconductor
Samsung
Austria Mikro Systeme
Fujitsu
Rohm Electronics
Unitrode
TMS
Rockwell
Raytheon
Hitachi
STC Compcaients
Sanyo
Matsushita (Panasonic)
Sony
NEC
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
281
210
140
102
105
105
90
52
18
43
34
30
41
17
17
49
27
18
14
2
4
6
6
7
6
4
3
6
4
3
316
226
160
134
100
99
89
62
47
39
35
29
27
22
22
21
18
17
16
14
10
9
9
8
8
7
7
6
6
5
5
4
4
4
12.5
7.6
14.3
31.4
(4.8)
(5.7)
(1.1)
19.2
161.1
(9.3)
2.9
(3.3)
(34.1)
29.4
29.4
(63.3)
(37.0)
(11.1)
0.0
400.0
125.0
33.3
33.3
(14.3)
0.0
25.0
66.7
(33.3)
0.0
33.3
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
316
542
702
836
936
1,035
1,124
1,186
U33
1,272
1,307
1,336
1363
U85
1,407
1,428
1,446
1,463
1,479
1,493
1,503
1,512
1,521
1,529
1,537
1,544
1,551
1,557
1,563
1,568
1,573
1,577
1,581
1,585
18.6
13.3
9.4
7.9
5.9
5.8
5.2
3.7
2.8
2.3
2.1
1.7
1.6
1.3
1.3
1.2
1.1
1.0
0.9
0.8
0.6
0.5
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.2
0.2
0.2
18.6
32.0
41.4
49.3
55.2
61.0
66.3
69.9
72.7
75.0
77.1
78.8
80.4
81.7
83.0
84.2
85.3
86.3
87.2
88.0
88.6
89.2
89.7
90.2
90.6
91.0
91.5
91.8
92.2
92.5
92.7
93.0
93.2
93.5
(Continued)
32
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 23
1989 European Total Analog Market Share Rankings
(Millions of U.S. Dollars) (Continued)
1988 1989
Rank Rank
NA
33
NA
NA
13
32
Change
in Rank
35
36
37
38
NA
NA
(3)
Ranked Companies
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
Marconi Electronic Devices
Seiko Epson
Goldstar
International Rectifier
GE Solid State
AT&T
33
2
European Others
North American Others
Japanese Others
2
49
2
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
1
2
1
1
1
0.0
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
1,587
1,588
1,589
1.590
0.1
0.1
0.1
0.1
93.6
93.6
93.7
93.8
1,592
1,689
1,696
0.1
5.7
0.4
93,9
99.6
100.0
(100.0)
(100.0)
2
97
7
0.0
98.0
250.0
1,533 1,696
738
816
745
778
48
91
2
11
10.6
10.6
4.4
89.6
450.0
100.0
48.1
45.9
5.4
0.6
NA = Not Applicable
Souice: Dataquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
33
Final 1989 European Semiconductor Market Share Estimates
Table 24
1989 European Monolithic Analog Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
5
4
6
7
8
16
11
13
10
17
19
15
NA
9
14
18
31
20
26
24
NA
NA
21
23
NA
22
25
27
28
30
29
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Change
in Rank
0
0
0
1
(1)
0
0
0
7
1
2
(2)
4
5
0
(8)
(4)
(1)
11
(1)
4
1
(5)
(4)
(7)
(5)
(4)
(4)
(3)
(5)
Ranked Companies
Philips
SGS-Thomson
National Semiconductor
Siemens
Texas Instruments
Motorola
Analog Devices
Telefunken Electronic
Harris
Ericsson Components
Precision Monolithics
ITT
Toshiba
AMD
Burr-Brown
Mitsubishi
Plessey Semiconductors
Sprague
Siliconix
Samsung
Mitel Semiconductor
Austria Mikro Systeme
Unitrode
TMS
Rockwell
Raytheon
Hitachi
Fujitsu
Matsushita (Panasonic)
Rohm Electronics
STC Components
NEC
Sanyo
Sony
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
247
210
140
94
105
87
73
49
18
34
30
41
17
17
23
48
27
17
2
10
4
5
6
6
6
4
3
3
2
2
276
226
160
125
100
81
72
59
45
35
29
27
22
22
21
20
18
17
16
10
9
9
7
7
7
6
6
6
4
4
4
4
4
2
11.7
7.6
14.3
33.0
(4.8)
(6.9)
(1.4)
20.4
150.0
2.9
(3.3)
(34.1)
29.4
29.4
(8.7)
(62.5)
(37.0)
(5.9)
400.0
(10.0)
125.0
40.0
0.0
0.0
(33.3)
0.0
33.3
33.3
100.0
0.0
1989
1989
1989
Market
Cum.
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
276
502
662
787
887
968
1,040
1,099
1,144
1.179
uos
1,235
1,257
1,279
1,300
1,320
1,338
1,355
1,371
1,381
1,390
1,399
1,406
1,413
1,420
1,426
1,432
1,438
1,442
1,446
1,450
1,454
1,458
1,460
17.7
14.5
10.3
8.0
6.4
5.2
4.6
3.8
2.9
2.2
1.9
1.7
1.4
1.4
1.3
1.3
1.2
1.1
1.0
0.6
0.6
0.6
0.4
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.1
17.7
32.2
42.4
50.4
56.9
62.1
66.7
70.4
73.3
75.6
77.4
79.2
80.6
82.0
83.3
84.6
85.8
86.9
87.9
88.5
89.1
89.7
90.1
90.6
91.0
91.4
91.8
92.2
92.4
92.7
92.9
93.2
93.5
93.6
(Continued)
34
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 24
1989 European Monolithic Analog Market Share Rankings
(Millions of U.S. Dollars) (Continued)
1988 1989 Change
Rank Rank in Rank
NA
NA
NA
12
32
35
36
37
NA
NA
Ranked Companies
Marconi Electronic Devices
International RectiRer
Goldstar
GE Solid State
AT&T
European Others
North American Others
Japanese Others
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
1988-89
Annual
1988 1989
Growth
Sales Sales
($M) ($M) (Percent)
2
1
1
1,462
1,463
1,464
0.1
0.1
0.1
93.7
93.8
93.8
1,466
1,559
1,560
0.1
6.0
0.1
94.0
99.9
100.0
(100.0)
(100.0)
33
2
2
93
1
0.0
89.8
1,416 1,560
763
691
713
683
40
73
2
11
10.2
10.4
4.4
82.5
450.0
2
49
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
100.0
48.9
45.7
4.7
0.7
NA = Not Ai^cable
Souice: dataquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
35
Final 1989 European Semiconductor Marliet Share Estimates
Table 25
1989 European Hybrid Analog Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
4
5
6
9
7
NA
8
NA
11
10
14
13
NA
12
16
15
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
NA
NA
NA
0
0
0
0
0
0
2
(1)
(2)
(1)
(3)
0
(2)
Ranked Companies
Philips
Burr-Brovra
Motorola
Analog Devices
Siemens
Mitel Semiconductor
Rohm Electronics
Telefunken Electronic
Fujitsu
Sony
Harris
STC Components
Unitrode
Sanyo
Seiko Epson
Mitsubishi
Siliconix
Plessey Semiconductors
Raytheon
North American Others
Japanese Others
Total
Total
Total
Total
AU Companies
European
North American
Japanese
1988-89
1988 1989 Annual
Sales Sales Growth
($M) ($M) (Percent)
34
20
18
17
8
4
2
3
2
40
18
18
17
9
5
4
3
3
2
2
17.6
(10.0)
0.0
0.0
12.5
25.0
100.0
0.0
0.0
0.0
0.0
0.0
0.0
1989
1989
1989
Cum. Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
40
58
76
93
102
107
111
114
117
119
121
122
123
124
125
126
29.4
13.2
13.2
12.5
6.6
3.7
2.9
2.2
2.2
1.5
1.5
0.7
0.7
0.7
0.7
0.7
29.4
42.6
55.9
68.4
75.0
78.7
81.6
83.8
86.0
87.5
89.0
89.7
90.4
91.2
91.9
92.6
130
136
2.9
4.4
95.6
100.0
(100.0)
(100.0)
(100.0)
2
4
6
200.0
117
47
62
8
136
53
65
18
16.2
12.8
4.8
125.0
100.0
39.0
47.8
13.2
NA = Not AppUcaUe
Source: Dataquest (June 1990)
36
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 26
1989 European Total Discrete Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
4
5
8
7
9
10
NA
11
19
14
NA
13
15
NA
20
24
18
16
27
22
25
21
23
28
26
30
6
31
29
NA
32
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Change
in Rank
0
0
0
0
0
2
0
1
1
0
7
1
(2)
(1)
2
5
(2)
(5)
5
(1)
1
(4)
(3)
1
(2)
1
(24)
0
(3)
(2)
Ranked Companies
Philips
Motorola
SGS-Thomson
Siemens
m
International
Rectifier
Telefunken Electronic
Semikron
Toshiba
ABB-IXYS
Powerex
General Instrument
Siliconix
Harris
Texas Instruments
Fagor Electrotecnica
Fujitsu
Matsushita (Panasonic)
Mitsubishi
Marconi Electronic Devices
TAG
Hewlett-Packard
Rohm Electronics
NEC
Unitrode
Hitachi
Sprague
National Semiconductor
Sanyo
ABB-HAFO
Samsung
STC Components
TMS
Raytheon
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
313
196
167
135
103
66
66
56
52
28
18
23
25
21
13
6
18
18
4
10
5
10
9
2
5
1
69
1
1
1
294
193
177
162
105
70
66
55
46
40
33
33
25
24
23
22
22
21
20
17
17
17
14
14
11
9
7
5
4
3
3
2
2
1
(6.1)
(1.5)
6.0
20.0
1.9
6.1
0.0
(1.8)
(11.5)
17.9
83.3
8.7
(8.0)
4.8
61.5
233.3
(5.6)
(5.6)
325.0
40.0
180.0
10.0
0.0
250.0
0.0
300.0
(95.7)
200.0
100.0
0.0
1989
1989
1989
Market
Cum.
Cum.
Share
Sum
Sum
($M) (Percent) (Percent)
294
487
664
826
931
1,001
1,067
1,122
1.168
1,208
1,241
1,274
1,299
1,323
1,346
1,368
1,390
1,411
1,431
1,448
1,465
1,482
1,496
1,510
1,521
1,530
1,537
1,542
1,546
1,549
1,552
1,554
1,556
1,557
18.4
12.1
11.1
10.2
6.6
4.4
4.1
3.5
2.9
2.5
2.1
2.1
1.6
1.5
1.4
1.4
1.4
1.3
1.3
1.1
1.1
1.1
0.9
0.9
0.7
0.6
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.1
18.4
30.6
41.7
51.8
58.4
62.8
66.9
70.4
73.3
75.8
77.9
79.9
81.5
83.0
84.4
85.8
87.2
88.5
89.8
90.8
91.9
93.0
93.9
94.7
95.4
96.0
96.4
96.7
97.0
97.2
97.4
97.5
97.6
97.7
(Continued)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited June
37
Final 1989 European Semiconductor Market Share Estimates
Table 26
1989 European Total Discrete Market Share Rankings
(Millions of U.S. Dollars) (Continued)
1988 1989
Rank Rank
NA
12
17
33
Change
in Rank
35
NA
NA
NA
Ranked Companies
1988-89
Annual
1988 1989
Sales Sales Growth
($M) ($M) (Percent)
Sony
GE Solid State
Plessey Semiconductors
AT&T
27
18
1
European Others
North American Others
Japanese Others
Rest of World Others
6
11
7
4
Total
Total
Total
Total
Total
AU Companies
European
North American
Japanese
Rest of World
1
1989
1989
1989
Cum.
Market
Cum.
Share
Sum
Sum
($M) (Percent) (Percent)
1,558
0.1
97.7
1,564
1,575
1,592
1,594
0.4
0.7
1.1
0.1
98.
98.8
99.9
100.0
(100.0)
(100.0)
(100.0)
6
11
17
2
0.0
0.0
142.9
(50.0)
1,516 1,594
888
863
520
558
103
168
5
5
5.1
(2.8)
7.3
63.1
0.0
100.0
54.1
35.0
10.5
0.3
NA = Not Applicable
Source: Dauquest (June 1990)
38
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 27
1989 E u r o p e a n Transistor M a r k e t Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
1
2
3
4
5
6
8
7
9
NA
13
11
NA
12
19
14
17
16
NA
23
20
24
18
21
26
22
25
NA
NA
10
15
27
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
NA
NA
NA
0
0
0
0
0
0
1
(1)
0
2
(1)
(2)
4
(2)
0
(2)
3
(1)
2
(5)
(3)
1
(4)
(2)
Ranked Companies
Philips
Motorola
SGS-Thomson
Siemens
Toshiba
nr
Siliconix
Texas Instruments
Intem^onal Rectifier
Fujitsu
Powerex
Telefunken Electronic
Harris
Matsushita (Panasonic)
NEC
Rohm Electronics
Mitsubishi
Marconi Electronic Devices
ABB-IXYS
Sanyo
National Semiconductor
Samsung
Hewlett-Packard
Sprague
Hitachi
Semikron
Raytheon
TMS
Sony
GE SoUd State
Plessey Semiconductors
ABB-HAFO
European Others
North American Others
Japanese Others
Rest of World Others
Total
Total
Total
Total
Total
All Companies
European
North American
Japanese
Rest of World
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
185
124
85
66
36
32
23
25
20
8
16
12
3
7
4
5
1
3
1
4
2
1
1
1
180
127
90
77
34
32
25
23
23
22
18
17
17
14
11
10
10
5
5
4
3
3
2
2
20
7
1
(2.7)
2.4
5.9
16.7
(5.6)
0.0
8.7
(8.0)
15.0
125.0
6.3
16.7
266.7
42.9
150.0
0.0
300.0
0.0
200.0
(50.0)
0.0
0.0
0.0
0.0
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
180
307
397
474
508
540
565
588
611
633
651
668
685
699
710
720
730
735
740
744
747
750
752
754
755
756
757
758
759
23.0
16.2
11.5
9.8
4.3
4.1
3.2
2.9
2.9
2.8
2.3
2.2
2.2
1.8
1.4
1.3
1.3
0.6
0.6
0.5
0.4
0.4
0.3
0.3
0.1
0.1
0.1
0.1
0.1
23.0
39.3
50.8
60.6
65.0
69.1
72.3
75.2
78.1
80.9
83.2
85.4
87.6
89.4
90.8
92.1
93.4
94.0
94.6
95.1
95.5
95.9
96.2
96.4
96.5
96.7
96.8
96.9
97.1
761
770
780
782
0.3
1.2
1.3
0.3
97.3
98.5
99.7
100.0
(100.0)
(100.0)
(100.0)
2
7
3
4
2
9
10
2
0.0
28.6
233.3
(50.0)
709
368
269
67
5
782
378
282
117
5
10.3
2.7
4.8
74.6
0.0
100.0
48.3
36.1
15.0
0.6
NA = Not Applicable
Source: Dataijuest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
39
Final 1989 European Semiconductor Marltet Share Estimates
Table 28
1989 European Diode Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
^ank Rank
1
2
3
4
5
10
6
7
9
8
NA
NA
13
21
15
17
14
16
18
19
20
NA
11
12
23
22
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
NA
NA
NA
NA
0
0
0
0
0
4
(1)
(1)
0
(2)
0
7
0
1
(3)
(2)
(1)
(1)
(1)
Ranked Companies
Philips
Motorola
SGS-Thomson
nr
Siemens
General Instrument
Telefunken Electronic
International Rectifier
Fagor Electrotecnica
Semikron
Hewlett-Packard
ABB-IXYS
Unitrode
Matsushita (Panasonic)
Marconi Electronic Devices
Rohm Electronics
Powerex
Toshiba
National Semiconductor
STC Components
NEC
TMS
ABB-HAFO
Plessey Semiconductors
AT&T
GE Solid State
European Others
North American Others
Japanese Others
Total
Total
Total
Total
All Companies
Eurc^an
North American
Japanese
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
111
59
50
47
35
18
26
23
21
21
8
1
4
3
5
3
2
1
1
1
14
11
1
1
95
55
54
47
40
33
26
22
22
21
15
11
9
7
4
4
3
3
2
2
1
(14.4)
(6.8)
8.0
0.0
14.3
83.3
0.0
(4.3)
4.8
0.0
12.5
600.0
0.0
33.3
(40.0)
0.0
0.0
100.0
0.0
477
(100.0)
(100.0)
(100.0)
(100.0)
2
4
1
2
2
6
0.0
(50.0)
500.0
473
296
168
9
487
278
188
21
3.0
(6.1)
11.9
133.3
1989
1989
1989
Cum.
Cum.
Market
Sum
Sum
Share
($M) (Percent) (Percent)
95
150
204
251
291
324
350
372
394
415
430
441
450
457
461
465
468
471
473
475
476
0.2
19.5
11.3
11.1
9.7
8.2
6.8
5.3
4.5
4.5
4.3
3.1
2.3
1.8
1.4
0.8
0.8
0.6
0.6
0.4
0.4
0.2
97.9
19.5
30.8
41.9
51.5
59.8
66.5
71.9
76.4
80.9
85.2
88.3
90.6
92.4
93.8
94.7
95.5
96.1
96.7
97.1
97.5
97.7
479
481
487
0.4
0.4
1.2
98.4
98.8
100.0
100.0
57.1
38.6
4.3
NA = Not AppUcaUe
Souice: Dataquest (June 1990)
40
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 29
1989 European Thyristor Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
2
3
NA
4
5
6
S
7
9
10
11
12
13
14
NA
1
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
NA
1
1
0
0
0
1
(1)
0
0
0
0
0
0
Ranked Companies
SGS-Thomson
Siemens
ABB-KYS
TAG
Telefunken Electronic
Semikron
International Rectifier
Powerex
PhiUps
Marconi Electronic Devices
Motorola
Hitachi
Mitsubishi
Unitrode
NEC
ABB-HAFO
European Others
Total
Total
Total
Total
All Companies
European
North American
Japanese
1988-89
1988 1989
Annual
Sales Sales Growth
($M) ($M) (Percent)
32
19
18
17
17
13
15
9
9
8
3
2
1
33
23
23
17
16
16
13
12
9
8
6
3
3
1
1
3.1
21.1
(5.6)
(5.9)
(5.9)
0.0
(20.0)
0.0
(11.1)
(25.0)
0.0
50.0
0.0
1989
1989
1989
Cum.
Market
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
33
56
79
96
112
128
141
153
162
170
176
179
182
183
184
17.8
12.4
12.4
9.2
8.6
8.6
7.0
6.5
4.9
4.3
3.2
1.6
1.6
0.5
0.5
17.8
30.3
42.7
51.9
60.5
69.2
76.2
82.7
87.6
91.9
95.1
96.8
98.4
98.9
99.5
185
0.5
100.0
(100.0)
46
1
1
0.0
210
168
37
5
185
146
32
7
(11.9)
(13.1)
(13.5)
40.0
100.0
78.9
17.3
3.8
NA = Not Applicable
Source: Dotaquest (Jme 1990)
ESIS Volume 3
0006080
©1990 Dataquest Europe Limited Jime
41
Final 1989 European Semiconductor Market Share Estimates
Table 30
1989 European Other Discrete Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
NA
0
1
(1)
1
1
(2)
1
1
3
2
5
6
4
8
NA
NA
10
11
NA
7
12
13
NA
9
0
0
(6)
(2)
(2)
Ranked Companies
nr
Siemens
Semikron
Intemational Rectifier
Philips
Toshiba
Telefunken Electronic
Harris
Mitsubishi
Motorola
Hitachi
Sprague
ABB-HAFO
Unitrode
NEC
ABB-KYS
GE Solid State
European Others
Japanese Others
Total
Total
Total
Total
All Companies
European
North American
Japanese
1988-89
1988 1989
Annua!
Sales Sales Growth
($M) ($M) (Percent)
24
15
17
10
8
13
7
5
5
8
1
1
26
22
17
12
10
9
7
7
7
5
5
5
3
1
1
1
6
8.3
46.7
0.0
20.0
25.0
(30.8)
0.0
0.0
0.0
(62.5)
0.0
0.0
1989
1989
1989
Market
Cum.
Cum.
Sum
Sum
Share
($M) (Percent) (Percent)
26
48
65
77
87
96
103
110
117
122
127
132
135
136
137
138
18.6
15.7
12.1
8.6
7.1
6.4
5.0
5.0
5.0
3.6
3.6
3.6
2.1
0.7
0.7
0.7
18.6
34.3
46.4
55.0
62.1
68.6
73.6
78.6
83.6
87.1
90.7
94.3
96.4
97.1
97.9
98.6
139
140
0.7
0.7
99.3
100.0
(100.0)
1
3
1
1
0.0
(66.7)
124
56
46
22
140
61
56
23
12.9
8.9
21.7
4.5
100.0
43.6
40.0
16.4
NA = Not Applicable
Source: Dataquest (June 1990)
42
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
Final 1989 European Semiconductor Market Share Estimates
Table 31
1989 European Optoelectronic Market Share Rankings
(Millions of U.S. Dollars)
1988 1989
Rank Rank
3
2
1
4
7
5
10
NA
NA
11
18
12
16
NA
NA
13
15
6
9
8
14
17
Change
in Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
NA
NA
NA
NA
NA
2
0
(2)
0
2
(1)
3
1
7
0
3
(3)
(2)
Ranked Companies
1988-89
1988 1989
Annual
Sales Sales
Growth
($M) ($M) (Percent)
Hewlett-Packard
Siemens
Telefunken Electronic
Philips
Toshiba
Texas Instruments
ABB-HAFO
Fujitsu
TMS
Motorola
NEC
Hitachi
Sharp
Harris
AT&T
Sanyo
Matsushita (Panasonic)
Plessey Semiconductors
GE Solid State
TRW
Mitsubishi
Oki Electric
49
61
65
22
17
20
6
European Others
North American Others
8
4
8
43
975.0
306
182
94
30
367
176
149
42
19.9
(3.3)
58.5
40.0
Total
Total
Total
Total
All Companies
European
North American
Japanese
5
1
4
1
4
2
2
20
8
8
2
1
79
68
67
21
19
15
6
6
6
5
5
4
4
61.2
11.5
3.1
(4.5)
11.8
(25.0)
0.0
0.0
400.0
0.0
300.0
309
3
2
2
0.0
0.0
1989
1989
1989
Cum.
Market
Cum.
Sum
Share
Sum
($M) (Percent) (Percent)
79
147
214
235
254
269
275
281
287
292
297
301
305
1.1
312
314
316
21.5
18.5
18.3
5.7
5.2
4.1
1.6
1.6
1.6
1.4
1.4
1.1
1.1
21.5
40.1
58.3
64.0
69.2
73.3
74.9
76.6
78.2
79.6
80.9
82.0
83.1
84.2
0.8
0.5
0.5
85.0
85.6
86.1
2.2
88.3
100.0
(100.0)
(100.0)
(100.0)
(100.0)
(100.0)
0.0
324
367
11.7
100.0
48.0
40.6
11.4
NA = Not Applicable
Source: Dataquest (June 1990)
ESIS Volume
0006080
©1990 Dataquest Europe Limited June
43
Final 1989 European Semiconductor Market Share Estimates
FOOTNOTES TO THE TABLES
European Companies
ABB-HAFO
ABB-HAFO was formerly known as Asea Brown Boveri.
ABB-IXYS
ABB-IXYS was formerly the West German-based power semiconductor division of
Asea Brown Boveri.
Inmos
Inmos revenue is included in SGS-Thomson revenue from 1989 onward.
Matra MHS
Matra MHS was formerly known as Matra-Harris Semiconducteurs.
SGS-Thomson
SGS-Thomson revenue includes Inmos revenue from 1989 onward.
TMS
Thomson Composants Militaires et Spatiaux (TMS) revenue was formerly included
in SGS-Thomson (30 percent) and the European Others category (70 percent).
North American Companies
AT&T
AT&T revenue was formerly included in the North American Others category.
Cypress
Cypress revenue was formerly included in the North American Others category.
Harris
Harris revenue includes GE Solid State revenue from 1989 cmward.
Micron Technology
Micron Technology revenue was formerly included in the North American Others
category.
Mitel Semiconductor
Mitel Semiconductor revenue was formerly included in the North American Others
category.
Raytheon
Raytheon revenue was formerly included in the North American Others category.
Rockwell
Rockwell revenue was formerly included in the North American Others category.
Sprague
Sprague revenue was formerly included in the North American Others category.
Unitrode
Unitrode revenue was formerly included in the North American Others category.
Japanese Companies
NMB
Nippon Miniature Bearings (NMB) revenue was formerly included in the Japanese
Odiers category.
Rohm Electronics
Rohm Electronics revenue was formerly included in the Japanese Others category.
Sanyo
Sanyo revenue was formerly included in the Japanese Others category.
Sharp
Sharp revenue was formerly included in the Japanese Others category.
Sony
Sony revenue was formerly included in the Japanese Others category.
44
©1990 Dataquest Europe Limited June
ESIS Volume 3
0006080
European Commission Policy Statement
on the Electronics and Information
Technology Industries
Semiconductors Europe
DataQuest
L
European Commission Policy Statement
on tlie Electronics and Information
Technology Industries
Source:
Dataquest
Semiconductors Europe
Preface
This document is reproduced verbatim b y ESIS with the permission of the Commission of the European
Communities for the benefit of Dataquest clients.
The original document w a s published as a Communication from the Commission SEC(91) 565 o n April 3, 1991,
"The European Electronics and Information Technology Industry: State of Play, Issues at Stake and Proposals
for Action." As this document is reproduced verbatim, n o responsibility is accepted for the accuracy of
completeness of its contents.
Published by Dataquest Europe Limited
The content of this report represents our interpretation and analysis of information generally available to the public or released by
knowledgeable individuals in the subject industry, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients.
Printed in the United Kingdom. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or
transmined, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or
otherwise—without the prior written jaermission of the publisher.
(E) 1991 Dataquest Europe Limited
November 1991
0009962
Table of Contents
Page
The European Electronics and Information
Technology Industries
EXECUTIVE SUMMARY
A. Introduction
B. The Situation of the European Industry
C. The International Context
D. A Community Approach
Demand
Technology
Training
External Relations
The Business Envirorunent
STATE OF PLAY, ISSUES AT STAKE AND
PROPOSALS FOR ACTION—GENERAL
OUTLINE
A. Introduction
B. The Situation of the Eurojjean Industry
A Major and Rapidly Expanding Industry
Strengths and Restructuring Efforts
Weaknesses
1
1
1
1
2
2
2
3
3
3
3
3
4
5
5
6
Page
C. The International Context
I. Developments in Europe and the World
n. The Causes of the Present Situation in
this Context
D. A Community Approach
I. A Reference Framework
n. Proposals for Action
7
7
9
13
13
14
Appendixes
EVOLUTION OF EUROPEAN IT AND
TELECOMMUNICATIONS INDUSTRY
Exchange Rate Trend
ANALYSIS OF THE SITUATION BY SECTOR
Semiconductors
THE WORSENING EUROPEAN TRADE
DEHCIT
ANALYSIS OF THE SITUATION OF
ELECTRONICS AND IT HRMS
21
21
23
23
25
26
List of Tables
Table
Breakdown of World Production of the IT
and Telecommunications Industries by
Main Geographical Area (since 1980)
Consumption and Production of the IT
and Electronics Industries by Main
Geographical Area
Computers—^Trend in Market Shares of IT
Firms in Europe
Control of Production of Computer
Hardware in the United States,
Europe and Japan (in 1989)
Main Statistical Data for Consumer
Electronics (in 1988)
Trends in Trade Balances for the IT and
Telecommunications Industries by
Main Geographical Area
Page
Table
7
22
M
9
22
10
24
11
24
European Trade Deficit in Electronics
and IT (1988 and 1989)
Ranking of the Top Ten Firms on the
World Market
World Ranking of Semiconductor
Manufacturers (1990)
Market Shares of World Top Ten
Semiconductor Firms
(1979, 1984 and 1990)
World Top Ten Consumer Electronics
Manufacturers (1989)
Page
25
26
27
27
28
24
25
m
tv
The European Electronics and Information Technology Industries
l i s t of Figures
Figure
jniqie
1 European Industrial Growth Comparison ....21
2 World Semiconductor Production by
Region
23
3 World Production of DRAMs by Region
23
4 Trends in Company Results
(Top 100 Information Systems Firms)
26
5 Ranking of Major World Computer Firms 28
©1991 Dataquest Europe Limited November—Reproduction Prohibited
The European Electronics and
Information Technology
Industries
Executive Smnmary
A. Introduction
The purpose of this communication is to apply the
concept of industrial policy as defined by the
Commission in its communication of November
1990 "industrial policy in an open and competitive
envirormient" to the Community
information
technology (775 and electronics industry.
This open, horizontal and offensive approach has
a natural application in the Conununity's IT and
electronics industries, which are facing severe
structural adjustment problems at present. In view
of the "enabling" nature of these industries and
their external effects on the economy as a whole,
they are often regarded as strategic. In the run-up
to the completion of the internal market and the
increasingly global dimension of the economy, a
better supported angle of attack could be based
on the following questions: do the actual competition conditions allow the European industry to be
effective? "What policies are appropriate in order
to stimulate our competitiveness?
The communication follows a double approach in
order to enable the European industry to be more
competitive on its own and on the world market:
• To contribute to the examination of the relative
industrial and technological conditions of the
Community's electronics and IT industries in
the world context.
• To set out a consistent package of measures
which the Community and the Member States
would be prepared to implement, provided that
they could be based on clearly defined
medium- and long-term objectives set by the
industry itself and on specific commitments
from their side.
' These indiistries supply three main categories of products and
services: components, which are the basic elements of any electronic equipment or system; computers, which comprise hardware and peripherals, software, and office- or industrialautomation appucations; and finally consumer electronics.
B. The Situation o f t h e Eiu*opean
Industry
These industries represent a very important sector
with a turnover in Europe of ECU 175 billion and
a market growing fast at dose to 5% of GDP.
Owing to their external effects on the whole
productive fabric they also form an infrastructure
which plays a major part in economic competitiveness, employment and social development.
The European industry has made significant progress in fields such as computer software and
services and industrial automation. It is weak in
certain key areas, however: semiconductors,
peripherals and consumer electronics. It is in a
precarious position as far as computers are concerned. This results in a growing trade deficit
(ECU 31 billion in 1990). European firms' positions differ according to their field of activity.
Many have just had poor financial results and
must restructure.
C. The International Context
Historically, the development of the IT and electronics industries has been influenced by the
structure of demand, features of the market and
the attitude of the public authorities. Despite the
present changes, the European industry is still
suffering from the consequences of long-term
fragmentation of its markets and its difficulties in
setting medium- and long-term objectives.
The worrying situation of European industry can
of course be explained by the current economic
climate: a slowing down of growth and the
depreciation of the yen and the dollar in relation
to the ECU. Most causes are structural, however,
in a world market where most public authorities
hardly think twice about intervening:
• As far as demand is concerned, the Community
market has inherited a high degree of fragmentation which restricts the exploitation of
economies of scale and "network externalities,"
and suffers from a shortage of leading-edge
users.
The European Electronics and Information Technology Industries
• Supply and competition conditions, in a market
which has become worldwide, are unequal in
different areas of the world. Equally, financing
conditions are less favourable in Europe for
these industries which have heavy investment
costs in R&TD and production capacity. There
is a shortage of skilled staff.
• As regards the structure of the productive fabric, relatively limited vertical integration, all-tooinfrequent cooperation within Europe and
weaknesses in relations between manufacturers
and users are also handicaps.
• Except in precompetitive R&TD, the industrial
strategy of European firms has not taken sufficient account of the Community and world
markets and has failed to make long-term forecasts. The possibilities of cooperation with
Community and international partners have not
been sufficiently exploited.
The economic and social importance of the IT and
electronics industries has encouraged the public
authorities of the major economic zones to pledge
support to the industry and provide it with a
competitive advantage on a local basis. In the
United States, the public authorities have taken
part in a heated debate on maintaining American
technological supremacy using national security
as the main pretext, and have widened their range
of economic policy instruments. In Japan, the
market is structurally protected by the very organization of the production system, supported by the
public authorities. The Community has concentrated on the completion of the internal market,
an essential step to make firms look, think and act
beyond national frontiers. It is also committed to
the strict application of a competition policy and
the implementation of a policy on technological
cooperation and a coordinated trade policy.
D. A Community A p p r o a c h
All these measures have been unable to offset the
inadequacies of industrial initiative, the failures of
the market and the imperfections of competition
at world level.
The measures to be taken to restore the competitiveness of the electronics and IT industry depend
first and foremost on firms themselves taking the
initiative and facing up to their responsibilities,
and on their capacity to make the most of the new
opportunities presented by the single European
market. If firms can make a clear and unequivocal
commitment to initiatives of this kind, it is up to
the Community and the Member States, in accordance with the rules of competition and applying
the principle of subsidiarity, to help create a
favourable environment for them.
The Commission is proposing five t5rpes of Community action to help firms through the adjustment process which diey are facing, without taking artificial measures to support them.
Denuind
Computerized telecommunications links between
administrations should be set up as quickly as
possible and a high level of interoperability of
their information systems achieved, while respecting human rights. This initiative would be accompanied by the launch of projects designed to
modernize or create, with the help of computerized telecommunications facilities, infrastructures
in the fields of distance learning, transport, public
health and the environment. Other projects might
relate to the gradual introduction of broadband
services networks, and the development of panEuropean high-definition television services.
Technology
The Community could consider launching a second generation of R&TD, ranging from projects at
the precompetitive stage to projects geared more
closely to the market. This second generation
should be characterized by the concentration of
work on a smaller number of better targeted and
more ambitious objectives, closer cooperation
with users, provision of training linked to
advanced research and opening-up to international cooperation.
Mobilizing projects aimed at accelerating technology take-up on a broad scale should be carried
out alongside integrating projects aimed at mastering and consolidating a selected range of interdependent technologies. Such projects could
cover software, computer integrated manufacturing, m i c r o e l e c t r o n i c s , p e r i p h e r a l s , h i g h performance computing and telecommunications.
Training
Multidisciplinary training measures could be
launched or stepped up. They would be targeted
at training staff and at staff engaged in production
and management in firms using and supplying
computerized telecommunications equipment and
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The European Electronics and Information Technology industries
services. Networks of excellence composed of
both academic and industrial teams, geographically distributed throughout the Community, will
continue to be set up.
State of Play, Issues at Stake
and Proposals for
Action—General Outline
External
A. Introduction
Relations
Trade policy will help to improve the competitiveness of the European electronics and IT industry.
The Commission will seek a satisfactory conclusion for these industries in the multilateral negotiations of the Uruguay Round. It will endeavour to
ensure fair conditions of competition and access
to third-country markets. Where necessary, it will
have recourse to bilateral measures and will fall
back on its customs regulations and trade policy
instruments. The Commimity will support international cooperation by setting up or expanding
appropriate frameworks for trade and cooperation, notably with the EFTA countries. Central and
Eastern Europe, the United States of America and
Japan. Where appropriate, it will take the initiative
of l a u n c h i n g i n t e r n a t i o n a l c o o p e r a t i o n
programmes.
The Business
Environment
Other initiatives will also help to create a healthy
business environment. These concern the
improvement of financing systems, faster standardi2ation and integration of standards into
products, closer involvement of the development
of electronics and IT in the introduction of structural policies, and a stepping-up of the dialogue
between the various parties involved, especially
SMEs.
The communication summarized here is intended
to serve as background for a debate with the
Member States, the European Parliament, the Economic and Social Committee as well as the industries, manufacturers and users concerned, in order
to analyse the situation as perceived by the Commission and discuss the action to be taken.
This should enable the Commission to enter into
fruitful dialogue with industry, users and investors, to assess the situation in greater depth from a
dynamic perspective and to identify conditions for
a long-term recovery, while respecting the roles of
the parties concerned.
1. In November 1990 the Commission adopted a
communication on industrial polic;/. While placing the main responsibility for improving industrial competitiveness on firms, the Commission
indicated that it was up to the public authorities to
provide them with a dear and predictable framework and outlook for their activities.
The industrial policy approach adopted by the
Commission and approved by the Council is
based on the concept of Community interest, on
past experience of industrial adjustment and on
the overall industrial challenges which the Community must be prepared to tackle.
It focuses on the importance of the single market
to industry and on the application of the competition rules at international level to ensure, on the
basis of a balance of rights and obligations, that
competitors' markets are as open as the Community market. In its industrial policy paper the Commission also comes out in favour of pursuing
positive adjustment policies, including a technological development policy; such policies are
regarded by the Commission as complementing
the open and competitive environment needed in
the context of the single European market.
2. This open, horizontal and offensive approach
has a natural application in the Community's electronics and information technology (ID industries, which are facing severe structural adjustment
problems at present. In view of the "enabling"
nature of these industries and their external
effects on the economy as a whole, they are often
regarded as strategic. In the run-up to the completion of the internal market and the increasingly
global dimension of the economy, a better supported approach could be based on the following
questions: do the actual conditions of competition
idlow European industry to be effective? What
policies are appropriate in order to stimulate our
competitiveness?
' Commission communication on industrial policy in an open and
competitive environment (COM(90)556).
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3. These industries provide three main categories
of products and services: components*, which are
the basis of any electronic equipment or system;
computers, consisting of hardware, peripherals,
software and office and industrial automation
applications"; and finally consumer electronics'.
These are the industries which are the subjea of
this communication.
Other allied high-growth industries, e.g. the
industries which provide audiovisual services,
telecommunications equipment and services, and
on-line data base services, are not discussed in
this communication, but may be covered by separate communications.
4. Taken as a whole, these industries have certain
specific features, contributing as they do towards
the compilation, creation, communication and
application of something which may be regarded
as a new resource, namely information.
They are already important in their own right,
with a worldwide turnover of ECU 700 billion in
1990 and a Community-wide turnover of ECU 175
billion. Their rapidly expanding market now
represents 5% of GDP and wUl be nearing 10% by
the year 2000.
However, they also constitute an infrastructure
through the "enabling" nature of the technologies
developed by them. The closely interdependent
group formed by these rapidly developing new
technologies provides the hardware, software and
application systems now used in virtually all economic and social activities. As a result, these
industries have a major part to play in the competitiveness of industry and the quality of services,
in particular public services of general interest.
' Components: passive components, active components including memories, microprocessors, microcontrollers, applicationspecific integrated circuits (ASICs), etc.
'' Computers:
• hardware: portables, microcomputers, minicomputers, workstations, mainframes, network equipment, etc.
• peripherals-, printers, discs, screens, etc.
• software, packages and applications, information systems, systems engtoeering and services, etc.
• office automation: photocopiers, facsimile machines, dedicated terminals, etc.
• industrial automation: numeiically<ontFoUed machine tools,
robots, sensors, computer-aided design, manufacturing and
management, computer-integrated manufacturing systems, etc.
' Consumer electtvnlcs: TV, video tape recorders, video cameras, video disc players, compact disc players, etc.
The impact on employment is considerable. It is
estimated that between 60% and 65% of the working population is direcdy or indirectly affected by
these technologies and their applications.
5. This communication has been written at a time
when many of these industries are in difficulty,
especially in Europe. This state of affairs calls for
an analysis without complacency, and in a world
context, of the situation in this sector, the causes
of the difficulties encountered and the respective
roles to be played by and the challenges to be
faced by the firms and the public authorities.
The communication follows a double approach in
order to enable the European industry to be more
competitive on its own and on the world market:
• To contribute to the examination of the relative
industrial and technological conditions of the
Community's electronics and IT industries. This
examination analyses the situation by looking
at all the players concerned in Europe and the
world as a whole, taking into account the progress towards a single European market which
is still influenced by structures and behaviour
bound up with the fragmentation of the Community market and subjected to international
competition with very contrasting rules.
• To set out, in keeping with the industrial policy
paper mentioned at the beginning, a consistent
package of measures which the Community
and the Member States would be prepared to
implement. It must be made dear, however,
that this initiative will be pointless and impracticable unless it is based on clearly defined
medium- and long-term objectives set by the
industry and on specific commitments from
their side.
B. The Situation o f t h e European
Industry
6. Annex I contains a detailed quantitative analysis
of the situation of the industry in Europe and
worldwide. The following prominent features
emerge from it:
• The electronics and IT industry in Europe and
the world as a whole is expanding considerably, particularly on the demand side. Market
studies suggest that this expansion will continue at least until the end of the decade, making this industry even more important than it is
today.
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The European Electronics and Information Technology Industries
• The background to the development of these
industries in the world as a whole makes it
easier to understand the current difficulties of
the European industry. The causes are examined in greater detail in Section II below. As a
result of them, despite the strengths and the
genuine efforts made to face up to technological changes and new market conditions (establishment of the single market, and globalization) the European industry has weaknesses
and shortcomings which give grounds for
concern.
A Major and Rapidly Expanding
Industry
7. The European electronics and IT industry has
achieved great importance in a particularly short
space of time. With a growth rate of around 15%
per annum in the 1980s, well in excess of the
GDP growth rate, it has caught up with other
major Community industries such as the chemical
industry and the motor industry. Between 1984
and 1989 the turnover for this industry as a whole
more than doubled, rising from ECU 55 billion to
ECU 130 billion. Allied to the telecommunications
industry, which both drives it and is driven by it,
the electronics and IT industry now represents
nearly 5% of GDP in Europe compared with 5-5%
in Japan and 6.2% in the United States.
The trend since 1980 in world production for all
the electronics and IT industries, together with
telecommunications, by main geographical areas,
is as follows*:
• American production is pre-eminent in absolute
terms but falling over time (37% in 1990 compared with 46% in 1980).
• Japanese production has increased considerably in both absolute and relative terms (24% in
1990 compared with 15% in 1980).
• The European industry's comparatively modest
production level has remained fairly stable
(24% in 1990 compared with 26% in 1980),
although there are major differences between
sectors.
Demand in Europe represented a quarter of world
demand in 1984 and a third in 1989. With the
single European market, the driving role of the
European market will increase. The forecast for
the year 2000 is for sustained demand growth in
Source: EIC.
the "triad": 11% for active components, 11% for
computers and 4% for consumer electronics.
Strengths and Restt%icturing
Efforts
8. The European electronics and IT industry has
considerable potential and in recent years has
made significant progress in certain areas, in particular in software and computer services and in
industrial automation.
There are in the Community some 13,000 computer services and engineering companies whose
strengths lie in particular in the integration of
customized software and systems. In 1989 Siemens, BuU, and Olivetti ranked for the first time
among the top ten computer companies, though
admittedly a long way behind IBM, whose
turnover is nearly three times their combined
turnover. The European advanced manufacturing
equipment industry (numerically controlled
machine tools, industrial robots, etc.) has regained
its position of world leader, pursued by Japan and
well ahead of the United States. Alongside the
electronics and IT industry, the European
telecommunications industry has considerably
strengthened its comjjetitive position, with Alcatel
and Siemens in first and third places respectively
in the world.
Europe's university and research structure possesses a wealth of differentiated cultural and
intellectual resources. The situation as regards
research and technological development has
changed substantially since 1980. The Community
programmes (ESPRIT, RACE, BRITE) and EUREKA
have helped to mobilize human, financial and
technological resources. Their catalytic effects
have helped to encourage joint analyses, develop
inter-firm cooperation and consolidate the technological base.
The European companies operating in these areas
employ over 800,000 highly-skilled workers in the
Community and approximately 1.1 million in the
world as a whole.
To face up to the current difficulties, the European
firms are engaged in restructuring operations:
they are stepping up their efforts to reduce costs
and increase their productivity, and are striving to
speed up their response to rapid changes in
demand. These restructuring efforts are cosUy and
entail significant job-shedding. Many of them are
refocusing their activities on markets with a
promising future (Olivetti in microcomputers and
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workstations, Philips in consumer electronics,
etc.), and adjusting their operating and distribution structures.
Weaknesses
9. Despite this growth, these strengths and this
technological potential, there are worrying weaknesses and shortcomings. An analysis of the situation of the Community industry indicates a limited
presence in certain key sectors: semiconductors,
peripherals, consumer electronics, and a precarious situation in computers. Apart from the consequences for the balance of trade, this situation
obliges European companies to obtain supplies of
certain vital components from their competitors,
which impedes dieir decision-making ability.
In semiconductors, Japan has a 49.5% share of
production compared with 36.5% for the United
States and 10% for Europe.
Computer peripherals (discs, printers, screens,
etc.) are manufactured to a large extent in Japan
(40% of world production) and to a lesser extent
in the United States (25%). Production in Europe
accounts for only about 15%.
In consumer electronics, Japan accounts for 55%
of world production and has control over 99% of
its domestic production, 27% of production in
Europe and 20% of production in the United
States. The Community industry accounts for
nearly 20% of world production.
In computers, production in Europe only covers
two-thirds of internal demand, and 60% is
accounted for by firms of American origin (IBM,
Digital, Hewlett-Packard)^. After staging a significant recovery between 1984 and 1987, the Commission industry has again lost ground in Europe.
Overall, therefore, the increased demand for electronics and IT products and services in Europe is
being met only to a limited extent from European
sources. Production in Europe covers about 75%
of consumption in the electronics and IT sector, as
compared with 140% in Japan. This imbalance has
generated a trade deficit in Europe which has
worsened since the start of the 1980s. For electronics as a whole, it was ECU 31 billion in Europe
' It should be noted that American and Japanese companies create
less value added per employee in Europe than in their domestic
markets.
compared with a surplus of ECU 57 billion in
Japan and a deficit of ECU 7 billion in the United
States. Europe's deficit is mainly attributable to
trade in components (deficit of ECU -5.6 billion),
computers (deficit of ECU -15.3 billion) and consumer electronics (deficit of ECU -9.6 billion) in
1989. This balance-of-trade position indicates that
the Community industry is not competitive
enough in these sectors. The growing internationalization of the economy means that European
firms must be able to invest increasingly abroad.
These investments and cooperation arrangements
should allow a further improvement in firms' competitiveness.
10. An analysis of the situation of European firms
on the European and world markets indicates
different positions depending on the areas of
activity and, as a whole, major differences of scale
in comparison with American and Japanese firms.
The world semiconductor market is dominated by
Japanese firms (NEC, Toshiba, Hitachi, Fujitsu,
Mitsubishi) which account for nearly 90% of world
production of high-capacity memories, and by the
American microprocessor manufacturers (Intel,
Motorola) which control over 80% of world
production of 16 and 32 bit microprocessors (the
most popular at present).
Investing 15% of their turnover in R&TD and 13%
on average in manufacturing equipment, the
E u r o p e a n firms (Philips, SGS-Thomson,
Siemens—tenth, twelfth and fourteenth in the
world rankings respectively) have still not
achieved the critical threshold of 5% of the world
market. The turnover of the second manufacturer
of semiconductors in the world (Toshiba) is
higher than the combined turnover of these three
manufacturers.
In computers, American firms are in the lead with
five of the top ten companies, the biggest of
which, IBM, dominates the world market as a
whole. The Japanese firm Fujitsu has moved into
second place following its acquisition of ICL. The
share of the European market held by IBM is
greater than that of Siemens/Nixdorf, BuU, Olivetti
and Philips together. The latter have increased in
size as a result of outward expansion and by
acquiring other firms: Bull has acquired 85% of
Honeywell Electronics and 51% of the IT division
of Zenith (United States). Siemens recently bought
Ntxdorf. The significance of the investments made
is considerable: on average 10% of turnover is
spent on R&TD, 10% on investments in capacity,
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and 10% of the wage bill is made up of training
costs. However, the Community industry consists
of virtually the same (medium-size) firms as 10
years ago. Many of them recently had poor financial results (high losses for Bull, Nixdorf, Philips),
as did the main American manufacturers in fact
(Digital, Unisys, Hewlett-Packard, Wang). Unlike
the computer manufacturers, the software and IT
services companies (CAP-Gemini Sogeti, SEMA
Group, Logica, etc.) are in a strong, though vulnerable, position.
In industrial automation, Europe has major
trump cards with Siemens, Comau-Fiat, Renault,
GEC, etc. and a wealth of efficient SMEs, especially in Germany and Italy.
In consumer electronics, apart from Philips and
Thomson, which respectively occupy the third
and sixth places worldwide, Japanese companies,
with Matsushita and Sony in tfie lead, dominate
the industry. The only other non-Japanese firms in
the top dozen are Korean, Samsung and Goldstar
at nintfi and tenth. Philips and Thomson hold very
strong positions in the United States through their
subsidiaries Philips North American and RCA and
are at the forefront of HDTV research there. US
industry is barely represented in this sector;
Zenith, the best placed American firm, ranks only
sixteenth.
Despite the high rankings held by European companies, their strengths reside generally in the
more mature technologies, and their shares in the
newer products are declining (e.g. camcorders).
C. The International Context
/. Developments
in Europe and the World
11. Historically, the development of the IT and
electronics industries has been influenced by the
structure of demand, features of the market and
the attitude of the public authorities. Three main
categories of users have shaped these features.
The public authorities. Public procurement,
although it currently represents only 15% of the
market for these industries, has long made its
mark on them. It involved heavy and expensive
equipment (miniaturized equipment, distributed
computer systems and the liberalization of
telecommunications being relatively recent
phenomena). Orders placed by national public
bodies, such as for mainframe computers or tele-
phone exchanges, have created captive, protected
markets throughout the world. Public procurement has thus helped national champions to
emerge and proprietary standards, often incompatible, to develop. These features are blurring
public procurement is becoming more commonplace with the emergence of distributed products
and systems. In Europe, with the completion of
the internal market, public procurement is gradually being opened up to competition. However,
European IT and electronics firms have inherited
a dependence on national buyers, proprietary
standards and telecommunications infrastructures
which are not properly interconnected at European level. The European market is still fragmented, which limits economies of scale and
reduces size and networking effects.
Firms. The products and services of the IT and
electronics industry have become an essential element of productivity, flexibility and competitiveness for almost all of the productive fabric. They
provide innovative elements such as electronic
components for the motor industry and have now
become indispensable production and design
tools: computer-aided manufacturing and
engineering, computerized telecommunications
networks, workstations, applications software, etc.
Firms face a twofold challenge: gaining access to
the most innovative IT and electronics products,
with optimum price, delivery and after-sales
service terms, and also organizing themselves to
exploit their potential to the maximum. Trade
relations between manufacturing and user firms,
the existence of a large market for standardized
hardware and applications, and the presence of
leading-edge users, are now essential preconditions for growth in the IT and electronics industries. These conditions differ from those prevailing
in the United States and especially in Japan.
Individual consumers. Their market is mainly
consumer electronics and associated services, but
also, increasingly, products originally designed for
business use (minicomputers, etc.). It is a mass
consumer market which makes severe demands
on manufacturers in terms of cost and quality.
This market is highly competitive, is subject to a
high rate of innovation and involves taking major
risks in the introduction of de facto standards. To
remain competitive, firms must sustain a constant
R&TD and innovation effort, and have substantial
financial, production and commercial resources.
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12. History also influences the conditions for the
growth of these industries throughout the world.
In the United States, the power of the IT and
electronics industry was built up in the '60s.
Stimulated at first by the major military and space
programmes, large groups consolidated their positions. The vitality and receptiveness of the American market, businesses' entrepreneurial spirit and
the workings of competition allowed many
medium-size firms (start-ups) to gain a foothold
on the market and a rich and lively fabric of small
and large firms to develop. Focusing originally on
mainframe computer systems, in the '70s the
American industry concentrated on minicomputers, in the '80s on personal computers and
today on open and distributed systems. At the
same time the software industry grew up,
nourished by successive generations of hardware
(the "proximity effect").
The American computer and components industry
is still powerful, even though it has been
experiencing difficulties since 1980 in the face of
Japanese competition. On the other hand, the
American consumer electronics industry has
almost disappeared: the American market, which
is open and competitive, is now dominated by
Japanese and European firms.
In Japan, the industry has grown and gained
strength along a number of different paths. Japanese growth is not solely the result of market
forces, but rather of long-term strategic planning
in which the public authorities play a central part.
The objective was to rebuild the Japanese economy and commercial and technological interdependence w^ith a view to achieving a very
strong presence on the world market. The method
used has been to consolidate and exploit an economic and political system which ensures close
cooperation between the public authorities and
industry, accompanied by selective public financing. It has given rise to structural protection of
the domestic market and strong horizontal and
vertical integration of the industrial groups, banks
and distribution.
This complex "controlled market" system has
created favourable conditions for the growth of
new industries including IT and electronics. The
industry's development strategy has relied primarily on consumer electronics. Success in this area
has led to a chain reaction: technological skills
and breakthroughs, success with complex production processes, quality control, rapid innovation.
These advantages then ensured Japanese success
in the production of memories and later,
peripherals. Japanese industry seems to be
implementing a strategy to gain control of the
world electronics market by gradual stages: after
consumer electronics, components, now computers and maybe, by the end of the century,
telecommunications.
Japan has inherited from the past a technologically, industrially and financially strong industrial
structure, a structurally protected national base
and a strong capacity to innovate. To make up for
its relative weakness in research, it launches well
targeted international cooperation initiatives.
For a long time in Europe, in the absence of a true
Community market, the development of the IT
and electronics industries and the industrial and
technology policies adopted by the Member States
were conceived on a national basis. The confines
of the national markets, the difficulty in penetrating other Community markets and a certain reluctance to tackle other markets have weakened the
Community IT and electronics industry as a
whole. Not only were national champions able to
achieve only limited economies of scale and networking effects, but also synergies between Community manufacturers and users from different
Member States failed to materialize. At the present
time, no Community IT and electronics manufacturer, not even among the largest, has a European
image, especially in the eyes of the major user
industries. For certain countries, the defence sector has been able to create captive markets and
limit the stimulating role of competition on industry's ability to innovate. In consumer electronics,
the segmentation of the Community market has
paradoxically been able to protect European
manufacturers from the Japanese, who have concentrated on the American market which is
homogeneous and open.
The European market and its industry are now
undergoing radical changes. Much work has been
done at both national and European level: industrial R&TD work and many restructuring initiatives
have been stepped up, major national technological programmes have been launched. Community
intervention has increased through the various
Community programmes, EUREKA has been a
mobilizing force, and markets have been opened
up through the internal market. Despite these
efforts, Europe is still suffering from tfie consequences of long-term fragmentation of its markets
and its firms' difficulties in setting medium- and
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long-term objectives. European industry must
adapt its structure to the Community and world
dimension, but this cannot but be a long and
costly process.
13. In addition to these difficulties rooted in the
past, European industry faces the phenomenon of
globalization. Increasingly exploited by the more
powerful firms, principally American and Japanese, it allows them to make up for certain gaps in
their basic expertise, meet constantly rising R&TD
costs and the shortening of product life, and to
benefit from the high rate of technological innovation. Globalization also allows them to take
advantage of differing competition conditions on
the world market. For European firms facing
fiercer competition on their own domestic markets, it is becoming essential for them to weave
complex webs of cooperation arrangements, in
particular by creating technological and commercial cooperation networks at both Community and
national level. For the Community public authorities, it is becoming important to ensure, in this
context of globalization and on the basis of
balanced rights and obligations, that the its competitors' markets are as open as its own.
//. The Causes of the Present Situation in
this Context
14. Certain causes are of a cyclical nature. To
begin with, the adverse effects of the economic
cycle characterized by a slowing down of growth
are being aggravated by the fall of the dollar and
the yen in relation to the ECU. With the depreciation of the yen and the dollar, competitive pressure from Japanese and American goods on the
European market has grown sharply.
15. Most are structural, however, and have been
highlighted by the poor general economic climate
of the '90s. They are manifold and interrelated. In
order to analyse them, we will use the latest
theoretical models* developed for the study of the
competitive advantages of nations and apply them
to the European IT and electionics industries. The
analysis is based on four elements: demand conditions, factor conditions, related and supporting
industries, and firm strategy, structure and rivalry.
In addition to these factors, unequal competition
conditions are accentuated by the public
authorities.
16. Demand. The Community
market
has
inherited a high degree of fragmentation in relation to the other large markets in America and
Japan. This has particularly serious consequences
for the European IT and electronics industry:
The limited scope of its markets, often still confined to the national level has restricted the
exploitation of economies of scale. European
firms are therefore faced with higher unit production costs than their competitors. This is even
more of a handicap since its effects are dynamic
and cumulative.
For the same reasons, European firms have not
been able to exploit "network externality" effects.
These effects appear when a user's choice is
influenced by the size of the firms concerned or
the total number of users of the products he
wishes to buy. These networks attract users and
they become captive for reasons unrelated to
price, but linked to the difficulty of converting
existing hardware, a wide range of compatible
products or services, and the life of the networks.
The segmentation of the Community market has
restricted the size of networks and the number of
users for European firms.
The former development of proprietary standards
and systems, long used to create captive national
demand, becomes a handicap at a time when
European firms, which have never commanded
sufficientiy large markets to impose their standards, are obliged to change to open standards
and systems. This essential change is called for by
users but it does have the effect of eroding European computer hardware manufacturers' profit
margins since the markets for open systems are
more competitive. It also increases their costs,
since the old and new generations of equipment
have to be maintained simultaneously during the
transitional phase from one to the other, while
maintaining compatibility with dominant proprietary systems.
17. The lack of leading-edge useri in Europe, in
contrast to the United States and Japan, prevents
' See in particular M.E. Porter: "The Competitive Advantage of
Nations," Harvard Business Review, March-April 1990, and The
Free Press, New York, 1990.
' European demand is estimated to be two to three years behind
the American and Japanese markets and is reluctant to buy until
new innovative products spread ortto external markets.
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The European Electronics and Infonnatlon Technology Industries
the European IT and electronics industry from
exploiting all the advantages of being first to
market in new fields. However, for the development of the IT and electronics industries, the
existence of a dynamic and demanding market
plays a decisive role. The quality of demand is as
important as quantity. The advantages of leadingedge demand are not only technological, but also
commercial and financial. Indeed, it is during the
period when a product is introduced that prices
are high and profit margins sufficient to release
the resources needed to finance R&TD and prepare subsequent generations of products.
18. Supply. Competition conditions are unequal
between different areas. On a market which, in
the case of IT and electronics, is worldwide, and
where certain firms must employ a global strategy
to survive, these differences become economically
decisive and pose a political problem. While the
degree of competition and openness to direct
foreign investments is increasing in Europe with
the completion of the internal market, certain foreign markets are still practically closed to the
penetration of Community investments and
products. While European firms must step up
their efforts, and invest and develop partnerships
in third countries, there are many reasons why
they may come up against barriers to such initiatives. At a time when competition rules are
becoming stricter in the Community, in other
competing areas measures relating to concentrations and aid allowed are becoming more flexible
or are sometimes remaining less strict. This state
of affairs facilitates or on the contrary makes very
difficult, depending on the internal markets of
firms, their simultaneous presence or the distribution of their products throughout the world. The
same applies to the concentration and vertical
integration facilities offered to them.
19. Similarly, in view of the considerable volume
of investments in R&TD and production capacity,
financing conditions militate against the IT and
electronics industries in Europe. In contrast to the
United States, the financial system is reluctant to
invest in start-ups. In contrast to Japan, the cost of
financing R&TD and capacity investment is high
in Europe and access to financial resources is
difficult in the case of long-term or high-risk operations". This allows Japanese firms to devise a
long-term development strategy and invest at
lower cost.
20. Availability of skilled staff. Rapid technological
advances have made the European IT and electronics industry heavily dependent on highly
skilled staff \^dth state-of-the-art kno^vledge. However, in the labour market there are not enough
engineers and researchers with recent training in
the production, adaptation or use of these technologies. For the same basic population, Japan
trains 80,000 engineers a year as compared with
41,000 for Germany and France together. Due to a
lack of qualified staff (systems engineers, staff
trained in computer-aided management), user
industries and small businesses in particular are
unable to make the most of competitive openings
arising in the IT field. This means that demand on
the European market is less advanced and less
receptive to innovations than in the United States
or Japan.
21. Structure of the European Productive
Fabric. The relations between the FT and electronics industry and the surrounding industrial
and scientific fabric are crucial. They can take
many forms: access to basic knowledge depends
on relations with scientific circles; knowledge of
market needs, and users' ability to develop
leading-edge markets depend on relations
between manufacturers and users. Relations
within and between industries allow the exploitation of complementary features and technological
and commercial interdependences within the IT
and electronics product family, and between small
and large businesses. All these relations result
from the compactness, solidity and dynamism of
the productive fabric around industrial and scientific poles of competitiveness.
In Europe, vertical integration of IT and electronics firms is relatively limited in comparison with
American and especially Japanese firms. It failed
in the past because European computer manufacturers tried to generate upstream business by
making components, but only for their own
needs. Since the markets within firms were
insufficient, they were not able to reach critical
production volume thresholds. On the other hand,
" The financial costs for R&TD in Japan are substantialty less than
in Europe. ArecetUstudy published fay the Federal Reserve Bank
of New York ^ows that, in the medium term, costs may vary by
up to 10 piercentage points. Long-term investments made by Japan
s&ultaneousty on aU fronts aie colossil aitd their origin cannM in
any way be explained by profit maigins on the domestic or
external markets. Furthermore, In Japan the major groups are
concentrated around a bank which partidpates directfy in strategic development decisions and their finandng. Access to finandaJ
resources is therefore secure and not dependent on the firms'
shoit-iemi profits,
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The European Electronics and Information Technology Industries
this strategy has led to beneficial results for certain
American groups, notably IBM, which were large
enough to guarantee sufficient outlets within the
enterprise. In Japan, vertical integration has succeeded since component production by consumer
electronics or IT firms was oriented towards the
export market, regardless of the cost. Groups such
as Toshiba, Hitachi, NEC and Fujitsu belong to the
top ten companies in the world in two and sometimes three segments of the components-IT-consumer electronics chain simultaneously. Inadequate integration in European firms, in relation to
their American and Japanese competitors, is a
handicap, particularly as far as components are
concerned.
Although there is plenty of cooperation on
precompetitive research in Europe, cooperation
arrangements
on the development of new
products are all too few and far between. For
certain products such as memories, liquid-crystal
displays (or HDTV), they are or will become
indispensable, in view of the human, technological and financial resources which can only be
mobilized on a European scale.
Finally, the structure of the European productive
fabric also has gaps in it as far as relations
between manufacturers and users are concerned,
which is a hindrance notably for start-ups and in
complementary arrangements between large and
small companies. Such relations exist in software
and applications—where European competitiveness is high—but are generally insufficiently
developed.
22. European Business Strategy. W i t h
the
exception of precompetitive R&D, the industrial
strategy of Community firms has failed to take
sufficient account of the Community dimension
and long-term prospects. Opportunities for
cooperation with Community and international
partners have not been fully exploited. As regards
innovation and production, European firms have
failed to take full advantage of the opportunities
for cooperation created by the major Community
technology programmes and have not put longterm global strategies in place early enough. In
this context, we should consider whether R&TD
policy has not been too limited to the precompetitive area. It has, however, been Commission policy up to now to leave near market research to the
companies themselves so as to maintain the
i n c e n t i v e for t h e m to c o m p e t e t h r o u g h
iimovation.
11.
European firms must simultaneously sustain their
R&TD efforts and capacity investments, manage
their change towards both the Community and
world markets and assimilate the many internal
and external restructuring operations which they
must carry out, while losing no time in finding a
place on the most promising and innovative market segments which many have yet to enter
(peripherals, microcomputers and portables). This
requires considerable financial resources which
they can raise neither internally, as competition is
fierce, nor externally, as the financial system in
most Member States is not properly geared to
financing long-term or high-risk operations.
The European IT and electronics industry's R&TD
investment capacity needs are considerable. In the
recent past European firms have made great
efforts: on average they spend as much as their
American or Japanese competitors in relation to
their turnover (some 9-5% and 8.0% of sales are
spent on R&TD and capacity investment respectively). The financial resources to be mobilized for
the seven largest European firms amounted to
around ECU 14 billion in 1989. Despite these
efforts and taking account of their relatively small
size, these resources are still lower than the
investment expenditure of the six largest Japanese
firms (ECU 22 billion) and seven largest American
firms (ECU 20 billion).
23. European firms have a high-quality technological base, but fail to bring enough innovative
products onto the market quickly enough. There is
a shortage of new firms in Europe, especially
small ones, to exploit the new market openings
which are constantiy arising through rapid technological development. There are three reasons
behind this: the first is the hesitant market. The
second concerns finance: firms have insufficient
financial resources and banks are reluctant to take
risks. The third results in particular fi-om the shortage of skilled staff in systems management.
24. Inequality of Competition Conditions
Is A c c e n t u a t e d b y P u b l i c A u t h o r i t y
Involvement. The structural characteristics of the
IT and electronics market described above (substantial economies of scale and learning, high
entry and exit costs) lead the most powerful firms
to acquire dominant positions, build barriers to
entry, form cartels or closely control the use of
certain technologies, subcontracting networks and
distribution systems. In addition to these imperfections of the market, various failures of the
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Hie European Electronics and luformatian Technology Industries
competition mechanisms appear: external effects
between activities or geographical areas, public
facilities, especially R&TD where private production is insufficient and information incomplete or
unbalanced. These failures call for information,
coordination and stimulation functions which the
pricing system alone, however "perfect" it may
be, cannot provide.
These imperfections and failures of the market
mechanisms, and also the economic and social
importance of the IT and electronics industries
have encouraged the public authorities of the
major economic zones to pledge support to the
industry and provide it with a competitive advantage on a local basis.
25. In the United States the public authorities have
taken part in an intense debate on maintaining
American technological supremacy using national
security as the main pretext, and have widened
their range of economic policy instruments. The
involvement of the public authorities has taken on
various forms.
Massive orders for high-tech equipment are being
placed by various departments and agencies (in
particular the Department of Defense), and
expensive R&D programmes, backed up by the
creation of university networks, are under way.
The implementation of competition laws has been
•watered down. Special procedures apply in certain sectors with regard to foreign firms carrying
out their activities in the United States. The
implementation of the "Buy American Act"
enables preferential treatment to be given to
American firms.
Discrimination against American firms of foreign
origin as regards R&TD is being practised by the
Department of Defense, and Sematech is one
example here. As negotiations stand at present,
the GATT rules are applied in a selective fashion.
Bilateral pressures (Super 301) to obtaui reciprocity, based on the 1988 Omnibus Trade and
Competitiveness Act, aim to allow American firms
to penetrate third countries' markets, under threat
of unilateral retaliatory measures (the Community
has been designated a "priority country" for
telecommunications); at the same time, the United
States is calling for "national treatment" from its
trading partners which would like to see reciprocal opening-up of the markets.
26. In Japan, the policy of the public authorities is
based on various instruments with mutually reinforcing effects: backing for business cooperation
in terms of strategic planning and of scientific and
technical cooperation; virtual closure of public
procurement to foreign companies while ensuring
a high degree of internal competition; support for
the setting up of major diversified vertically and
hori2ontally integrated groups, capable of sustaining for several years the losses incurred by the
market launch of new products usually manufactured on the basis of technologies originally
acquired externally. Japanese industry is geared to
long-term strategies. TTie "Keiretsu" also provides
a high level of coop>eration and solidarity between
Japanese firms.
The Japanese market is protected structurally by
the way the productive system is organized, with
support from the public authorities. The big Japanese conglomerates generally have a dual banking and commercial focus. The banking side takes
care of the financing, according to the group's
strategy, of long-term or high-risk operations such
as research and the production of innovatory
products. The sales and distribution side (notably
in consumer electronics) deals with the promotion
of products, market research and control via the
captive markets created between the companies
in the group.
Comparative studies show that the prices charged
for certain equipment in Japan are far higher than
in other parts of the world.
27. The other Southeast Asian countries have also
greatly consolidated their foothold in the IT and
electronics industries, in particular via long-term
technological development programmes (such as
the ten-year "Submicron Process Technology
Development" programme in Taiwan) and an
intensive investment strategy.
28. The Member States have all developed their
own R&TD policies accompanied by different
instruments and have launched numerous
national and international initiatives (such as the
European Space Agency, the EUREKA initiative
and aeronautical and military cooperation
projects).
The Community, so far with very limited powers
in the field of defence, has concentrated on the
completion of the internal market, an essential
step to make firms look, think and act beyond
national frontiers. It is also committed to the strict
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The European Electronics and Information Technology Industries
application of the lavvr concerning the competition
conditions set out in the Treaty, the Ubersdization
of telecommunications in the same spirit, and in
particular the implementation of a major technological cooperation policy, more for the stimulus it
provides than for the scale of financing involved.
Committed to a policy of opening up to competition, it has actively promoted a standardization
policy in favour of open systems geared towards
hardware compatibility. It has decided to promote
the development of trans-European networks
which, through their structural effects, will ensure
that full economic and social advantage is taken of
the completion of the internal market. These
trans-European networks relate in particular to
computerized communications service vocational
training networks.
As far as trade is concerned it has endeavoured,
so far with limited success, to obtain from its main
trading partners an open, multilateral international
trade system, ensuring, on the basis of the principle of balanced rights and obligations, that its
competitors' markets are as open as its own.
It has also been concerned to continue the
integration of the European markets by new
agreements with the EFTA and east European
countries.
These are all positive measures. They have not yet
managed, however, to offset the failures of the
market and imperfections in competition which
characterize the IT and electronics market.
D, A C o m m u n i t y A p p r o a c h
/. A Reference
Fratnework
29. Measures to be taken to restore the competitiveness of the electronics and IT industry depend
on firms themselves taking the initiative and facing up to their responsibilities, and on their
capacity to make the most of the new opportunities presented by the single European market.
Despite their present difficulties, firms must follow
a long-term strategy which allows them to maintain and step up action to increase productivity,
modify their operating and distribution structures, anticipate technological developments and
client needs, pool their efforts and become more
complementary in certain fields, and form alli-
13
ances on a European and world scale, while
observing Community competition rules.
If firms can make a clear and unequivocal commitment to activities of this kind, supported by the
new market conditions and in accordance with
the rules of competition, it is up to the Community
or the Member States, applying the principle of
subsidiarity, to help create a favourable environment for them, taking into account in particular
the importance of FT and electronics for the whole
of society.
30. In order to back up firms' initiatives, the
Community must identify the European interest
before making proposals for measures to be taken
in this field. One objective is to allow firms to
have access to the markets for products, investment and technologies. The completion of the
internal market is an essential contribution to this
but firms will need time to take advantage of all
the opportunities it offers. This may not be
enough, however. In a context of the move
towards global markets and substantial economies
of scale, production geared to the world market
has become essential. IT and electronics firms are
increasingly inclined to manufacture their
products on the spot, so as to take advantage of
the proximity of tfie market and the special relations with clients which result. Access to the markets must include the possibility for direct investment and exports in all parts of the world.
31. As a precondition for the expansion of European industry, it must also have access to technology. Indeed competitiveness cannot be
achieved without it and without the latest
products incorporating technology, given the
expansion in trade, the growing interdependence
of economies and the increasingly hot pace of the
marketing of new products. This applies primarily
to components; firms need satisfactory access to
components so as to be able to continue to place
innovatory products on the market.
A second important condition, indissociable from
access to markets and technologies, involves mastery of technologies in Europe. This may be
unrelated to a firm's origins but is closely linked
with the type of R&TD w^ork it carries out in
Europe and the way in which it disseminates its
technologies outside. This means that the risk of a
break in external sources of supply, especially in
microelectronics, is reduced by the Community's
capacity to develop products to deal with that
eventuality, should it prove necessary. It also
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The European Electronics and Information Technology Industries
means the capacity to develop these technologies
in harmony with European societal development.
A third factor relates to European firms whose
basic markets are largely in Europe, with the
positive effects on strategic decision-making, mastery of the technology and irmovation in Europe
which this entails. Firms with the bulk of their
activities taking place in Europe do not enjoy the
same advantages as their competitors on their
national markets, and face imperfections in the
system of competition or failures of market
mechanisms at international level.
It is against this background that the Commission
is proposing Community action to help firms
through the adjustment process which they are
facing, and help them meet customer needs, without taking artificial measures to support them.
//. Proposals for
Action
There are five proposals altogether, relating to
demand, technology, training, external relations
and the business environment.
tion of an international pilot project for a broadband network between research centres. Projects
relating to a pan-European high-definition television service could also be studied and business
applications found.
These infrastructures for meeting user requirements will necessitate substantial investments in
the Member States over the next ten years. These
investments w^ill be all the more profitable and
effective if they can d r a w on full-scale
Community-wide trials.
The Community's role will be limited to providing
the necessary impetus and coherence, helping to
define overall projects, coordination—especially
for the exchange of results—and taking the
general measures for which it is responsible, for
instance harmonization of architecture and protocols. The investment necessary to implement
projects drawn up and prepared in this way will
have to be largely financed by the parties concerned, although this does not necessarily rule out
Community support, notably through the use of
the appropriate financial engineering
mechanisms.
32. Demand. The creation of trans-European
networks, as advocated by the Commission, incorporating harmonized telecommunications
services, will considerably stimulate the demand
for IT and electronic equipment".
35. Intensified joint efforts will be needed to disseminate and exploit the results of R&TD work on
IT and electronics conducted at Community or
national level or in a multinational framework
such as EUREKA.
33- Computerized telecommunications
links
between administrations must be set up as
quickly as possible and a high level of interoperability of information systems achieved, while
respecting human rights, in order to speed up
integration of the European market. Preparatory
R&TD activities are planned under the third
framework programme (1990-94)".
The national bodies responsible for conducting
these tasks will have to work together with the
Commission's departments on computerized
telecommunications networks and cooperation
projects targeted primarily at SMEs.
34. This action must be accompanied by the
launch of projects designed to modernize or create, with the help of computerized telecommunications, infrastructures in the fields of distance
learning, transport, public health and the environment. Another project might relate to the gradual
introduction of broadband services networks into
the Community, in particular by the implementa" 'Towards trans-European networics—for a Community action
programme" (COM(90)585 final).
" Proposal for a spedflc programme on the ctevelopment of
telematics systems in areas of general interest.
36. Increased user involvement in the Community's technological development programmes will
be sought, both in their initial phases and if they
are extended, in particular in the context of
EUREKA.
37. Technology. In order to keep pace with the
extremely rapid rate of technological development in electronics and FT, satisfy the growth in
demand and maintain an active role on a market
which is becoming global in scale, the Community
could consider launching a second generation of
R&TD, ranging from projects at the precompetitive
stage to projects geared more closely to the
market.
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The European Electronics and Information Technology Industries
15
This second generation, which is already emerging through the pilot projects being conducted
under the third Community R&TD framework
programme (1990-94) adopted by the Council on
23 April 1990, will be characterized in particular
by the concentration of work on a smaller number
of better targeted projects, closer cooperation with
users, provision of training linked to advanced
research and opening-up to international
cooperation.
Among the main objectives to be pursued, one
could mention the following.
38. The guiding principles of the technology
projects would rest on the following considerations:
The creation of a Trans-European Software Institute at the initiative of Community industry could
receive Community support. Provision is made in
the third framework progranune for a pilot experiment (European Systems and Software Initiative).
• It would make eminent sense to build further
on points of strength in as far as they continue
to offer, like software and CIM, potential for
growth.
• The frontier between computer software and
hardware, predicated by the need to optimize
the cost/benefit ratio, keeps moving towards
ever more powerful systems, thanks to progress in microelectronics technologies, which
allow more and more functions to be integrated
onto one chip.
In a sense, it can be said that today's systems
will be tomorrow's chips. It is therefore essential to master the technologies on which these
components are based in order to secure the
continued growth of the software and systems
industries.
• Most technologies are on the brink of radical
change or a new generation, which offer
opportunities for bridging existing gaps and
taking the lead again. This is the case in priority
areas, like microelectronics, peripherals and
high-performance computing.
Projects implemented towards this end would
need to be of different nature depending on
the objective pursued. Mobilizing projects
aimed at accelerating technology take-up on a
broad scale would thus need to be carried out
alongside integrating projects aimed at mastering and consolidating a selected range of interdependent technologies.
These major projects, that would involve participation from all over the Community, would represent the core of R&TD effort and would have to
be funded from the Community budget and as
appropriate by national, regional or local sources,
in particular within the context of EUREKA.
For software, to increase productivity by concentrating on production methods and tools and their
early transfer to users in the framework of
mobilizing p r o j e c t ( s ) , involving n o t a b l y
SMEs. Emphasis will be on software reusability
well as on precompetitive work on both systems
and applications interfaces.
For computer-integrated manufacturing (CIM)
and engineering,
to strengthen European
manufacturing capabilities by the timely provision
of the most powerful technologies of the IT and
electronics industries. These will help to shorten
design-to-product time, implement just-in-time
strategies, and make for more flexible production,
especially small, diversified runs under severe
time constraints. These technologies are also
e s s e n t i a l for a c h i e v i n g d e c i s i v e quality
improvements.
For microelectronics, to develop integrated-circuit
design and manufacturing technologies for both
standard components (memories and logic circuits) and custom integrated circuits (ASICs),
R&TD work building on and carrying further the
collaboration established under JESSI. To supplement the above, efforts would need to be undertaken to provide microprocessor capabilities with
particular emphasis on the definition of a family
of new-generation architectures, securing compatibility and the transition from currentgeneration machines.
For peripherals, to establish capabilities for
developing input/output devices and subsystems.
Special attention should be given to highresolution flat-panel display technology currently
based on liquid crystals (LCD). A specific industrial commitment should be obtained on this. It is
also essential for the development of consumer
electronics.
For high-performance computing (HPC), to take
advantage of the possibilities offered by progress
in the field of parallel processing, t h r o u ^ which
computing power is expected to be increased by
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16
The European Electronics and Information Technology Industries
a factor of 1,000 by the end of the century. This
will revolutionize the field and open horizons to
applications for new users. This represents a
major challenge in software. Once the complex
software problems have been overcome, there
should be rapid exploitation in many fields, such
as simulation, forecasting and optimization in
manufacturing industry, environment and
meteorology. A project lasting ten years will probably be needed to master this new approach and
all its implications. A preparatory phase is planned
under the new programme on IT ^vithin the third
Framework Programme.
The Commission, in its communications to the
Council on trans-European networks, has already
proposed specific measures on vocational
training". The R&TD framework programme for
1990-94 also includes an entire specific
programme devoted to developing human capital
and promoting the mobility of research scientists.
The Commission has also been involved for a
number of years, notably since 1986, in the
development of highly specialized programmes
and initiatives on initial and continuing training in
new technologies such as DELTA, COMETT,
FORCE and EUROFORM.
For telecommunications, to respond to the growing demand for improved user friendliness, better
economic return, faster response times and
increasing freedom of choice and flexibility in
integration of services. This should be achieved
by the development "intelligent" networks,
integration of flexible services, and the extension
of multitasking capabilities to create or improve
telecommunications networks ^vhile safeguarding
data integrity and security. The objective would
be to achieve response times and performance
comparable to what is obtained today in companies' local area networks. Integrated broadband
network technology provides both the capacity
and the generic intelligence to respond to these
user needs. Satisfying user demands requires a
sustained effort of mobilizing and integrating technology and advancing international standardization at a rapid pace. Second-generation efforts
should concentrate on the systematic development and validation of modular standardization of
common parts of services enabling open service
implementations to evolve with demand.
Networks of excellence composed of both academic and industrial research teams, geographically distributed throughout the Community, will
continue to be set up in order to provide a critical
mass of complementary knowledge and expertise,
and help to share limited and expensive
resources.
Training. 39. The Community urgently needs to
train research scientists and engineers capable of
developing and making maximum use of the new
information technologies, where new generations
are constantly emerging.
Multidisciplinary training measures could be
launched or stepped up. They would be targeted
at training staff and at staff engaged in production
and management in firms using and supplying
computerized telecommunications products and
services. Training activities should also be developed to promote new forms of business management, integrating computer applications and
advanced telecommunications in new management and production systems.
40. External relations. The Community can
help to sustain a competitive Community electronics and IT industry by adopting a trade policy
based on the following six objectives:
• Maintenance of an open, multilateral international trade system
• The improvement of access to the markets of
the main trading partners in electronics and IT
(notably the United States, Japan and South
Korea)
• Establishment of fair competition in international markets
• Support for scientific, technological, industrial
and commercial cooperation in the international arena
• Continuing integration of European markets by
means of new agreements with EFTA and Eastern European countries
• Economic restructuring aid for the Eastern
European countries
41. The electronics and IT industries are directly
concerned by the Uruguay Round of multilateral
negotiations, and a satisfactory conclusion could
" 'Towards trans-European networks: Objectives and jX)ssible
applications" (COM(89)643 of 18 December 1989) and 'Towards
trans-European networks—a Community action programme"
(COM(90) 585 of 5 December 1990).
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The European Electronics and Information Technology Industries
make an important contribution to the achievement of the first two objectives.
The Uniguay Round "market access" negotiations
are especially important for semiconductors and
consumer electronics. Inconsistencies in the present tariff structure for semiconductors are liable to
place the Community's processing industries at a
competitive disadvantage. Within the constraints
of the current global negotiations, the Commission
will attempt to iron out these inconsistencies,
while taking into account the respective interests
of Community producers and users.
On consumer electronics, the Community has
offered less substantial tariff reductions to its trading partners on certain products. In addition, the
Commission will insist on the need to remove the
numerous non-tariff barriers which hinder imports
of consumer electronic goods to some of our
partners (in particular Japan).
17
Similarly, in this sector, a high degree of vertical
integration and the acquisition or existence of
dominant positions could give rise to abuses in
particular market segments, such as discriminatory
practices, predatory pricing or refusal to supply.
In the Community, if such practices were proved,
they would be subject to the prohibition of
Articles 85 and 86. The Community must insist
that its competitors and the public refrain from
such practices and that the public authorities put
in place an efficient system to prevent such
abuses. The response to external competitive
pressures must be to secure a situation in which
Europe's competitors refrain from unfair practices
in their own or third country markets, not to
modify the application of the rules in the Community. Competition policy strengthens European
companies and is not a luxury to be discarded
when there is competition from outside. New
Community measures to control concentrations
have an important part to play.
Moreover, in view of the damaging instability of
supply prices on the world components market,
the Commission believes that the OECD should
be asked to set up a new consultative forum on
semiconductors.
The Commission will investigate the existence of
such practices among the Community's main competitors. If abuses and unfair practices can be
shown to exist, pressure will be brought to bear
on the relevant authorities. Identification of
specific obstacles to fair competition followed by
pressure on the public authorities has brought
positive results in other sectors. For example, as a
result of Community pressure, access has been
granted to the Tokyo Stock Exchange. Partly as a
reaction to international criticism, Japanese competition policy is being reformed and strengthened. The Japanese and US authorities must be
pressurized to go further in this direction so as to
bring about a situation where the main international trading partners can operate under
roughly equivalent competition rules.
42. The Commission will seek to ensure equitable
conditions of competition and market access for
both products and technologies at world level. As
international competition intensifies and as markets become global, the fact that all companies
competing in the world market are not operating
under the same conditions of competition may
cause particular problems for specific markets and
products such as those in electronics. For
example, very large companies may use their
extensive range of activities in the electronics sector to cross-subsidize certain products and activities and seek to gain market shares by undercutting their competitors.
43. While meeting its international obligations, the
Community will have to fall back, where necessary, on its customs regulations (temporary suspension of the autonomous duties of the common
customs tarifO and its trade policy instruments
(such as antidumping measures and customs
duties). In any event, the antidumping procedure
can only be considered as a last resort. For this
reason it is necessary to maintain detailed statistics
and use all available bilateral and multilateral consultative fora in order to anticipate and avoid
those situations which could result in the
Community having no other choice than to take
antidumping measures.
The Community is paying close attention to the
possibility of the renewal of the bilateral agreement on semiconductors between the United
States and Japan which has important direct implications for all the Community's electronics and IT
industry. The Commission will not hesitate to take
action—as it did when the original agreement was
concluded, by calling for a GATT Panel—^if the
new agreement contains provisions which may be
against the interests of the Community electronics
and IT industries.
©1991 Dataquest Europe Limited November—Reproduction Prohibited
Reference material—^will not be republished
18
The European Electronics and Information Technology Industries
The Community applied the antidumping regulations to several electronics and IT products in the
period 1985-90: semiconductors, photocopiers,
printers, video recorders and television receivers.
It seems that the effects of antidumping measures
can vary, owing to the peculiarities of the markets
for these products and the controversial impact of
these measures on consumers and the industries
which use components.
In any event, application of Article 115 will not be
possible at the intra-Community borders once the
internal market has been completed.
44. In the search for a balance between international cooperation and technological independence, firms should take responsibility for their
strategic choices in this area, while the public
authorities have the important role of providing
a p p r o p r i a t e f r a m e w o r k s for t r a d e a n d
cooperation.
45. The Community, in close collaboration with
the industrialists concerned, has already taken
part in international cooperation, for example in
the field of standardization. Other opportunities
are now emerging, such as the project for a
programme on intelligent manufacturing systems
(IMS). A number of areas of technological cooperation are currently being explored with American
organizations. The Community itself should also
seize the initiative in launching scientific cooperation programmes.
46. The Community will continue current negotiations with the EFTA countries with a view to
creating a European economic area. The huge
market which will be created in this way will offer
fresh growth opportunities for the electronics and
IT industries.
47. The Community must face up to its responsibilities vis-^-vis the Central and Eastern European
countries and help them to bridge the technology
gap and make good their inadequate infrastructure, especially in telecommunications. In time
these countries will offer new opportunities and
prospects for industrial cooperation. Their needs
are very considerable: their production system
must be adapted or changed and IT has a central
part to play in their efforts to catch up.
48. The Business Environment. T h e i m p l e mentation of the concept of industrial policy also
calls for further measures in the field of electron-
ics and IT designed to create a healthy business
environment.
49. Improving financing systems. Given the
importance of financing systems for firms which
are capital-intensive and require high R&TD
expenditure, the public authorities should hold
discussions with banks and financial institutions
on ways in which risk capital could be employed
in conjunction with taxation measures.
Training schemes for staff in the banking sector
encompassing both the financial side and computerized systems applications should also be
looked into.
50. Faster standardization and integration of
standards into products (hardware and software).
Since products now become obsolete so rapidly,
European firms are finding it increasingly difficult
and costly to manage the evolution of standards.
Ways of speeding up the procedures for drawing
up standards, especially those relating to software,
should be studied with European and national
standards institutes.
European industry must also build new standards
into its products and systems more quickly, like its
foreign competitors, so as to derive maximum
benefit fi-om such standards, and must play an
active role in the European, foreign and international standards bodies.
51. Closer involvement of the development of electronics and rr in the introduction of structural
policies. The structural Funds make a significant
contribution to the development of the less
prosperous regions, by promoting the infi-astructure for technology transfer, the dissemination and
exploitation of research results, and the launching
of training schemes in science, technology and
management. These measures are among the priorities for development established, for each of
the Community's less-favoured areas, within the
Community support fi-amework. In addition to
these measures, the Commission has adopted a
series of Community initiatives such as STRIDE,
STAR, TELEMATIQUE and PRISMA. These initiatives help to create an environment that favours
the development and dissemination of new technologies in firms, especially small businesses, in
these regions. These structural measures should
continue, and be better targeted where necessary,
especially in the most disadvantaged areas.
©1991 Dataquest Europe Limited November—Reproduction Prohibited
Reference material—^will not be republished
The European Electronics and Information Technology Industries
52. Developing infrastructure for cooperation. The
dialogue between the various groups involved
needs to be stepped up, a move which could lead
to the formation of partnerships. Special measures
could be considered or stepped up to help SMEs
to expand their networks and step up their activities beyond their national frontiers.
Pilot operations for cooperation between SMEs,
large firms and research centres at Community
and international level should be launched, multisectoral basic technologies promoted in the
framework of overall technology policy and the
need for major industrial iavestments in basic
components required for future generations of
data-processing and electronics products taken
into consideration.
The progressive integration into components of
the functions contained in information and communication systems requires an improvement in
cooperation between semiconductor manufacturers and users. The Commission will continue its
efforts to facilitate the formation of such cooperative partnerships.
53. This communication is intended to serve as
background for a debate with the Member States,
the European Parliament, the Economic and Social
Committee as well as the industries, manufacturers and users concerned, in order to analyse
the situation as perceived by the Commission and
discuss the action to be taken.
This should enable the Commission to enter into
fruitful dialogue with industry, users and investors, in order to assess the situation in greater
depth from a dynamic perspective and to identify
conditions for a long-term recovery, while
respecting the roles of the parties concerned.
©1991 Dataquest Europe limited November-^teproduction Prohibited
Reference material—will not be republished
19
Appendixes
Evolution of European IT and Telecommunications Industry
Exchange Rate Trend
1980:
1984:
1989:
1990:
$1
$1
$1
$1
=
=
=
=
¥225
¥238
¥138
¥146
=
=
=
=
ECU
ECU
ECU
ECU
0.72
1.27
0.91
0.80
Figure 1
European Industrial Growth Comparison
Annual Growth (Percent)
176
rr IndiKby (^55 %)
fessengerCars (5%)
Transport (4SW
Electronk: Engineering (A2,%)
Engineering {4%J
GDP (3.6%)
Chemicals (33%)
Note: Compound annual growth rates 1984 to 1988 given in brackets.
Source: EurosUtistics Data for Short Term Analysis, Price Watethouse: IT2000 Ouly 1990)
21
The European Electronics and Information Technology Industries
22
Table 1
Breakdown of World Production of the IT and Tetecommunlcations Industries by
Main Geographical Area (since 1980)
1980
1984
United States
46%
Japan
Europe
15%
26%
47%
21%
Other Countries
13%
1990
1989
38%
21%
27%
22%
11%
13%
37%
24%
24%
14%
Source: EC (1990)
Table 2
Consumption and Production of the IT and Electronics Industries by Main Geographical Area
(Billions of Dollars)
Consumption
Production
Europe
United
States
Japan
World
26,400
38,700
40,200
Active Components
13,200
21,200
Passive Components
13,200
Europe
United
States
Japan
125,600
20,100
34,700
54,500
125,600
26,100
73,000
8,300
18,100
37,100
73,000
17,500
14,100
52,600
11,800
16,600
17,400
52,600
108,100
164,300
70,200
391,900
85,200
168,000
90,200
391,900
Computer Hardware
62,000
78,500
37,500
204,000
45,200
78,100
50,200
204,000
Software and Services
27,600
58,800
14,700
115,000
26,200
63,200
14,000
115,000
1989
Components
of which:
Computers
of which:
Office Systems
Automation
Consumer Electronics
Total in IT and
Electronics
As Percentage
World
6,300
12,100
4,900
26,900
4,100
9,400
10,700
26,900
12,200
14,900
13,100
46,000
9,700
17,300
15,300
46,000
23,400
24,800
16,300
84,000
12,900
10,800
35,700
84,000
157,900
226,800
126,700
601,500
118,200
213,500
180,300
601,500
26%
37%
21%
100%
20%
35%
30%
100%
Source. HC (1990)
©1991 Dataquest Europe Limited Novemt)er—Reproduction Prohibited
Reference material—will not be republished
The European Electronics and Information Technology Industries
23
Analysis of the Situation by Sector
Semiconductors
Fi^iure 2
World Semiconductor Production by Region
Market Share (Percent)
70%
0%l&
1980
19ei
1982
1383
1984
1985
1986
1987
1988
Source: Dataquest (November 1991)
Figure 3
World Production o f DRAMs b y R ^ o n
market share (%)
80
Japan
^x
60
40
ao-
oJ1974
USA
X
1976
Rest of the worid
Europe
1980
1984
1988
Source: Dataquest (November 1991)
©1991 Dataquest Europe Limited November—Reproduction Prohibited
Reference material—will not be republished
24
The European Electronics and Information Technology Industries
Table 3
Computers—Trend in Market Shares of IT Firms in Europe
1980
1982
1984
1987
1988
European Firms
33.0%
34.0%
36.5%
43.2%
42.8%
American Firms
67.0%
-
66.0%
-
63.5%
-
56.8%
-
54.4%
Japanese Firms
3.8%
1989
40.2%
56.5%
3.2%
Source: Datamation
Table 4
Control of Production of Computer Hardware In the United States, Europe and Japan (in 1989)
Firms under American Control
Firms under European Control
Firms under Japanese Control
Production
United States
92%
4%
4%
Europe
58%
34%
8%
Japan
16%
0%
78.1
45.2
50.2
Source: EIC (1990)
Table 5
Main Statistical Data for Consumer Electronics (In 1988)
(Billions of Dollars)
Prod.
Imp.
Exp.
BaL
Mkt.
Imp. Ratio
EC
10.7
9.3
1.2
-8.1
18.8
49.5%
Japan
32.2
0.7
16.8
+16.1
16.1
4.3%
USA
5.4
11.2
15.7
7.6
71.3%
16.6%
11.1
-
+4.7
-
3.0
ROW
0.5
-
0.9
5.2
-10.3
Korea
12.2
-
Total
68.2
-
-
-
68.1
-
Source: BIS-Maddntosh (1990)
©1991 Dataquest Europe limited November-^teproduction Prohibited
Reference material—will not be republished
The European Electronics and Information Technology Industries
25
The Worsening European Trade Deficit
Table 6
Trends In Trade Balances for the IT and Teleconununlcatlons Industries by Main Geographical Area
(BlUlons of ECU)
1986
1987
1988
-14.5
-18.9
-28.0
1989
-31.0
-7.6
-65
-4.4
-7.0
+50.3
-28.0
+47.0
+56.0
+57.0
-21.9
-20.5
-18.8
Europe
United States
Japan
Rest of "World
Source: EIC
Table 7
European Trade Deficit in Electronics and IT
(1988 and 1989)
(Billions of ECU*)
Trade Balance
1988
1989
Active Components
-3.6
-4.4
Passive Components
-0.6
-1.2
-14.3
-1.0
-15.3
Components, of which
Computers, of which:
Computer Hardware
Computer Software and Services
Consumer Electronics
-9.5
-1.3
-9.6
'Mean annual doUar/ECU exchange rate:
1986 $1 - ECU 1.016
1987 $1 - ECU 0.867
1988 $1 - ECU 0.846
1989 $1 - ECU 0.908
Source: EIC (1990)
©1991 Dataquest Europe Limited November—Reproduction Proliibited
Reference material—will not be republished
26
The European Electronics and Information Technology Industries
Analysis of the Situation of Electronics and IT Firms
Table 8
Ranking of the Top Ten Firms o n the World Market
Rankli^
1
2
3
4
5
6
7
8
9
10
Source;
Components' (1990)
NEC
Toshiba
Hitachi
Motorola
Intel
Fujitsu
Texas Instruments
Mitsubishi
Matsushita
Philips
Computers' (1990)
IBM
Fujitsu
Digital
NEC
Unisys
Hitachi
Hewlett-Packard
Siemens-Nixdorf
GroupeBull
Olivetti
Consumer Electronics' (1989)
Matsushita
Sony
Philips
Toshiba
Hitachi
Thomson
JVC
Mitsubishi
Samsung
Goldstar
' Dataquest (November 1991)
' Gartner Group Inc. (1990)
' BIS-Maddntosh
Figure 4
Trends i n Company Results (Top 100 Information Systems Firms*)
Net Profits as Percentile of Tiunover
Profit after tax
in % of revenues
Revenues
(Billion $)
1985
1986
1967
1988
1989
' AU Companies
- - - European Companies
* IS: Definition referring to Datamation's "Information System" includes additionally data communications equipment (digital PABX, communications
processors, facsimile machines, muttiplexeis, word processing).
Source: Datamation
©1991 Dataquest Europe Limited November—Reproduction Prohitrited
Reference material—will not be republished
27
The European Electronics and Information Technology Industries
Table 9
World Rankli^ of Semiconductor Manufocturers (1990)
(Turnover in Millions of Dollars)
1990
Company
1989 Tumover
1990 Turnover
1
1989
1
4,952
2
2
Toshiba
5,015
4,930
90/89
-1%
4,905
-1%
3
4
3
4
Hitachi
3,974
3,927
-1%
Motorola
3,692
11%
5
6
8,
6
Intel
3,319
2,430
3,135
6
Texas Instruments
3,019
2,574
29%
2%
7
2.963
2,787
8
7
Mitsubishi
2,476
9
10
9
10
Matsushita
2,579
1,882
1,945
3%
Philips
1,716
1,932
11
11
National
1,618
1,718
13%
6%
12
13
12
SOS-Thomson
1,301
12%
Sanyo
1,365
1,463
1,381
Sharp
1,230
1,360
11%
15
16
15
14
Samsung
1,260
Siemens
1,194
1,315
1,221
4%
16
17
13
14
NEC
Fujitsu
-8%
-4%
1%
2%
19
Sony
1,077
1,172
9%
18
17
Oki
1,154
1,074
-7%
19
20
18
AMD
1,100
1,067
-3%
20
AT&T
873
830
-5%
Source: Dataquest (November 1991)
Table 10
Market Shares of World Top Ten Semiconductor Firms (1979, 1984 and 1990)
1
1979
Texas Instruments
2
Motorola
3
4
5
6
1990
13.5%
Texas Instruments
9.7%
1
NEC
7.8%
2
NEC
7.5%
2
Toshiba
National
7.3%
Motorola
Hitachi
3
4
6.7%
Motorola
Intel
7.3%
6.8%
6.9%
6.4%
Hitachi
Phillips
3
4
5
National
4.9%
Intel
Fairchild
5.5%
6
Intel
4.8%
5
6
6.3%
5.4%
Fujitsu
5.2%
7
Texas Instruments
4.4%
8
Mitsubishi
4.2%
9
10
Matsushita
3.3%
3.3%
7
Mostek
8
NEC
9
10
1984
1
3.3%
3.0%
AMD
3.0%
Hitachi
2.4%
7
Fujitsu
8
Phillips
9
10
Toshiba
4.5%
4.4%
4.2%
AMD
3.8%
Phillips
Source: Dataquest (November 1991)
©1991 Dataquest Europe Limited NovemlDer—Reproduction Proliibited
Reference material—will not be republished
8.5%
8.4%
28
The European Electronics and Infonnation Technology Industries
Figure 5
Ranking of Major World Computer Firms
$60.8B
$54.5B
EDS
Wang
Xerox
AT&T
$48.0B
MhonUmtvs
KTT
Compaq
Matsushita
NCR
Canon
Apple
HP
SNI ($6.2B)
1
1
1
1
1
Tosliilia
Hitachi
$26.3B
STC/ICL
Nb(dort{$2.eB)
Unisys
Ptinipe
Fujitsu
Olivetti
Digital
NEC
Siemens ($6.0B)
DT (new)($3.4B)
Bull
* IS: Definition referring to Datamation's "Information System" includes additionally data communications equipment (digital PABX, communications
processors, facsimile machines, multiplexers, word processing).
Source: Datamation (June 1990)
Table 11
World Top Ten Consumer Electronics
Manufacturers (1989)
(Billions of ECU)
Ranking
Company
Turnover
1
Matsushita
19.5
2
Sony
10.7
3
4
Philips
10.1
Toshiba
7.1
Hitachi
6.1
5
6
Thomson
5.0
7
JVC
4.9
8
Mitsubishi
4.1
9
10
Samsung
3.4
Goldstar
3.1
Source: BIS-Mackintosh
©1991 Dataquest Europe Limited November—^Reproduction Prohibited
Reference material—will not be republished
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n n a company of
MBMM TheDun&BradslFeetCorporation
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00095*3
3.0 Semiconductor End-User Markets
INTRODUCTION
Dataquest's European Components Group (ECG) has developed a new module called
European Semiconductor Applications Markets (ESAM) that provides a complete analysis
of semiconductor consumption in Europe by application market segment. This product is
intended to support decision makers who must take a tactical or strategic approach in
their analysis of the semiconductor market, from either an application (or demand) side
or end-use perspective.
This section gives a top-level overview of the semiconductor applications markets in
Europe by the following six market segments:
•
Data processing
•
Consumer
•
Communications
•
Military
•
Industrial
•
Transportation
For a complete analysis of these segments, readers should refer to the ESAM module.
EUROPEAN END-USE SEGMENTS
The data processing segment comprises all equipment with the main function of
information processing. Included in this segment are all types of computers, from
personal computers to mainframes, and all computer peripheral equipment such as
memory storage systems and data terminals.
The communications segment consists of all forms of equipment used for electronic
communication. This equipment includes devices used on customers' premises (e.g.,
PABXs, telephones, facsimile), the public network (switches and transmission), radio, and
studio and broadcast equipment.
The industrial segment covers all forms of manufacturing-related equipment
including energy management, automated manufacturing systems, robotics, medical
systems, and commercial aviation.
The consumer segment covers equipment that is retailed through retail stores and
designed primarily for domestic or personal use, such as home audio and video
equipment; white goods appliances (e.g., microwave ovens and washing machines), and
personal electronics (e.g., watches, hearing-aids).
Military equipment consists of electronic equipment used for weapons or
weapon-support systems and is classified by specific budget areas. To avoid double
counting of items that logically belong to other segments, it excludes nonspecific
electronic equipment procured by governments.
#
•
ESIS Volume II
0004416
© 1989 Dataquest Incorporated August
3.0-1
3.0 Semiconductor End-User Markets
Transportation segment consists mainly of automotive and light truck electronics.
This designation leaves room to analyze other markets, such as off-highway equipment,
that are potentially large users of semiconductors.
EUROPEAN OVERVIEW
The European electronic market exhibits significant differences from those in the
United States or Japan in terms of the percentage of consumption by end-use segment
(see Figure 3.0-1).
Figure 3.0-1
1988 Semiconductor Consumption by Application Markets
Billions of Dollars
20-
fM^] Transportation
• • Military
I I Consumer
16Industrial
C ommunic atlona
14[,"V"-.| Data Procsssing
18
12
10
a
6
4^
2
0
North America
Europe
Japan
Source: Dataquest
August 1989
0004416-1
#
3.0-2
© 1989 Dataquest Incorporated August
ESIS Volume II
0004416
3.0 Semiconductor End-User Markets
In North America the emphasis lies in the data processing segment, which Dataquest
estimates accounted for 49.4 percent of 1988 U.S. semiconductor consumption, in
contrast with 39.8 percent in Europe (or 43.3 percent in Japan). In Europe, the
communications segment continues to occupy a high, 19.2 percent share of total
consumption, compared with 13.5 percent in the United States and 12.9 percent in
Japan. This difference is due largely to the regulatory environment in Europe, where the
Pidalic Telephone and Telegraph (PTT) operator in each country favors local equipment
suppliers.
The consumer market in Japan continues to occupy a greater proportion of
semiconductor consumption, 31 percent, than either Europe (11.5 percent) or the United
States (5.4 percent).
EUROPEAN SEMICONDUCTOR MARKETS
Table 3.0-1 describes Dataquest's five-year forecast by top level end-use segment
for 1989 to 1994, with an overall compound annual growth rate (CAGR) of 18.9 percent
predicted for this period.
Table 3.0-1
Estimated European Semiconductor Consumption
by End-Use Af^lication
^999
%
Category
($B)
Data Processing
Communications
Industrial
Consumer
Military
Transportation
$3.40
2.04
1.73
1.18
0.58
0,7$
35.0%
21,0
17.8
12.2
6.0
Total
$9.69
1994
($B)
%
8,0
$ 7.50
4.60
3.44
3.80
1.30
2.43
32.5%
19.9
14.9
16.5
5.6
10,e
17.2%
17.7%
14.8%
26.3%
17.3%
26.1%
100.0%
$23.07
100.0%
18.9%
Source:
m
ESIS Volume II
0004416
CAGR
© 1989 Dataquest Incorporated August
Dataquest
August 1989
3.0-3
3.0 Semiconductor End-User Markets
Data Processing
Rapidly rising DRAM prices have distorted the consumption of semiconductors in
this segment during the past couple of years. In 1988, data processing consumption
represented 39.8 percent of the total European market. With an outlook of falling
DRAM prices, we expect this fraction to drop to 35 percent this year, returning to a
long-run 32.5 percent by 1994.
Table 3.0-2 shows the data processing market in Europe broken down by
subsegment. Computers occupied the lion's share of this market in 1988, accounting for
an estimated 78.3 percent of the semiconductor market in the data processing segment.
Following this segment were data storage systems (largely hard disks) with 9.8 percent
and dedicated systems with 6.3 percent.
Table 3.0-2
Estimated 1988 European Data Processing
Semiconductor Consumption by Subsegment
Subseament
Millions
of Dollars
Percent
Data Processing
Computers
Data Storage Subsystems
Terminals
Input/Output
Dedicated Systems
$2,645
333
28
165
210
78.3%
9.8
0.8
4.8
6.3
$3,381
100.0%
Total
Source:
Dataguest
August 1989
Dataquest estimates that overall semiconductor consumption in the data processing
segment will experience a 17.2 percent CAGR during the next five years. Laser printers
and workstations represent the two most djmamic markets in this segment.
The growing affordability of laser printers, combined with tougher European local
content rules that are driving greater local production, will cause this subsegment to
show a 34 percent CAGR between 1989 and 1994. The growth in semiconductors
consumed for the workstation market will be almost as dramatic, with an estimated
31 percent.
3.0-4
© 1989 Dataquest Incorporated August
ESIS Volume II
0004416
3.0 Semiconductor End-User Markets
Communications
Table 3.0-3 shows the communications market in Europe for 1988 broken down by
subsegment. Customer-premises equipment (telephones, facsimile, data terminals,
modems, PBXs) account for the greatest proportion of revenue in this segment,
38.4 percentTable 3.&-3
Estimated 1988 Eurcq>ean Communications
Semi<x)nductcH* Consumption t^ Subsegment
Subseqment
Conanunications
Customer Premises
Piiblic Telecommunications
Radio
Broadcast and Studio
Other
Total
Millions
of Dollars
p§rpe^t
628
496
261
137
112
38.4%
30.4
16.0
8.4
6.8
$1,634
100.0%
$
Source:
Dataquest
August 1989
Although overall growth for communications—17.7 percent CAGR—ranks behind
the consumer and transportation sectors, it contains the highest growth applications for
the next five years.
With ISDN services recently announced in France and West Germany, Dataquest
expects ISDN semiconductor revenue to show a sharp increase, reflecting an average
90 percent CAGR. By 1992 the market for dedicated ISDN ICs is estimated to be worth
$137 million.
The new digital cordless telephone technologies, CT2 and DECT (Digital European
Cordless Telephone), also are poised to make a strong impact in the next five
years—growing at an estimated 54 percent during this period. Dataquest estimates that
the market for CT2 semiconductors in Europe alone will be worth between $90 million
and $170 million by 1994.
X
For the most part, facsimile machines are imported and in the past have not
accounted for significant component sales in Europe. Dataquest estimates that in 1988
only 15 percent of this high-growth market was satisfied by production in Europe.
ESIS Volume II
0004416
© 1989 Dataquest Incorporated August
3.0-5
3.0 Semiconductor End-User Markets
However, the trend here is toward rising local production with both Japanese and
European companies expected to expand production in Europe, driving an average
45 percent CAGR in semiconductor consumption during the next five years.
Industrial
The industrial segment covers a diverse range of applications. Table 3.0-4 shows a
breakdown for industrial consumption in Europe by subsegment for 1988.
Table 3.0-4
Estimated 1988 European Industrial
Semiconductor Consumption by Subsegment
Subsegment
Industrial
Energy Management
Manufacturing Systems
Robot Systems
Medical Systems
Commercial Aviation
Other
Total
Millions
of Dollars
$
p?r<??nt
125
795
26
217
75
153
8.9%
57.1
1.9
15.6
5.5
11.0
$1,392
100.0%
Source:
Dataquest
August 1989
Manufacturing systems (production systems, instrumentation) accounted for
59.1 percent of this market, with medical systems accounting for much of the remainder
(15.6 percent). However, the energy management systems sector is the one in which
Dataquest predicts the main growth (38 percent CAGR) in this segment during the next
five years. In this time period, smart electronic metering systems are forecast to
gradually replace existing electromechanical meters for electricity, gas, and water.
Consumer
Table 3.0-5 shows the consumer semiconductor consumption in Europe for 1988
broken down by subsegment. Video equipment (television and video recorders) represent
the greatest share, with 68 percent of the market, followed by white goods appliances
(microwave ovens, washing machines, dishwashers) with 16 percent and audio equipment
(hifi, radios) with 12 percent.
3.0-6
© 1989 Dataquest Incorporated August
ESIS Volume II
0004416
3.0 Semiconductor End-User Markets
Dataquest expects the consumer segment to show the strongest growth in
semiconductor consumption, with a 26.3 percent CAGR during the next five years. A
key factor behind this growth is the European Commission (EC)'s rules on local content
and antidumping, which are especially strong on products in this segment—particularly
regarding televisions and video recorders.
Table 3.0-5
Estimated 1988 EunH>ean Consumer
Semiconductor Consumption by Subsegment
Subseament
Millions
of Dollars
Consumer
Audio
Video
Personal Electronics
Appliances
Other
$117
666
29
158
6
12.0\
68.2
2.9
16.2
$976
100.0%
Total
Source:
Percent
Q,7
Dataquest
August 1989
Where there are new markets presently dominated by imports, Dataquest expects
the EC to move to encourage local production. One proposal before the commission is to
raise tariffs on imported camcorders from 4.9 percent to 14 percent. In Europe,
camcorders represent a $2 billion market, of which almost all are imported.
The semiconductor content per unit in this segment also is steadily increasing, as
chips will continue to replace electromechanical controllers in washing machines,
dishwashers, and microwave ovens during the coming years. Except for microwave
ovens, these items will continue to be produced mainly in Europe by strong, locally
owned manufacturers such as Electrolux, Philips, and Bosch-Siemens.
Transportation
The trends in semiconductor consumption for transportation are similar to those for
the consumer market. The most prominent of these trends is a market that is shifting
toward greater semiconductor content in a legislative environment in which local
production is increasingly favored.
ESIS Volume 11
0004416
© 1989 Dataquest Incorporated August
3.0-7
3.0 Semiconductor End-User Markets
Features like antllock braking and fuel injection were at one time luxuries that
distinguished top-range performance cars from low-end ones, but this is changing and
these items increasingly are being offered as standard equipment on all models.
The EC's target of tightening of regulations regarding car pollution by 1993 is
another major factor. These rules will require a much higher proportion of cars to use
microprocessor-controlled engine management systems.
Table 3.0-6 shows Dataquest's estimation of transportation semiconductor
consumption for Europe broken down by subsegment for 1988. Power train systems
(electronic fuel injection and engine management) account for the greatest (41 percent)
share of this market, followed by safety and convenience systems (mainly antilock
braking) with 22.2 percent and entertainment systems with 19.1 percent.
Table 3.0-6
Estimated 1988 European Transportation
Semiconductor Consumption by Subsegment
Siibseqment
Millions
fitDollars
Transportation
Entertainment
Body Controls
Safety and Convenience
Power Train
Driver Information
$117
72
136
251
Total
P^rg^nt
36
19.1%
11.8
22.2
41.0
5.9
$612
100.0%
Source:
Dataquest
August 1989
Military
Semiconductor consumption for the military segment will remain static in real
terms during the next five years.
The current political climate between the West and east bloc countries is such that
further cuts in defense budgets in Europe are probable, which will result in declining
orders for military systems. However, Dataquest predicts that electronic content will
continue to increase and, as procurement budgets shrink, military electronic systems will
go through successive phases of modernization rather than replacement.
3.0-8
© 1989 Dataquest Incorporated August
ESIS Volume II
0004416
3.0 Semiconductor End-User Markets
Consolidation through horizontal integration and joint consortia is likely in a
European military market that is deeply fragmented along national lines. The main
impetus for consolidation in this market comes from the fact that R&D costs are
escalating rapidly. Examples include Ferranti's venture with Teledyne to manufacture
acoustic sensors, Plessey's 49 percent stake in Electtronic and GEC's 5 percent holding
in Matra. Further consolidation is likely.
ESIS Volume II
0004416
© 1989 Dataquest Incorporated August
3.0-9
3.7 Semiconductor Distribution Markets
INTRODUCTION
This
service section will discuss the European semiconductor
distribution markets. Included will be the following topics:
••
Major distribution by region
•
Market data by region
•
Profiles on the major European distributors
A description of the European semiconductor distribution markets,
their history, development, and future outlook, is contained in
Section 1.5 of this volume. Channels of Distribution.
The formal service section is currently in preparation. Clients who
wish advance information should use their inquiry privileges to address
their specific topics of interest.
ESIS Volume II
'
© 1986 Dataguest Incorporated October
3.7-1
4.0 Major Users
INTRODUCTION
This service section gives Dataquest's estimates of the semiconductor spends of the main
equipment companies in Europe in 1990. Two sets of estimates are given: European equipment
companies' worldwide purchases, and worldwide companies' European purchases. For the first
time these estimates include a breakdown by the major product categories of bipolar digital, MOS
memory, MOS micro, MOS logic, analog, discrete, and optoelectronic.
Changes in company structures are constantly taking place due to mergers, acquisitions,
divestitures, and so on. bi these estimates, company structures are taken to be as at the end of
1989. Detailed company notes explaining the assumptions we have made are given at the end of
this section after the tables.
RESEARCH METHODOLOGY
In estimating the semiconductor spend of major equipment companies Dataquest employs two
main methodologies:
•
Procurement surveys. These gather actual inputs from the companies themselves on
their spends. The surveys also yield a breakdown of types of semiconductor purchased
(microprocessor, memory, and so on).
•
Dataquest's application markets research. Analysts in Dataquest's European
Semiconductor Applications Markets (ESAM) research group use their knowledge of
equipment production and semiconductor content of equipment to estimate the semiconductor spends of the major equipment companies.
Other sources of information include:
•
Other Dataquest service groups, particularly our European telecommunications, computer, personal computer, printer, and copier and duplicating industry groups
•
Publically available sources such as press clippings
•
Our own market intelligence
Finally, in completing our 1990 estimates we sent a draft of the final estimates to each of the
top 10 semiconductor vendors in Europe. Their comments and corrections have been included, and
we gratefully acknowledge their assistance.
#
ESIS Volume n
0006186
©1990 Dataquest Europe Limited October
4.0 Major Users
THE TABLES
The following tables show Dataquest's estimates of the semiconductor consumption of
electronic equipment manufacturers.
•
Table 1 estimates European companies' worldwide semiconductor consumption by
major product category in 1990.
•
Table 2 estimates worldwide companies' European semiconductor consumption by
major product category in 1990.
•
Table 3 ranks worldwide companies' European semiconductor consumption in 1990 by
size in descending order.
#
©1990 Dataquest Europe Limited October
ESIS Volume n
0006186
4.0 Major Users
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©1990 Dataquest Europe Limited October
16"^
ESIS Volume H
0006186
Table 2 (Continued)
Worldwide Companies' European Semiconductor Consumption in 1990
(Millions of Dollars)
i^^^
9!
I
Total
Semi.
Total
Digital
Bipolar
Total
MOS
MOS
MOS
IC
MOS
Metnw^
Micro
Logic
409
61
90
299
30
35
313
46
79
220
23
33
29
0
9
5
0
4
220
23
60
116
11
26
88
4
32
24
2
16
64
7
15
39
3
7
69
11
13
53
6
4
$5,894
$4,827
$415
$3,376
$1,466
$934
$976
$1,0
Total Euiopean Semiconductor Markets
$10,682
$8,455
$696
$5,809
$2,383
$1,704
$1,722
$1,9
Above Companies Percentage of Total
European Market
55.2%
57.1%
59.7%
58.1%
61.5%
54.8%
56.7%
5l3.1
Siemens
Sony
«
1=1 STC (incl. ICL)
Thomson
Toshiba
T\ilq)
Total Above Companies
o
I
a
II
VI
Note: Ttrials may Dot add doc to mukting
Snina; (DotiquMt) Ootoher 1990
Line
1
Table 3
Ranked Worldwide Companies' European-Based Semiconductor Consumption in
(Millions of Dollars)
o
a
I
r
HH
w
S«
IBM
Philips
Siememi
Basch
Alcatel
ThomsoO'
Ericsson
Nokia
Olivetti
Gnindig
BuU
GPT
Semdco
GEC
Hewlett-Packard
Digital
Nixdorf
STC (incl. ICL)
Schlumbeiger
ASCOM
A « a Brown Bovetf
Amstrad
Apple
Sony
Italtel
Commodore
Sagem
Mannesmarm
Matra ConumttilciMisnl
Rank Xerox
Aerospatiale
Lucas
"Hilip
NCR
Racal £IectrcM){ES
AEG
Total
Total
Semi.
IC
Digital
Bipolar
984
441
409
356
318
299
287
279
247
202
156
153
129
124
121
116
109
90
89
87
83
83
62
61
56
54
50
46
41
39
37
36
35
34
31
31
927
327
313
276
242
220
218
223
230
153
146
117
102
80
110
107
103
79
67
66
51
72
59
46
45
51
40
37
31
37
23
27
33
32
22
23
115
14
29
10
21
5
18
13
28
2
18
10
3
6
13
13
13
9
7
6
4
6
7
0
4
6
4
4
3
5
2
1
4
4
2
1
Total
MOS
MOS
MOS
MOS
Memory
Micro
Logic
734
185
220
192
162
116
146
138
181
77
115
78
78
50
86
84
82
60
47
44
32
49
46
23
31
40
28
28
21
29
15
21
26
25
15
14
440
53
88
34
53
24
47
51
107
15
68
26
11
14
50
48
49
32
21
15
10
25
28
4
13
24
11
14
7
17
4
2
16
15
5
4
187
53
64
77
32
39
31
36
46
24
29
16
36
19
22
21
21
15
13
9
12
13
12
7
7
10
7
8
4
7
6
11
7
6
4
5
107
79
69
81
76
53
67
51
28
38
18
37
31
17
13
14
12
13
12
21
10
12
7
11
12
6
10
5
10
4
5
8
4
4
6
6
Linear
78
128
63
73
60
100
54
72
21
74
13
29
21
24
11
11
9
10
13
16
15
16
5
23
9
4
8
6
8
3
7
6
3
3
6
7
Table 3 (Continued)
Ranl(ed Worldwide Companies' European-Based Semiconductor Consumption in
(Millions of Dollars)
cK I—I
S">*
00
^t
Toshiba
British Aerospace
Bayer
Bang & Olufsen
Electrolux
Norsk Data
Compaq
Total Above Companies
Note: Ibtalt may not add due to rounding
Source; Dataquest (October 1990)
O
I
i
i
Total
Semi.
Total
IC
Digital
Bipolar
Total
MOS
MOS
Memory
MOS
Micro
MOS
Logic
Linear
30
28
23
15
11
10
0
23
19
22
11
8
10
0
0
1
3
0
0
1
0
11
12
17
6
4
8
0
2
3
10
1
1
5
0
3
5
4
2
1
2
0
6
4
3
3
2
1
0
11
5
2
6
4
1
0
$5,894
$4,827
$415
$3,376
$1,466
$934
$976
$1,036
4.0 Major Users
COMPANY NOTES
AEG Group
On 1 July 1989, AEG's aviation, space technology and defense operations were transferred to
Deutsche Aerospace AG. AEG and Deutsche Aerospace are subsidiaries of Daimler-Benz. A
substantial portion of AEG's office and communications systems division revenue is derived from
sales of badged systems.
Aerospatiale
In 1989, Aerospatiale and Thomson-CSF merged their avionics interests to form Sextant
Avionics. This new company has not been shown seperately. Sextant's production and semiconductor consumption are included in the original companies.
Alcatel
All equipment production for the Alcatel group is shown, although the eight major companies
within the group each procure separately.
Amstrad
Although Amstrad only manufactures a limited amount of equipment in Europe, it is believed
to procure for the bulk of its semiconductor needs through its European office.
ASCOM
ASCOM was founded in mid-1987 by the merger of Autophon AG and Hasler Holdings.
Bang & Olufsen
Bang and Olufsen is now majority-owned by Phihps, but because the company still has
control of its own procurement and equipment production, it is shown separately.
Bayer
The Imaging Technology division of Bayer is Agfa-Gevaert Group. We believe that a major
portion of Agfa-Gevaert's sales are derived from badged products.
Robert Bosch
We estimate that the 80 percent of Bosch's semiconductor consimiption in transportation is
from captive supply while, in other areas, the consumption is predominantly merchant Our
estimates include Bosch's majority stakes in 19 German and 68 foreign subsidiaries. This includes
Blaupunkt-Werke GmbH, Bosch-Siemens Hausgerate, ANT Nachrichtentechnik GmbH and
Telenorma. These estimates do not include the Bosch-Matsushita joint venture, MB \^deo GmbH.
8
©1990 Dataquest Europe Limited October
ESIS Volume n
0006186
4.0 Major Users
Bull
These figures include Bull's recent acquisition of Zenith Data Systems.
Compaq
Compaq manufactures PCs in Scotland but is believed not to procure semiconductors locally,
instead importing PCBs from outside Europe. Consequently we have left its semiconductor
consumption at zero.
Deutsche Aerospace
Deutsche Aerospace has not been included in this year's breakdown.
GEC
The estimates for GEC exclude GPT, but include the aerospace and engineering divisions of
Plessey.
GPT Telecommunications
GPT is owned 60-40 by GEC and Siemens respectively. It is shown separately because it still
has independent purchasing power. Each GPT manufacturing location has its own procurement
office, controlled by a steering committee to determine common sources.
Grundig
The estimates cover Grundig AG Group. These consist predominantly of its home consumer/
home electronics operations.
IBM
We estimate that there is a 50-50 spht between captive and merchant semiconductor
consumption in IBM. In PC production, its demand from the merchant market is stronger, with
captive supply accounting for only 15 percent of its total PC consumption.
Italtel
Italtel is owned by IRI-STET; the Italtel numbers include Italtel Telematica, Italtel
Tecnomeccanica, Italtel Tecnoelettronica and Italtel Telesis.
Magnet! Marelli
This is the automotive components arm of the Fiat Group. All of Fiat's semiconductor
procurement is through Semelco.
ESIS Volume n
0006186
©1990 Dataquest Europe Limited October
9
4.0 Major Users
Mannesmann
These estimates include all companies within the Mannesmaim group, including Mannesmaim
Kienzle and Hartmann & Braun.
Matra Communication
The Matra Communication estimates do not include its subsidiaries: MET, LCT, and Matra
Communication Systemes de Security. Matra SA
Matra SA has not been included in this year's breakdown.
Nixdorf (latterly Siemens-Nixdorf Information Systems)
Nixdorf is now controlled by Siemens. For this analysis, estimates for these companies are
shown separately.
Nokia
Nokia estimates include the companies Luxor Oy, Salora Oy, and Oceanic SA.
Olivetti
Olivetti's joint venture in photocopiers with Canon is not included in this estimate.
Philips
At the begimiing of 1990, Philips disposed of a major portion of its defense business in
Europe to Thomson-CSF, selhng an 80 percent interest in Philips' Dutch subsidiary Hollandse
Signaalaparaten BV, a 49 percent interest in Philips' Belgian company MBLE, and 99 percent of
the defense business of Philips' French company TRT. In the &st quarter of 1990 Philips sold its
German defense activities.
Since early 1989 Philips' major domestic appliances divisions have been in a joint venture
with Whirlpool. Estimates for this venture are not included and semiconductor procurement for
this company is not shown.
In mid-1990 Philips took control of Bang & Olufsen. Bang & Olufsen's equipment production
is not included because it still has control of its own semiconductor procurement
i Plessey
Plessey was split up between GEC and Siemens. Siemens took the defense electronics
division of Plessey, and GEC took the aerospace and engineering divisions. GPT is now owned on
a 60-^0 split between GEC and Siemens respectively.
10
©1990 Dataquest Europe Limited October
ESIS Volume n
0006186
4.0 Major Users
Rank Xerox
• l
A large portion of Rank Xerox's revenue comes from its reprographic businesses, which
account for about 70 percent of its revenue. Within this, a large portion (45 percent) is made up
from service agreements.
Sagem
The Sagem equipment production represents the consolidated sales of Sagem, and not just
that of the parent company.
Schneider
The data include only PC production (excluding laptops).
Semeico
Semelco is the semiconductor procurement arm of the Fiat group. These figures include
consumption for Magneti Marelli and Telettra.
Sextant Avionics
Sextant Avionics has not been included in this year's breakdown. The joint venture was set up
by Aerospatiale and Thomson-CSF by the merger of their civil and fighter electronics businesses.
Aerospatiale transferred Crouzet, Sfena and ESA, while Thomson-CSF transferred its general
avionics division.
Siemens
These estimates include captive sales to Siemens from Siemens Components (believed to
account for 30 percent of Siemens' total demand). After the takeover of Plessey, Siemens took
control of the defense electronics division of Plessey. Siemens' 40 percent stake in GPT is not
shown, as the company retains its own purchasing locations. Siemens' has recently acquired
control of Nixdorf. For the moment, estimates for these companies are shown separately.
STC (including ICL)
STC's equipment production includes ICL (whose controlling interest is being sold to
Fujitsu).
Telettra
This is the telecommunications arm of the Fiat Group, and is now merged with Alcatel NV.
All of Fiat's semiconductor procurement is through Semelco.
ESIS Volume n
0006186
©1990 Dataquest Europe Limited October
11
4.0 Major Users
Thomson
Thomson includes equipment production for Thomson Consumer Electronics SA and
Thomson-CSF. At the beginning of 1990 Thomson acquired a major portion of Philips' defense
business in Europe; this has been included in the estimates. From 1989, Aerospatiale and
Thomson-CSF merged their avionics interests to form Sextant Avionics. This has not been
included.
Whirlpool International
Whirlpool International was formed by the merger of the European appliance division of
PhiUps and Whirlpool. It has not been included in this year's breakdown.
12
©1990 Dataquest Europe Limited October
ESIS
0006186
m
4.0 Major Users
INTRODUCTION
This service section gives Dataquest's estimates of semiconductor spends for the main equipment companies in Europe in 1991. Two sets of estimates are given—^European equipment companies' purchases worldwide, and worldwide companies' purchases in Europe. These estimates
include a breakdown by the major product categories of bipolar digital, MOS memory, MOS
microcomponent, MOS logic, analog, discrete, and optoelectronic devices.
Changes are taking place in company structures all the time due to mergers, acquisitions,
divestitures, and so on. In these estimates company structures are taken to be as they were at the end
of 1991. Detailed company notes explaining the assumptions we have made are given at the end,
after the tables.
RESEARCH METHODOLOGY
In estimating major equipment companies' semiconductor spend, Dataquest employs two main
methodologies:
•
Procurement surveys. These gather actual inputs from the companies themselves on
their spends. The surveys also yield a breakdown of types of semiconductor purchased
(microprocessor, memory, and so on).
•
Dataquest's application markets research. Analysts in Dataquest's European
Semiconductor Application Markets (ESAM) research group use their knowledge of
equipment production, and semiconductor content of equipment to estimate the semiconductor spends of the major equipment companies.
Other sources of information include:
•
Other Dataquest service groups, particularly our European telecoms, computer, personal
computer, printer and peripherals service groups.
•
Publicly available sources such as press clippings.
•
Our own market intelligence.
Finally, in completing our 1991 estimates we sent a draft of our final estimates to each of the
top 10 semiconductor vendors in Europe. Their conunents and corrections have been included, and
we gratefully acknowledge their assistance.
ESIS
0009993
©1991 Dataquest Europe Limited November
4.0 Major Users
THE TABLES
The following tables show Dataquest's estimates of the semiconductor consumption of
electronic equipment manufacturers.
•
Table 1 estimates European companies worldwide semiconductor consumption by major
product category in 1991.
•
Table 2 estimates worldwide companies European semiconductor consumption by major
product category in 1991.
•
Table 3 ranks worldwide companies European semiconductor consumption in 1991 by
size in descending order.
Note: Figures may not always add to totals shown due to rounding.
CHANGES TO 1990 ESTIMATES
Since the last estimates in this section were published (September 1990), the Commercial
Aviation segment has been deleted from from the Industrial segment and added to the Military and
Aerospace segment, and is reflected in the accompanying estimates.
In addition, more representative nominal margins assumptions have been used this year to
translate ex-factory revenue (derived from the company reports) to give the end-user revenues
printed in this section. Compared with last year, the following changes have been made:
•
Last year's uniform 12.5 percent markup for data processing equipment has been replaced
by 25 percent in cases where channels exist between the OEM and the end user. In many
cases, this has significantiy raised the estimates for manufacturers of personal computers
and related peripherals.
•
Last year's uniform 12.5 percent markup on communications equipment has been
replaced by a 25 percent markup in the Customer Premise subsegment, and a zero markup
for the Public Telecommunications segment.
•
Last year's uniform 25 percent markup on consumer equipment has been replaced by
a 50 percent markup.
•
The zero markups for industrial and military equipment remain unchanged.
©1991 Dataquest Europe Limited November
^
ESIS
0009993
4.0 Major Users
COMPANY NOTES
Acorn
A subsidiary of the Olivetti Group which currently subcontracts all of its PC motherboard
manufacturing in the United Kingdom.
AEG Group
A subsidiary of Daimler-Benz. A substantial portion of AEG's Office and Communications
Systems division is derived from sales of badge systems. AEG's estimates include its Telefunken
subsidiary.
Aerospatial
Estimates do not include Aerospatiale Crouzet, Sfena and ESA divisions which were transferred to Sextant Avionique in 1989. Sextant Avionique estimates have been shown separately.
Last year's estimates showed Aerospatiale with production in Industrial, due to changes in the
way ESAM defines equipment this production of commercial aircraft is now included in MiUtary.
Alcatel
Estimates include the whole of the Alcatel group including Alcatel FACE, Alacatel Bell
Telephone, Alcatel Business Systems, Alcatel Standard El^ctrica, Alcatel SEL, Alcatel CIT, Alcatel
Cable, and Telettra.
Amstrad
Subcontracts all of its manufacturing, the majority of which is done outside Europe, but is
believed to specify and procure the bulk of its semiconductor needs through its European office.
Consequently, procurement for its non-European activities is included in the European estimate.
Apple
Currently expanding its current PC factory in Cork, Eire.
Apricot
Included for the first time this year. Apricot was acquired by Mitsubishi in May 1990.
ESIS
0009993
©1991 Dataquest Europe Limited November
4.0 Major Users
ASCOM
Created in mid-1987 by the merger of Autophon AG and Hasler Holdings.
ASEA AB
Not shown in this year's breakdown, although its two main subsidiaries, Asea Brown Boveri
and Electrolux remain listed.
Asea Brown Boveri (ABB)
A joint-venture company between ASEA AB of Sweden and BBC Brown Boveri of
Switzerland. The ABB Group owns 1,300 companies worldwide.
Bang & Olufsen (B&O)
Now 25 percent owned by Philips with the remaining 75 percent owned by Bang & Olufsen
Holding. The company still procures semiconductors independently and, consequently, its equipment production is shown separately. During B&O's 1990 financial year it sold 50 percent of
Dikon, now Diax Telecommunications A/S, to Ericsson A/S for $6.5 million (not included in the
equipment estimates).
Bayer
The imaging Technologies sector of Bayer is the Agfa-Gevaert group. Bayer is active in the
printer, copier and scanner markets. Dataquest estimates that the majority of Agfa-Gevaert's sales
are derived from badged products, midrange to high-end printers and copiers and mainly from
Minolta.
Robert Bosch
We estimate that 80 percent of Bosch's semiconductor consumption in transportation is from
captive supply while, in other areas, the consumption is predominantly merchant. The estimates
include Blaupunkt-Werke, ANT Nachrichtentecluiik and Telenorma. This year Bosch-Siemens
Hausgerate is broken out and shown separately.
Bosch-Siemens Hausgerate
This year we have spUt out the equipment estimates of Bosch-Siemens Hausgerate. This is a
50-50 joint venture between Bosch and Siemens, and manufactures electric household appliances
and entertainment electronics.
©1991 Dataquest Europe Limited November
ESIS
0009993
4.0 Major Users
Groupe Bull
Acquired Zenith Data Systems (ZDS) in December 1989, it has since rationalized production
to plants in France and closed down the ZDS facility in Eire.
Commodore
Currently expanding it PC facility in Braunschweig, Germany.
Deutsche Aerospace
Founded in 1989 and embraces the activities of Domier, Messerschmitt-Bolkow-Blohm,
Motoren-und Turbinen-Union and Telefunken Systemtechnik. The companies' production estimates
have not been shown this year.
Electrolux
Markup for consumer is 50 percent instead of last year's 25 percent.
GEC
Estimates exclude GPT (shown separately) but include Ferranti Defence Systems, which GEC
acquired during this year.
Goldstar
Currently manufacturing consumer goods in Germany (VCRs) and in the United Kingdom
(microwave ovens). For the consumer electronics-related business, Goldstar is procuring semiconductors locally, its PC operation in the United Kingdom is currently using imported boards so this
equipment production is not shown.
GPT
Owned 60-40 by GEC and Siemens respectively. It is shown separately because it still retains
independent purchasing power.
IBM
Has a 50-50 split between captive and merchant semiconductor consumption. In PC production, IBM's demand from the merchant market is stronger, with captive supply accounting for only
15 percent of its total PC consumption.
ESIS
0009993
©1991 Dataquest Europe Limited November
5
4.0 Major Users
ICL
STC, the previous owner, sold its controlling stake in ICL to Fujitsu this year. ICL's equipment
estimates are shown separately. In May 1991, ICL acquired Nokia's computer division, Nokia Data,
and Nokia Data's production is also included.
Italtel
Equipment estimates include Italtel's subsidiaries, Italtel Telematica, Italtel Sistemi, Italtel
Tecnoelettronica, Italtel Tecnomeccanica and Italtel Telesis.
Mannesmann
Recently entered into two cooperation agreements in the electronic equipment area of its
operations. Firstly the printer operations of Mannesmann Tally and Siemens were merged and,
secondly, Mannesmann has transferred control of its computer division, Mannesmann Kienzle, to a
joint-venture company with Digital. Therefore, an independent estimate for Mannesmann has not
been made this year.
Matra Communication
Estimates only include the parent company, and not those of its subsidiaries.
Nokia Corporation
Sold its computer division, Nokia Data Systems, to ICL in May 1991, estimates for this
division have therefore been excluded. Nokia Consumer Electronics include production for Luxor,
Salora and Oceanic.
Northern Telecom
Took over STC this year. Previously STC sold its stake in ICL to Fujitsu (Northern Telecom
estimates are not shown this year).
Olivetti Group
Estimates include Olivetti's PC subsidiary, Triumph-Adler, which it acquired in 1986. The
estimates do not include its subsidiary Acorn which is shown separately.
Matsushita
Equipment estimates include Matsushita's subsidiaries, Panasonic and JVC, which manufacture equipment in Europe. It does not include the equipment manufactured by the joint-venture
company MB Video.
6
©1991 Dataquest Europe Limited November
ESIS
0009993
4.0 Msyor Users
Philips
Disposed of a major portion of its defense business in Europe to Thomson-CSF at the beginning of 1990. In July 1991, Philips sold the majority of its Information Systems Division (excluding
its PC operations) to Digital. These operations have been deducted from our estimates. The estimates include all companies in which Philips has a controlUng interest and, therefore, they exclude
Bang & Olufsen and Whirlpool International.
Philips estimates have been strongly influenced by a large exchange fluctuation in US dollars
to gulden for 1991 over 1990.
Sagem
Equipment estimates represent the consolidated sales of Sagem, and not just those of the parent
company.
Sextant Avionique
A joint venture formed between Aerospatiale and Thompson-CSF in 1989. Aerospatiale transferred Crouzet, Sfena and ESA to the new company, while Thomson-CSF transferred its general
avionics division. Its revenue was made up of the following: civil aviation (27 percent), military
aviation (20 percent), helicopter and space (20 percent) components (33 percent).
Siemens
Estimates include the activities of Siemens-Nixdorf Information Systems (SNI) which was
founded by the merger of Siemens' and Nixdorf's computer divisions in January 1990. Siemens
also acquired the defense activities of Plessey which are included in the estimates, but excluded
from the estimates is Bosch-Siemens Hausgerate's estimates (shown separately). The estimates
include captive sales to Siemens from Siemens Components (believed to account for 30 percent of
Siemens' total demand.
STC
Sold its controlling interest in ICL to Fujitsu. Later, STC was taken over and incorporated into
Northern Telecom.
Sony
Estimates are derived from its TV and VCR production in the United Kingdom, Germany, and
Spain.
ESIS
0009993
©1991 Dataquest Europe Limited November
4.0 Major Users
Thomson Consumer Electronics (TCE)
A subsidiary of Thomson SA, split out for the first time this year. TCE's products are mainly
marketed under the brands Thomson, Telefunken, RCA, Nordmende, General Electric, SABA and
Ferguson.
Over one-third of TCE's workforce is located in Asia with production facilities in Singapore,
Malaysia, Thailand, Indonesia, Hong Kong, Taiwan and China. Most of TCE's Audio and
Communication Group's products are manufactured in Asia. For this reason a large part of TCE's
production and consumption is outside Europe.
Thomson-CSF
A subsidiary of Thomson SA, split out for the first time this year. Thomson-CSF general
avionics division is not included in these estimates as it was transferred to Sextant Avionique in
1989. Sextant Avionique has been shown separately.
Tblip Computers
Manufactures PCs in the Netherlands and has recently announced plans to expand its production facility there. At the moment, Tulip subcontracts its manufacture of motherboards.
©1991 Dataquest Europe Limited November
^
'^
ESIS
0009993
4.0 Major Users
Table 1
European Companies' Semiconductor Consumption Worldwide in 1991
(Millions of Dollars)
Company
AB Electronics
Acorn
AEG
Aerospatiale
Alcatel
Amstrad
Apricot
ASCOM
Asea Brown Boveri
Bang & Olufsen
Bayer
Bosch
Bosch-Siemens
British Aerospace
BuU
Electrolux
Ericsson
GEO
GPT
Grundig
ICL
Italtel
Lucas
Matra Communication
Nokia Group
Olivetti
Philips
Racal Electronics
Rank Xerox
Sagem
Schlumberger
Sextant Avionique
Siemens
Thomson Consumer
Thomson-CSF
"Mip
Total
Total
Semi.
Total
IC
Digital
Bipolar
Total
MOS
MOS
MOS Memory Micro.
18
18
66
22
444
98
12
104
77
18
31
669
133
33
211
46
222
231
152
319
206
88
68
36
243
403
963
46
48
52
139
11
1,025
272
96
20
14
17
46
18
346
81
11
77
47
13
30
493
91
27
198
31
173
153
119
220
193
68
49
28
172
377
661
34
45
43
101
9
810
187
78
19
1
2
3
4
19
6
1
5
5
0
3
18
3
5
20
1
10
23
6
7
19
4
4
2
8
37
34
4
5
3
11
2
68
6
15
2
10
14
28
10
231
56
9
50
28
5
25
345
37
14
163
13
115
85
79
97
160
46
33
19
86
309
317
21
37
30
68
5
576
78
42
15
3
7
6
3
58
24
5
12
4
2
12
49
12
5
78
4
29
19
20
28
77
11
5
5
24
147
92
5
18
10
22
2
186
25
14
7
4
4
11
2
94
18
3
20
12
2
7
126
17
3
45
6
46
31
32
42
44
18
11
8
37
87
135
8
10
11
24
1
199
35
10
4
4
3
11
4
79
14
2
18
12
1
6
171
8
6
39
3
40
35
27
27
39
16
17
6
25
75
90
8
9
10
22
2
192
18
18
4
4
1
16
5
96
19
1
22
14
7
2
130
52
7
15
18
48
45
33
116
15
19
12
8
77
31
310
10
3
10
21
2
166
103
20
1
$6,639
$5,079
$365
$3,256
$1,029
$1,167
$1,059
$1,460
Source: Dataquest (November 1991)
ESIS
0009993
©1991 Dataquest Europe Linuted November
MOS
Logic
Linear Discrete Opto.
3
1
16
3
64
13
0
19
24
5
1
134
36
5
7
12
32
61
22
84
6
13
15
5
58
14
251
8
1
6
29
2
153
72
15
1
3
0
4
1
34
4
0
8
6
1
1
42
6
1
6
2
17
16
12
15
6
7
4
3
14
12
52
3
1
3
9
0
62
12
3
1
$1,190 $372
4.0 Major Users
Table 2
Worldwide Companies' Semiconductor Consumption in Europe 1991
(Millions of Dollars)
Company
AB Electronics
Acorn
AEG
Aerospatiale
Alcatel
Amstrad
Apple
Apricot
ASCOM
Asea Brown Boveri
Bang & Olufsen
Bayer
Bosch
Bosch-Siemens
British Aerospace
Bull
Commodore
Compaq
Digital
Electrolux
Ericsson
GEC
Goldstar
GPT
Grundig
Hewlett-Packard
Hitachi
IBM
ICL
Italtel
Lucas
Matra CommunicaticHi
Mitsubishi
NCR
Nokia Group
Olivetti
Matsushita
Philips
Racal Electronics
Total
Semi.
Total
IC
Digital
Bipolar
18
18
47
22
373
93
96
12
96
61
18
25
500
133
33
105
78
20
47
31
198
181
33
120
302
151
55
938
187
88
50
36
42
66
216
358
205
583
38
14
17
32
18
291
77
90
11
72
37
13
24
369
91
27
98
74
20
43
21
155
120
22
93
208
138
38
886
175
68
36
28
29
62
152
335
143
394
29
1
2
2
4
16
6
9
1
5
4
0
2
13
3
5
10
7
0
4
1
9
18
1
5
7
14
1
90
18
4
2
2
1
6
7
33
5
19
3
Total
MOS
MOS
MOS Memory Micro.
10
14
17
10
194
52
75
9
47
22
5
20
259
37
14
81
61
20
34
9
103
67
9
62
92
112
15
733
145
46
25
19
12
52
77
275
62
181
18
3
7
5
3
48
22
36
5
11
3
2
9
36
12
5
39
30
20
15
3
26
15
3
16
26
53
5
355
70
11
3
5
4
25
21
131
21
49
5
4
4
7
2
79
17
21
3
19
9
2
5
94
17
3
22
17
0
10
4
41
24
4
25
40
32
7
201
40
18
8
8
5
14
33
77
27
80
7
MOS
Logic
4
3
6
4
67
13
18
2
17
9
1
5
128
8
6
20
15
0
9
2
36
27
2
21
25
28
3
176
35
16
13
6
3
12
22
67
14
52
7
Linear Discrete Opto.
3
1
12
5
81
19
6
1
20
11
7
2
97
52
7
8
5
0
5
12
42
35
13
26
109
12
21
63
13
19
9
8
16
4
69
27
75
194
8
3
1
12
3
53
13
3
0
16
18
5
1
100
36
5
3
2
0
2
9
29
48
9
17
80
8
15
27
6
13
11
5
11
2
51
12
53
157
7
1
0
3
1
29
4
3
0
7
5
1
1
31
6
1
3
2
0
2
1
15
13
1
9
14
5
2
25
5
7
3
3
2
2
12
11
9
32
3
(Continued)
10
(©1991 Dataquest Europe Limited November
ESIS
0009993
4.0 Major Users
Table 2 (Continued)
Worldwide Companies' Semiconductor Consumption in Europe 1991
(Millions of Dollars)
Company
Total
Semi.
MOS
MOS
Memory Micro.
MOS
Logic
Linear Discrete Opto.
1
6
20
2
105
25
44
15
12
1
1
3
6
0
45
4
8
3
2
1
$7,087 $5,662
$436 $3,821 $1,417 $1,279 $1,125 $1,405 $1,077
$348
$10,828 $8,683
$489 $5,776 $2,094 $2,219 $1,463 $2,418 $1,750
$395
Rank Xerox
Sagem
Schliunberger
Sextant Avionique
Siemens
Sony
Thomson Consumer
Thomson-CSF
Toshiba
"HiUp
48
52
95
11
786
94
167
96
47
20
Total
Total European Semi.
Consumption
Total Digital Total
IC Bipolar MOS
Percentage of Total
European Market
65.5%
45
43
69
9
637
64
115
78
33
19
65.2%
5
3
8
2
55
2
4
15
1
2
37
30
47
5
463
26
48
42
15
15
18
10
16
2
163
8
15
14
5
7
89.2% 66.1% 67.7%
10
11
16
1
154
12
22
10
6
4
57.6%
9
10
15
2
146
6
11
18
3
4
76.9%
3
10
14
2
118
36
63
20
17
1
58.1% 61.6% 88.1%
Source: Dataquest (November 1991)
ESIS
0009993
©1991 Dataquest Europe Limited November
11
4.0 Major Users
Table 3
Worldwide Companies' Semiconductor Consumption in Europe 1991
(Millions of Dollars)
Company
ffiM
Siemens
Philips
Bosch
Alcatel
Olivetti
Grundig
Nokia Group
Matsushita
Ericsson
ICL
GEC
Thomson Consumer
Hewlett-Packard
Bosch-Siemens
GPT
Bull
ASCOM
Thomson-CSF
Apple
Schlumberger
Sony
Amstrad
Italtel
Commodore
NCR
Asea Brown Boveri
Hitachi
Sagem
Lucas
Rank Xerox
Toshiba
Digital
AEG
Mitsubishi
Racal Electronics
Matra Communication
British Aerospace
Goldstar
Total
Semi.
938
786
583
500
373
358
302
216
205
198
187
181
167
151
133
120
105
96
96
96
95
94
93
88
78
66
61
55
52
50
48
47
47
47
42
38
36
33
33
Total Digital Total MOS MOS
IC Bipolar MOS Memory Micro.
886
637
394
369
291
335
208
152
143
155
175
120
115
138
91
93
98
72
78
90
69
64
77
68
74
62
37
38
43
36
45
33
43
32
29
29
28
27
22
90
55
19
13
16
33
7
7
5
9
18
18
4
14
3
5
10
5
15
9
8
2
6
4
7
6
4
1
3
2
5
1
4
2
1
3
2
5
1
733
463
181
259
194
275
92
77
62
103
145
67
48
112
37
62
81
47
42
75
47
26
52
46
61
52
22
15
30
25
37
15
34
17
12
18
19
14
9
355
163
49
36
48
131
26
21
21
26
70
15
15
53
12
16
39
11
14
36
16
8
22
11
30
25
3
5
10
3
18
5
15
5
4
5
5
5
3
201
154
80
94
79
77
40
33
27
41
40
24
22
32
17
25
22
19
10
21
16
12
17
18
17
14
9
7
11
8
10
6
10
7
5
7
8
3
4
MOS
Logic
176
146
52
128
67
67
25
22
14
36
35
27
11
28
8
21
20
17
18
18
15
6
13
16
15
12
9
3
10
13
9
3
9
6
3
7
6
6
2
Linear Discrete Opto.
63
118
194
97
81
27
109
69
75
42
13
35
63
12
52
26
8
20
20
6
14
36
19
19
5
4
11
21
10
9
3
17
5
12
16
8
8
7
13
27
105
157
100
53
12
80
51
53
29
6
48
44
8
36
17
3
16
15
3
20
25
13
13
2
2
18
15
6
11
1
12
2
12
11
7
5
5
9
25
45
32
31
29
11
14
12
9
15
5
13
8
5
6
9
3
7
3
3
6
4
4
7
2
2
5
2
3
3
1
2
2
3
2
3
3
1
1
(Continued)
12
©1991 Dataquest Europe Limited November
ESIS
([XX)9993
4.0 Major Users
Table 3 (Continued)
Worldwide Companies' Semiconductor Consumption in Europe 1991
(Millions of Dollars)
Company
Electrolux
Bayer
Aerospatiale
Compaq
"Mip
Bang & Olufsen
Acom
AB Electronics
Apricot
Sextant Avionique
Total
Total
Semi.
31
25
22
20
20
18
18
18
12
11
Total Digital Total MOS MOS MOS
IC Bipolar MOS Memory Micro. Logic Linear Discrete Opto.
21
24
18
20
19
13
17
14
11
9
$7,087 $5,662
1
2
4
0
2
0
2
1
1
2
9
20
10
20
15
5
14
10
9
5
3
9
3
20
7
2
7
3
5
2
4
5
2
0
4
2
4
4
3
1
2
5
4
0
4
1
3
4
2
2
12
2
5
0
1
7
1
3
1
2
9
1
3
0
1
5
1
3
0
2
1
1
1
0
1
1
0
1
0
0
$436 $3,821 $1,417 $1,279 $1,125 $1,405 $1,077 $348
Source: Dataquest (November 1991)
ESIS
0009993
©1991 Dataquest Europe Limited November
13
5. Services and Suppliers to
the Semiconductor Industry
INTRODUCTION
This service section specifically deals with the European aspects of services and
suppliers of the semiconductor industry. For the purposes of specific discussion on
individual areas, this document is divided into five main segments:
•
Equipment
•
Materials
•
Wafer Fabrication Services
•
Assembly Services
•
Test Services
EQUIPMENT
Until the early 1980s, the equipment market in Europe was dominated primarily by
United States-owned companies, and to a lesser extent, by the Japanese. Much of this
was the result of two factors: the relatively small E\jropean-owned semiconductor
manufacturing base and the fact that the United States- and Japanese-owned
semiconductor companies with manufacturing facilities in Europe have tended to use the
same equipment there as in their U.S. or Japanese counterparts.
During the mid-1980s, three forces had a dramatic global impact on the
semiconductor equipment industry. The first was the downturn in worldwide IC demand.
The second was the shift toward megabit and submicron memory technology. The third
was the ASIC revolution. As a result of the downturn in IC demand, a parallel downturn
occurred in semiconductor equipment demand. The same rationalization and merger
phenomena that affected the semiconductor manufacturers also affected semiconductor
equipment manufacturers. Previous market leaders emerged with smaller market share,
and Japanese, U.S., and European equipment manufacturers were forced to explore
markets far beyond local boundaries. Antiprotectionist measures and trade agreements
are forcing the opening of local markets. European wafer fabrication, assembly, and test
equipment manufacturers stand poised to take advantage of opportunities associated
with free market conditions.
Traditionally, European engineering and innovation are second to none. With the
push in memory fabrication toward smaller and smaller critical dimensions, European
equipment manufacturers in the areas of lithography, plasma, implant, and inspection
have been launching state-of-the-art products to capitalize on these areas of
manufacture. Examples are companies such as AET, Electrotech, Heidelberg
Instruments, Helmut Seier, High Voltage Engineering, Oxford Instruments, and Plasma
Technology. See Table 1 for further listings of European equipment manufacturers.
ESIS Volume II
© 1988 Dataquest Incorporated April
5-1
5. Services and Suppliers to
the Semiconductor Industry
Table 1
Equipment and Materials Companies of EurcY>e—by Company
Company
Product Area
Location
AET
France
Plasma etch equipment/ RTP
Advanced Semiconductor
Materials (ASM)
Netherlands
Furnaces, plasma-enhanced
CVD, assembly equipment
Alcatel
France
Plasma etch, sputtering
equipment, pumps, vertical
furnaces
Align-rite
United Kingdom
Maskmaking
Alphasem
Switzerland
Wafer saws, assembly
equipment
Applied Materials
United Kingdom
Implanters
Balzers
Aktiengesellschaft
Liechtenstein
Etch equipment,
implanters, CVD
BOC
United Kingdom
Gases
COSY Microtec
Germany
SOR ring for X-ray
lithography
CSEM
Switzerland
Maskmaking
Cambridge Instruments
United Kingdom
E-beam, inspection systems
Centrotherm
Germany
Diffusion, CVD systems
Compugraphics
United Kingdom
Maskmaking
Convac
Germany
Track equipment, microscope
loaders
Cryophysics
Switzerland
Cryopumps
DNS
Italy
Silicon wafers
Deltest
United Kingdom
Engineering test equipment
(Continued)
5-2
© 1988 Dataquest Incorporated April
ESIS Volume II
5. Services and Suppliers to
the Semiconductor Industry
Table 1 (Continued)
Equipment and Materials Companies of Europe—by Company
Company
Product Area
Location
ESEC
Switzerland
Assembly equipment
Edwards High Vacuiun
International
United Kingdom
CVD, vacuum piunps
Electrotech
United Kingdom
Etch, CVD, sputter systems
Ernst Leitz
Germany
Inspection equipment,
mask comparators, optics
Eurotherm
United Kingdom
Controllers
Farco
Switzerland
Assembly equipment
G. Wirz
Switzerland
Assembly equipment
6E Solid State
Belgium
Maskmaking
Heidelberg Instruments
Germany
Measurement and inspection
systems
Helmut Seier
Germany
Furnaces, laminar flow, CVD
systems
High Voltage Engineering
Netherlands
Implanters
Hoechst
Germany
Chemicals, resists, gases
Holec
Netherlands
Furnaces
ICI
United Kingdom
III-V semiconductor
materials
Karl Suss
Germany
Proximity aligners,
X-ray systems
L'Air Liquide
France
Gases
La Porte Industries
United Kingdom
Chemicals, clean room
equipment
(Continued)
ESIS Volume II
© 1988 Dataquest Incorporated April
5-3
5. Services and Suppliers to
the Semiconductor Industry
Table 1 (Continued)
Equipment and Materials Companies of Europe—by Company
Location
Company
Product Area
Laufer
Germany
Molding presses
Leibold-Heraeus
Germany
Quartz, wafer-handling
equipment, pumps,
sputtering equipment,
plasma etchers
Loadpoint
United Kingdom
Wafer saws
MEM
Switzerland
Maskmaking
MTL ATE Systems
United Kingdom
High-pin-count testers
Merck
Germany
Chemicals, chemical
systems, resists
Micro-Image Technology
United Kingdom
Resists
Monsanto
United Kingdom
Silicon wafers
Nanomask
France
Maskmaking
Nordiko
United Kingdom
Plasma etchers, sputtering
equipment
Okmetic
Finland
Silicon wafers
Oxford Instruments
United Kingdom
X-ray, ion-beam lithography
Philips Semiconductor
Product Equipment
Netherlands
Photolithography equipment,
E-beam equipment
Plasma Technology
United Kingdom
Plasma etch equipment
Plasmos
Germany
CVD equipment
Rhone-Poulenc
France
Chemicals, gases
Robert Bosch
Germany
Assembly equipment
SEH
United Kingdom
Silicon wafers
(Continued)
5-4
© 1988 Dataquest Incorporated April
ESIS Volume 11
5. Services and Suppliers to
the Semiconductor Industry
Table 1 (Continued)
Equipment and Materials Companies of £ur(^)e—by Company
Company
Product Area
Location
SEMY Engineering
France
CVD systems
Semas
Switzerland
Assembly equipment,
photolithography systems
Sitesa
Switzerland
CVD systems
Society Electrothermigue
de la Tour de France
Switzerland
Quartz
Sofiltra
France
HEPA (high-efficiency
particle arresting)
filters
Topsil
Denmark
Silicon wafers
V6 Semicon
United Kingdom
Chemical-beam epitaxy, etch
systems
Vickers Instruments
United Kingdom
Measurement and inspection
systems
Hacker Chemitronic
Germany
Silicon wafers
Wellman Furnaces
United Kingdom
Diffusion equipment
Western Equipment
Developments Ltd.
United Kingdom
Wafer-handling robots
Wild Leitz
Switzerland
Optics
Zeiss
Germany
Optics, inspection
equipment
Source:
ESIS Volume II
© 1988 Dataquest Incorporated April
Dataquest
April 1988
5-5
5. Services and Suppliers to
the Semiconductor Industry
The ASIC explosion puts other pressures on semiconductor equipment
manufacturers. In wafer fab, assembly, and test, equipment must prove flexible and able
to handle many different types of product in short time spans. These demands are far
different from the high-volume, one-product lines of old. Just-in-time supply also
applies pressures for less rework, quick cycle times, and diminished processing queues
(which decreases line inventory). All these factors push equipment suppliers to produce
light, flexible, small-footprint machinery. Advanced Semiconductor Materials (ASM) and
Philips, long-time European suppliers of a range of fab, assembly, and test equipment,
have increased their presence worldwide in all three areas over the recent past.
In the European region, Japanese equipment suppliers are increasing their local
presence in sales, marketing, and support, but no product development takes place in
Europe at the present. The areas in which Japanese companies are aggressively pursuing
market share are lithography and assembly equipment. Nikon is actively competing with
ASM of Europe and GCA of the United States for European stepper market share. The
push of Shinkawa in bonding equipment and Disco in wafer saws probably reflects the
large number of Japanese IC assembly/test facilities in Europe. As the Japanese build
more wafer fabrication facilities in Europe, Dataquest expects to see the amount of
Japanese equipment installed rise in the region.
U.S. equipment companies historically have had a strong commercial and product
development base in Europe. Examples are Applied Materials, who do their worldwide
implant development in the United Kingdom, and Perkin-Elmer, who purchased Censor,
the Liechtenstein-based wafer stepper company.
Another recent trend appears to be the reverse of this, with European ownership of
U.S. companies. Examples are Ion Beam Technology (IBT) of Massachusetts
(majority-owned by Dubilier PLC, United Kingdom and Robert Flemming,
United Kingdom), and Branson/IPC of California (owned by Emerson Electronics,
United Kingdom). Branson/IPC makes plasma etch equipment, and IBT, a focused
ion-beam system. Though presently used for the repair of photomasks (by depositing or
etching out defects), ultimately the IBT system, which offers write, etch, and deposit
capabilities, has great potential for a completely maskless wafer fabrication process.
Table 2 shows the major European equipment companies by country.
5-6
© 1988 Dataquest Incorporated April
ESIS Volume II
5. Services and Suppliers to
the Semiconductor Industry
Table 2
Equipment and Materials Companies of Eur<^>e—by Country
Product Area
Company
Country
Belgium
GE Solid State
Maskmaking
Denmark
Topsil
Silicon wafers
Finland
Okmetic
Silicon wafers
France
AET
Plasma etch equipment, RTF
Alcatel
Plasma etch, sputtering ,
equipment, pumps, vertical
furnaces
L'Air Liquide
Gases
Nanomask
Maskmaking
Rhone-Poulenc
Chemicals, gases
SEMY Engineering
CVD systems
Sofiltra
HEPA (high-efficiency
particle arresting)
filters
COSY Microtec
SOR ring for X-ray
lithography
Centrotherm
Diffusion, CVD systems
Convac
Track equipment,
microscope loaders
Ernst Leitz
Inspection equipment,
mask comparators, optics
Heidelberg
Instruments
Measurement and inspection
systems
Helmut Seier
Furnaces, laminar flow, CVD
systems
Germany
(Continued)
ESIS Volume II
© 1988 Dataquest Incorporated April
5-7
5. Services and Suppliers to
the Semiconductor Industry
Table 2 (Continued)
Equipment and Materials Companies of Europe—by Country
Country
Company
Product Area
Hoechst
Chemicals/ resists, gases
Karl Suss
Proximity aligners. X-ray
systems
Laufer
Molding presses
Leibold-Heraeus
Quartz, wafer handling
equipment, pumps,
sputtering equipment,
plasma etchers
Merck
Chemicals, chemical
systems, resists
Plasmos
CVD equipment
Robert Bosch
Assembly equipment
Wacker Chemitronic
Silicon wafers
Zeiss
Optics, inspection
equipment
Italy
DNS
Silicon wafers
Liechtenstein
Balzers
Aktiengesellschaft
Etch equipment,
implanters, CVD
Netherlands
Advanced Semiconductor
Materials (ASM)
Furnaces, plasma-enhanced
CVD, assembly equipment
High Voltage Engineering
Implanters
Holec
Furnaces
Philips Semiconductor
Product Equipment
Photolithography equipment,
E-beam equipment
Alphasem
Wafer saws, assembly
equipment
Germany
Switzerland
(Continued)
5-8
© 1988 Dataquest Incorporated April
ESIS Volume H
5. Services and Suppliers to
the Semiconductor Industry
Table 2 (Continued)
Equipment and Materials Companies of £ur(^>e—by Country
Country
Switzerland
United Kingdom
Product Area
Company
CSEM
Maskmaking
Cryophysics
Cryopumps
ESEC
Assembly equipment
Farco
Assembly equipment
G. Wirz
Assembly equipment
MEM
Maskmaking
Semas
Assembly equipment,
photolithography systems
Sitesa
CVD systems
Society Electrothermique
de la tour de France
Quartz
Wild Leitz
Optics
Align-rite
Maskmaking
Applied Materials
Implanters
BOC
Gases
Cambridge Instruments
E-beam, inspection
systems
Compugraphics
Mask maker
Deltest
Engineering test equipment
Edwards High Vacuum
International
CVD, vacuum pumps
Electrotech
Etch, CVD, sputter systems
Eurotherm
Controllers
(Continued)
ESIS Volume II
© 1988 Dataquest Incorporated April
5-9
5. Services and Suppliers to
the Semiconductor Industry
Table 2 (Continued)
Equipment and Materials Companies of Europe—by Country
Company
Country
United Kingdom
Product Area
ICI
III-V semiconductor
materials
La Porte Industries
Chemicals, clean room
equipment
Loadpoint
Wafer saws
MTL ATE Systems
High-pin-count testers
Micro-Image Technology
Resists
Monsanto
Silicon wafers
Kordiko
Plasma etchers, sputtering
equipment
Oxford Instruments
X-ray, ion-beam lithography
Plasma Technology
Plasma etch equipment
SEH
Silicon wafers
VG Semicon
Chemical-beam epitaxy, etch
systems
Vickers Instruments
Measurement and inspection
systems
Wellman Furnaces
Diffusion equipment
Western Equipment
Developments Ltd.
Wafer-handling robots
Source:
5-10
© 1988 Dataquest Incorporated April
Dataquest
April 1988
ESIS Volume II
5. Services and Suppliers to
the Semiconductor Industry
MATERIALS
Key supply areas of semiconductor materials in Europe are the following:
Gases (bulk and specialty)
Wet process chemicals
Photoresists and related chemicals
Silicon and III-V substrates
Masks and reticles
(Tables 1 and 2 list key European suppliers in the above categories).
The materials situation in Europe has evolved significantly in the recent past. Large
European industrial chemical and gas supply firms have begun to develop products of
suitable purity for semiconductor use and are joining the traditionally strong European
suppliers in a search for market share in the region. Due to shipment and supply
problems related to chemicals and gases, the manufacturers often dominate in market
share, and this is true in Europe. Historically, BOC, Hoechst, L'Air Liquide, and Merck,
have supplied large quantities of chemicals, photoresists, and gases to local
semiconductor manufacturers. Aggressively competing with them are Du Pont, ICI,
La Porte, Olin-Hunt, and Rhone-Poulenc.
Silicon production in Europe is dominated primarily by Monsanto of the
United States and Wacker of Germany, although local suppliers such as DNS fltaly),
Okmetic (Finland), and Topsil (Denmark) are striving for market share.
Shin-Etsu-Handotai (SEH) is the only Japanese manufacturer of silicon to have a
production facility in Europe. SEH and Monsanto have facilities that produce silicon
wafers in the United Kingdom
The ASIC revolution has stimulated the local requirement for masks and reticles in
Europe. Several European and U.S. suppliers of masks exist in the region, and
semiconductor manufacturers that have in-house maskmaking facilities are offering
spare capacity as a service (see Tables 1 and 2 for lists of maskmaking faicilities).
WAFER FABRICATION SERVICES
No significant independent wafer fabrication companies, the so-called silicon
foundries, exist in Europe today. On a limited scale, some merchant manufacturers will
make their capabilities available to third parties, usually on a customer-owned tooling
(COT) basis. But the conditions for large foundry-only facilities, such as Taiwan
Semiconductor Manufacturing Company, will probably not exist in Europe in the near
future. A number of smaller companies are making foundry facilities available, such as
Elmos in Germany and MEM in Switzerland. The high costs involved in setting up even a
ESIS Volume II
© 1988 Dataquest Incorporated April
5-11
5. Services and Suppliers to
the Semiconductor Industry
pilot line for modern wafer fabrication are such that a relatively high throughput of
material is required for viability. Labor costs in Europe may make major foundry
exercises prohibitive.
Nearly all semiconductor component users would ideally like an ASIC facility.
However, few are prepared to pay the associated overhead costs brought by the
low-volume throughput and the costs for equipping and running a state-of-the-art
capability (1.5- to 2-micron, double-layer metal CMOS). We do not believe that
anything other than a state-of-the-art facility would be worth the capital investment,
and many semiconductor users do not have sophisticated enough knowledge or experience
of ASIC manufacture to make this a viable option.
ASSEMBLY SERVICES
Two companies offer subcontract assembly services in the European region:
Eurasem in the Netherlands and Indy in Scotland. The Indy European management team
just purchased the facility in Scotland from Indy/Olin Hunt in the United States. Indy
specializes in high-pin-count, high-reliability, quick-turnaround packaging for the ASIC
market. Eurasem pursues the more traditional high-volume assembly scenario.
The reason that more high-volume assembly services are not in Europe is that high
volume assembly is best carried out in low-labor-cost areas, such as the Far East.
Manufacturing automation can lower labor costs, and, as assembly automation has
increased, there are some incentives to perform assembly in the European Economic
Community (EEC). Another incentive is a substantial saving in import duty. For a
non-European-manufactured wafer, the present import duty on a semiconductor device
assembled outside the EEC is approximately 14 percent. For a wafer imported into the
EEC, the duty rate is approximately only 4 percent. An incremental 10 percent duty can
therefore be saved by assembly within the EEC. Dataquest believes that this differential
is actually harmful to Europe in that it effectively encourages low-technology assembly
operations to be set up and discourages investment in the high-technology areas of wafer
fabrication.
TEST SERVICES
Currently, no market exists in Europe for large independent semiconductor testing
houses. Dataquest believes that this is a direct result of the lack of independent
assembly houses and the need for manufacturers to carry out their own testing for both
cost and engineering reasons.
In the area of component evaluation or qualification, some independent houses exist,
such as Elektronik Centralen (Denmark), and MTL Microtesting Limited (United
Kingdom), but these are geared more to the user community than to the merchant
component suppliers. In the testing area, testing costs and engineering information are
the two key issues. The former demands high-volume throughputs; the latter demands
easy and direct interface by the relevant design and product engineers. This virtually
demands that test equipment be located either at the point of assembly (high-volume
force) or near the relevant engineering establishments (technical force).
5-12
© 1988 Dataquest Incorporated April
ESIS Volume II
5. Services and Suppliers to
the Semiconductor Industry
There are, however, some advantages to outside testing. These include:
Testing and evaluation by an unbiased source
Access to wider range of test experience
Software availability
Supplementary capacity (particularly in a capacity crunch or for incremental
shipment opportunity)
Access to more up-to-date equipment
Access to equipment not currently in-house
ESIS Volume II
© 1988 Dataquest Incorporated April
5-13
5. Services and Suppliers to
the Semiconductor Industry
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5-14
© 1988 Dataquest Incorporated April
ESIS Volume n
Air Products and Chemicals, Inc.
BACKGROUND AND OVERVIEW
Air Products and Chemicals, Inc., (Air Products) was founded in 1940 in the United
States (Detroit, Michigan). Initially, the Company was involved in constructing small
industrial gas plants on or adjacent to a consumer's plant, delivering products by pipeline.
Since its inception. Air Products has become a large international company with
annual worldwide sales exceeding $2.4 billion, employing approximately 13,000 persons in
21 countries. The Company operates more than 100 plants, and has 5 research centers.
Air Products operates in the following three business segments:
•
•
•
Industrial Gases
Chemicals
Equipment and Technology
In 1989, the Company reported worldwide sales of $2.4 billion, of which 76 percent
was generated in the United States and 21 percent in Europe. Worldwide sales of the
Industrial Gases segment reached $1.4 billion, representing 58 percent of total sales.
The Chemicals segment accounted for 34 percent of sales, with revenue of $834 million;
the Equipment and Technology segment accounted for 8 percent of sales, at
$195 million. These record sales for 1988, which showed an increase of 14 percent over
1987, were accompanied by a record operating income of $376 million, an increase of
15 percent over 1987.
Worldwide capital expenditure in 1988 amounted to $542 million, and of this sum,
approximately $300 million was capital spending in the Industrial Gases segment. In
Europe, nearly $150 million was invested, surpassing the record of the past several
years. The acquisition of a 65 percent interest in L'Oxygene Liquide, an important
regional supplier in France, was included in this European total for the year. This
acquisition bolsters Air Products' coverage of the French market and complements the
operations of Prodair, the Company's French subsidiary and the country's second-largest
producer of industrial gases.
In 1988, the Company began construction of a large-scale air-separation plant in
Strasbourg, France. This plant is being built in partnership with a German industrial gas
producer and will supply gaseous oxygen via a pipeline across the Rhine to a steel mill in
West Germany. It will supply liquid products for customers in northeastern France and
the southern part of West Germany also. This plant is scheduled to begin operations
in 1990.
Air Products also completed the successful start-up of Europe's first
commercial-scale liquid hydrogen plant in Rozenburg, The Netherlands; substantial
additional capacity was added for liquid oxygen, nitrogen, and argon. In the United
Kingdom, construction was completed on an air-separation facility that will supply
gaseous oxygen and nitrogen to British Petroleum and liquid products to the merchant
market including ultrahigh-purity gases for electronic applications.
ESIS Volume II
0004126
© 1989 Dataquest Incorporated June
Air Products and Chemicals, Inc.
Air Products has continued to expand strategically in the Pacific Rim through
increased investments. The Company entered the Malaysian market through the
purchase of a 30 percent interest in an existing supplier. Expansion of this joint venture
is already under way, with the construction of an 80-ton-per-day merchant plant, which
is expected to be on-stream in 1990. In Thailand, Air Products is building an
air-separation plant for the country's National Petroleum Company, Ltd., as well as
liquid products for the merchant market. The expansions in Malaysia and Thailand both
use cryogenic equipment supplied by Air Products.
During 1988, the Company expanded opportunities in chemicals by completing a
number of strategic acquisitions. The largest was Anchor Chemical Group pic, a British
company that is a leading worldwide supplier of epoxy curatives. This $47 million
acquisition significantly accelerated the Company's penetration of the epoxy additives
market, where the strategy is to extend commercial and technical strengths in amines
and polyurethane catalysts.
The Company also acquired the Valchem Division of United Merchants and
Manufacturers Inc., thus providing the Company with a new line of water-based acrylic
products and positioning itself to take advantage of the trend toward water-based
polymer systems.
Operations
Air Products is located in the United States in Allentown, Pennsylvania. This
location also houses the headquarters. The three operating divisions are described
briefly in the following paragraphs.
Industrial Gases
This segment produces and sells a variety of industrial, medical, and specialty gases
for the microelectronics industry and other industries. Worldwide, the division operates
more than 100 plants.
Chemicals
The Chemicals division has numerous plants throughout the United States. It has
three principal product lines—polymers, polyurethane intermediates and additives, and
amines and specialty additives, including epoxy curatives.
Equipment and Technology
The equipment side of the segment designs and manufactures various lines of
cryogenic and gas-processing equipment, builds components for cogeneration facilities,
and markets proprietary wastewater treatment technologies and systems. The
technology side of this segment includes the Company's initiatives in ceramic-coated
products and other advanced materials.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004126
Air Products and Chemicals, Inc.
International Operations
The European and U.K. headquarters, Air Products pic, is located at Hersham,
Walton-on-Thames, England. This subsidiary was established in Britain in 1957; it
employs approximately 2,000 persons and operates in more than 30 locations.
The principal manufacturing base in the United Kingdom for specialty gases serving
the microelectronics industry is at Crewe, with storage depots and sales offices sited
strategically throughout the country. An engineering facility for high-quality piping for
clean rooms to Class 10,000 specification and Class 100 workbenches is located at
Acrefair in Wales. A specific feature of this facility is two mobile clean rooms.
In Europe, there are numerous production plants
oxygen, and hydrogen. The specialty gases facility is
The Company manufactures gas cabinets at Woluwe,
Company's dedicated clean-room facility, constructed
facility in Wales.
for the manufacture of nitrogen,
located at Keumiee in Belgium.
near Brussels in Belgium, at the
to the same high standard as the
Air Products has regional headquarters at the following locations in Western Europe:
•
Belgium—Air Products SA, Brussels
•
France—Prodair, Paris
•
Netherlands—Air Products Nederland BV, AG, Waddinxveen
•
West Germany—Air Products GmbH, Dusseldorf
European operations also include companies in Austria and Italy. In Norway and Spain,
the Company has local agents acting on its behalf.
In Korea, Air Products has joined forces with Korea Industrial Gases Ltd. to supply
the growing market for industrial gases in that dynamic economy. In addition, a joint
venture has been formed with Kinhill Pty in Australia.
Financial
Table 1 gives a Worldwide segment sales analysis for the fiscal years 1986 through
1988, ending December 31.
In its 1988 annual report, the Company notes that sales of industrial gases at
$1,403 million reached a new record and were 12 percent above those of the previous
year. The Company attributes this increase to higher shipments of merchant and on-site
gases in all geographic locations in addition to the favorable effect of European currency
translation. Using the Company's estimate that the worldwide market for gases is
approximately $14 billion, Dataquest estimates Air Products' share to be about
10 percent.
ESIS Volume II
0004126
© 1989 Dataquest Incorporated June
Air Products and Chemicals, Inc.
Table 1
Air Products and Chemicals, Inc.
Worldwide Sales Revenue by Business Segment
(Millions of Dollars)
1986
1987
1988
$1,166
$1,255
$1,403
Chemicals
632
664
834
Equipment and Technology
144
213
195
$1,942
$2,132
$2,432
Seoinent
Industrial Gases
Total
Source:
Air Products and Chemic:als. Inc.
Annual Report 1988
Dataquest
June 1989
Sales of chemicals increased 26 percent to $834 million. The Company notes that
volume rose 4 percent in 1988, as records were attained in most product lines. The
increase also reflects higher pricing for most products and sales of Anchor Chemical,
which was acquired in January 1988. Anchor accounted for 8 percent of the increase.
Equipment and technology sales declined $18 million to $195 million. This was
primarily a result of the high level of activity in fiscal year 1987 associated with the
construction of an industrial cogeneration facility sold to an unconsolidated affiliate. If
this item is excluded, sales in this segment were higher than the previous year.
Table 2 summarizes Air Products' worldwide operating income by business segment.
The figures in Table 2 show that the operating income for the Industrial Gases segment
in 1988 increased $18 million over the previous year. This was a record and reflects
higher worldwide shipments, stronger European currencies, and lower pension expenses.
The Chemicals segment showed an operating income at an all-time high of
$103 million, an increase of 22 percent over 1987. Better pricing in commodity
chemicals was the major factor in these improved results. Other factors included higher
shipments in most product lines and a first-time profit contribution from Anchor
Chemical.
The Equipment and Technology segment showed an operating income of $3 million, a
very cgnsiderable improvement on the previous loss of $18 million.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004126
Air Products and Chemicals, Inc.
Table 2
Air Products and Chemicals, Inc.
Worldwide C^Terating Income by Business Segment
(Millions of Dollars)
1986
1987
1988
$257
$288
$306
41
85
103
Equipment and Technology
(18)
(18)
3
Corporate and Other
(39)
(27)
(36)
Segment
Industrial Gases
Chemicals
Total
$328
$241
Source:
$376
Air Products and Chemicals, Inc.
Annual Report 1988
Dataguest
June 1989
Table 3 summarizes sales and operating income by geographic area. It shows that in
1988, sales in the United States improved by 11 percent and operating income by
15 percent. The gains were very dramatic in Europe, with sales showing an increase of
nearly 28 percent over those of 1987 and operating income increasing by 27 percent.
Table 3
Air Products and Chemicals, Inc.
Sales and Operating Income by Geographic Region
(Millions of Dollars)
1987
1986
Region
United States
Europe
Canada and Latin America
Other
Total
ESIS Volume II
0004126
Sales
Income
Sales
1988
Income
Sales
Income
$1,561
322
59
-
$185
43
13
-
$1,662
394
76
-
$242
66
14
6
$1,849
504
79
-
$279
84
15
(2)
$1,942
$241
$2,132
$328
$2,432
$376
Source:
Air Products and Chemicals, Inc.
Annual Report 1988
Dataguest
June 1989
© 1989 Dataquest Incorporated June
Air Products and Chemicals, Inc.
Research and Development
In 1988, research and development (R&D) expenses were increased 27 percent to a
total of $72 million. New chemistry advances were made in polymer, polyurethane, and
catalytic systems. In gases, the Company strengthened its program in noncryogenic gas
separation technologies and in new market uses and applications for gas products.
PRODUCTS
Air Products offers a comprehensive range of high-quality industrial and specialty
gases for use in the manufacture of silicon memory devices. These latter products have
greater than 99.9 percent purity. Also, the Company is able to blend gases according to
the customer's individual stoichiometric and mass requirements for doping purposes.
For plasma etching, Air Products is able to supply a comprehensive range of gases
including sulfur hexafluoride, silicon tetrafluoride, and a number of halocarbons. These
can be supplied as pure gases or diluted with small amounts of high-purity oxygen.
Recently, the Company introduced a new line of high-purity organometallics for
MOCVD processing. These compounds, all of which are guaranteed to greater than
99.9995 percent, are used primarily in the epitaxial growth of compound
semiconductors. A full range of high purity gallium, indium, zinc, and aluminium
compounds is available, as well as a comprehensive line of phosphorous adducts for
semiconductors.
In addition to gases for the electronics industry. Air Products supplies a range of
gas-handling and control equipment. In the area of cryogenics, the Company offers a
wide range of laboratory cryogenic systems.
In the area of chemicals, two new adhesives have recently been introduced. These
adhesives are Airflex 465 emulsion and Flexcryl acrylic-based emulsions for high-speed
packaging and pressure-sensitive adhesive applications. (Airflex and Flexcryl are
registered trademarks of Air Products.)
OUTLOOK
An essential element of Air Products' growth strategy, particularly in chemicals, is
to add new products through internal development, technology licensing, and
acquisitions. Thus, an increasing flow of new products is expected as development
programs initiated during the past five years come to fruition and reach the commercial
stage.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004126
#
Air Products and Chemicals, Inc.
•
•
Significant expansion of the Company's traditional water-based markets for
polyvinyl alcohol is expected from thermoplastic polyvinyl grades now being introduced
to the market. Air Products sees these products as having potential in water-soluble,
biodegradable films, containers, and personal care items.
In electronics, the Company is adopting a strategy directed toward becoming a fully
integrated supplier of gases, chemicals, and related systems.
Thus, while industrial gases will no doubt remain central to the Company's business,
Air Products is now actively developing a strategy of diversification into other business
areas. Those targeted include urethanes, adhesives, coatings, and high-performance
polymer systems. The Company views these products with optimism, expecting them to
provide exciting growth prospects as Air Products enters the 1990s.
ESIS Volume 11
0004126
© 1989 Dataquest Incorporated June
Air Products and Chemicals, Inc.
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8
© 1989 Dataquest Incorporated June
ESIS Volume II
0004126
Austria Mikro Systeme International GmbH
BACKGROUND AND OVERVIEW
Austria Mikro Systeme International GmbH (AMS), formerly Austria Microsystems
International (AMI), was set up in 1981 as a joint venture between the company that was
then called Gould-American Microsystems, Inc., (51 percent ownership) and VoestAlpine, the Austrian industrial conglomerate (49 percent ownership), A $60 million
11,700-square-meter facility was built near Graz, Austria, to manufacture integrated
circuits. It comprises design engineering, maskmaking, wafer fabrication, assembly, and
test areas. Lead times offered are competitive—4 weeks for gate arrays, 8 weeks for
standard cells, 20 weeks for full custom circuits, and 4 weeks for ROMs, from
specification or code approval until delivery of first samples.
In autumn 1986, the name Gould-American Microsystems was changed to Gould
Semiconductor Division (supplier of AMI products). Gould Semiconductor Division does
not operate in Europe.
In 1982, AMS pioneered SCEPTRE (Standard Cell Placement and Routing
Environment) at its Swindon, United Kingdom, design center. SCEPTRE is a system
intended to offer small to medium-size electronic equipment manufacturers a chip
design capability at low cost. At present, this system supports designs using AMS's
CMOS and NMOS 3 - , 4-, and 5-micron standard cell families.
In 1985, AMS completed a major investment program and increased its production by
40 percent over 1984. However, because of the depressed market condition, a loss in
revenue was reported in 1985. The joint owners, Gould-American Microsystems and
Voest Alpine, then injected a further $33 million into the company to enable it to finance
future investments with equity.
In 1986, AMS launched Super Sceptre, a standalone PC-based semicustom IC design
workstation for gate array and standard cell. The product provides a full range of
semicustom IC design software capabilities running on the IBM PC AT. It is the
culmination of four years of user experience with the Sceptre and its enhanced version,
Sceptre II.
Also in 1986, AMS launched a commercial MOS multiproduct wafer service through
which customers can cut their development costs. To accomplish this, customers can
share a batch of wafers with other clients or can place several of their chip designs on a
fast turnaround, dedicated wafer batch.
In February 1987, AMS announced expansion of its mask processing capability. At
the same time, the Company announced the S2570 combined loop disconnect/multifrequency (LD/MF) dialer IC for push-button telephones.
In March 1987, AMS announced the S2573, a new pulse dialer IC in CMOS for
push-button telephones.
In April 1987, AMS announced the S2571 pulse dialer device in CMOS for
push-button telephones. At the same time, the Company added high-performance
analog, digital, and peripheral cells to its IC design library.
ESIS Volume 111
© 1988 Dataquest Incorporated April
Austria Mikro Systeme International GmbH
As shown in Table 1, Dataquest estimates that AMS's European revenue in 1986 was
US$21 million.
Table 1
Austria Mikro Systeme International GmbH
Estimated European Semiconductor Revenue by Product Line
(Millions of U.S. Dollars)
Total Semiconductor
Total Integrated Circuit
Bipolar Digital
MOS
Linear
Total Discrete
Transistor
Diode
Thyristor
Other
Total
1982
1953
1984
1985
1986
$26
$13
$20
$18
$21
$26
$13
$20
$18
$21
0
26
0
0
13
0
0
20
0
0
18
0
0
21
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Optoelectronic
Source:
Dataquest
A p r i l 1988
PRODUCTS AND MARKETS SERVED
AMS offers a complete range of custom and semicustom MOS/VLSI capabilities,
including gate arrays, standard cell, and full custom circuits, as well as silicon foundry
facilities for customer-designed circuits. CAD/CAE tools and IC design training are also
available.
AMS's telecommunications and data communications circuits, ROMs, microcomputers, and peripheral devices provide standard solutions for specific applications.
AMS serves the telecommunications, automotive, industrial, instrumentation, EOF,
and consumer markets.
© 1988 Dataquest Incorporated April
ESIS Volume III
Austria Mikro Systeme International GmbH
In addition to the Graz facility, AMS has design centers in Swindon (United
Kingdom), Stockholm (Sweden), Munich and Hamburg (West Germany), Paris (France),
and Milan (Italy). The Company has a network of representatives in Denmark, Israel,
Spain, Switzerland, and Yugoslavia.
OUTLOOK
In July 1987, Gould sold its 51 percent stake in AMI to Voest-Alpine. The takeover
means that AMS, now called Austria Mikro Systeme, is now entirely Austrian owned.
Gould stated that it will return to the European marketplace with custom and
semicustom chip sets from its U.S. base.
ESIS Volume III
© 1988 Dataquest Incorporated April
Balzers
BACKGROUND AND OVERVIEW
Balzers, which operates as the Balzers Division of Oerlikon-Buhrle Holding Limited
of Switzerland, is a leading supplier of high-vacuum equipment and thin-film products
for the optics, optoelectronics, and electronics industries.
The origin of the Balzers Division can be traced back to two companies—Arthur
Pfeiffer and Balzers AG. The former company was established in Frankfurt in 1890 to
produce vacuum pumps; it was taken over by Balzers AG in 1969. Balzers AG was
founded in Liechtenstein in 1946 by Prof. Dr. Auwarter to produce thin-film products
and was incorporated into the parent company, Oerlikon-Buhrle, in 1973.
Today, Balzers coating systems are used by the principal electronics manufacturers
worldwide. The main applications for these systems are as follows:
•
Metallization of integrated, bipolar, and MOS circuits
•
Deposition of resistor and contact films
•
Production of highly stable metal film resistors
•
Coating of solar cells
Oerlikon-BUhrle's 1988 annual report stated that the Balzers Division employed
3,653 persons as of December 31, 1988. It also said that consolidated sales amounted to
SFr 471.5 million (U.S. $323 million) for fiscal 1988.
Operations
The principal manufacturing companies in the Balzers Division are as follows:
•
Europe
Balzers Limited—Liechtenstein
Arthur Pfeiffer—Asslar, West Germany
-
•
United States
-
ESIS Volume II
0005011
Balzers Hochvakuum GmbH—Wiesbaden, West Germany
Balzers—Hudson, New Hampshire
© 1989 Dataquest Incorporated November
Balzers
In addition to manufacturing and research and development (R&D), which is also
carried out in Liechenstein, Balzers has the following sales and servicing companies:
Austria—Vienna, Austria
NV Balzers—Zaventem, Belgium/Luxembourg
Bakzers SA—Meudon, France
Balzers SpA—Milan, Italy
Balzers—Utrecht, Netherlands
Nordiska Balzers—Kungsbacka, Sweden/Denmark
Balzers AG—Zurich, Switzerland
Balzers High Vacuum—Berkhamsted, Herts, U.K.
Worldwide, Balzers has additional representation in 20 countries.
Research and Development
As in previous years, Balzers has concentrated its R&D efforts on thin films and
high-vacuum systems associated with those key sectors that are characterized by rapid
technological progress. In these areas, the Company reports having increased investment
significantly.
The Company reports that after reaching a peak of US$55 million in 1987 because of
large volumes of new construction, plant and equipment expenditures in 1988 receded to
US$33 million. Apart from the worldwide expansion of manufacturing, sales, and
research facilities, large amounts of capital were invested in improving and rationalizing
production and development equipment.
PRODUCTS
The range of products offered by Pfeiffer High-Vacuum Department of the Balzers
Division include the following:
•
Components for the production, measurement, and control
gas-analysis instruments for use in research and manufacturing
•
Vacuum process systems for the production of thin films for optical,
electronic, memory technology, and display applications as well as for solar
cells
© 1989 Dataquest Incorporated November
of
vacuum
ESIS Volume II
0005011
Balzers
The products offered by the Thin-Film Department of the Balzers Division include
the following:
•
Thin-film products and coating services for the fields of optics, ophthalmic,
optoelectronics, and microelectronics, specifically laser, infrared and
antireflection applications; office equipment; lighting technology; LCD
displays; and chrome masks
Products included in the range of high-vacuum systems that Balzers offers are as
follows:
•
BAE 250—This sputtering/evaporation system accommodates 205mm diameter
metal or glass recipients. It is useful in the preparation of substrate for
scanning electron microscopy.
•
BAS 450—This is a compact sputterer for development purposes and small
production runs. It features up to four 5 - to 10-inch planar magnetron or
heating stations, as susceptor for 24 3-inch or 6 125mm substrates.
•
LLS 900~This load-lock sputtering system is very flexible with regard to
substrate size and will process substrates with diameters of up to 200mm or
rectangular substrates of up to 200mm x 400mm in a fully automatic
cassette-to-cassette mode.
•
VIS 750—This is a vertical inline system for plasma-enhanced chemical vapor
deposition (CVD). It is particularly suitable for plasma-enhanced CVD
(PECVD) of large substrates. To coat 720mm x 720mm on both sides, the
throughput per hour is 6 square meters with a cycle time of 10 minutes.
Loading time can be reduced to less than 2 minutes by using a suitable vacuum
pump system.
Other equipment offered by Balzer are:
•
GAM 400—The GAM 400 gas analysis module is an integrated, compact mass
spectrometer unit for qualitative and quantitative gas analysis. Its modular
design makes it ideal for a wide variety of applications. It incorporates a
Balzers state-of-the-art QMG 420 quadruple mass spectrometer, a
turbomolecular pump, and application-specific software.
•
HLT 150—This is a helium leak tester with the ability to detect leaks in UHV
components and cryopumped systems without any need for LN2. This device
also is ideal for use as a helium sniffer. Operating convenience is provided by
a microprocessor control system that features range selection and
autocalibration for a wide variety of applications.
ESIS Volume II
0005011
© 1989 Dataquest Incorporated November
Balzers
•
GIA 707—This is a gas inclusion analysis system. It is important to technical
glasses and ceramics where gas inclusions very often have a negative influence
on the product and lower its quality to an unacceptabe level. In semiconductor
production, gas inclusion analysis is important in the quality control of
hermetically sealed, encapsulated components such as IC housings, Reed
relays, and other gas-filled components. This system features fast, dynamic
measurement of verv small gas inclusions in various materials. Sample size
can vary from 10"-^ to approximately 10~^2 ^gr 1 and detection limits are
approximately 10 to 100 ppm, depending on the components.
In addition to these systems, Balzers offers evaporation and sputter
materials, evaporation sources, and auxiliary materials.
coating
For EB evaporation, a variety of high-purity materials are available in disk forms.
Balzers' range of planar magnetron sputtering targets includes metals, metal alloys, and
dielectrics.
Balzers' range of coating materials for optics and electronics contains more than 90
metals and alloys as well as dielectrics in a variety of shapes and degrees of purity.
Financial
The Oerlikon-Buhrle Group statement of income is shown in Table 1 for the two
fiscal years that ended on December 31, 1987 and 1988.
In its annual report, the parent company notes that organizational and structural
changes in the group initiated in previous years were completed in 1988. Gross sales in
1988 increased 5 percent over the previous year.
Table 2 shows gross sales for the Balzers Division for the fiscal years that ended on
December 31, 1987 and 1988.
The Oerlikon-Buhrle Group notes that after a brief drop in incoming orders at the
end of 1987, which caused a slight downturn in sales in 1988, the Balzers Division
reported a sharp recovery. This resulted in an order backlog at the end of 1988. During
that year, Balzers was able to maintain its leading position both in coating machines for
various applications and in numerous sectors of coating operations.
Table 1 and Table 2 show that during the past two years, gross sales of the Balzers
Division remained at approximately 11 percent of the parent company's total gross sales.
© 1989 Dataquest Incorporated November
ESIS Volume II
0005011
Balzers
Table 1
Oerlikon-Buhrle Group
Statement of Income
Worldwide Revenue
(Millions of U.S. Dollars)
1987
1988
$2,757
$2,897
2,536
.2,686
378
318
$2,914
$3,004
Less Operating Expenses
(2,992)
(3,029)
Consolidated Net Result
$
$
Gross Sales
Net Sales
Other Income
Total
Exchange Rate (SFr to US$1)
(78)
1.49
(25)
1.46
Source:
Oerlikon-Buhrle
1988 Annual Report
Dataguest
November 1989
Table 2
Balzers Division
Worldwide Revenue
(Millions of U.S. Dollars)
1987
12M
Gross s a l e s
$324
$323
Exchange Rate (SFr to US$1)
1.49
1.46
Source:
ESIS Volume II
0005011
Oerlikon-Buhrle
1988 Annual Report
Dataguest
November 1989
© 1989 Dataquest Incorporated November
Balzers
OUTLOOK
Balzers Division plays an important role in the parent company's operations, which
takes the view that Balzers Division has a great future working in the high-vacuum
industry in general and in thin-film technology in particular. Today, Balzers ranks as a
high-tech company that occupies a significant market position and recognizes that the
pursuit of new technologies requires substantial sums of capital made available for R&D.
Balzers therefore faces the future with confidence and is in the forefront with
certain technology strengths. One such strengh lies in the arena of special systems for
coating compact discs, where the Company claims it is the leader in this rapidly growing
market. Another particular strength of Balzers is its claim to be the only company that
combines the production of evaporation and sputter coating materials with its own
industrial-scale thin-film production and the manufacture of the deposition systems in
which those materials are used to make the films.
© 1989 Dataquest Incorporated November
ESIS Volume II
0005011
The BOC Group PLC
BACKGROUND AND OVERVIEW
The BOC Group PLC is one of the United Kingdom's major industrial companies,
with worldwide operations in approximately 50 countries. Its business is segmented as
follows:
•
Gases and Related Products—This segment includes gases for the electronics
and food industries and for environmental applications.
•
Health Care—This segment embraces anesthetic pharmaceuticals,
health care, intravascular devices, and patient monitoring systems.
•
Special Products and Services—This segment includes high-vacuum technology
and incorporates Edwards High Vacuum International, a world leader in the
technology and manufacture of vacuum systems and components.
home
In 1988, the Company reported record vacuum turnover of US$4,495 million and
profit of US$620 million. In its 1988 Annual Report, the Company noted that the demand
for industrial gases showed healthy growth in most markets, and that the health care and
special products and services businesses also enjoyed generally strong demand.
Over the past decade, the Company made some notable acquisitions that enabled it
to build up an important presence in the area of bulk and special gases for the
semiconductor industry. Some of the more important developments are as follows:
•
1978—The Company acquired Airco of the United States, a large supplier of
industrial and special gases. In the United Kingdom, the Company acquired
Edwards High Vacuum Incorporated, the leading European company in vacuum
technology.
•
1984—The Microelectronics Center of North Carolina was opened. This
facility is supported by a number of companies, including Airco Inc. and
Specialty Gases (members of the BOC Group), with full-time BOC/Airco staff
members located on site.
•
1988—BOC purchased the tungsten hexafluoride activities of Genus, Inc.,
located in California. This valuable gas is used to make low-resistance
pathways on megabit chips, which are the building blocks of today's high-speed
computers.
Also in 1988, the Company signed an agreement with Eagle-Picher Research
Laboratory in the United States for joint marketing of ultrahigh-purity
trimethyl gallium and for future product development. Trimethyl gallium is a
critical source material in the manufacture of gallium arsenide semiconductor
devices.
ESIS Volume II
0004485
© 1989 Dataquest Incorporated August
The BOC Group PLC
During 1988, BOC announced that construction of a new special gases facility also is
under way in order to meet Taiwan's fast-growing semiconductor industry needs. This
plant will be adjacent to the newly developed Science-Based Industrial Park in Taiwan,
where the semiconductor industry is concentrated.
OPERATIONS
The BOC Group's corporate headquarters is located at Windlesham, Surrey,
England. As of September 30, 1988, the Company employed 38,810 persons worldwide.
Of these, approximately 30 percent were employed in Europe, 32 percent in the
Americas, and the remaining 38 percent divided about evenly among Africa and
Asia/Pacific region.
Principal Companies
To meet the worldwide demands of the semiconductor industry for bulk and special
gases, BOC has strategically located manufacturing facilities serving a network of
localized warehousing and distribution centers in each of these four major geographical
areas—Africa, the Americas, Asia/Pacific, and Western Europe. In each of these areas,
BOC has many subsidiaries and affiliated companies that either are wholly owned or in
which it has a major interest. Worldwide, there are approximately 100 such companies.
The four principal companies covering the worldwide operation are as follows:
•
In Western Europe, the production and marketing of commodity and special
gases is provided by BOC Limited, with headquarters in London, England. On
the European continent, these activities are provided by BOC Special Gases
GmbH, situated in Marburg, West Germany.
•
In the United States, the Company manufactures and markets bulk and special
gases across the country through the BOC Group Inc., a 100 percent owned
subsidiary. This important subsidiary includes Airco, with headquarters in
Murray Hill, New Jersey.
•
The Company's South African interests are covered by African Oxygen Ltd.
•
Asia/Pacific is covered by The Commonwealth Industrial Gases Ltd., an
Australian company that supplies bulk gases.
Other Companies and Joint Ventures
In Japan, where the Group has a 49 percent interest in Osaka Sanso Kogyo KK, it has
gained access to new technology. In this joint enterprise, the Company operates a new
special gases plant in Osaka and employs state-of-the-art technology in the filling,
purification, and manufacture of gases for the Asia/Pacific region.
© 1989 Dataquest Incorporated August
ESIS Volume II
0004485
The BOC Group PLC
The BOC Group has a 50 percent interest in Shanghai BOC Industrial Gases Co.,
Ltd., in the People's Republic of China. Currently, a new liquid gases plant is being built
in Shanghai; this plant is expected to be on-line by the end of 1989. During 1988, a
120-ton-per-day air-separation plant was commissioned in Jamshedpur, India, and a
second 70-ton-per-day plant was commissioned in Tarapur. The Company has a
50 percent interest in a joint venture in Turkey, where a 120-ton-per-day gas plant is
being built near Istanbul, and is due to be commissioned in early 1990.
FINANCIAL
The Company's 1988 accounts revealed that 26 percent of worldwide revenue and
33 percent of operating profit were derived from its European operations. A summary of
the most recent financial information covering the fiscal years ending September 30,
1986 through 1988 for the BOC Group is given in Tables 1 through 3.
Table 1 shows that worldwide revenue increased by 14.5 percent in 1988 over 1987
to reach a record $4,495 million in U.S. dollars. The largest increase in revenue was
recorded by Special Products and Services (29 percent), followed by Health Care
(22 percent) and Gases and Related Products (14 percent).
Table 1
The BOC Group and Subsidiaries
Worldwide Revenue by Business Segment
(Millions of Dollars)
Gases and Related Products
Health Care
Special Products & Services
Discontinued Products
Total
Exchange Rate (£ per US$1)
1986
1987
1988
$2,052
760
531
143
$2,344
844
448
289
$2,665
1,028
588
214
$3,486
$3,925
$4,495
0.68
0.60
0.57
Source: BOC Annual Accounts 1988
Dataguest
August 1989
ESIS Volume II
0004485
© 1989 Dataquest Incorporated August
The BOC Group PLC
The largest business segment is Gases and Related Products, with 1988 worldwide
revenue of $2,665 billion. This represents 59 percent of all revenue. Table 2 shows that
of 1988's total operating profit of $620 million, the Gases and Related Products segment
contributed $395 million, or 64 percent.
Table 2
The BOC Group and Subsidiaries
Worldwide Operating Profit by Business Segment
(Millions of Dollars)
Business Seoment
Gases and Related Products
Health Care
Special Products & Services
Corporate
Discontinued Business
Total
Exchange Rate (£ per US$1)
1986
1987
1988
$261
117
24
(19)
20*
$327
136
55
(28)
33
$395
158
79
(31)
19
$403
$523
$620
0.68
0.60
0.57
•Relates to currency gains
Source:
BOC Annual Accounts 1988
Dataguest
August 1989
Worldwide 1988 revenue growth for the Gases and Related Products segment was
13.7 percent. Table 3 shows that revenue in Europe increased by 9.7 percent, Africa had
a 10 percent decrease, the Americas had a 20.6 percent increase, and the Asia/Pacific
region had a 16.7 percent increase. Table 3 further shows that the Asia/Pacific region is
the largest market for Gases and Related Products. In 1988, it accounted for 42 percent
of revenue, up from 40 percent in 1987.
© 1989 Dataquest Incorporated August
ESIS Volume II
0004485
The BOC Group PLC
Table 3
The BOC Group and Subsidiaries
Revenue of Gases and Related Products by Geographic Area
(Millions of Dollars)
1987
Geographic Area
Revenue
Europe
Africa
Americas
Asia/Pacific
$
Total
Exchange Rate
(£ per US$1)
1988
Percent
Revenue
Percent
504
230
655
955
22'ib
10
28
40
553
207
790
1.115
21''b
8
$2,344
100%
$2,665
100%
0.60
Source:
$
29
42
0.57
BOC Annual A c c o u n t s
Dataguest
August 1989
1988
RESEARCH AND DEVELOPMENT
The strong emphasis placed on research and development (R&D) is underlined by the
$82 million expenditure in 1988, an increase of 30 percent over 1987. Because of the
diverse nature of the Company's activities regarding products, manufacturing processes,
and geographical spread of its markets, R&D is organized both centrally and locally.
Local R&D groups are maintained and managed by the operating business units,
usually near the Company's plants. They perform advanced technical work close to the
point of application. In the United Kingdom, process and product development is carried
out at the Morden headquarters in London.
Long-term technical developments requiring significant expenditure are carried out
at the BOC Group's technical center in Murray Hill, New Jersey, in the United States.
The technical center covers approximately 168,000 square feet and comprises research
laboratories and support facilities such as computer, information, and drafting services.
In addition to the Company's own R&D, it has set up a number of strategic alliances
with research organizations and universities that have produced some very positive
results. Work at the Company's microelectronics center in North Carolina is very much
involved in developing new gas applications, and the Company now has strong links with
the semiconductor research establishment at Tokohu University in Japan.
ESIS Volume II
0004485
© 1989 Dataquest Incorporated August
The BOC Group PLC
In the United Kingdom, BOC is taking part in a major industrial research program on
plasma-etching techniques for use in VLSI circuits. The program has been launched
under the government's Alvey scheme for the development of advanced information
technology.
Another area of research currently being investigated is with silane/diborane
mixtures used in passivation to give low-temperature processing. The company also
supports the London Computer and Electronics School. In 1988, BOC donated
approximately $800,000 to this organization for its studies.
PRODUCTS
Through its Special Gases Division, BOC supplies electronics gases and equipment to
the European electronics industry.
Under the Electra II trademark, BOC offers a range of doping, etching, epitaxial,
passive structure, and ion-implantation gases to meet the exacting requirements of the
European semiconductor industry. In addition to these special gases, a number of diluent
gases are offered, including argon, helium, hydrogen, nitrogen, and oxygen.
BOC's Special Gases Division also has a range of gases and gas mixtures in its
Electra III-V range for use in the metal-organic chemical vapor decomposition (MOCVD)
technique for growing high-quality multilayers for semiconductors. A selection of these
gases includes the following:
•
Dimethyl zinc in hydrogen
•
Diethyl zinc in hydrogen
•
Diethyl telluride in hydrogen
•
Dimethyl cadmium in hydrogen
In addition to special gases, BOC also offers a complete service for the design,
supply, installation, and commission of total gas feed and control systems for industrial
gases. These include acetylene, hydrogen, propane, oxygen, nitrogen, and carbon dioxide.
Under its Spectra-matic trademark, BOC recently launched a new generation of
microprocessor-controlled gas delivery systems. These systems are used to automate
the purging cycle necessary for high-purity and hazardous gases, and also to monitor
process and purge conditions, taking corrective action when necessary.
Recently, the Company produced a range of gases that can be certified as less than
10 particles per cubic foot greater than 0.3 micron. This range of gases is called
Spectra-Clean and includes silane, arsine, and phosphine as well as the inert gases
nitrogen, argon, and helium. These gases are supplied in Spectra-Clean aluminum
cylinders.
6
© 1989 Dataquest Incorporated August
ESIS Volume II
0004485
The BOC Group PLC
Edwards High Vacuum International, also a member of the BOC Group, makes
vacuum systems and instrumentation and has recently introduced a new version of its
Drystar pumping system for harsh semiconductor processes. This system is particularly
suitable for plasma etch, film deposition, photoresist stripping, and crystal/epitaxial
growth.
Edwards High Vacuum International also has recently introduced new product lines
manufactured by its Datametrics Division. These are gas flow transducers that cover
the scale range of 5 sscm up to 20 slpm and two new products covering the ranges up to
200 slpm.
FUTURE PROSPECTS
In the long term, the Company takes an optimistic view of the prospects. It
recognizes that some important problems must be resolved in the short term,
particularly regarding the United States' trade imbalances, which will require changes in
policy that will produce a temporary restraint on growth. However, because the
Company's revenue is diverse, it is well positioned to weather any downturn in the world
economy.
Gas is BOC's biggest business, and it is at the leading edge of new technologies in
production, distribution, and applications. The diversity of customers and geography
gives the gases business its resilience, stability, and potential for growth.
ESIS Volume II
0004485
© 1989 Dataquest Incorporated August
Compugraphics International
OVERVIEW
Compugraphics International is a wholly owned subsidiary of the British company
Laporte Industries pic, one of the world's leading manufacturers of specialty chemicals.
In 1988, Laporte reported worldwide sales of $921 million.
Compugraphics International can trace its origins back some 21 years, when in 1968
it was set up as a small software bureau employing CAD techniques for cartography.
Between 1971 and 1981, it was part of the Furness Withy Group and underwent an
extensive expansion of its operations. In 1982, the Company was sold to a private
company—Caledonian Applied Technology Limited, which at that time owned IC Masks.
Subsequently, both IC Masks and Compugraphics International were acquired by Laporte.
Through these two acquisitions, Laporte has a very major interest in not only the U.K.
market for photomasks, but also in the Western European market.
Compugraphics' manufacturing capability fully utilizes its electron beam system and
optical equipment, thus providing the flexibility to produce any mask type from simple,
large geometry devices to the most complex IC and SAW devices now coming out of
design.
The Company, which is located in Scotland's Silicon Glen, offers the most
technologically advanced semiconductor photomasking service in Europe. Full electron
beam and optical services are available. These are backed by the most advanced
inspection equipment available, including die-to-data base and through-pellicle
inspection, thus ensuring a fast and reliable quality product.
The Company prides itself on the speed of the service offered. Its Gold Service is a
maximum three-day cycle time with data input via package switch system (PSS) where
appropriate. Its normal cycle time is 4 days for the first 3 layers and 10 days for the
remainder.
OPERATIONS
The headquarters of the Company is housed at Glenrothes, Fife, Scotland. The site
consists of some 43,000 square feet and includes a new extension of some 10,000 square
feet, which opened in July 1988.
This new extension contains the stores, shipping and receiving areas, and a new
supplementary deionized water supply.
In addition, new clean rooms were constructed that include customer viewing
corridors. These rooms provide a base for dedicated functional departments such as final
plate cleaning, pelliclizations, inspection, and measurement. One area houses the newly
installed Mebes III e-beam equipment in a Class 10 vertical laminar flow room with full
HEPA filter ceiling and computer floor.
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0004128
© 1989 Dataquest Incorporated June
Compugraphics International
On the technical front, the Company recently added a Quantronix DSR2 pinhole
repair station, a KLA 228 data base inspection station, and new metrology equipment to
further the goal toward zero defects. The total of new investment is some £5 million
($8.5 million).
FINANCIAL
Table 1 gives revenue and profit for Laporte for the fiscal years ended
December 31, 1986, through December 31, 1988.
The figures in Table 1 reveal that turnover in 1988 increased by 21 percent over that
of 1987 and that pretax profit increased by 38 percent.
In 1986, the last year before the Company became a wholly owned subsidiary of
Laporte, it reported a turnover of $6 million, about 1 percent of the parent company's
turnover.
Table 2 shows worldwide revenue for 1987 and 1988 split by business segment.
The figures show very satisfactory increases in all the business segments. The
electronic segment, which also includes Micro-Image Technology's contribution, shows a
very healthy increase of 41 percent over 1987, reflecting the strong growth in the
semiconductor business during the year.
Table 1
Laporte Industries
Worldwide Revenue and Profit
(Millions of Dollars)
1986
1987
1988
Turnover
$620
$759
$921
Profit before tax
$ 94
$123
$170
Rate of Exchange
£ Sterling per U.S. Dollar
0.68
0.61
0.56
Source:
Laporte Industries pic
Annual Accounts 1988
Dataguest
June 1989
© 1989 Dataquest Incorporated June
ESIS Volume II
0004128
Compugraphics International
Table 2
Laporte Industries
Woridwide Revenue by Business Segments
(Millions of Dollars)
Business Segment
Peroxygen products
Building and timber products
Inorganic and organic specialties
Absorbents
Paper and water treatment
Electronic
Trading and other activities
Total
Source:
1987
1988
$256
108
127
63
66
29
110
$272
152
137
83
85
41
151
$759
$921
Laporte Industries pic
Annual Accounts 1988
Dataguest
June 1989
RESEARCH AND DEVELOPMENT
The Company is involved in the Alvey project.
VLSI photomasks at the 1-micron level.
It is contributing to the study of
THE COMPANY'S PHOTOMASK SERVICE
This service covers the following five areas:
•
Reticle pattern generation
•
Mask/reticle inspection
•
Optical projection masters
•
Electron beam masking
•
Data processing
ESIS Volume II
0004128
© 1989 Dataquest Incorporated June
Compugraphics International
Reticle Pattern Generation
Compugraphics International has three electromask pattern generators. These
machines are able to accept pattern generated (PD) data on magnetic tape in
Electromask 2000 or D.W. Mann 3000/3600 formats. The data units can be either metric
or imperial.
In the interests of speed, reticles are normally pattern generated using a
high-intensity xenon flash exposure onto high-resolution halide emulsion plates. The
equipment can produce hard-surface reticles directly using UV exposure, but this nearly
doubles the PG time with a commensurate increase in cost.
The equipment is housed in individual Class 100 environmental chambers that also
provide temperature and humidity control as well as minimizing particulates within the
chamber. Access to the chamber is via a sliding safelight window panel for the purpose
of plate loading and unloading only.
Mask/Reticle Inspection
The Company has installed and commissioned two new inspection systems, both of
which incorporate submicron defect-detection capability. This addition to its service
makes Compugraphics International one of the few mask houses offering this capability.
The two systems, Chipcheck and KLA 208, offer 0.5-micron defect detection on
DSW reticles and full projection master arrays. In addition, the Chipcheck will inspect
against the original data base, thereby ensuring device integrity of all geometries within
the device, and identify and classify all defects to submicron levels. The system also can
inspect IX structures; critical level reticles for optical stepping; IX, 5X, and lOX DSW
reticles and SAW devices. An important feature of this all-embracing facility is the
through-pellicle inspection capability.
To complement the Chipcheck and KLA 208, two other KLA systems , the 100 and
211, are operated. These systems have been used by the Company for many years and
have high thresholds of defect detection. The KLA 211 also has through-pellicle
inspection capability.
For layer-to-layer registration, the Company has two optical mask comparators, a
Nikon MC-7 (up to 7-inch by 7-inch masks) and a Leitz (up to 5-inch by 5-inch masks).
The Nikon gives 0.25^micron registration accuracy. Critical dimension measurements
are made using Vickers M41 microscopes with intensity profile attachments, accurate to
0.03 micron. The Company also uses a NECY 452C Laser repair system.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004128
Compugraphics International
Optical Projection Masters
The Company manufactures optical projection masters of the highest quality. The
maximum size is 7-inch by 7-inch, with registration accuracy of +0.5 micron, CD control
of +0.25 micron, and defectivity of less than 1 per square inch. The equipment used is
GCA 3696 Stepper and Electromask 2500 Combo.
Electron Beam Masking
A Mebes III 80-MHz electron beam system, primarily designed for mask
manufacture, was commissioned and became operational in May 1988; it also is capable
of direct exposure on wafers.
The Mebes III has the capability to write line widths down to about 0.5 micron and
can analyze its own performance to a resolution of 0.015 micron. Layer-to-layer
overlay registration accuracy is better than 0.12 micron.
This machine complements the Varian VLS40 system, which was installed earlier and
provides duplication of critical path equipment in addition to doubling production
capacity for electron beam mask generation.
This facility is housed in a 400-square-foot clean area built specifically for it, and
environmental conditions are maintained to tightly controlled temperature and humidity
tolerances.
Data Processing
Compugraphics offers complete data processing capability for a wide variety of
inputs.
Utilizing the Shapesmith software suite from Lattice Logic with a VAX 11/750, it is
possible to perform any type of manipulation necessary for generating optical and
electron beam photomasks. This manipulation includes oversizing and undersizing (+ve
and -ve biasing), data sealing, data base-PC format, -E beam format conversions, and
full fracturing ability.
A complementary, though separate, digitizing services also is available. From
supplied scaled drawings, dimensional sketches or coordinated listings, the Company can
produce data output suitable for optical and e-beam masks. Conversion from punched
paper tape is carried out using a DEC PNP 11/40 computer.
Future Prospects
Compugraphics International, with its state-of-the-art facilities and sound
commercial and technical backing, is well placed to meet the future demands of the
semiconductor industry.
ESIS Volume II
0004128
© 1989 Dataquest Incorporated June
5
Compugraphics International
The Company is dedicated to a continuous program of technical improvements, as
evidenced by the recent installation of a Balzers BMC 701 Ultrasonic photomask cleaning
system. This machine represents the best equipment that is currently offered that can
tackle the vital final cleaning stage of mask manufacture. This and other technical
improvements will enable the Company to maintain its position as a leading European
mask maker.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004128
Dynamit Nobel Silicon
OVERVIEW
Dynamit Nobel Silicon S.p.A. (DNS) is a subsidiary of Dynamit Nobel
AG, one of West Germany's largest chemical and plastics producers.
Dynamit Nobel AG was established by the Swedish engineer Alfred Nobel,
who is also known as the inventor of dynamite and founder of the Nobel
Foundation.
Prior to DNS becoming a wholly owned subsidiary of Dynamit Nobel AG
in October 1980, it had been known as Smiel, situated at Merano in the
Dolomite Alps and owned by Montedison. Today the Company is completely
dedicated to the manufacture of silicon for the semiconductor industry,
with manufacturing facilities at Merano and Novara in northern Italy.
In 1983 DNS established a technology center in Sunnyvale, California,
United States, to support its worldwide customers in the semiconductor
industry and its silicon manufacturing plants in Italy and North
Carolina, also in the United States.
OPERATIONS
The corporate headquarters
located at Novara, Italy.
of
Dynamit
Nobel
Silicon
S.p.A.
are
In
addition
to
administration,
this
site
houses
marketing
departments, R&D laboratories, and a wafer processing plant. The latter
occupies some 150,000 square feet and employs 500 persons.
The Company has another plant at Merano, employing also about
500 persons, which supplies the Novara plant with monocrystalline silicon.
Manufacturing Process
The Merano plant receives rail cars of trichlorosilane (TCS), the
basic raw material for the production of ultrapure silicon, from the
Dynamit Nobel plant at Rheinfeld.
This installation is one of the
world's largest production units for silicon tetrachloride.
On arrival at Merano, the liquid TCS is checked for quality and
further purified to semiconductor grade (i.e., impurities reduced to less
than one part per billion). Polycrystalline silicon of extremely high
resistivity is produced by reaction of TCS with very pure hydrogen. The
polycrystalline silicon is then transformed into monocrystalline, or
single-crystal, silicon rods by either state-of-the-art computercontrolled crystal pullers to give Czochralski (CZ) silicon or Float-Zone
(Fz) silicon.
ESIS Volume II
© 1986 Dataquest Incorporated November
Dynamit Nobel Silicon
The monocrystalline silicon is dispatched to both the Novara plant in
Italy and to the DNS plant in North Carolina, for the actual wafer
fabrication process.
At these facilities the rods of silicon undergo sawing into wafers,
followed by lapping and polishing. The wafers are now ready for sale or
may undergo epitaxial deposition, depending on customer requirements.
Sales Outlets
To serve the European market, the Company has, in addition to its
sales office in Novara, offices at Munich, Bavaria, in West Germany and
at Sloughy Berkshire, in the United Kingdom.
In the United States DNS has sales offices at Sunnyvale, California;
Salem, Massachussetts; and Austin, Texas.
FINANCIAL
A summary of the most recent financial statements for the Dynamit
Nobel Group for the fiscal years ended 31 December 1983, 1984, and 1985
is shown in Table 1.
In the 1985 Annual Report, the parent company noted that worldwide
investment in fixed and financial assets amounted to US$49 million.
These were predominantly related to the continued expansion of its
activities in high-purity silicon for the semiconductor industry.
DNS expanded production of its Novara and Merano facilities, and work
commenced on the erection of a new plant for high-purity silicon wafers
in Durham, North Carolina, United States.
The first stage in the
expansion program involved an investment of about $35 million, with
initial production scheduled for early 1986.
© 1986 Dataguest Incorporated November
ESIS Volume II
Dynamit Nobel Silicon
Table 1 '
Dynamit Nobel Group
CONSOLIDATED STATEMENT OF INCOME
(Millions of U.S. Dollars)
1983
1984
1985
Sales (net)
$1,126
$1,102
$1,094
Investments in fixed and
financial assets
$
41
$
53
$
49
Depreciation on fixed and
financial assets
$
50
$
53
$
49
Balance Sheet Total
$
630
$
563
$
544
Expenditure on Research
$
31
$
29
$
30
Expenditure for Environment
Protection
$
18
$
22
$
23
Personnel Expenditure
$
290
$
267
$
273
Exchange Rate
DM per U.S. Dollar
2.55
Source:
2.94
2.85
Dynamit Nobel Annual Report 1985
RESEARCH AND DEVELOPMENT
Fundamental research
and development
are
carried
out
in
the
United States
at
the
Company's
technology
center
in
Sunnyvale,
California, which was established in 1984.
The objectives of the R&D
work done at this center are:
•
To investigate the
performance yield
•
To provide comprehensive, prompt quality-assurance services
•
To anticipate future requirements for silicon products
ESIS Volume II
relationships
between
silicon
1986 Dataquest Incorporated November
and
device
Dynamit Nobel Silicon
Recent R&D projects being carried on in Novara include:
•
Comprehensive modelling of the behavior of interstitial oxygen
in silicon (As a result of these studies, it has been shown that
tight control of oxygen can be a very useful tool in itself to
improve device yields.)
•
Research to optimize gettering techniques and their application
to specific processing procedures (This has led to customdesigned gettering and, in particular, to extrinsic gettering,
which involves generating crystal damage on the back surface of
the polished wafer; this acts as a trap for metallic impurities.)
•
Purity studies and the development of techniques for
detection of impurities using Neutron Activation Analysis
•
Studies into the deposition of silicon nitride and polysilicon
on the back of the wafer
•
Development of epitaxy technology to achieve the advanced
properties required in the next generation of VLSI circuits
the
Under an exchange of technical information with Sony in Japan, the
Company is studying the effect on impurities of growing silicon crystals
under the influence of a magnetic field.
With growing interest in electro-optical devices, another area to
which the Company is giving attention is that of multilayered structures
using III/V semiconductor alloys.
Another area of
complementary metal
radiation damage.
interest is the design of epitaxial wafers for
oxide semiconductors (CMOS), avoiding particle
PRODUCTS
Dynamit Nobel Silicon's principal products include:
Silicon poly nuggets
Silicon CZ monocrystals
Silicon as cut/lapped wafers—CZ
Polished silicon wafers
Test wafers
© 1986 Dataquest Incorporated November
ESIS Volume II
Dynamit Nobel Silicon
Silicon Poly Nuggets
The Company's silicon poly nuggets have the following specifications:
•
Dimensions
Size—6 to 70mm typical
Weight—15 to 20 grams/piece
•
Purity
Donor level— >300 ohm.cm
Acceptor level— >3000 ohm.cm
Carbon content— >2.5 x 10^^ At/cm^
Silicon CZ Monocrystals
These are available doped with phosphorous, boron, or antimony in
(111) and (100)± 1° orientations in standard diameters from 76.2mm (3")
to 150mm.
Table 2 gives typical electrical resistivity ranges and tolerance for
silicon doped with different agents.
Table 3 gives typical resistivity ranges, tolerances, and radial
resistivity variation for FZ monocrystals doped with phosphorous and
boron.
ESIS Volume II
© 1986 Dataquest Incorporated November
Dynamit Nobel Silicon
Table 2
Dynamit Nobel Silicon
TYPICAL RESISTIVITIES FOR DOPED SILICON CZ* MONOCRYSTALS
Resistivity Tolerance
Resistivity Range
Dopant
+
+.
0.1 - 25 ohm.cm
Phosphorous
Antimony
Boron
Boron P+
30% std.
20% min.
0.005-0.015 ohm.cm
0.005-0.020 ohm.cm
N/A
N/A
0.1 - 100 ohm.cm
± 25% std.
± 15% min.
0.005 - 0.020 ohm.cm
N/A
N/A
*CZ = Czochralski crucible pulled
Table 3
Dynamit Nobel Silicon
TYPICAL RESISTIVITIES FOR DOPED SILICON FZ* MONOCRYSTALS
Resistivity
Tolerance
Radial
Resistivity Variation
Dopant
Resistivity Range
Phosporous
0.1 - 150 ohm.cm
± 25% std.
+ 12% min.
100 - 150 ohm.cm
± 30% Std.
+ 20% min.
20% max.
0.1 - 500 ohm.cm
+ 25% std.
+ 15% min.
< 8 % typ. < 8 % typ.
10% max.
10% max.
Boron
< 1 8 % typ.
< 1 6 % typ.
18% max.
*FZ = Float Zone
Source:
Dynamit Nobel Silicon
Standard Product Specification
1986 Dataquest Incorporated November
ESIS Volume II
Dynamit Nobel Silicon
Silicon as Cut/Lapped Wafers—C2
Wafers are available from 76.2mm (3") up to
resistivity ranges already given in Tables 2 and 3.
150mm
diameter
in
Table 4 gives minimum thickness tolerances for various diameters of
wafer as a function of surface finish for CZ cut/lapped wafers.
Table 4
Dynamit Nobel Silicon
THICKNESS CHARACTERISTICS FOR CZ AS CUT/LAPPED WAFERS
Surface
Finish
AS CUT
LAPPED
Diameter
Minimum
Thickness
Thickness Tolerance
Min.
Std.
76.2mm (3")
lOOnun
125mm
150mm
300um
400um
450um
SOOum
+
±
±
±
25i]m
25um
25um
25um
76.2mm (3")
100mm
125mm
150mm
300Tun
380\im
420um
450um
+
+
+
+
Sum
Sum
Sum
Sum
Source:
± ISxim
± 15\jm
+ 15um
±
2um
Dynamit Nobel Silicon
Standard Product Specifications
Polished Silicon Wafers
The range of CZ polished silicon wafers comprises the following eight
products:
•
(lll)P—boron polished
•
(lll)P*—boron polished
•
(lOO)P—boron polished
•
(100)P+—boron polished
ESIS Volume II
© 19S6 Dataquest Incorporated November
Dynamit Nobel Silicon
•
(lll)N—phosphorous polished
•
(lOO)N—phosphorous polished
•
(lll)N'''—antimony polished
•
(lOO)N'*'—antimony polished
These wafers are manufactured to a very high standard.
On the
polished side, 98 percent of wafers are free of scratches; the utmost
care is taken to ensure that the wafers are free of haze, dimples, chips,
and cracks and that all edges are fully contoured, including flats.
Text Wafers
Polished test wafers are available in standard diameters but
tailor-made to customer specifications (i.e. in terms of type, dopant,
and resistivity). In addition to silicon substrate material, DNS offers
the following two electronic grade chemicals:
•
Silicon Trichloride
•
Silicon Tetrachloride
FUTURE PROSPECTS
As one of the world's leading suppliers of silicon substrates, the
Company continues to view its long-term growth prospects with optimism.
To this end, the Company is well placed, with its current expansion
plans, to take advantage of the increased demand for its products that it
expects over the next decade.
DNS is very alert to the effect that changing IC technology will have
on the properties demanded of the substrate material, particularly as
line widths on devices challenge the 1-um barrier. This is illustrated
by the emphasis of the R&D program of study being carried out by the
Company on purity and epitaxy.
The Company believes that as a supplier of substrate material, it
must have
an
intimate
knowledge
not
only
of
the
behavioral
characteristics of the raw materials but also of the device market being
supplied. This takes teamwork, innovation, and creativity across the
whole spectrum of its activities—all of which DNS takes great pride in
pursuing.
3
© 1986 Dataquest Incorporated November
ESIS Volume II
General Signal
OVERVIEW
General Signal CcHpwation is a leader in instrumentation and control technology for
semiconductor production, telecommunications, industrial automation, energy management, and rail transportation.
The Company divides its business into the following four sectors:
•
Process Controls
•
Technology Industries
•
Electrical Controls
•
Transportation Controls
The Process Controls sector includes products such as general mixing equipment and
industrial valves for use in the chemical and chemical-related industries.
The Technology Industries sector covers the Company's sales of semiconductor
equipment. Its position in the industry was greatly enhanced in 1988 by the acquisition
of GCA Corporation. This purchase not only enabled the Company to broaden its
products and services but provided extensive foreign operations in Japan and Europe,
thus furthering General Signal's influence in what has become a highly competitive
global industry. The products and services previously offered by GCA Europa, S.A., now
are handled by General Signal's Semiconductor Equipment Group Europe.
The Electrical Controls sector covers transformers and their repair, utility
switching, and heat-trace and firestop product line business.
The Transport Controls sector includes such items as locomotive control systems,
braking equipment, and automatic couplers.
In 1988, General Signal reported net sales of $1,760 million, an increase of
9.8 percent over 1987. In its 1988 annual report, the Company noted that on
June 7, 1988, the Company acquired all outstanding shares of GCA for approximately
$28.0 million in cash and nearly one million shares of the Company's common stock,
which were valued at $51.6 million.
OPERATIONS
General Signal's corporate headquarters is located at High Ridge Park, Stamford,
Connecticut, in the United States.
ESIS Volume II
0004753
© 1989 Dataquest Incorporated September
General Signal
In Europe, semiconductor equipment sales are handled through the General Signal
Semiconductor Equipment Group Europe, with sales and service offices located as
follows:
•
France—Femey-Voltaire
•
United Kingdom—Southampton
•
West Germany—Munich
Each company has its own manager, service personnel, and spare parts warehouse;
West Germany also has a training center. Altogether, the Group has approximately
90 highly trained specialists throughout Western Europe who provide service to the
Company's customers. They are involved in installing the Company's systems and
working with customers on problems concerning product/process relationships.
The operating units of the Semiconductor Equipment Group Europe in the United
States consist of the following:
Advanced Mechanization Inc., Horsham, Pennsylvania
Drytek, Wilmington, Massachusetts
GCA, Andover, Massachusetts
General Signal Thinfilm Company, Fremont, California
Kayex, Rochester, New York
Semiconductor Systems, Fremont, California
Ultratech Stepper, Santa Clara, California
Xynetics, Santa Clara, California
FINANCIAL
A summary of the Company's financial operations for the fiscal years ending
December 31, 1986 through 1988, is shown in Table 1.
© 1989 Dataquest Incorporated September
ESIS Volume II
0004753
General Signal
Table 1
Genaral Signal Ccrporati«i
OHisolidated Statem^it of C^>erati(»is
(MiUi<»^ of Dollars)
Net Sales
Cost and Expenses:
Cost of Sales
Sales and Administrative Expenses
Write-offs
Operating Revenue
1£M
1987
1988
$1,583
$1,603
$1,760
1,115
348
0
1,152
355
1,267
418
58
$
Source:
120
0
$
96
$
17
General Signal Corporation
Annual Accounts
September 1989
In the 1988 annual report, the Company notes that sales for 1988 totaled
$1,760 million, an increase of 9.8 percent over $1,603 million in 1987. Sales from the
Company's continuing businesses increased by 7.6 percent, excluding business
acquisitions and divestitures. Sales growth was attributable primarily to continuing
strength in the Process Controls sector, renewed demand in the Technology Industries
sector's semiconductor capital equipment markets, and advances in the Electrical
Controls sector's equipment sales. Sales gains were offset partly by declines
experienced by the Company's Transportation Controls sector.
Table 1 reveals that operating earnings in 1988 declined 82.4 percent to $17 million
compared with $96 million in 1987. This substantial decrease is attributable to
$95 million of significant and nonrecurring charges recorded in 1988. These charges
include a $58.1 million goodwill write-off, of which $54.9 million is associated with the
Technology Industry sector's Karkar Electronics business.
A breakdown of revenue by business sector is shown in Table 2. This table shows
that the Technology Industries sector reported a significant advance in 1988 with sales
reaching $445 million. This was due to good growth in semiconductor equipment
operations coupled with the acquisition of GCA Corporation in June 1988, In 1988,
nearly 17 percent of General Signal's sales were generated outside the United States.
ESIS Volume n
0004753
© 1989 Dataquest Incorporated September
General Signal
Table 2
General Signal Corporation
Revenue by Business Sectcn*
(Millions of Dollars)
198$
Sector
Process Controls
Technology Industries
Electrical Controls
Transportation Control:
Dispositions
Total
Source:
IMSL
281
?8$
637
445
387
?71
$1,525
$1,524
$1,740
58
79
20
$1,583
$1,603
$1,760
$
Subtotal
2M1
600
311
333
$
590
297
351
$
General Signal Corporation
Annual Accounts 1988
September 1989
RESEARCH AND DEVELOPMENT (R&D)
The Company has a strong commitment to R&D. In 1988, R&D expenditure was
$116 million, approximately 6.6 percent of total sales turnover. With the challenge
posed by ASICs, considerable R&D effort is being expended in the area of maskmaking,
PRODUCTS
The Company's principal markets in the Technology Industries sector are the
semiconductor, telecommunications, broadcast, and defense industries. This sector
provides equipment for most major segments of semiconductor manufacturing, from
wafer preparation and processing through environmental test. Products include
crystal-growing furnaces, wafer saws and polishers, diffusion/deposition systems,
photolithography wafer steppers and lenses, wafer processing equipment, plasma
etching/stripping systems, wafer probers, and die bonders.
© 1989 Dataquest Incorporated September
ESIS Volume II
0004753
General Signal
The following are some of the products offered by the Company:
AMI model 4206 automatic epoxy die attach system and model 5406 fully
automatic epo^Qr die attach system
Drytek quad system, which features a central rotary pick-and-place transport
that feeds four independent single-wafer process etch chambers and is capable
of handling wafers to 200mm
Electroglas +201 OX 4-inch by 6-inch robotic wafer handling system and
+300IX 8-inch robotic handling system, each with 100/75 wafer capacity
ALS Waferstep* 200 System—a microlithography exposure system for
producing advanced devices; features the Tropel i-line lens and Maximus*
illuminator for submicron production
ALS Laserstep* 200 system—a microlithography system featuring the Tropel
2035 KrF reduction lens and excimer laser exposure source
GCA/Tropel metrology products include the Flatmaster* automatic
cassette-to-cassette wafer flatness measurement and sorting system with
3-inch to 6-inch capacity; Waferstress* film stress analyzer; Multisort*
multiple parameter wafer sorting system; Wafersense* fiber-optic wafer
detection system; Smartaligner* noncontact wafer prealignment station
Tempress thermal processing and deposition equipment—a European product
and an ideal ASICs system design
Micro Automation System SIX/75, which incorporates unique transfer and
processing modules, film frame mounted substrates, and flexible software.
The model 1100 is a new programmable dicing saw
Ultrastep 1500 and 990 1:1 projection steppers, which feature a new lens
system for submicron circuit pattern lines and are capable of handling various
size wafers
ATEQ Core-2000J^ high-speed laser pattern generator
Verteq Superclean 1600-5 rinser/dryer system
Note: R denotes a registered trademark and * a trademark of General Signal
Corporation.
ESIS Volume II
0004753
© 1989 Dataquest Incorporated September
General Signal
FUTURE PROSPECTS
The progress of optical lithography to submicron geometries has been made by
moving to shorter light wavelengths. GCA, now a wholly owned subsidiary of General
Signal, was one of the pioneers of the i-line wavelength for which the Tropel Division has
developed special lenses and the ALS Waferstep 2000 uses i-line. Reaching 0.5-micron
levels and lower requires even shorter wavelengths that are beyond the optical spectrum;
in this area, the Company is leading the way with its excimer laser lithography systems.
General Signal believes that systems for submicron work will be a major development in
the market in the years ahead, and the Company commands a leading position in this
area.
$
© 1989 Dataquest Incorporated September
ESIS Volume II
0004753
LTX Corporation
OVERVIEW
LTX Corporation is one of the world's leading suppliers of systems used for the
testing of linear, digital, and mixed-signal (combined linear/digital) integrated circuits.
These systems also are used for the functional test and alignment of high-volume
electronic assemblies. Laser-trimming and computer-networking products also are
offered by the Company.
The Company designs and manufactures four lines of semiconductor test systems.
All of the Company's test systems have the same fundamental characteristic, namely, a
set of computer-controlled instruments that send signals to a device under test and
measure the response of that device. The four lines of test systems are as follows:
•
Ninety—The new Ninety system enhances the Company's original LTX77
linear and mixed-signal tester. This system uses a Data General computer
enhanced by LTX to function as a test controller.
•
Hi.T—This line of test equipment provides a completely new architecture for
high-throughput testing of linear devices.
•
Trillium—The Company's line of digital test equipment is used to test a wide
variety of digital VLSI circuits.
•
Synchromaster—This product was introduced in May 1988 and was specifically
developed for mixed-signal testing.
For the fiscal year ending July 31, 1988, the Company reported record worldwide
sales of US$174.8 million and income from operations totaling US$15.1 million.
OPERATIONS
The Company maintains its headquarters at LTX Park, Westwood, Massachusetts.
This location houses corporate administration, sales and customer support, and
manufacturing and engineering for its Linear Division. The Company also has component
parts assembly, final assembly, and testing at its manufacturing facility in San Jose,
California. This is the Company's Trillium Digital Division.
LTX maintains 8 sales and customer support offices located throughout the United
States. The Company's European and Far Eastern headquarters are located in Woking,
United Kingdom, and Tokyo, Japan, respectively. Sales and customer support are
provided in 10 additional facilities located throughout Europe and the Far East.
ESIS Volume II
0003086
© 1989 Dataquest Incorporated February
LTX Corporation
As of July 31, 1988, LTX employed 1,411 personnel worldwide. This included 601 in
engineering and technical support, 543 in manufacturing, and 267 in sales and
administration. In the United States, the Company's support center at Westwood
consists of 326 employees. The support center's activities include training, field service,
and applications assistance.
Financial
A summary of LTX Corporation's most recent financial information for the fiscal
years ending July 31, 1986, through July 31, 1988, is given in Table 1. The Company
noted in the 1988 annual accounts that it experienced favorable conditions in the
semiconductor industry and a continuing strong market reception for its digital VLSI
product line.
Table 1
LTX Corporation
Worldwide Consolidated Statement of Income
(Thousands of U.S. Dollars)
1986
1987
1988
Net Sales
Less Cost of Sales
$95,400
-58.295
$120,622
- 66.706
$174,804
- 86,223
Gross Profit
Less RScD Expenses
$37,105
-21,546
$ 53,916
- 23,166
$ 88,581
- 31.572
Less Selling and Admin. Expenses
$15,559
-31.612
$ 30,750
- 33,615
$ 57,009
- 41,945
Income from Operations
($16,053)
($
2,865)
Source:
$ 15,064
LTX Corporation
Annual Accounts
Dataguest
February :1989
In 1988, net sales increased 45 percent over the comparable 1987 period, to a record
$174.8 million. For the second year in succession, shipments of digital VLSI test systems
nearly doubled to approximately $85 million. The Company also noted that in 1988,
shipments of linear product equipment improved about 15 percent over fiscal 1987. The
Company's linear business was aided by increased sales of its new Hi.T system and
broader application of its Ninety systems.
© 1989 Dataquest Incorporated February
ESIS Volume n
0003086
LTX Corporation
Table 1 also reveals that gross profit in fiscal 1988 increased to 50.7 percent of net
sales from 44.7 percent in fiscal 1987. This is attributable to greater use of
manufacturing capacity, improved product margins, and increased manufacturing of the
Company's digital product line.
Table 2 shows that sales in the United States have risen progressively from
48 percent in 1986 to 51 percent in 1988. Over this same period, exports from the
United States have increased from about 13 percent of net sales to 19 percent. Table 2
also shows that sales to European customers increased in 1988 to 18 percent of the total
net sales, up from 20 percent in 1987.
Table 2
LTX Corporation
Worldwide Sales by Geographic Area
(Thousands of U.S. Dollars)
Year Ending July 31
1986*
1987*
1988*
Sales to Unaffiliated Customers
United States
Europe
Japan
Export from United States
Total
$46,364
21,577
15,360
12,099
$ 59,135
24,674
15,435
21,378
$95,400
$120,622
.
$ 88,856
31,436
21,625
32.887
$174,804
*Fiscal year ending July 31
Source:
LTX Corporation
Annual Accounts
Dataquest
February 1989
Research and Development
LTX operates in a field characterized by rapid technological change, and its future
success depends on a large and continuing commitment to R&D. The Company's fiscal
1988 R&D expenses increased 36 percent over 1987 to $31.6 million.
ESIS Volume II
0003086
© 1989 Dataquest Incorporated February
LTX Corporation
PRODUCTS
All four of the LTX test systems have the same fundamental design, i.e., a set of
computer-controlled instruments that send signals to an integrated circuit under test and
measure that circuit's responses.
Test Systems
Ninety
The Ninety's central processing unit is the CP90 and includes a Data General Nova
computer enhanced by LTX as test controller. The CP90 also supports a 160Mb disk
drive, a magnetic tape unit, and other peripherals. The LTX 90 computer system may be
used with a wide array of instruments, all developed by LTX for testing. The
instruments can be configured to provide a range of signals appropriate to many types of
linear integrated circuits. This system can laser trim thin- or thick-film hybrid circuits
and silicon integrated circuits using suitable system extensions.
Trillium
The Trillium systems for testing digital devices use a new architecture, based on the
theory of providing a complete set of testing resources at each pin of the circuit being
tested.
Recently, three new additions have been introduced to the Trillium product family.
These are the following:
•
Validmaster Plus is an ideal cost-effective solution for high-volume
production testing of 32-bit MPUs, RISC processors, and peripheral controllers.
•
Micromaster HPC (High Pin Count) is geared for high-pin-count,
high-performance testing. It is designed for complex device characterization
as well as high-throughput testing of the more advanced VLSI devices.
•
Validmaster HPC is geared for high-pin-count, cost-effective ASIC gate array
and complex VLSI device testing.
Performance characteristics and
resource-per-pin architecture are similar to those of the Validmaster Plus.
The 512-pin test head is the smallest high-pin-count test head in the industry.
Hi.T
The Hi.T linear test system uses Apollo DOMAIN network. The system also makes
wide use of microprocessors to control signals and measurements to each pin of the
device being tested to improve test efficiency. This line of equipment provides new
architecture based on producing a complete set of independently controlled linear
resources at each pin of the circuit under test, rather than sharing test instrumentation
among pins.
This "per-pin" architecture, combined with further independent
4
© 1989 Dataquest Incorporated February
ESIS Volume II
0003086
LTX Corporation
microprocessors throughout the system, permits test signals and measurement to be
executed concurrently whenever possible. The per-pin design significantly improves
throughput and accuracy of testing for linear devices.
SiTichromaster
Synchromaster is LTX's new-generation, mixed-linear digital tester. It incorporates
the Trillium digital architecture and the use of a Trillium system test head and test head
digital pin cards combined with the Hi.T system. With the elimination of
matrix-switching mechanisms, Synchromaster increases test throughput dramatically.
This tester has great flexibility in being able to assign test resources to any pin of a
device; thus, it is particularly suited to the best requirements of ASIC devices, no matter
where the cells are located in the device and regardless of how the device is packaged.
Product Applications
Linear Applications
Linear applications include the following:
•
Industrial—Using devices in a wide variety of commercial and military
electronic assemblies.
They include such applications as amplifiers,
comparators, and voltage regulators. For these, the Ninety system or the
Hi.T. system can be used.
•
Communications—Using both linear and mixed-signal circuits. Linear circuits
such as amplifiers can be tested by either the Ninety or Hi.T system.
Mixed-signal circuits such as digital filters, ISDN transceivers, and modems
can be tested by either the Ninety, with its digital options, or the
Synchromaster.
•
Consumer—Products such as radios, compact disc players, and cameras
incorporating linear and mixed-signal circuits. These devices can be tested by
adding radio, chroma, video, or digital modules to the Ninety system.
•
Automotive—Using the Company's Ninety system to test and laser trim
integrated circuits or electronic assemblies used in ignition, fuel, and braking
systems. Various modules are available for the system, which provide the
unique waveforms necessary to test these devices.
Digital Applications
The Trillium family of digital test systems has been designed to test efficiently the
wide variety of devices designed with MOS and ECL technologies. These include gate
arrays, microprocessors and controllers, RISC processors, complex logic, and
programmable logic.
ESIS Volume II
0003086
© 1989 Dataquest Incorporated February
LTX Corporation
Customer Support and Warranty
Because of the highly technical nature of its systems, the Company considers
customer support to be important to the success of its business. Customer support
activities include training, field service, and applications assistance. As of July 31,
1988, the Company's service and support staff consisted of 326 employees. LTX
maintains support centers at its Westwood, Massachusetts, headquarters and at 20 other
locations around the world.
The Company's policy is to provide customers with unlimited training at LTX
support centers without charge, except for basic test system orientation and certain
advanced courses. Customers' employees are instructed in system hardware and in the
software developed by LTX specifically for preparing the debugging test programs for its
systems.
The Company provides a ten-year warranty against defects in its linear and
mixed-signal test systems and a limited lifetime warranty against defects in the digital
test systems. Computer peripherals, laser-trim equipment, and certain other
components purchased from others outside LTX are covered by a one-year warranty.
OUTLOOK
LTX has a major share of the test equipment market and is well set up to continue
the successful expansion of the two sides of the business through the Trillium Digital
Division and the Hi.T linear system.
The correctness of the Company's decision to emphasize the digital business is
demonstrated by the fact that in just three years Trillium shipments have accumulated
to more than $150 million, and LTX has become the largest U.S.-owned supplier of
digital VLSI test systems.
The Company views the long-term prospects with cautious optimism and sees
continued expansion of its markets from the now well-established Trillium and Hi.T
bases. This, together with its dedication to customer support and applications, will
ensure that LTX will continue to enjoy a place at the forefront of the semiconductor test
equipment market.
© 1989 Dataquest Incorporated February
ESIS Volume II
0003086
MEMC Electronic Materials SpA
OVERVffiW
In January 1988, DNS (formerly Dynamit Nobel Silicon) was acquired by Hiils AG, a wholly
owned subsidiary of Veba AG, one of West Germany's largest compmries. The acquisition was
followed in February 1989 by the announcement that President Bush had ratified the transaction
between Htils and Monsanto, whereby the former company would acquire the Electronic Materials
Division of Monsanto. Hiils announced the formation of a new company from the merger of these
two companies; the new company is MEMC Inc. It is responsible for worldwide production and
marketing of electronic grade silicon products. Implementation of MEMC Inc. became effective in
April 1989.
MEMC Inc. forecasts that worldwide sales revenue in 1989 will be in the $400 million range,
and MEMC Electronic SpA, with sales of approximately $130 million, will be the principal
suppliers to MEMC's business in Europe.
With these acquisitions, the HiilsA'eba Group is implementing its strategic decision to play a
primary role in the silicon wafer market. MEMC Inc will benefit from a high degree of synergism,
with very positive effects on research and innovation capacity, product quality, service, and
competitiveness.
In 1988, the Hiils Group reported net worldwide sales of DM 8.23 billion ($4.7 billion),
representing approximately 18.5 percent of Veba's sales, which reported DM 44.4 billion
($25.2 bilUon) in sales in 1988.
OPERATIONS
MEMC Inc.'s corporate headquarters are located in No vara, Italy. The marketing, administration, and research and development (R&D) laboratories for Europe also are housed at this site.
MEMC Inc.'s principal wafer fabrication facilities for Europe also are located in Novara. This
plant covers approximately 150,000 square feet and employs 500 persons.
The Company has a second Italian plant at Merano. Here, polyoystalline silicon is manufactured and single-crystal ingots prepared by Czochralski crucible pulling. Approximately
500 persons are employed here.
Sales-of the Company's products are made through regional sales offices at the following
strategic points throughout Europe:
West Germany—^Munich
France—^Paris
United Kingdom—Milton Keynes and Manchester
Italy—Novara
The Company also has distributors and sales agents in Japan, Taiwan, Singapore, and India.
•
ESIS Volume n
0005966
©1990 Dataquest Incorporated February
MEMC Electronic Materials SpA
MANUFACTURING PROCESS
The basic raw material for ultrapure silicon production is trichlorosilane (TCS). It is supplied
by the Hills Troisdorf plant at Rheinfelden in West Germany; this plant also is one of the world's
largest producers of silicon tetrachloride.
At the Merano plant, the liquid TCS undergoes a series of purifications that bring it to
semiconductor grade levels (i.e., impurities less than 1 part per billion). The TCS then is
reduced—^using very high purity hydrogen made on site—^to high-resistivity polycrystalline silicon.
This in turn is transformed by state-of-the-art computer-controlled pullers into large diameter
single-crystal ingots. These ingots then are ground to give tight diameter tolerances, and reference
flats or notches are added for crystal orientation referencing. When this process is completed, the
ingots are shipped to Novara to be made into wafers.
The wafer-making process is carried out at the Novara plant. It consists of sawing the ingots
into slices, lapping for flatness, polishing to produce a precise mirror-like finish, and cleaning in a
Class 10 ambient surrounding to remove microscopic particles. Most wafers are sold in polished
form, but that depends on customer requirements. Wafers may undergo further processing (e.g.,
epitaxial layers, back sealing) before shipment.
FINANCIAL
Financial information for MEMC Electronic Materials SpA is not made available, but rather
is consolidated into those of the immediate parent company, Htils AG. A summary of the most
recent financial statements for the Hiils Group for the fiscal years that ended December 31, 1987
and 1988 is shown in Table 1.
Table 1 shows that Group sales increased in 1988 by 66 percent over 1987. Pretax profit
increased by a record 35 percent; indeed, 1988 was a record year in all regards, coinciding as it did
with Hiils' 50th anniversary.
In its 1987/1988 Annual Report, Veba notes that the Hiils Group's domestic sales increased by
55.3 percent to DM 3.6 billion (US$2 billion) in 1988, while Hiils AG's export sales were up by
68.0 percent to DM 4.6 billion (US$2,6 billion). The export ratio was 56.0 percent compared with
54.0 percent in 1987.
Table 2 shows the business divided into operational areas. The "Other Areas of Business"
row in Table 2 includes plastics processing, biotechnology, and silicon wafer fabrication.
Table 2 shows satisfactory increases in all business areas. The companies of the Hiils
Troisdorf AG subgroup and Svenska Polystyren Fabriken AB are incorporated into the financial
statements for the first time: this incorporation is reflected in the sharp increase in the "Other
Areas of Business" part of the table. These data also include for the first time, a full year's
contribution from MEMC Electronic Materials SpA, estimated by Dataquest to be in the
$100 million to $120 million range, i.e., approximately 11 percent of sales in this area and
2,4 percent of the Group's overall sales.
©1990 Dataquest Incorporated February
ESIS Volume n
0005966
MEMC Electronic Materials SpA
Table 1
Hills Group Profit and Loss Account
(Millions of Dollars)
Net Sales
Cost of Sales
Gross Profit on Sales
Selling Expenses
Research Expenses
General Administrative Expenses
Other Operating Expenses
Other Operating Income
Income from Participations
Net Interest
Profit before Tax
Profit after Tax
Exchange Rate (DM/$)
1987
1988
2,821
2,022
799
(325)
(120)
(50)
(140)
65
61
18
308
152
1.8
4,678
3,412
1,266
(525)
(173)
(132)
(273)
(168)
88
(3)
416
215
1.76
Souice: Htlls AO Ammal Report 1988
Datatjuest
Febniaiy 1990
Table 2
Hills Group Worldwide Sales by Business Area
(Millions of Dollars)
Basic Chemicals
Organics
Thermoplastics
Elastomers, Coatings
Other Areas of Business
Total
Exchange Rate (DM/$)
1987
1988
260
944
964
506
147
645
1,341
1,157
543
992
2,821
4,678
1.80
1.76
Souice: HOls AO Annual Report 1988
Dataquest
Febniuy 1990
RESEARCH AND DEVELOPMENT
Great importance is attached to R&D work that is aimed at providing customers with
solutions to their problems. In 1988, the Hiils Group expended $173 million on R&D, a 44 percent
increase over 1987.
ESIS Volume n
0005966
©1990 Dataquest Incorporated Fehruary
MEMC Electronic Materials SpA
Hiils spends a large amount on R&D. Because of the wide range of the MEMC Inc. interests,
the field of research is extensive, particularly recent research into the toxicological and safety
aspects of the company's products.
Research on silicon products by MEMC Electronic Materials SpA is carried out at both the
Novara and Merano sites. Some of the projects include the following:
Comprehensive behavior modeling of interstitial oxygen in silicon
Research to optimize gettering techniques and their appUcation to specific processing
procedures
Studies on the properties of silicon nitride and polysilicon on the back of wafers
Development of advanced epitaxy technology to achieve the properties required in the
next generation of VLSI circuits
Study of multilayered structures using IllfV semiconductor alloys because of growing
interest in electro-optical devices
PRODUCTS
MEMC Electronic Materials SpA's products include the following:
•
Silicon poly nuggets
•
Silicon monocrystals
•
SiUcon as cut/lapped wafers
•
Test wafers
•
Polished silicon wafers
•
Epitaxial silicon wafers
The monocrystals are available doped with phosphorus, boron, or antimony in 111 and 100
± r orientations in diameters that range from 76.2mm, or 3 inches, to 200mm.
Silicon-CZ as cut/lapped wafers are available from 76.2mm (3 inches) up to 150mm diameter
in various resistivities.
The range of Czochralski crucible pulled (CZ) polished wafers comprises the following eight
products:
(lll)P—boron polished
(111)P+ —boron polished
(lOO)P—boron polished
(100)P+ —boron polished
(111 )N—^phosphorus polished
(lOO)N—phosphorus polished
(111)NH
^antimony polished
(IOO)NH
antimony polished
©1990 Dataquest Incorporated February
ESIS Volume n
000S966
MEMC Electronic Materials SpA
These wafers are manufactured to a very high standard. On the polished side, all wafers are
free from scratches, haze, dimples, chips, and cracks, and all edges are fully contoured, including
flats.
Test wafers are available in standard diameters and can be tailor-made to customer specifications, i.e., type, dopant, and resistivity. In addition to silicon substrate material, the Company offers
the following two elecfronic grade chemicals:
•
•
Silicon trichloride
Silicon tetrachloride
OUTLOOK
With its integration into the HiilsA'isba Group, MEMC Electronic Materials SpA has an
assured ftiture in a market that offers good growth prospects. As a result of its new affiUation with
MEMC Inc. in the United States, where complementary R&D is carried out, the Company is well
placed to study die effect that changing IC technology will have on the properties demanded of the
substrate material, particularly as linewidths on devices challenge the 1-micron barrier.
The Company believes that, as one of the world's leading suppliers of substrate material, it
must have an intimate knowledge not only of the behavioral characteristics of the raw materials but
also of the device market that is being suppUed. This knowledge requires teamwork, innovation,
and creativity across the whole spectrum of its activities.
•
<
ESIS Volume n
0005966
©1990 Dataquest Incorporated February
-1
r
Merck Group
OVERVIEW
Merck's history reaches back to 1668 when Jacob Merck took over Engel Apotheke, a
pharmacy in what is now Darmstadt, West Germany. In 1827, Heinrich Emanuel Merck, who at
that time was the proprietor of Engel, made the important decision to produce certain products on a
large scale. Thus was bom the industrial enterprise that now is one of West Germany's largest
companies.
Merck now is a modem enterprise in the chemical-pharmaceutical industry. It manufactures a
broad spectram of products. It is still owned by the founding family, and its legal form still is that
of a general partnership. In 1988, Merck reported worldwide sales of US$1.9 billion.
The Company's activities are grouped into the following two business areas:
•
Pharmaceutical
•
Chemical
The Pharmaceutical Group covers the production and marketing of formulated medical
products, including preparations for the treataient of cardiovascular and central and peripheral
nervous system disorders.
The Chemical Group consists of five divisions—^Fine Chemicals, Industrial Chemicals, and
Pigments, which make up the Chemicals Subgroup; and Reagents and Diagnostics, which form the
Laboratory Preparations Subgroup.
The Industrial Chemicals Division is mainly engaged in producing and distributing products
and equipment for technically demanding applications. It is a research-intensive operation; a large
part of its product portfoUo is the result of its own research and development and, accordingly, is
protected by patents. Its most important products are liquid crystals and process chemicals with
related supply systems for the semiconductor industry. Other major product groups include vapor
deposition chemicals for the optical industry, monocrystals, UV initiators for the coatings and
printing industry, and printing chemicals.
In order to concentrate more strongly on the two key sectors of liquid crystals and process
chemicals, the Company sold its photoresistant business to Ciba-Geigy late in 1988, thus releasing
manpower and plant capacity.
OPERATIONS
Merck's corporate headquarters are located in Darmstadt, West Germany. In 1988, companies
of the Merck Group were active in 40 countries. Plants at 45 locations in 27 countries manufacture
products for Merck's worldwide business, which encompasses approximately 15,000 different
chemical and pharmaceutical items.
At the end of 1988, the Merck Group employed 21,017 persons worldwide, up slightly from
the previous year. Of this total, employees in West Germany account for 45.1 percent
(9,489 persons).
ESIS Volume n
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©1990 Dataquest Incorporated February
1
Merck Group
Outside of West Germany, the Industrial Chemicals Division has several plants, including the
following:
•
United Kingdom
BDH Chemicals Ltd., Poole, Dorset
•
United States
EM Industries Inc., Hawthorne, New York. Also, various companies in New Jersey,
Ohio, Georgia, Maine, and CaUfomia
•
Rio de Janeiro
Merck S.A. and four other manufacturing plants in the country
•
Japan
Merck Japan Ltd.
Kanto Kagaku K.K., Tokyo
Plants also are located in Australia, New Zealand, the Philippines, and South Africa.
FINANCIAL
Merck Group revenue is given in Table 1 for the fiscal years that ended December 31, 1986
through 1988.
In terms of deutsche marks, the Group's sales increased 9.4 percent in 1988 over 1987.
Converted into U.S. dollars, this equals an 11.8 percent increase and reflects real growth far more
accurately than in the previous two years because the distortions caused by foreign exchange rates
are much less pronounced.
Table 1
Merck Group Worldwide Revenue by Business Sector
(Millions of U.S. Dollars)
Pharmaceuticals
Chemicals
Others
Total
Exchange Rate
(DM per US$1)
1986
1987
1988
520
790
51
1,361
652
941
62
1,655
735
1,042
74
1,851
2.17
1.80
1.76
Souice: Nfeick Annual Accounts 1988
Dataquest
Febnuty 1990
©1990 Dataquest Incorporated February
•
ESIS Volume n
0005965
Merck Group
Table 2 shows that in 1988, pharmaceutical product sales and chemical sales accounted for
39.7 percent and 56.3 percent of total revenue, respectively. Table 2 also shows that sales of
pharmaceuticals increased by 12.7 percent in 1988 over 1987, and sales of chemicals increased by
10.7 percent.
The figures in Table 2 show that, in terms of U.S. dollars, 64 percent of the Company's sales
were derived in Europe. This sum compares with nearly 67 percent in 1987. The table also makes
it clear that important new growth areas lie in new industrial areas such as Asia and Comecon
countries.
Table 2
Worldwide Revenue by Geographic Area
(MUlions of U.S. Dollars)
West Germany
Other EEC countries
Other European countries
Total—^Europe
United States
Latin America
Africa
Asia
Other Industrial Countries
Comecon and People's
Republic of China
Total
Exchange Rate
(DM per US$1)
1986
1987
1988
366
411
86
863
450
545
107
1,102
478
581
126
1,185
110
150
12
73
132
119
162
8
82
155
164
161
18
103
184
21
,361
27
1,655
36
1,851
2.17
1.80
1.76
Source;; Merck Annual Accounts 1988
Datuquest
Febnuuy 1990
ESIS Volume n
0005965
©1990 Dataquest Incorporated February
Merck Group
RESEARCH AND DEVELOPMENT
For Merck, which is principally concerned with producing and selling chemical and pharmaceutical specialties, research and development (R«feD) plays a very vital role. Its importance is
reflected both in relatively high expenditure for R&D and the lar^ number of employees (about
11 percent) engaged in these activities. Product lines are being renewed constantly and approximately 40 percent of the sales made by the Merck Group in West Germany is attributable to
products that were either introduced or improved within the last two years.
The marked intensification of R«&D activities that started in the early 1980s has continued into
1988. Current R&D expenditure amounted to DM 254 million (US$144.00 million), an 8.0 percent
increase over 1987. An additional DM 33 million (US$18.75 million) was spent on capital
investments. This total outlay of DM 287 million (US$163 million) represents 8.8 percent of sales.
The research center that is of primary importance for the Merck Group is located at Merck's
Darmstadt plant. This plant accounts for 80 percent of total R&D expense, but the entire Merck
Group benefits fi-om its product and process innovations. Also, the research facilities at BDH
Chemicals in the United Kingdom and at Merck Japan Ltd., as weU as those in the United States
and Spain, are being expanded.
Research is being intensified to meet the increased demands of the electrical and electronics
industry. Also, efforts are being concentrated in the area of monocrystals for high-powered laser
optics in the IR and UV ranges; liquid cystals, where R&D in Darmstadt, Japan, and Great Britain
now has been adapted to the more stringent demands now being imposed by industry.
In the area of pharmaceutical research, Merck has continued to focus on agents for the control
of cardiovascular diseases, the central nervous system, and biomaterials. In particular, Bracco
Industria SpA, an associated company in Italy, is working on X-ray contrast media and contrast
media for in vivo diagnostics with magnetic resonance equipment.
PRODUCTS
In the area of industrial chemicals, Merck offers a comprehensive range of electronic
chemicals that serve the semiconductor industry. This range covers general process chemicals,
dopants, developers, strippers, rinses, chemical supply systems, evaporation chemicals, and
sputtering targets.
The product range for electronic applications includes the following:
•
Process Chemicals
VLSI Selectipur''—These are high purity, low-particulate chemicals for
VLSI-semiconductor technology. Particle content has been reduced, and the guarantee values for dissolved critical heavy metals such as Cu, Fe, Ni, Cr, Na, and K all
have been reduced to the ppb range.
MOS Selectipur*—^These chemicals have particle class specifications for the
manufacture of ICs and cover a range of acids and etchants. In these products, the
guarantee limits for impurities have been reduced to the 0.001 ppm region.
Selectipur^—^This covers a broad range of solvents and etchants for semiconductor
production, as well as chemicals for the manufacture of variable resistors.
©1990 Dataquest Incoiporated Febiuaiy
ESIS Volume 11
0005965
Merck Group
-
•
Mega Electipui*—^This covers a range of state-of-the-art high-purity acids and
solvents with exceptionally low particle levels for the manufacture of megabit
memories and equivalent devices.
Dopants
IC Selectipiu*—Under this trademark, Merck supplies a range of very pure products
for application in diffusion and epitaxial growth. This product includes:
Boron tribromide
Phosphorous tribromide
Phosphorous oxychloride
1,1,1-Trichloroethane
Diodop/Sioge"^—^These products are high-purity silicate solutions for application by
spin-on and other techidques. They are available as undoped liquid or doped with
either arsenic, phosphorous, boron, or boron/aluminum. They are suitable for
power-device production and for all cases where high doping gradients or planarization are required.
Developers
Selectiplast—^These chemicals are used for developing positive and negative photoresists and adhesion promotors. The positive developers are either metal ion free
or metal based. Formulations are available for both immersion and iu-line development The negative developer N2 is designed to achieve optimum processing of
negative photoresists with spray development In addition, the HIR range of
adhesion promotors and developers is available with polyimides.
•
Strippers
Losolin chemicals—^These chemicals are used for stripping photoresists. Losolin
HIR is used with polyimides and does not contain toxic hydrazine compoimds, and
Losolin IV is a nonphenoUc and nonchlorinated stripper that is used with either
positive or negative photoresists.
Rinse
Liusin—Liusin is an aqueous alkaline solution of organic surfactants for use in
rinsing.
Chemical Supply Systems
Selectimat—Selectimat is a turnkey system designed to give high-purity electronic
chemicals as an entire package togetiier with an extended guarantee of chemical
quality at the point of use. As an alternative, customers may first select those parts
of the package they require to an agreed quality guarantee,
Evaporation Chemicals and Sputtering Targets
Patinal—^This trademark covers a range of chemicals used in evaporation and
sputtering. They are metals, alloys, and simple inorganic compounds supplied as
powders, granules, tablets, or disks.
ESIS Volume n
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©1990 Dataquest Incorporated February
Merck Group
In the optical products area, Merck manufactures a range of chemicals under the Optipur
trademark for the production of low-mass optical fibers. These chemicals cover halides, oxides,
carbonates, nitrates, and fluorides. In addition, the Company offers a range of chemicals used for
crystal growing.
Other products include single-crystal optical components for IR and UV including windows
and prisms, scintillator crystals, and products for use in X-ray fluorescent spectroscopy.
OUTLOOK
The Company expects the trend established in 1988 to continue into 1989. International
business should continue to grow at an above-average rate, while domestic business is expected to
show only modest expansion, primarily because the West German pharmaceutical industry is
passing through a difficult time. Capital expenditure for 1989 is expected to remain at approximately the same level as 1988. The Company notes that steadily rising costs for environmental
protection, especially in West Germany, also are expected to have an increasing impact on
profitability:
Merck wiU continue to attach the greatest importance to innovation. Therefore, strong R&D is
being maintained not only to keep pace with the fast progress of new technologies with which the
Company interfaces, but also to help shape these technologies in key areas.
Short-term business cycles notwithstanding, the Company maintains an optimistic outlook for
the longer term. It is confident that it has adopted the correct strategy to meet futiu-e demand for
leading-edge products, not only in the development of new pharmaceutical products, but also for
special chemicals for the electronics industry.
(Products marked "^ are registered trademarks of the Merck Group.)
©1990 Dataquest Incorporated February
ESIS Volume 11
0005965
Micro-Image Technology Ltd.
OVERVIEW
Micro-Image Technology Limited (MIT) is a wholly owned subsidiary of Laporte
Industries pic, Britain's second largest independent chemicals company. It reported 1988
worldwide sales of $921 million.
The Company was established in 1972 by semiconductor engineers, and it has
pioneered the production of high-purity, low-particulate chemicals. During the past
17 years, MIT has gained a reputation for quality and service and is recognized as second
to none throughout the United Kingdom and other major European semiconductor
centers. MIT now holds at least 70 percent of the U.K. semiconductor market for
high-purity, low-particulate acids, etch mixtures, and solvents and is a major supplier to
virtually all the leading semiconductor companies operating in the United Kingdom and
the Republic of Ireland.
Strategically located service depots located in Livingston, Scotland, and Rousset and
Grenoble, France, enable the Company to provide "just in time" (JIT) services to the
major companies in those areas whose tightly coordinated production schedules require
absolute reliability of chemical supply on a day-to-day basis.
The Company's reputation has enabled it to introduce its own and other
manufacturers' state-of-the-art products to the U.K. market, including those
manufactured by leading overseas producers of semiconductor chemicals and equipment.
OPERATIONS
The operations of MIT and its associated companies come within the Electronic
Chemicals and Services Division of Laporte Industries pic, which has headquarters at
Laporte House, Luton, Bedfordshire, United Kingdom.
MIT is headquartered at Greenhill Industrial Estate, Riddings, Derbyshire, in the
center of England. The site comprises four main manufacturing facilities of up to
25,000 square feet each and also includes administration, sales, and warehousing
facilities.
The Company employs more than 150 persons. The Greenhill site manufactures and
distributes the following products:
•
Low-particulate chemicals and photoresists
•
Flanders filtration products
•
Wafer-handling products
•
Reclaimed silicon wafers, using Exsil technology
•
Antireflective coatings
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© 1989 Dataquest Incorporated September
1
Micro-Image Technology Ltd.
Countdown Clean Systems Limited, part of the Laporte Electronic Chemicals and
Services Division, which opened new facilities in both Riddings and Swindon, Wiltshire in
1988, provides the following products:
•
•
•
•
Clean-room garments
High-efficiency particulate air filters
Specialized cleaning service
Contamination control products
Also coming within the control of The Laporte Electronic Chemicals and Services
Division are the following companies, all of which are considered leaders in products and
services in the electronics industry:
Compugraphics International—Photomask service
Cyantek Corporation—Specialty chemicals for photomasks
Exsil—^Wafer reclamation services
Soprelec SA and UCE of France—High-purity chemicals
Winchester Disc Inc.—Reclamation of computer memory disks
In West Germany, MIT operates through MIT Halbleiterchemie GmbH.
FINANCIAL
Table 1 gives revenue and profit data for Laporte for the fiscal years ended
31 December, 1986 through 1988. As Table 1 shows, turnover in 1988 increased by
21 percent over that of 1987, and the 1988 pretax profit increased by 38 percent.
Table 1
Laporte Industries
Worldwide Revenue and Profit
(Millions of Dollars)
Turnover
Pretax P r o f i t
1986
1987
1988
$620
$ 94
$759
$123
$921
$170
Source:
Laporte Industries
Annual Accounts 1988
September 1989
© 1989 Dataquest Incorporated September
ESIS Volume II
0004752
Micro-Image Technology Ltd.
Table 2 shows worldwide revenue for 1987 and 1988 split by business segment.
Table 2
L^x»^e Imlustries
Worldwide Revenue by Business Segment
(Millions of Dollars)
Business Segment
1987
1988
Peroxide products
Building and timber products
Inorganic and organic s p e c i a l t i e s
Absorbents
Paper amd water treatment
Electronic
Trading and other a c t i v i t i e s
Total
$256
108
127
63
66
29
110
$272
152
137
83
85
41
151
$759
$921
m
Source:
Laporte I n d u s t r i e s
Annual Accounts 1988
September 1989
All the business segments have shown very satisfactory revenue increases. The
electronic segment, which includes MIT's contribution, shows a very healthy increase of
41 percent over 1987, reflecting overall strong growth in the semiconductor business
during the year.
In its Annual Report, the Company states that both MIT in the United Kingdom and
Soprelec in France had outstanding years, with both sales and profits reaching record
levels.
Countdown Clean Systems performed well in 1988, with sales ahead of those in
1987. Profit, however, changed little as the opening costs of the new Swindon facility
were absorbed.
Compugraphics is reported as having had an exceptional year as did the American
company, Exsil. Exsil's new operations in the United Kingdom showed substantial
growth, as sales expanded into Europe.
ESIS Volume II
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© 1989 Dataquest Incorporated September
Micro-Image Technology Ltd.
RESEARCH AND DEVELOPMENT
The improvement of existing products and processes and the identification and the
development of new products and technologies are key aspects of the R&D Division's
strategy and an integral part of the operations of each core business. Research and
development make a vital contribution to the organic growth of the Division and
facilities are now established at all of the Company's major manufacturing sites. In
addition, the Division maintains centralized research and development laboratories and
engineering facilities.
Research and development for MIT is carried out principally at the Riddings site,
with backup facilities provided by central research at Widnes, United Kingdom. In total,
up to 20 people can be involved on any single R&D project. R&D facilities include
modem laboratories capable of simulating wafer-processing techniques used by the
Company's customers.
The Company has several licensing arrangements, including an exclusive European
manufacturing licensing and distribution agreement with Flanders Filters in North
Carolina, United States.
MIT is also a U.K. distributor for the range of state-of-the-art products
manufactured by Brewer Science of Missouri, United States. Marketing arrangements
include one with Eastman Kodak that covers photoresists, and one with other companies
that cover vacuum wands and other wafer-handling equipment.
PRODUCTS
Low-Particulate Chemicals
The Company produces a wide range of low-particulate chemicals, photoresists, and
related products for large-scale integrated circuit processing. These products are sold
under the trade names of Spectrum, Isopoly, Isofine, Nanoclean, Isoform Mixelec,
Cleanalec, and Puralec.
MIT markets a number of negative and positive photoresists under the names of
Isopoly and Isofine. These are manufactured by Kodak and further refined and quality
tested by the Company. Other products include developers, thinners, and rinses.
In conjunction with these high-purity products, the Company also offers chemical
dispensing and distribution systems. This includes the new Microguard Solvent Dispense
System designed for the automatic filling of baths and process equipment. These
systems enable chemicals to be supplied directly to the point of use from drums situated
outside the clean room. Thus, etch baths and automated wafer processing equipment can
now be replenished with high-purity, low-particulate chemicals from control consoles in
the clean room itself.
© 1989 Dataquest Incorporated September
ESIS Volume II
0004752
Micro-Image Technology Ltd.
Phot(»'esists
The photoresist range comprises positive resists, metal ion and metal-ion-free
developers, negative resists, developers, and rinses. Protective coatings are available in
either negative or positive chemistry, e-beam resists and developers, and associated
photolithography products.
The positive range of photoresists, labeled the MEGA series, is characterized by its
resolution, cd control, process latitude, thermal stability, and plasma resistance.
Viscosities and formulations to suit the majority of processing requirements are available.
The negative range of photoresists, labeled the SNR series, is characterized by its
excellent resolution, low-exposed film loss after development, and high adhesion factor.
Complementing the Company's range of photoresists is the new range of high-purity
process chemicals. The most important of these products are antireflective coatings
(ARCs) that enhance the performance of photoresists. ARCs are currently in use in the
manufacture of DRAMs, SRAMs, 32-bit microprocessors, and other integrated circuits;
hybrid circuits; diffraction gratings; and holographic images, which result in dramatic
yield increases on reflective substrates.
Air Filtration Products
These products are manufactured by MIT under license in the United Kingdom from
Flanders Filters Inc., the U.S. leader in this activity. The Company offers a complete
service in Flanders, VLSI Filters for VLSI production clean rooms to give Class 10
(0.12 micron. Federal Spec 209d) clean room ceiling.
Accessories
The Company manufactures and distributes the following accessories:
•
Vacuum wands and wafer-handling equipment
•
Coated and uncoated Tau Pellicles (adhesive type and frame type)
•
U.V. actinic spectra lamps
•
MIT resolution mask
•
Tweezers
ESIS Volume II
0004752
© 1989 Dataquest Incorporated September
Micro-Image Technology Ltd.
Clean Room Products
The Company manufactures and distributes the following clean room products:
•
Gloves and wipes
•
Entry mats and lockers
•
Headwear and footwear
•
Coveralls
•
Paper products
•
Static control system
WAFER RECLAMATION
The Company offers a wafer reclamation service that uses the Exsil process. All
traces of foreign materials and process dopants are removed from all wafer surfaces
regardless of wafer thickness or orientation.
The Company is capable of processing silicon wafers with diameters of 76mm,
100mm, 125mm, and 150mm. Detailed specifications for individual customers' recycled
wafers from Exsil are usually prenegotiated to ensure the maximum possible yield.
OUTLOOK
The semiconductor industry has a continual requirement for processing chemicals
that are capable of maintaining and improving yields under the increasingly stringent
requirements of line width and pattern reduction. This demand has necessitated an
ongoing program of trace element and particle reduction on critical acids, solvents, and
other process chemicals. It is in this area that MIT occupies a strong position in Europe
and this position is expected to be maintained.
The development of MIT's range of photoresists and UV-sensitive resists, together
with its related resists processing chemicals, has fulfilled, and is expected to continue to
fulfill, the need for European production of a top-quality range of resists materials that
are capable of meeting the most exacting industry requirements for submicron pattern
definition. Thus, steady expansion of the Company's activities is expected.
© 1989 Dataquest Incorporated September
ESIS Volume II
0004752
Monsanto Company
BACKGROUND AND OVERVIEW
Monsanto Company was founded in 1901 in the United States (Saint Louis, Missouri).
Since then, it has developed into a major multinational company with interests in a wide
range of agricultural products, chemicals, pharmaceuticals, and electronic materials.
The Company's main business segments are as follows:
Agricultural Products
Chemicals
Electronic Materials
Pharmaceuticals
NutraSweet
In 1988 Monsanto turned in its best financial performance ever with net income
reaching $591 million, one-third more than in any other year in the Company's history.
During the past year, the Company has continued the restructuring program it
started in 1987. Monsanto broadened the base it secured in pharmaceuticals through its
G.D. Searle subsidiary. Sales of Calan, an antihypertensive drug, and Cytotec, an
antiulcer drug, continue to grow satisfactorily.
As part of the Company's restructuring program, underperforming assets were
further pruned and, as a result, the Company announced late in 1988 that the West
German conglomerate Huels AG had made a successful bid to buy Monsanto Electronic
Materials (MEMC), based in Palo Alto, California, in the United States. Early in 1989,
both companies agreed to the sale, and the U.S. president ratified the sale under the new
omnibus trade bill. Therefore, although Monsanto will remain in the United States, no
indigenous wafer manufacturers remain in North America, and the deal will have
important consequences for the silicon wafer market in Western Europe.
Dataquest believes that as a result of this acquisition, VEBA AG subsidiary
Huels AG, one of West Germany's largest industrial groups with a turnover of
$2.5 billion, will, with its recent takeover of DNS in Italy, have a very important share of
the European silicon wafer market. In the United Kingdom alone, Monsanto recently had
invested more than $3 million in dedicated research equipment at its Wafer Research and
Technology Facility in Milton Keynes. This plant, together with MEMC's other
worldwide facilities, is now part of the Huels group and will be known as MEMC Huels
Limited.
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© 1989 Dataquest Incorporated June
Monsanto Company
Operations
The Monsanto Company has its corporate headquarters in Saint Louis, Missouri, in
the United States. The Company employs approximately 45,600 persons worldwide, with
about 8 percent in Western Europe, where it also has six plants, 28 sales offices, and a
major technical center in Belgium.
Monsanto Electronic Materials Company (MEMC) handles the manufacturing and
marketing of silicon-wafer products used in the fabrication of integrated circuits and
other semiconductor devices. The headquarters of MEMC are in Palo Alto, California, in
the United States. Plants are located in the United States, Malaysia, South Korea, the
United Kingdom, and Japan.
Financial
Table 1 summarizes the most recent financial information for Monsanto Company
for the fiscal years ended December 31, 1986, through 1988. This information is broken
out by business segments.
Table 1
Monsanto Company
Worldwide Revenue by Business Segment
(Millions of Dollars)
Segment
1986
1987
Agricultural Products
Chemicals
Electronic Materials
Fisher Controls
NutraSweet
Pharmaceuticals
Corporate
$1,153
3,548
154
645
711
665
3
$1,,305
3 ,858
185
749
722
820
-
$1,,546
3 ,989
209*
840
736
973
—
$6,879
$7,639
$8,293
Total Consolidated
1988
*For 10 months, Jan.-Oct. 1988
Source:
© 1989 Dataquest Incorporated June
Monsanto Company
Annual Report 1988
Dataquest
June 1989
ESIS Volume II
0004127
Monsanto Company
In its annual report, the Company stated that the strategies established in prior
years had paid off in 1988 with sales worldwide reaching a record $8,293 million. This
represents an 8.6 percent increase over 1987.
Sales of electronic materials, although reported for only 10 months, showed a strong
performance as a result of growth in worldwide semiconductor demand and penetration
in markets outside the United States.
Table 2 gives a breakdown of MonTsanto's worldwide operating income by business
segment. The Company achieved a record operating income in 1988 of $955 million, an
increase of 30 percent over 1987.
Table 2
Monsanto Company
Oijerating Income (Loss) by Business Segment
(Millions of Dollars)
Segment
1986
1987
1988
Agricultural Products
Chemicals
Electronic Materials
Fisher Controls
NutraSweet
Pharmaceuticals
Biotechnology Product
Discovery
Corporate
$283
613
(139)
(66)
142
(119)
$316
450
(5)
26
145
(119)
$424
486
11*
29
154
(62)
(41)
(38)
(43)
(36)
(47)
(40)
Total Consolidated
$635
$734
$955
*For 10 months, Jan.-Oct. 1988
Source:
ESIS Volume U
0004127
Monsanto Company
Annual Report 1988
Dataguest
June 1989
© 1989 Dataquest Incorporated June
Monsanto Company
The Electronic Materials segment has shown a substantial improvement over the
past three years, moving from a loss in 1986, which included a $90 million asset
impairment write-down, to a modest $11 million surplus in 1988.
Table 3 shows the worldwide revenue reported in Table 1 by geographic region.
Sales in all regions showed good growth over 1987, with the exception of the Asia/Pacific
region, which remained static. Sales in Europe were particularly strong at
$1,801 million, showing an increase of 17 percent over 1987.
Table 3
Monsanto Company
Worldwide Revenue by Geographic Region
(Millions of Dollars)
1986
1987
1988
$4,638
$4,883
$5,219
1,231
1,537
1,801
Canada
290
329
377
Latin America
283
293
304
Asia/Pacific
437
597
592
$6,879
$7,639
$8,293
Region
United States
Europe and Africa
Total Consolidated
Source:
Monsanto Company
Annual Repo rt 1988
Dataquest
June 1989
Monsanto's operating income, given in Table 2, is shown in Table 4 by geographic
region.
The Company noted in its 1988 annual report that operating income in Europe and
Africa set a new record, showing an increase of 35 percent more than the previous year.
Both net sales and operating income benefited from increased sales volumes of
U.S.-produced chemical products resold in Europe and Africa and from higher
pharmaceutical and agricultural product sales.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004127
Monsanto Company
Table 4
Monsanto Company
Operating Income (Loss) by Geographic Region
(Millions of Dollars)
Reaion
United States
Europe and Africa
Canada
Latin America
Asia/Pacific
Interarea Eliminations
Corporate
Total Consolidated
1986
1987
1988
$506
$501
$638
117
181
245
26
31
37
6
2
27
16
49
74
2
6
(26)
(38)
(36)
(40)
$635
Source:
$734
$955
Monsanto Company
Annual Report 1988
Dataquest
June 1989
Economic growth in the Asia/Pacific region continued apace with operating income,
increasing 51 percent in 1988 over the previous year. The higher profit was generated
principally from higher sales of agricultural products and electronic materials, where
sales particularly benefited from strong semiconductor demand.
Research and Development
Monsanto continues to commit significant resources to research. Technological
expenses totaled $648 million in 1988, 5 percent higher than in 1987, representing
7.8 percent of net sales. Significant expenditures were in life sciences—pharmaceuticals
and agriculture; two thirds of the current research effort is being directed in these areas.
ESIS Volume II
0004127
© 1989 Dataquest Incorporated June
Monsanto Company
In the area of electronic materials, MEMC recently made a multimillion-dollar
investment in a clean module. It also assists in the funding of European research
projects concerned with studies in silicon wafer microdefects.
SEMICONDUCTOR PRODUCTS
MEMC markets a different type of silicon wafer to service each of the following
three application series:
•
ULSI—Ultralarge Scale Integration
•
VLSI—Very Large Scale Integration
•
LSI/MSI—Large Scale Integration/Medium-Scale Integration
ULSI Application Series Wafer
The evolution of integrated circuits toward greater circuit density and the smaller
design rules of ULSI circuits have required concurrent technological advancements in
silicon wafers. MEMC has designed silicon wafers that are multizone systems and focus
on specific circuit application requirements. The three product systems in this series are
as follows:
•
MUS—ULSI polished silicon
•
MUG—ULSI enhanced gettering
•
MUE—ULSI MOS EPI
VLSI Application Series Wafer
This series consists of circuit-focused wafers for use in VLSI applications and
incorporates the specifications best suited to meet the requirements of this level of
integration. The series offers the following crystallographic improvements over the
former VLSI series:
•
OISF is now specified at less than lOO/cm^.
•
Oxygen content may now be specified to a target between 28 and 35 ppma
with a tolerance of +3.
These crystallographic improvements are the result of a novel technique in
crystal-pulling technology that gives maximum fab line yield and enhanced device
parametrics to the silicon user.
© 1989 Dataquest Incorporated June
ESIS Volume II
0004127
Monsanto Company
LSI/MSI Application Series Wafer
These are circuit-focused silicon wafer products to service LSI and MSI
applications. Specifications are designed to be cost effective and to provide excellent
performances for the typically mature processes in which this type of substrate is used.
OUTLOOK
Under its new management, MEMC is well placed to capitalize on its ability to
design silicon wafer products possessing functional zones tailored to individual
requirements. By virtue of MEMC's new ownership, and thereby its relations with DNS,
Dataquest anticipates that the marketing of silicon wafer products, particularly in
Europe, will undergo considerable change.
ESIS Volume II
0004127
© 1989 Dataquest Incorporated June
Olin Corporation
BACKGROUND AND OVERVIEW
Olin Corporation's business primarily is in chemicals, metals, and applied physics,
with special emphasis on electronic materials and services and the defense/aerospace
industry.
The Company reported record sales in 1988 of $2,308 million. Electronic materials
accounted for 10 percent of sales or $231 million; this was an increase of 15.0 percent on
1987 sales. Projected sales for the Company are $2,650 million for 1989 and for
electronic materials $300 million, accounting for 11.3 percent of total company sales.
At the end of the first quarter of 1989, the Company reported sales and income as being
on target.
Olin Corporation divides its business into the following three segments:
•
Chemicals
•
Defense
•*
•
Metals and Materials
The Chemicals segment embraces a wide variety of electronic materials, and these
are marketed through Olin Hunt Specialty Products.
Currently, the Olin Corporation is going through a period of rationalization with a
view toward strengthening its position, particularly in electronics. To this end, it
recently increased its investment in Indy Electronics, a leading contract assembler of
integrated circuits and microelectronic packages.
The Company also is divesting itself of businesses that do not fit with its marketing
strategy. As part of this process, the company announced on May 22, 1989 that it had
completed the sale of its Olin Hunt worldwide photographic chemicals business to Fuji
Photo Film Company Ltd. of Japan for approximately $75 million. The company pointed
out at the time of the sale that this transaction had no connection with a Fuji-Olin Hunt
venture that covers photoresist products for the semiconductor industry. In Europe, the
St. Niklaas plant in Belgium will be transferred to Fuji.
Although the sale of the photographic chemicals business makes Olin Hunt smaller in
this area, the company takes the view that it will now be able to focus more sharply on
electronics materials. In addition, Olin Hunt continues to participate as a major supplier
of process chemicals to the growing semiconductor and printed wireboard markets, of
electrostatic materials such as toner for copiers, and of materials for the computer
printer markets.
Also in May 1989, Olin iannounced that it purchased an interest in Langenberg
Kupfer und Messingwerke GmbH & Co. to form a joint venture with Wieland-Werke AG
of West Germany. The objectives of the new venture, which will operate as an
independent company, include the introduction of Olin's high-performance alloys to the
electronic and connector industries in Western Europe.
ESIS Volume II
0004914
© 1989 Dataquest Incorporated October
1
Olin Corporation
OPERATIONS
The Company's corporate headquarters are located in Stamford, Connecticut, in the
United States. Worldwide, the company employs approximately 16,400 persons.
Olin Hunt Specialty Products, Inc., manufactures, distributes, and markets a wide
range of products used in semiconductor manufacture. The Company employs
approximately 1,200 persons in these operations and 150 chemists in R&D outside
Europe. In Europe, another 200 persons are employed.
This company markets approximately 600 chemicals to 20,000 customers through an
international operation that includes a complex of manufacturing, warehousing, and
distribution centers with 17 plants in the United States, Europe, Singapore, and Japan.
In addition to Olin Hunt Specialty Products, Inc., which embraces printed wireboard
(PWB), electrostatics, and microelectronics operations, Olin has three interconnect and
packaging companies: Olin Mesa, Indy Electronics, and Aegis Inc., which is a joint
venture with Asahi Glass of Japan.
••
-To distribute the company's products in Europe, warehousing and regional sales
officfes are maintained in all the main European countries.
FINANCIAL
In its 1988 Annual Accounts, Olin Corporation reported record sales of $2,308
million, a 20 percent growth over the previous year. A record $98 million in net income
also was achieved in 1988, a 26 percent increase over $78 million in 1987. The Company
attributes its increased earnings to the impact of increased volumes and ongoing efforts
to reduce costs. Table 1 gives the Company's financial results for the fiscal years that
ended December 31, 1986, through 1988. Sales by business segment are shown in Table 2.
Table 1
Olin Corporation and Subsidiaries
Worldwide Revenue
(Millions of Dollars)
Net Sales
Cost of Goods Sold
Selling and Administration
Research & Development
Operating Income
1986
1987
1988
$ 1 . ,732
$ 1 , ,318
$ 252
56
$
$ 106
$1,930
$1,455
$
264
$
62
$
149
$2,308
$1,781
$
289
$
58
$
180
(Continued)
© 1989 Dataquest Incorporated October
ESIS Volume II
0004914
Olin Corporation
Table 1 (Continued)
Olin Corporation and Subsidiaries
Worldwide Revenue
(Millions of Dollars)
Interest Expense
Interest & Other Income
Income before Taxes
Income Tax Provision
Net Income
$
$
$
$
$
1988
1997
12M
32
41
115
40
75
$
$
$
$
$
Source:
32
10
127
49
78
$
$
$
$
$
43
14
151
53
98
Olin C
Corporation
Annual Accounts 1988
Dataquest
October 1989
Table 2
Olin Corporation and Subsidiaries
Worldwide Sales by Business Segment
(Millions of Dollars)
Segment
1986
1987
1988
Chemical Sales
Defense & Ammunition Sales
Metals SL Materials Sales
$1,127
361
244
$1,227
394
309
$1,366
469
473
$1,732
$1,930
$2,308
Total
Source:
ESIS Volume II
0004914
Olin Corporation
Annual Accounts 1988
Dataquest
October 1989
© 1989 Dataquest Incorporated October
Qlin Corporation
Olin Corporation noted in the 1988 Annual Accounts that its chemical business
achieved record sales and profits. It benefited from strong demand for most products,
including chloralkali, urethanes, pool chemicals, and electronics chemicals. Net income
for chemicals in 1988 was $75 million, compared with $59 million in 1987. This business
sector shows an increase of 27 percent. Chemical sales, shown in Table 2, also contain
electronics materials sales. Over the 1986 to 1988 period, sales increased 45 percent.
This strong growth is attributed to Olin's gradual buildup of its unique strengths in
metallurgy and chemistry, creating an electronic materials and services thrust area.
Note that in 1987, sales outside the United States amounted to 7.25 percent. In
1988, this proportion rose to 10.0 percent, indicating that the Company's global approach
strategy is working.
RESEARCH AND DEVELOPMENT
Fundamental research and development (R&D) is carried out in the United States.
In 1988, Olin Corporation spent $58 million on R&D.
The Company has a long-term commitment to R&D investment. In 1988, new
product development and exploration of new technologies accounted for approximately
60 percent of R&D spending. The balance was dedicated to optimizing existing
technologies, including yield improvements, waste minimization, and manufacturing cost
reduction efforts.
In the area of electronic materials, the company is responding to the challenge of
smaller circuit geometries by developing advanced ultrapure imaging and process
chemicals, including a new line of photoresists for application-specific integrated
circuits (ASICs), a high-growth market.
The PWB unit's investment in R&D also is paying off. It is now commercializing its
innovative Blackhole technology, a proprietary carbon-based process for making the
through-holes in printed wireboards conductive.
An important area of research that is being addressed by Olin Corporation
researchers is the development and commercialization of two devices—a copper alloy
package system and a plastic pin grid array—that can dissipate heat and offer other
cost-saving benefits.
© 1989 Dataquest Incorporated October
ESIS Volume II
0004914
Qlin Corporation
PRODUCTS
Olin Hunt Specialty Products offers a wide range of products for the
microelectronics industry that include the following:
•
Positive Photoresist Systems
Waycoat HPR 204/206 resists—For striation-free coatings, improved
adhesion, and shorter exposures in all projection and contact aligners
Waycoat MPR
photomasks
resist—Specifically
for
manufacture
of
chrome
0
Waycoat MIF developer—Metal-ion free
•
Negative Photoresist Systems
Waycoat HNR 80/120 resists—A high-resolution system that also
reduces mask sticking in contact exposure
Waycoat Negative HR 100/200 resists—For imaging on highly reflective
metallized and oxidized surfaces
Waycoat IC Type 3 resists—State-of-the-art
oxygen sensitivity
resists with reduced
Waycoat SC resists—A family of photoresists that produce film
thicknesses greater than 2 microns
Waycoat negative resist developer—Specifically designed for use with
resists exposed in the Perkin-Elmer Micralign
Waycoat COP resist—A resist for electron-beam applications
•
Temperature controllers—A range of Apache models
•
Electronics grade chemicals
Trimethylphosphite
Tetraethyl(ortho)silicate
Trimethyl borate
Triethyl borate
1,1,1-Trichlorethane
ESIS Volume II
0004914
© 1989 Dataquest Incorporated October
Qlin Corporation
Chloroform—Plasmaform
-
Carbon tetrachloride—Plasmatet
Phosphorus oxychloride and tribromide
Boron tribromide
Boron trichloride—Plasmabor
All of these products (except chloroform and carbon tetrachloride, which are
supplied only in stainless steel ampules) are available in Apache quartz bubble ampules.
(Plasmaform, Plasmatet, and ^Plasmabor are registered trademarks of Olin Corporation.)
TECHNICAL SERVICE—EUROPE
Currently, Olin Corporation's technical service is headquartered in St. Niklaas,
Belgium. It has a fully equipped microlithographic laboratory housing the latest
state-of-the-art equipment. As a result of progressive additions over the past few
years, this facility now represents an investment of more than $5.5 million.
The St. Niklaas site occupies an area of approximately 14,000 square meters and
comprises the Technical Center, a modern plant for various electronic chemical
products, and large warehousing facilities.
Olin Hunt Specialty Products currently employs some 200 persons in Europe, of
whom 75 are in sales and customer service, 60 in manufacturing, and 65 in supporting
services such as general administration and distribution. The business is divided into the
Printed Circuit Board and Microelectronics divisions. The latter division is headed by a
director who has technical services and product managers reporting to him. In addition,
sales managers for each European country or region also report to the divisional
director. Each sales manager supervises several process engineers.
The Microelectronics Division, which is staffed by highly qualified experts
conversant in the major European languages, is designed to offer customers the following
services:
•
Performance demonstrations of photoresist and related products
•
Design of new photoresist processing methods
•
Evaluation of new types of process equipment
•
Training of special seminar and workshop participants
The laboratory is very well equipped with capabilities covering all principal steps in
semiconductor fabrication.
6
© 1989 Dataquest Incorporated October
ESIS Volume II
0004914
Qlin Corporation
FUTURE PROSPECTS
Qlin Corporation has set as its objective for the early 1990s a goal to perform
consistently at a level that exceeds a 20 percent return on equity. At present, the
company is achieving approximately 15 percent return on equity.
The Company believes that such performance goals can be attained only by
consistently meeting the needs of the customers. Quality, productivity, and innovation
are what customers are seeking, and Qlin Corporation is setting out to meet these
expectations 100 percent of the time.
In the area of electronic materials, the Company sees itself remaining at the
forefront, particularly in photolithographic chemicals, because of the emphasis it places
on R&D in this field and because of the Company's adherence to strict product-quality
control. The Company also places increasing emphasis on producing chemical systems
with minimal environmental effects.
Although the Company has set high goals for itself, it views the future with
confidence. It intends to continue working at the leading edge of technology in order to
produce new and improved products to meet the increasingly complex needs of customers
in the microelectronics industry.
ESIS Volume II
0004914
© 1989 Dataquest Incorporated October
The Perkin-Elmer Corporation
BACKGROUND AND OVERVIEW
The Perkin-Elmer Corporation was founded in 1937 by Richard S. Perkin, an
investment banker, and Charles W. Elmer, a retired publisher and court reporter. Both
shared an avid interest in astronomy and a conviction that a source for the design and
production of ultraprecise optics should be established in the United States; at that time,
the field was dominated by a few European companies. Incorporation followed in 1939.
In the intervening 52 years, Perkin-Elmer has developed into a diversified
high-technology company, with a worldwide presence in more than 100 countries.
In 1988, the Company reported a substantially improved financial performance over
the previous year with sales of $1,165.5 million, showing a 5 percent increase, and a net
income of $71.8 million compared with a loss of $18.2 million in 1987. About 55 percent
of the Company's sales are derived from markets outside the United States.
Perkin-Elmer has manufacturing plants in the United States, the Commonwealth of
Puerto Rico, the United Kingdom, and West Germany.
The Company segments its business into the following five groups:
•
Instrument Group—Accounts for about 42 percent of sales and covers
analytical instruments for use in private industry, educational and research
institutions, and governmental entities for fundamental research.
•
Semiconductor Equipment Group—Accounts for about 17 percent of sales and
includes equipment for photolithography, maskmaking, and etching and
sputtering steps in semiconductor manufacture.
•
Materials and Surface Technology Group—Accounts for about 15 percent of
sales and covers combustion, electric arc, and plasma thermal spray equipment
and supplies.
•
Bodenseewerk Geraetetechnik (BGT)—A subsidiary company in West Germany
that manufactures guidance and control systems for NATO's air-to-air missile
defense systems. This company accounts for 14 percent of sales.
•
Government Systems Group—Accounts for 12 percent of the Company's sales.
This business segment covers the production of tactical systems; the Company
has recently been awarded an order for the AN/AVR-2 laser warning receiver,
signifying the Company's entry into the tactical electro-optical sensor
production business, the fastest growing segment of the tactical market.
In January 1988, Perkin-Elmer announced the acquisition of Nelson Analytical, Inc.,
a California-based company with expertise in data handling and systems integration.
ESIS Volume II
0003968
© 1989 Dataquest Incorporated June
The Perkin-Elmer Corporation
Late in the fourth quarter
Directors had approved tendering
stock pursuant to an agreement
agreement, Perkin-Elmer sold its
of 1988, Perkin-Elmer announced that its Board of
9.4 million shares of Concurrent Computer Corporation
with Massachusetts Computer Corporation. Under the
shares in Concurrent at $20 per share.
Operations
The headquarters of Perkin-Elmer is in Norwalk, Connecticut. The Company does
business in more than 100 countries, and its customers are served by a network of
approximately 200 Perkin-Elmer sales and service offices and an extensive number of
franchised dealerships.
For efficient, easy access to international markets, the Company operates 15 major
manufacturing facilities in the United States, West Germany, the United Kingdom, and
Puerto Rico. Through joint ventures and other arrangements, the Company plans to
extend its production base to Japan and other nations.
In 1988, Perkin-Elmer employed 10,941 persons worldwide, 6,378 of whom were
employed in the United States.
Financial
Table 1 summarizes the Company's financial data by business group for the fiscal
years ended July 31, 1986, through July 31, 1988. The figures in Table 1 reveal that net
income increased by 5 percent in 1988 to $1,166 million. This was mainly due to the
strength of the analytical instrument group, which grew by 16.2 percent as a result of
the Company's continued marketing advances in both domestic and foreign markets.
In its annual report, Perkin-Elmer noted that 1988 semiconductor equipment
revenue was slightly less than in 1987, as demand for the Company's Micrastep product
slowed in anticipation of its offering of an advanced optical lithography machine with
improved technical performance and better throughput.
Table 2 summarizes worldwide operating income (before taxes) by business group for
the fiscal years 1986 through 1988. It shows that income before taxes recovered sharply
in 1988 to $104 million from $3 million in the previous year. All the business groups
enjoyed improved income except BGT, where income declined not only as a result of
lower revenue, but also as a result of increased research and development expenses.
Income from the Semiconductor Equipment Group was modest, as a result of lower
demand for Micrastep and higher operating expense but compared favorably with the
$78 million loss reported for 1987, which included special charges for restructuring and
additional research and development expenses.
© 1989 Dataquest Incorporated June
ESIS Volume II
0003968
The Perkin-Elmer Corporation
Table 1
Perkin-Elmer Corporation
Worldwide Net Revenue by Business Group
(Millions of Dollars)
Business Group
1987
1986
$
Instrument
Semiconductor Equipment
Materials & Surface Technology
Bodenseewerk Geraetetechnik
Government Systems
Subtotal
Intergroup Transfers
Total
363
250
150
127
184
$
416
203
168
165
162
1988
$
484
200
177
163
145
$1,074
(4)
$1,114
(4)
$1,169
$1,070
$1,110
$1,166
(3)
Table 2
Perkin-Elmer Corporation
Worldwide Operating Income by Business Group
(Millions of Dollars)
Business Group
1986
1987
1988
Instruments
Semiconductor Equipment
Materials & Surface Technology
Bodenseewerk Geraetetechnik
Government Systems
$ 34
19
22
24
25
$41
(78)
27
40
7
$ 57
3
26
32
13
124
37
131
Subtotal
Less Intergroup, Interest
and Corporate Expenses
Income before Taxes
(22)
$102
Source;:
ESIS Volume II
0003968
(34)
$ 3
(27)
$104
Perkin-Elmer
Annual Hepoi•t 1988
© 1989 Dataquest Incorporated June
The Perkin-Elmer Corporation
In the Company's first-quarter report for the period that ended October 31, 1988, it
was noted that income, revenue, and orders all increased, continuing the favorable
results of fiscal 1988. Total net revenue for the quarter was $273.5 million against
$256.9 million for the comparable period in 1987. It was noted that there was growth in
all business areas, with particular strength being shown in European avionics, materials
and surface technology, and semiconductor equipment. Analytical instruments are
showing a strong advance in all geographic areas and in a broad range of markets. In
particular, the Company cites the new Model 1600 Fourier Transform Infrared
Spectrometer as being a world leader in this analytical technique.
Research and Development
Perkin-Elmer is actively engaged in basic and applied research and development
(R&D) and engineering programs designed to develop new products. In fiscal 1988,
Perkin-Elmer spent $99 million on R&D (i.e., 8.5 percent of net sales revenue).
Areas of investigation include artificial neural systems for advanced analytical
instruments and diamond coatings for optical and military sensors. Joint research
programs on the processing, deposition, and characterization of high-temperature
superconducting materials are under way with the State University of New York at Stony
Brook, the University of Connecticut, and several other major research universities and
national laboratories.
Perkin-Elmer's technology effort applies the latest research findings to advanced
products and processes. Working closely with marketing and engineering personnel,
scientists are exploring advanced applications of emerging technologies for new
instruments and systems in analytical chemistry, bioanalytics, and microlithography.
PRODUCTS
The Company markets high-technology products in analytical instrumentation for
chemical analysis, semiconductor processing equipment, materials and surface
technology systems, avionics, and electro-optical systems for defense and space
astronomy.
In the field of semiconductor equipment, Perkin-Elmer is the only company able to
offer a complete line of integrated wafer fabrication equipment specifically designed to
increase VLSI productivity. This equipment has features such as 6-inch wafer
processing, high throughput, and pick-and-place wafer handling to minimize
contamination. Perkin-Elmer's main products are described in the following paragraphs.
© 1989 Dataquest Incorporated June
ESIS Volume II
0003968
The Perkin-Elmer Corporation
Micrascan 1 System
This is the Company's latest half-micron resolution, high-throughput lithography
system. It possesses a powerful 4x reduction, a step-and-scan-based lithography tool
that outperforms excimer steppers in all critical performance areas including resolution,
throughput, image field size, overlay, and particulates. This system has been made
possible by the use of new design concepts including a catadioptric lens; high speed,
servo-locked magnetically driven stages; and highly flexible, robust through-the-lens
alignment system.
AEBLE 150
The AEBLE 150 is a direct-write electron beam lithography system that processes
as many as 30 4-inch wafers per hour; it is also capable of processing 5- and 6-inch
wafers. It writes 0.5-micron features with an overlay accuracy of 0.1 micron and a
critical dimension control of 0.05 micron. Both optical and positive e-beam resists can
be used. The AEBLE 150 is very accurate and can be used in mix-and-match lithography
with existing optical tools and advanced X-ray systems.
MEBES 111
The MEBES system represents the latest state-of-the-art technology for the
production of high-quality masks and reticles for VLSI devices.
Micralign Series
This is a projection mask alignment system and consists of three models:
.»'
Micralign Model 300/500, providing machine overlay accuracies to 0.5um,
machine stabilities to 0.25um, and resolution capabilities from 0.9um to 1.26um
•
Micralign 600 HT Series System, a new generation of clean environment
projection mask aligners with a guaranteed specification for low particulates
•
Micralign 600 Delta Series, offering semiconductor manufacturers a
lower-cost machine to meet current needs while providing a migration path to
a higher-performance machine in the future
Micrastep I and U
These are step and repeat alignment systems. Both come with an impressive set of
features, including air gauge focusing and leveling at each exposure field, dark
field/bright field site-by-site alignment, digital alignment signal processing, and
automatic calibration of alignment and focusing systems, as well as overall system
magnification.
ESIS Volume II
0003968
© 1989 Dataquest Incorporated June
5
The Perkin-Elmer Corporation
OMS-l
This overlay measurement system is a key tool for automatically measuring overlay
accuracies. It optimizes lithography tool performance through the quick and precise
measurement of overlay on production wafers.
1600 Series FT-IR Spectrophotometer
This is a single-beam scanning Michelson interferometer.
desiccated optics with a Ge-coated KBr beamsplitter.
It uses sealed and
The 250 QA/QC System
This system covers a family of modular liquid chromatography instrumentation. It
incorporates a fully upgraded binary pump/diode array detection system that claims to
be the most cost-effective gradient diode array system on the market.
Metco Diamond Jet
Metco and Perkin-Elmer have developed, with the Metco Diamond Jet System, a
completely new coating system for use in producing high-quality coatings, especially
where there is need for superior metal, carbide, and specialty coatings. The system uses
a new concept in thermal spraying that incorporates a high-velocity, oxygen-fuel (HVOF)
system for producing these high-quality coatings.
FUTURE PROSPECTS
The Perkin-Elmer Corporation has a diverse range of high-technology products that
serve broad markets. With its very substantial technological strength and marketing
position, the Company views the long-term growth opportunities for its products with
confidence.
In particular, the Company believes that the international marketplace offers
excellent prospects for growth. In the forefront, the Pacific Rim countries (ranging
from Japan, to the People's Republic of China, to Australia) are viewed as being fertile
areas for future development.
© 1989 Dataquest Incorporated June
ESIS Volume II
0003968
Plasma Technology, Ltd.
OVERVIEW
Founded in 1981, Plasma Technology is now one of Europe's principal manufacturers of
plasma etching and deposition equipment. The Company was privately owned until 1986, when it
was acquired by The Oxford Instruments Group, a British company engaged in the research,
development, manufacture, and sale of advanced instrumentation for scientific research, semiconductor processing, patient monitoring, industrial analysis, and diagnostic imaging.
Following its success in Europe, where it installed more than 200 plasma systems by 1986,
the Company undertook an ambitious expansion program aimed at the U.S. and Japanese domestic
markets. This strategy's success is evident in that within two years, the Company delivered
200 systems in the United States, bringing the worldwide total to well more than 700 systems. To
celebrate this achievement. Plasma Technology opened new facilities including manufacturing,
demonstration, and sales and service activities in Concord, Massachusetts.
In 1988, the Company had sales of approximately $14 million. This amount represents about
10 percent of the parent company's sales and is an increase of more than 25 percent over 1987.
Substantial growth occurred in the United States and throughout Europe, with particularly heavy
demand for the Company's new production-orientated advanced multirole plasma (AMR) system.
In anticipation of Europe in 1992, Plasma Technology has established new subsidiaries and
offices in three strategic areas—one near Frankfurt, West Germany; the second in Paris, France,
where facilities are shared with Oxford Instruments; and the third in the Netherlands. These
activities, which previously were undertaken by distributors, enable Plasma Technology to
establish a local presence and to offer customers firsthand process technology and service.
In Japan, the Company marked the start of 1989 with the opening of a new laboratory in
Tokyo. This facility operates in cooperation witii Marubim Corporation and offers process support
and equipment demonstration to users throughout Japan.
OPERATIONS
Plasma Technology headquarters are located in Yatton, near Bristol, England. This site
includes a new conference suite and accommodations for customer process and maintenance
training. Adjacent to the headquarters is a modem manufacturing facility and a new laboratory,
which opened in 1989. It replaces the previous laboratory, which had been in operation under
semiclean conditions for almost three years. The new service and test facilities will enable the new
laboratory to meet customer requirements into the 1990s. The complex contains two fully
automatic production systems installed in a better than Class 100 clean room, with full inspection
and wet-processing facilities in a supporting Class 1,000 area.
During the past few years. Plasma Technology has strengthened its international marketing
with the implementation of sales, service, and applications support centers in the following
locations:
•
•
Netherlands—Oxford Instruments BV, Gorinchem
France—^Plasma Technology SARL, Paris
ESIS Volume n
0005967
©1990 Dataquest Incorporated February
1
Plasma Technology, Ltd.
•
West Germany—Plasma Technology GmbH, Wiesbaden
•
United States—^Plasma Technology Inc, Cambridge, MA and Sunnyvale, CA
In Japan, the Company distributes its products through Marubun Corporation. To establish
new markets in both Turkey and Singapore, Plasma Technology has entered into sales and
marketing agreements with Tekser to cover Turkey and Hisco (Malaysia) Pty. to cover Singapore.
FINANCE
The individual results of the Company are consolidated into Oxford Instruments' figures.
However, the Company stated that sales in 1988 totaled slightly more than $14 milUon. Table 1
gives a summary of the financial results of The Oxford Instruments Group Pic for the fiscal years
that ended on March 31, 1987 through 1989.
In the Annual Report and Accounts 1989, the Company notes that sales turnover improved by
11.4 percent, and pretax profits were well maintained despite the effects of the strong pound. A
very high proportion—89 percent—of 1988 and 1989 sales turnover within The Oxford
Instruments Group was generated outside the United Kingdom, as shown in Table 2. Table 2 also
shows that the United States is the single-largest market for the Company's products.
Table 1
The Oxford Instruments Group Pic
Worldwide Revenue
(Millions of Dollars)
Turnover
Operating Profit
Profit before Tax
Exchange Rate
(Pounds per U.S.$1)
1987
1988
1989
167
32
33
0.6
158
18
20
0.56
176
22
20
0.57
Somce: Anmul Report and Accounts 1989
The Oxford lostameots Oioup Pic
DataquMt
Febtuaiy 1990
©1990 Dataquest Incorporated Febiuaiy
ESIS Volume n
0005967
Plasma Technology, Ltd.
Table 2
The Oxford Instruments Group Pic
Sales Turnover by Geographic Area
(Millions of Dollars)
United States
West Germmiy
United Kingdom
Switzerland
Other Western Europe
Japan
Others
Total
1989
Total Sales
1988
Sales
1988
% Total Sales
1989
Sales
72
21
12
7
18
14
14
46%
13
8
4
11
9
9
83
21
19
9
19
11
14
47%
12
11
5
11
6
8
158
100%
176
100%
•
%
Sooice: Amnul Report and Accoimts 1989
The Oxfisd hauaaeals Group Pic
Dataqiiest
Febniaiy 1990
RESEARCH AND DEVELOPMENT
The parent company has a strong commitment to research and development (R&D) and
increased gross expenditure in this area from $17 million in 1988 (10.8 percent of sales) to
$23 million (13.0 percent of sales) in 1989. Plasma Technology works closely with governmentsponsored research projects, both national and international, and with universities across Europe.
The work that the Company is carrying out with fom- other companies at the Rutherford
Appleton Laboratories near Oxford in England illustrates its cooperative efforts. This research into
submicron e-beam technology for silicon devices is funded by the Department of Trade and
Industry as part of its National Electronics Research Initiative scheme. This project has ambitious
objectives, such as the development of very fine line e-beam technology for mask manufacture and
device fabrication. In particular, research is aimed at developing a complete e-beam and dry etch
process for advanced maskmaking for the 1990s. Chrome masks with 0.3-micron minimum feature
size and with CD control of better than ±0.05 micron will be required. Plasma Technology will be
contributing to the project by refining existing chrome mask dry etching processes and developing
novel techniques for etching from fine-line e-beam direct write masks.
COMPANY PRODUCTS
Plasma Technology markets a number of Plasmalab systems that cover reactive ion etch
CRIE), photoresist strip (PRS), and plasma deposition.
ESIS Volume E
0005967
©1990 Dataquest Incorporated February
Plasma Technology, Ltd.
The Plasmalab series includes the following:
•
AMR—AMR is an advanced multirole plasma system with the flexibility to be configured for a host of applications. Downstream microwave, electron cyclotron resonance
(ECR), propogation ion etch (PIE), and conventional RF options and combinations make
the AMR. a unique and highly flexible vehicle for advanced device processes. This
system is suitable for either pure research or production. The modular concept allows
either manual loading for R&D applications or cassette-to-cassette-autoload where
extreme cleanliness is paramount.
•
ECR—^The 2000R is a new electron cyclotron resonance etch (ECR) system. The 3000R
is the latest low-temperature deposition technology system.
Both systems use the ECR principle. In the 2000R, electrical damage to the device that may
occur using conventional RF plasma systems is removed using a high-density, low-energy
directional ion stream. This mertiod is capable of achieving extremely high etch rates at low-ion
energies. With the 3000R, ECR can achieve very high deposition rates at very low temperatures
and pressure, ensuring excellent film quality.
Alphaline 300
This product is the result of a joint development with Edwards High Vacuum (a division of
BOC) and is Europe's first modular, multichamber amoiphous silicon production system. It is an
in-line vacuum coating system for producing silicon by plasma-enhanced chemical vapor deposition (CVD) on glass substrate. The Alphaline 300 system is capable of meeting the demand for the
high-speed deposition of amorphous silicon on large' substrates up to 300x300nim in size.
SE 80
The SE 80 is a high-capacity system for photoresist stripping and general, isotropic fluorinebased etching. This barrel etch/strip system is used in finishing solar cells.
Nitrogen Trifluoride
In addition to Plasma Technology's range of equipment and systems is a new gas, which is
called nitrogen trifluoride (NF), offered as part of its Expressgas service. Nitrogen trifluoride is
finding increasing use as an alternative to carbon tetrachloride for etching silicon-type materials. It
has the advantage of producing only gaseous products when it is decomposed; no polymers are
formed. In addition, as NF generates large amounts of atomic fluorine, it allows higher silicon etch
rates than are obtainable with fluorocarbon gases.
OUTLOOK
Plasma Technology has experienced remarkable growth since it was founded eight years ago.
As part of The Oxford Instruments Group with its large resources, the Company is expected to go
from strength to strength, as well as maintaining its leading position in the field of plasma
technology.
t
4
©1990 Dataquest Ihcoiporated Febraary
ESIS Volume n
0005967
Plasma Technok^, Ltd.
During the past eight years, the Company has built up a steadily increasing user base, with
more than 700 systems installed worldwide—200 of which are in the United States. From this
base, the Company is well positioned to develop further the opportunities presented in the U.S.
market In addition, the Japanese market is seen as capable of further development during the next
few years.
Plasma Technology continues to view the area of plasma-etching techniques as one that offers
above-average growth opportunities. To maintain its leading position, the Company plans to
continue its strong involvement in processes and applications by further collaborative R«S:D
programs with major users and universities. An example of this involvement is the work that
currently is being carried out at the Rutherford Laboratory using the compact synchrotron for
X-ray lithography. The following areas have been identified for future development:
Deposition and etching of rei&actory metals and silicides
Etching processes for gallium arsenide integrated circuits
Plasma etching of optically and electron beam-generated chrome mask plates
Enhanced plasma techniques for next-generation RIE systems
Optical mask repair techniques
The Company recognizes that a key feature in maintaining its progress in what is now a very
competitive environment is its continued commitment to R&D. Therefore, despite the continued
pressure on the parent company's overall financial performance, expenditure on R&D is not being
curtailed.
Oxford Instruments' philosophy is that long-term success in a world of increasing competition
in high technology requires a willingness to invest for the fudire, coupled with a determination to
succeed commercially in an increasingly harsh marketplace. Today's innovativeness therefore is a
measure of the Company's potential for commercial success in the future. Dataquest believes that
because of the Company's excellent reputation and its realistic approach to the likely turn of events
in its marketplace, it is well placed to expand its share of the growing worldwide market for
plasma systems.
ESIS Volume n
0005967
©1990 Dataquest Incorporated Fehruaiy
Philip A. Hunt Cliemical Corporation
BACKGROUND AND OVERVIEW
The Philip A. Hunt Chemical Corporation (Hunt Chemical) was founded
on November 30, 1909, in arooklyn. New York, U.S.A., as a supplier of
chemicals for photography and the graphic arts.
During the intervening 76 years, the Company has made major contributions not only to the development of these industries but also to the
electronics industry.
Concurrent with these achievements. Hunt Chemical has expanded its
operation worldwide. Today it is one of the foremost international
producers of high-quality imaging chemicals, with operations spanning
four major marketing areas:
•
Microelectronics
•
Printed circuits
•
Electrostatic Copiers
•
Photo/Graphics for photofinishing and printing
In July 1984, Hunt Chemical became a wholly owned subsidiary of the
Olin Corporation (Olin) of Stamford, Connecticut, U.S.A., at a purchase
price of approximately US$150 million. By so doing, the well-established
and trusted name of Hunt Chemical enhanced Olin's own reputation as a
supplier of high-quality materials, particularly high-performance metal
alloys, to the electronics industry. This also emphasized Olin's ongoing
commitment to serve the electronics industry.
In late 1984, Matrix Integrated Systems (Matrix), which specializes
in single-wafer plasma stripping technology, also became a wholly owned
subsidiary of Olin. Thus Matrix, which reports through Hunt Chemical,
represents Olin's entry into the semiconductor equipment business and
complements Hunt Chemical's leading position as a supplier of photoresist
products.
The most recent developments by Olin to expand its role as a supplier
of electronic materials and services are in the manufacture of
semiconductor-grade sulphuric acid at a plant in Shreveport, Louisiana,
employing the latest technology.
This plant was scheduled to begin
production in mid-1985. Other recent developments were the purchase of
Hi-Pure Chemicals, Inc., from Allied Corporation and the purchase of
Apache Chemicals, a supplier of high-purity dopants and chemical delivery
systems to the semiconductor and telecommunications industries.
ESIS Volume III
©1985 Dataquest Incorporated Nov. 25 ed.
Philip A. Hunt Chemical Corporation
with the above acquisitions, Olin Corporation has obtained a
significant presence in the three major process technologies used in
semiconductor manufacture: Etchants (Hi-Pure), Dopants (Apache), and
Photoresists (Hunt Chemical).
Operations
The corporate headquarters
West Paterson, New Jersey, U.S.A.
of
Hunt
Chemical
are
located
at
In 1984, the Company employed worldwide more than 150 qualified
chemists, physicists, and engineers in research and development {R&D) and
1,200 employees in manufacturing, marketing, and distribution.
The Company markets some 600 chemicals to 20,000 customers through an
international operation that includes a complex of manufacturing,
warehousing, and distribution centers with 17 plants in the U.S.A. and
Europe.
European Operations
In Europe, the importance of having a local presence was recognized
as early as 1967 when, with the increasing number of customers in the
growing EEC markets. Hunt Chemical took occupancy of an office and plant
in the Sint-Niklaas Europark Industrial Centre in Belgium.
In 1969,
NV Hunt Chemical commenced manufacture of electronic and graphic arts
etchants to be followed by filming agents in 1971 and alkaline etchants
in 1972. Since 1972, the Belgium site has been expanded and become the
center of Hunt Chemical's European operation, with other companies being
established throughout Europe to provide local sales, customer service,
and warehousing.
Hunt Chemical now employs some 175 persons in Europe. The functional
structure of the Company is described in the following paragraphs.
Belgium
NV Hunt Chemical, Sint-Niklaas, is the European headquarters. It
houses the Microelectronics and Printed Circuit Board Divisions, the
European Technical Service Centre, and product marketing. In addition,
there are manufacturing and warehousing facilities.
United Kingdom
Hunt Chemicals Ltd., Coventry, England, houses the regional sales
office for the United Kingdom (excluding Scotland), customer Service, and
warehousing.
1985 Dataquest Incorporated Nov. 25 ed.
ESIS Volume III
Philip A. Hunt Chemical Corporation
Hunt Chemicals Ltd. (Scotland), East Kilbride, is a new regional
sales office providing customer service to the growing electronics
industry in Scotland; additionally, it possesses refrigerated warehousing.
France
Hunt Chemicals, Aubervilliers, houses the area sales office, customer
service, and warehousing.
West Germany
Hunt Chemicals GmbH, Bischofsheim, provides customer service, warehousing, and local product marketing.
Italy
Hunt Chemicals SRL, Milan, houses the local product sales office,
customer service, and warehousing.
Revenues
Table 1 shows a decline in operating profit for Hunt Chemical's
foreign operations from 1982 to 1983,' primarily due to the strengthening
of the U.S. dollar against European currencies.
This resulted in
European operations having higher costs for U.S.-purchased materials,
which could not be recovered in sales prices.
Table 1
Philip A. Hunt Chemical Corporation and Subsidiaries
WORLOWIOE REVENUES
(Millions of U.S. Dollars)
1981
1982
1983
Net Sales
$111.9
$114.8
$119.9
Operating Profit (Worldwide)
Operating Profit (Europe)
$
$
$
$
$ 10.6
$ 3.7
Source:
ESIS Volume III
6.5
2.3
9.2
4.9
Hunt Chemical Annual Accounts 1983
DATAQUEST
November 1985
© 1985 Dataquest Incorporated Nov. 25 ed.
Philip A. Hunt Chemical Corporation
At the local level, the effect on sales revenue of the appreciation
of the U.S. dollar over the years from 1981 through 1984 is illustrated
in Table 2.
Table 2
NV Hunt Chemical
ESTIMATED SALES ItEVENOES
(Millions of Belgian Francs and U.S. Oollars)
1981
1982
1983
1984
Net Sales
BF890
BF1,039
BF1,314
BF1,800
Net Sales
$23.9
$22.7
$25.7
$31.2
Exchange Rate
(BF to $1)
37.13
45.69
51.13
57.78
Source:
DATAQUEST
November 1985
The figures in Table 2 reveal that while sales in local currency have
been increasing at a rate in excess of 26 percent per annum since 1982,
the growth rate is almost halved when calculated in U.S. dollars.
The high level of activity experienced in the electronics industry in
1984 is reflected in the sales figures. DATAQUEST's estimates show an
increase of 3 7 percent in Belgian francs and still a very healthy
21 percent increase when translated into U.S. dollars, as compared to
1983.
Major growth in sales has been experienced in the United Kingdom. In
1983/84, the United Kingdom accounted for approximately 35 percent of
sales, with West Germany, France, and Italy each at 17 percent and the
Rest of Europe at 14 percent.
© 1985 Dataquest Incorporated Nov. 25 ed.
ESIS Volume III
Philip A. Hunt Chemical Corporation
Intercompany Agreements
Hunt Chemical has a number of product and technology arrangements
with other companies. The more important agreements include;
•
A working agreement with Philips in Holland and Siemens in West
Germany
•
A joint venture with Fuji of Japan
Electronics Technology Co. Ltd. for
marketing of Waycoat photoresists
•
An interest in Mead Technologies, a world leader in E-beam
resists, for the exclusive worldwide marketing by Hunt Chemical
of Mead products
•
An interest in Advanced Plasma Systems, which manufactures
equipment to process and desmear (clean) multilayer printed
circuit boards by means of a plasma environment, whereby Hunt
Chemical has exclusive worldwide marketing rights
in forming Fuji-Hunt
the manufacture and
Research and Development
Fundamental research and development (R&D) is carried out in the
United States, and Hunt's commitment to maintain its position in the
forefront of imaging and related chemicals used in photolithography is
demonstrated by the funds allocated to R&D. In 1982, these funds totaled
$5.4 million; they were increased to $5.7 million in 1983.
As geometries of integrated circuits shrink and optimization of
photoresist resolution becomes increasingly important. Hunt Chemical is
directing a major part of its R&D effort into researching improved
positive photoresists and into plasma stripping techniques.
New photoresist products include:
•
Waycoat Xanthochrome positive photoresist, which has been
specially designed to reduce the combined effects of topography
and back-reflected light from the substrate
•
Waycoat Aristoline positive photoresist, which provides critical
dimension control and more consistency, with a typical
photospeed some 40 percent faster than alternative products
•
E-beam resists of Mead Technologies/Hunt, producing negative and
. positive working resists for exposure by electron beam, together
with their associated developers and rinses
ESIS Volume III
© 1985 Dataquest Incorporated Mov. 25 ed.
Philip A. Hunt Chemical Corporation
In plasma stripping. Matrix has recently brought to the market its
new Matrix Stripper. This equipment is the latest in photoresist removal
technology and addresses itself to the problems associated with resists
that have become hardened and polymerized by ion implantation, UV, and
plasma etching and hard bake processes. The equipment is helpful also
where the capability of wet etch and previously used plasma systems have
now been exceeded.
PRODDCTS AND MARKETS SERVED
Hunt Chemical's products for the microelectronics industry include
the following:
•
Positive Photoresist Systems:
Waycoat HPR 204/206 Resists—For striation-free coatings,
improved adhesion, and shorter exposures in all projection
and contact aligners
Waycoat MPR Resist—Specifically for manufacture of chrome
photomasks
Waycoat MIF Developer—^Metal ion free
•
Negative Photoresist Systems:
Waycoat HNR 80/120 Resists—A new, high-resolution system
that also reduces mask sticking in contact exposure
Waycoat Negative HR 10 0/200 Resists—For imaging on highly
reflective metallized and oxidized surfaces
Waycoat IC Type 3 Resists—State-of-the-art
reduced oxygen sensitivity
resists with
Waycoat SC Resists—A family of photoresists producing film
thicknesses greater than two microns
Waycoat Negative Resist Developer—Specifically designed
for use with resist exposed in the Perkin-Elmer Micralign
Waycoat CX)P Resist—A resist for electron beam applications
© 1985 Dataquest Incorporated Nov. 25 ed.
ESIS Volume III
Philip A. Hunt Chemical Corporation
Technical Service—Europe
Apart from R&D associated with new product development and new
technology for the microelectronics industry. Hunt Chemical continues to
give the very highest priority to technical service.
In Europe, this is exemplified at the Technical Service Centre
located at Sint-Niklaas (Belgium).
Here there is a fully equipped
Microlithographic
laboratory
housing
the
latest
state-of-the-art
equipment and which, as a result of progressive additions, now represents
an investment of some $4.5 million.
The site at Sint-Niklaas occupies an area of 14,000m2 and comprises
the Technical Service Centre and a modern plant for electronic etchants,
liquid and dry toners, graphic arts chemicals, and photofinishing systems.
NV Hunt Chemical and its European affiliates employ 175 persons, of
whom 50 are in sales and customer service, 50 are in manufacturing, and
75 are in supporting services such as general administration and
distribution.
There are two product divisions:
•
Microelectronics Division
•
Printed Circuit Board Division
Microelectronics Division
The Microelectronics Division is headed by a director who oversees
the director of technical service and the product manager.
Also
reporting to the division director are sales managers for each European
country (or region). Each sales manager supervises a number of process
engineers.
The Microelectronics Laboratory, which is staffed by highly qualified
experts conversant in most European languages, is designed to offer
customers the following services:
•
Performance demonstrations of photoresist and related products
•
Design of new photoresist processing methods
•
Evaluation of new types of process equipment
•
Training of special seminar and workshop participants
ESIS Volume III
© 1985 Dataquest Incorporated Nov. 25 ed.
Philip A. Hunt Chemical Corporation
The following list describes Hunt Chemical's major test equipment,
including principal capabilities:
•
Coating
In-Line Wafer Processing System (Veeco) with separate
tracks for positive and negative resists; automateddispense
coating;
100mm
wafer
processing,
computer
controlled
Manual Photoresist Spinner lOOlS (Convac) with continuous
spin range—0 : 10,000 rpm; lOOmm wafer processing; spin
coating of PMMA, polymide, and other products with
nonstandard solvents
•
Exposure
Proximity Mask Aligner PLA-521F (Canon) for lOOmm wafer
protessing; contact and proximity printing; standard and
deep UV sources; optical filters available
Projections Mask Aligner Micralign 230 (Perkin-Elmer);
projection
printing
with
manual
alignment;
mirror
projections system; 10mm wafer processing
Mask Sets—Hunt resolution masks: 10- to 1-micron feature
size; focus wedge mask, opto-line mask, production mask
sets; mask versions on quartz plates
»
Development
In-Line Wafer Processing System (Veeco); separate tracks
for positive and negative resists; spray development of
negative resists; spray, flood-puddle, or spray-puddle
development of positive resists; computer controlled; 100mm
wafers
-
Manual—Immersion
development;
cascade vane DI water rinse
temperature
controlled;
Baking
Bottom Bake V-300 (Veeco); modules integrated within the
wafer processing system; separate for negative and positive
resists;
uniform heating;
in-line
10 0mm processing;
nitrogen purged
® 1985 Dataquest Incorporated Nov. 25 ed.
ESIS Volume III
Philip A. Hunt Chemical Corporation
Hot Plate—Integrated
part of PSS-200 DUVC machine;
temperature controlled ± lOc up to 350°C; 100mm wafer
processing; cassette-to-cassette operation
Convection
LOT 5050 E (Heraeus) with temperature control from
ambient to 250°C—Nitrogen purge; high thermal mass
WU 340 (Heraeus) with temperature control from ambient
to SOQOC
Measurement
Critical Dimensions
Automatic Telecomparator System MF-68 All (Hitachi)—
CD measuring TV system with microcomputer-TV display
monitor, including intensity profile; precise measure., ment down to one micron
Leitz Latimet (Leitz)—CRT display; reproducible CD
measurements; reliable resolution down to two microns
Thickness
Nanospec. AFT (Manometries)—Transparent film thickness measurement; nondestructive; microcomputer data
handling
Dektak II (Sloan)—Surface profile scan; thickness and
profile evaluation; CRT display
Inspection
-
Visual
Olympus BHMJL 34 (Olympus)—Magnification up to 500x;
photocamera;
differential
interference
contrast
attachment
SEM
lC-130
(ISI)—High-quality
SEM
photographs
with
routine use at magnification up to 50K and a DC
Sputter Coater with up to 100mm wafers; low
accelerating voltage
ESIS Volume III
© 1985 Dataquest Incorporated Nov. 25 ed.
Philip A. Hunt Chemical Corporation
Etching
Wet
Tank etching of Al. poly, nitride, Si02, PSG, etc.;
temperature-controlled water bath
Dry
RIE/PE 80 (plasma technology)—Manual loading
single wafer (100mm, 125mm, 150mm); 14 gas sources
of
Stripping/Cleaning
Wet
Tank, Cascade Vane (TSC)
Photomask Cleaner 603 .
Rinser/Drier Neptune 111 (FSI)
Dry
RIE/PE 80 (plasma technology)—Oxygen-based
resist stripping, manual loading, etc.
plasma
Stabilization
DUVC PSS-200 (Veeco)—Deep UV curing to withstand ion
implantation;
RIE
and
hardbake
at
up
to
250°C
(100mm wafer); UV source: 200- to 300- nanometer range
PRIST RIE/PE 80 (plasma technology)—Photoresist image
stabilization technique (PRIST) using F-based plasma for
improved product performance
OOTLOOK
Hunt Chemical looks forward to an exciting future, operating as it
does at the leading edge of technology and producing new and better
generations of products for the increasingly complex needs of the
microelectronics industry.
10
® 1985 Dataquest Incorporated Nov. 25 ed.
ESIS Volume III
Philip A. Hunt Chemical Corporation
The
Company
sees
itself
remaining
photolithographic chemicals because of its:
at
the
forefront
•
Continuing program of research and development
•
Mherence to the strictest product-quality standards
•
Customer support
in
The fastest-growing segment of the market over the next few years
will be positive photoresists. Electron beam technology may well prove
to be the next important area of development. In anticipation of this,
Hunt Chemical is working on new photoresists to meet the need.
ESIS Volume III
© 1985 Dataquest Incorporated Nov. 25 ed.
11
Pliilip A. Hunt Cliemical Corporation
(Page i n t e n t i o n a l l y l e f t blank)
12
© 1985 Dataquest I n c o r p o r a t e d Nov. 25 e d .
ESIS Volume I I I
Teradyne, Inc.
OVERVIEW
Founded in 1960 to produce electronic test equipment designed for industrial use, Teradyne
today is a major supplier of automatic test systems to the electronics industry. These systems are
used to test integrated circuits, circuit boards, and various other electronic devices and assemblies.
The Company also sells electronic design automation (EDA) products used in the design and
testing of electronic devices. The Telecommunications Division produces automatic test systems
and related products used by telephone operating companies. The Company also manufactures
backplane connection systems, principally for the nulitary/aerospace, computer, and telecommunications industries.
Teradyne sells its products primarily through direct worldwide sales organizations, and the
Company supports its products through an extensive service and applications network, with
technical centers throughout the United States, Europe, and the Far East.
For fiscal 1988, the Company reported net sales of $462 million and an income of $95,000. In
1987, the comparable figures were net sales of $378 million and a loss before taxes of $33 milUon.
In 1988, the Company's EDA business expanded as a result of the 1987 acquisitions of AIDA
Corporation and CASE Technology. Also in 1988, Zehntel was completely integrated into
Teradyne, a process that led to a fourth-quarter restructuring charge of approximately $16 million.
OPERATIONS
The Company's headquarters are located in Boston, Massachusetts, in the United States. As of
December 31, 1988, the Company employed approximately 4,700 persons worldwide, with the
United States accounting for about 10 percent. Teradyne maintains a direct presence in
13 countries, principally the United States, Western Europe, and the Far East.
United States
In the United States, plants are concentrated in the following four states:
•
Massachusetts is the home of the Company's Manufacturing Systems and Industrial/
Consumer Divisions as well as a large portion of its EDA Group.
•
California is home of the Semiconductor Test Division, which produces VLSI logic and
memory test ^stems, and of the Zehntel Division, and EDA West.
•
Illinois is home of the Telecommunications Division.
•
New Hampshire is home of Teradyne Connection systems.
In addition, large sales and service offices are located in important centers such, as the San
Francisco Bay Area (California), Route 128 (Massachusetts), and Dallas and Austin, Texas.
#
ESIS Volume n
0005968
©1990 Dataquest Incorporated March
Teradyne, Inc.
Europe
Europe has been an important market for Teradyne for more than two decades, and the
Company's activity there has intensified further in recent years. This intensification is largely
because of the Telecommunications Division, which oversees a fast-growing customer base from
its headquarters and engineering center in Bracknell near London. Europe has 13 offices and
approximately 300 employees. Offices are located in Paris, Antwerp, Munich, and Milan as well as
in London.
Far East
The focal point of Far East activities is Teradyne K.K., which is located in the Naka Meguro
district of Tokyo. In addition, the Company has three other offices in Japan in Osaka, Kokubu, and
Shokoku. A sales office is located in Seoul, South Korea, and at the southern end of the Pacific
Rim is Teradyne's Singapore office, which serves Singapore, Malaysia, Thailand, Indonesia, the
Philippines, and Australia. In all, 200 employees service Far East sales. The Singapore office also
houses more than $2.5 million worth of spare parts that are ready for immediate use and provides
technical support to customers in China, Hong Kong, and Taiwan.
FINANCIAL
A summary of Teradyne's most recent financial information for the fiscal years that ended
December 31, 1986 through 1988 is shown in Table 1.
Table 1
Teradyne, Inc.
Worldwide Consolidated Statement of Income
(Millions of Dollars)
Net Sales
Expenses
Cost of Sales
Engineering and Development
Selling and Administration
Restructuring and Merger Costs
Income (Loss) from Operations
Other Income (Expense)
Income (Loss) before Taxes
1986
1987
1988
351
378
462
200
60
105
2
(16)
1
(15)
222
62
115
11
(32)
(1)
(33)
264
62
116
16
4
(4)
0*
«
Souice: Teradyne, Inc. Annual Accounts 1988
Dataquest
March 1990
'Actual Figuie—$95,000.
©1990 Dataquest Incorporated March
ESIS Volume H
0005968
Teradyne, Inc,
The Company notes in its Annual Report that great strides were made in 1988; market share
gains were made in key product lines, the three companies acquired in 1987 were integrated into
the organization, and major sales gains were achieved in Japan and South Korea.
Sales in 1988 showed an increase of $84 million over 1987, and the Company was able to
bring $33 million, or 39 percent, to its pretax profit line. After taxes, there was a favorable
bottom-line swing of almost $18 million. Although these comparisons were made against the
rather poor 1987 figures, the Company believes that they do show significant progress. Also, in
recent years, Teradyne has encountered two adverse industry trends. The first was the 1985
through 1987 recession in the electronics industry, particularly in the semiconductor sector, and the
second was the shift in semiconductor market share from the United States to the Far East, where
Japanese test equipment companies enjoy a natural advantage. These factors have left the U.S.
ATE industry with excess capacity. The excess capacity has resulted in intense competition,
aggressive pricing, and razor-thin margins. Against this backdrop, the Company decided to
increase market share, even at some sacrifice in near-term profits. Market share gains came not
only in ATE but in backplanes and telecommunications test systems. In particular, the competitive
tide turned in the analog and mixed-signal area.
Overall 1988 net sales of $462 million, when split by business segments, showed
$391 million (84.6 percent) attributable to Electronic Systems and Software and $71 million
(15.4 percent) to Backplane Connection Systems. These figures are similar to the 1987 ratios.
Table 2 shows worldwide sales by geographic area for the years 1986 through 1988. The table
shows that domestic sales in the United States have declined from 61.8 percent in 1986 to
54.3 percent in 1988. During this same period, sales to Europe increased modestly, from 20.7
percent to 35.5 percent. In contrast to the growth in Europe, sales expansion in Asia has been quite
dramatic, with sales doubling from $45 million in 1986 to $90 million in 1988.
The sales expansion in Asia underlines the growing importance of the Asian (Far East) area
and proves that the Company's early recognition of the opportunities in this area are paying off.
Table 2 also shows that export sales accounted for nearly one-half of the Company's total sales
in 1988.
Table 2
Teradyne, Inc.
Worldwide Sales by Geographic Area
(Millions of Dollars)
1986
1987
1988
United States
Europe
Asia
Rest of World
217
73
45
16
230
84
54
10
Total
351
378
251
109
90
12
462
Somce: Teradyne, BK. Amual Accounts 1988
Dataqiiest
March 1990
ESIS Volume n
0OOS968
©1990 Dataquest Incorporated March
Teradyne, Inc.
RESEARCH AND DEVELOPMENT
The highly technical nature of the Company's products requires a large and continuing
research and development (R&D) effort; for example, 1988 expenditure of $62 million represented
13.4 percent of sales. This expenditure on new product programs underlines the Company's
commitment to R&D and its belief that long-term success depends on its ability to respond to the
technological needs of its customers, which may require years of continued investment before
additional profit occurs.
PRODUCTS
Electronic systems and software produced by the Company include the following:
•
Test systems for a wide variety of semiconductors, including digital and analog ICs and
ASICs
•
Test systems for circuit boards and other subassemblies
•
Test systems for telephone Unes and networks
•
Laser trimming systems used in the production of semiconductor memories and hybrid
circuits
•
Computer-aided engineering software used in the design of electronic components and
assemblies
The Company also manufactures backplane connection systems for the military, aerospace,
telecommmiications, and computer industries. These applications translate into the following
principal products and services offered by the Company:
•
•
•
•
•
•
4
900 VLSI Test Systems—Four basic systems are offered: the high-end J953, with
256-pin, 100-MHz capability; the 1,992-pin J967; the J983 with high-speed production
testing capabilities for the latest, high-performance, high-volume devices such as 16-bit
microcontrollers and high-integration ASICs; and the J941, which provides efficient,
low-cost, reliable testing for 16-bit microprocessors and microperipherals.
Memory test and laser trim systems—Memory test systems include the 50-MHz J937,
and laser trim systems include the monolithic trim system M218 to repair redundant
memories and the W429 passive trim system to adjust film resistors and hybrid circuits.
A500/520 Analog VLSI Supertester—^This system offers single-insertion testing of
complex mixed-signal devices. It uses "tester-per-pin" architecture and is capable of
delivering low-distortion analog waveforms.
L200 board test line systems—^This board tester was the first to use VLSI device tester
architecture and advanced technology to deliver very high fault covering on complex
PCBs. The L200 range, now in its third generation, includes the L210vxi, L210vx, L293,
and L297 test systems. These systems offer a broad range of board test solutions, from a
1,000-pin in-circuit tester to a 1,000-pin functional system with full 40-MHz clock and
data rates.
The L200 line—^This line is enhanced by a factory management software package called
Boardwatch* and by LASAR software, which helps users deal with the often difficult
task of generating functional test programs.
1800 Series of board testers—^These testers are used with personal computers and offer
excellent fault coverage, high throughput, and configurations with up to 2,048 pins.
©1990 Dataquest Incorporated March
ESIS Volume n
0OOS968
Teradyne, Inc.
•
8000 test system—^This test system was recently introduced by Zehntel. It offers a full
range of combination test capabiUties: analog/digital in-circuit test, analog functional
test, stored-pattem digital functional test, and "cluster" testing over 2,048 points, at a
10-MHz data rate. The 8000 features a nonmultiplexed architecture and is compatible
with the earlier 800-series testers.
•
Computer-aided engineering (CAE) products—^These products include the AIDA software package, which enables engineers to simulate and verify complex systems that are
created in accordance with design rules, and CASE systems, which specialize in CAE
tools used in the design and layout of printed circuit boards and application-specific
integrated circuits (ASICs). The CAE toolkit includes simulators of various kinds,
accelerators (to speed up simulation runs), schematic entry and physical layout programs
and a wide assortment of database programs, interfaces, graphics, and other accessories.
These products now form part of the Company's Electronic Design Automation (EDA)
business area.
Telecommunications test equipment—^These systems include the 4TEL* line tester and
the XLT* system. New products include the TESTNET*2000 Megabit Maintenance
System (MMS*), which is a remote-controlled tester for 11 circuits, and the Craft
Dispatch System (CDS), which enables telephone companies to automate their service
dispatch procedures.
•
•
Backplane Connection System—^This system covers the HD-Plus* line of high-density
connectors. A recent addition is the HD-Plus2* line. The HD-Plus2* provides 60 signal
contacts per linear inch, or three times the density of card-edge connectors.
FUTURE PROSPECTS
The Company believes that the rationaUzation of the ATE industry finally is occurring at a
time when it is positioned to offer its customers assurance that, as a result of implementation of
Teradyne's long-term strategy, it will be able to serve them in the upcoming years. After
rationalization of the Company's recent acquisitions in the EDA business, Teradyne looks to them
to become the technical and market leaders in simulation tools used to design and test electronic
components and subassemblies.
The Company sees its Telecommunications Division and Connection Systems Division
playing increasingly important roles in the years ahead. The Telecommunications Division is
shaping an entire new indusdy based on the premise that the world's telephone systems have
accepted the concept of automated testing. In the area of connectors, the Company has decided that
a systems approach to connection problems would be sensible in the area of very large scale
integration, liiis approach now is bearing fruit where the Company has gained important footholds
in the European and Far East markets.
Teradyne beheves that globalization of the electronics industry will bring with it a globalization of attitudes, and Teradyne intends to be in the forefront of this development. To this end,
Teradyne believes that the Far East will unquestionably play an ever-increasing role in the
Company's future; indeed, it is the home base of many of Teradyne's largest customers. The
Company sees the Far East as a market that richly rewards competence, integrity, and perseverance.
•Boardwatch, High Density Plus, HD-Plus, MMS, TESTNET, XLT, 4TEL aU are trademarks of Teradyne, Inc.
ESIS Volume n
0005968
©1990 Dataquest Incorporated March
VG Instruments Pic.
BACKGROUND AND OVERVIEW
VG histruments was founded in 1962 by two partners, Mr. EastweU and Mr. Treasure, to
manufacture flanges and pumps. Since its inception, the Company has grown and increased in
market share to place among the top 20 in the world league of approximately 300 scientific
apparams manufacturers.
The Company's expertise encompasses instruments that generally, but not exclusively,
incorporate clean or ultrahigh vacuum and state-of-the-art electron and/or ion optics.
The techniques offered by the Company range from ultrahigh-vacuum (UHV) components
and systems; siuface analysis; organic, isotope, and gas analysis spectrometry; electron microscopy; molecular-beam epitaxy; and digital communications to laboratory management systems.
The Company serves a diverse market that includes production and research applications in
pharmaceuticals, chemical engineering, bioengineering, semiconductor technology, and material
sciences.
The VG Instruments Group has successfully expanded during the last few years by creating
new companies and by dividing growing companies. Each company is autonomous and deploys its
own resources to develop and exploit new instrumentation techniques. Today, The VG Instruments
Group consists of 16 instruments companies in the United Kingdom and 10 overseas marketing
companies.
Group sales for fiscal 1988 amounted to $239 milUon, and profit before tax was $34 million.
For the half year ended June 30, 1989, sales were $112.0 miUion compared with $100.0 milUon for
the same period in 1988, while pretax profit amounted to $11.6 million against $10.9 million for
the previous year.
In May 1988, the Company acquired all of the issued share capital of Kevex Corporation, an
American manufacturer of X-ray instruments located in California, for $65.5 milhon.
In its 1988 Annual Report and Accounts, the Company disclosed that its ultimate holding
company is B.A.T. Industries Pic, which is located in Great Britain and owns 69.4 percent of the
issued ordinary stock. Currently, B.A.T. Industries is the subject of a bid, which raises questions as
to the future ownership of VG Instruments.
OPERATIONS
Group headquarters are located in Crawley, West Sussex, England. In the United Kingdom,
the Company has a number of manufacturing and sales subsidiaries. Five marketing companies are
located in Europe, and five more are located in Massachusetts, United States; Quebec, Canada;
Hong Kong; China; and South Korea.
As of December 31, 1988, the Company employed approximately 2,370 persons worldwide,
446 of which were employed by Kevex in the United States.
ESIS Volume n
0005943
©1990 Dataquest Incorporated March
VG Instruments Pic.
FINANCIAL
Table 1 presents a summary of the financial results for the fiscal years ended December 31,
1986 through 1988, with the unaudited interim results for the half year ended June 30, 1988 and
1989.
Table 1 shows that although sales turnover has increased steadily during the past two years
and is well above the average for the U.K. scientific instruments sector, profits have largely
stagnated. This situation is due to the costs arising from the purchase of Kevex. The Company
expects it to take two or three years for the full benefits of the piurchase to increase profits.
Furthermore, the rapid escalation of interest rates in the United Kingdom, together with some
performance problems, affected the pretax profits.
Table 2 gives a breakdown of the Company's sales by principal geographic markets served.
Table 2 also shows that the Company is highly export oriented and that 82 to 83 percent of sales
have been to export markets during the past two years. In fact, the Queen's Award for Export
Achievement was recently presented to VG Analytical, Ltd., a subsidiary company. The figures
also show the growing sales in both the United States and Japan for the Company's products.
Table 1
VG Instruments Pic.
Worldwide Revenue
(Millions of Dollars)
Sales
Trading Profit
Profit before Taxation
Profit after Taxation
Exchange Rate
(£ Sterling per U.S.$1)
1986
1987
1988
1988*
1989*
127
28
30
19
172
37
37
25
239
36
34
21
100
11
11
7
112
13
12
7
0.68
0.60
0.56
0.56
0.61
Souice: VG bstniments Pic.
Amuial Accounts 198S
Interim Accounts 1989
Dataquest
March 1990
*Six moodu ended June 30
©1990 Dataquest Incorporated March
ESIS Volume H
0005943
VG Instruments Pic.
Table 2
VG Instruments Pic.
Sales by Geographic Area
(Percentage)
Geographic Area
United Kingdom
Europe
United States
Canada
Japan
Rest of Asia
Australasia
Rest of World
Total
1987
1988
17
33
30
2
11
5
1
1
16
30
33
2
13
4
1
1
00
100
Somce;: VG lostnnnnits Pic.
Annual Accounts 198S
Dataquest
Maich 1990
PRODUCT REVIEW
This subsection gives a brief summary of the activities of the major operating subsidiaries of
the Company in terms of the systems and instruments offered. These are grouped as follows:
•
Organic mass spectrometry
•
Inorganic mass spectrometry
•
Surface science
•
Vacuum technology
•
Information technology
•
Microanalysis and X-ray fluorescence
Organic Mass Spectrometry
Stringent environmental monitoring, genetic engineering, and the formulation of new drugs
are common in today's world. Within these areas, organic and biomedical mass spectrometry have
emerged as powerful analytical tools. The techniques are highly sensitive, thus enabling minute
quantities to be detected and recognized even within complicated mixtures. Subsidiaries in this
field are as follows:
•
VG Analytical produces high-performance magnetic sector mass spectrometers, the most
sensitive and powerful organic instruments available. They feature high resolution for
separating complex ions with almost identical large molecular masses. The ZAB 4-F is
the world's most powerful organic mass spectrometer. The Company also makes the
TS-250 system using advanced magnet and microprocessor technology.
ESIS Volume II
000S943
©1990 Dataquest Incorporated March
3
VG Instruments Pic.
•
VG Masslab specializes in computer-controlled quadruple-mass spectrometers. Rapid
scanning of the field provides very fast identification of the components within a
mixture, making quadruples ideal for high-throughput and automatic analysis of more
routine samples.
Inorganic Mass Spectrometry
Understanding the elemental and isotopic concentrations within solids, liquids, and gases is a
routine requirement for a wide range of research and production applications. Subsidiaries in this
field are as follows:
VG Elemental developed the Plasma Quad™. This versatile tool enables rapid determination of all elemental and isotopic concentrations in a solution to below part-per-billion
levels.
VG Microtrace pioneered a glow discharge mass spectrometer with the abiUty to analyze
major, minor, and trace components in a sample, with parts-per-trillion detection levels.
VG Gas Analysis Systems produces compact, sophisticated magnetic sector and quadruple mass spectrometers.
VG Isogas specializes in mass spectrometers for measuring the ratio of stable isotopes in
simple gases.
VG Quadruples is a world leader in the design and supply of quadruple mass
spectrometers.
VG Isotopes makes mass spectrometers using thermal ionization techniques. These
spectrometers are ideal for precise isotopic measurements of elements such as lead,
uranium, and strontium.
Surface Science
Increasingly, today's materials analysis problems can be solved by understanding the chemical
and physical interactions that occur on a surface or at the interface between boundaries.
Subsidiaries in this field are as follows:
•
•
•
•
VG Scientific manufactures a range of surface analysis instruments that can provide
spatial and chemical information using a variety of techniques.
VG lonex manufactures instruments and components for secondary ion mass spectrometry.
VG Microscopes produces scanning electron microscopes with high spatial resolution.
Applications include the study of grain boundaries and diffusion in metids, ceramics, and
semiconductors.
VG Microtech produces a complete range of "bolt-on" surface analysis components that
aUow users to biuld and add new techniques to their own surface analysis faciUties.
©1990 Dataquest Incorporated March
ESIS Volume n
0005943
VG Instruments Pic.
Vacuum Technology
The demand for semiconductor devices for advanced applications has focused intensive
research into the very methods and materials from which semiconductor devices are made. Devices
now are being fabricated by molecular beam epitaxy (MBE), where semiconductor layers are
grown, atom by atom, onto a wafer substrate using carefully controlled temperatures in a UHV
environment. Subsidiaries in this field are as follows:
•
•
•
VG Semicon leads the world in the manufacture of MBE systems used to produce these
new semiconductor materials.
VG Special Systems concentrates on the growing applications of UHV technology to
industrial processing plants that require continuous operation, reliabihty, and user
friendUness. Examples are space simulation systems and the production of optical
components for use in night-vision devices.
Vacuum Generators has pioneered the technology needed to achieve UHV conditions and
offers a vast range of components for building UHV systems.
Information Technology
Computer technology applied to the need for rapid and efficient information exchange is
changing the modem laboratory almost beyond recognition. Paperwork has been replaced by a
distributed computer system running a Laboratory Information Management System (LIMS).
Subsidiaries in this field are as follows:
•
•
•
VG Laboratory Systems produces LIMSs for both products and research environments.
VG Electronics produces teletext equipment and supporting systems. Recent innovations
include radio data systems (RDSs) for FM radio broadcasting that allow additional data
to be transmitted along with existing programs.
VG Data Systems produces hardware and software products for chromatography data
collection.
Microanalysis and X-Ray Fluorescence
For many applications in materials analysis, digital X-ray mapping is widely accepted as one
of the most efficient methods for determining the spatial chstribution of elements in a sample.
Subsidiaries in this field are as follows:
•
•
Kevex Instmments produces the Quantum light element detector, enabling simultaneous
light and heavy element analysis. The Company also offers Fast X-ray Mapping, which
increases X-ray map acquisition speed by one or two orders of magnitude with no
reduction in digital-image quality.
Kevex X-Ray produces standard and customized X-ray tubes with high-voltage power
suppUes. The Company has focused development on high-technology products such as a
totally portable X-ray source for high-resolution radiographic inspection of cracks in
small components.
ESIS Volume n
0005943
©1990 Dataquest Incorporated March
VG Instruments Pic.
OUTLOOK
Over the years, VG Instruments has proved its ability to convert new ideas into commercial
products. It recognizes that its main resource is allowing people to be innovative.
The Kevex acquisition in the United States is expected to yield long-term benefits to
VG Instruments. With the restructuring now complete, this area is expected to make substantial
contributions to the Company's overall profitability in the coming years.
Because the Company's customer base operates in diverse markets, its products can be
expected to be in constant and increasing demand. Dataquest believes that the Company is
therefore well placed to maintain its position as a leading supplier of scientific equipment during
the years ahead.
©1990 Dataquest Incorporated March
ESIS Voliune n
0005943
Wacker-Chemitronic GmbH
BACKGROUND AND OVERVIEW
Wacker-Chemitronic GmbH is a wholly owned subsidiary of Wacker-Chemie and has been
active in semiconductor materials since 1953 when the Company commenced research into the
manufacture of hyperpure silicon. Since then, it has developed into one of the world's leading
suppliers of semiconductor wafer substrate materials with sales in 1988 of $270 million.
The parent company, Wacker-Chemi GmbH (Wacker), manufactures and markets a wide
variety of plastics, silicones, organic chemicals and, through Wacker-Chemitronic, semiconductor
materials. Today, silicon chemistry makes up more than one-half of Wacker-Chemie's total sales,
which were reported at $1,282 milhon for 1988.
Wacker-Chemie was established in 1914 by Dr. Alexander Wacker, a nineteenth-century
entrepreneur who recognized the economic significance of calcium carbide. In 1892, calcium
carbide was successfully manufactured for the first time, using an electrochemical process. In
1916, the Burghausen plant, built to Dr. Wacker's original plans, became operational. From these
beginnings the company quickly expanded and developed a number of new technologies and
product Unes that embraced polyvinyl chloride (PVC), chlorinated solvents, vinyl acetate derivatives, silicones, silanes, and fumed silica. In 1953, fumed silica led to research in hyperpure silicon
and production of monocrystalline sihcon.
Important milestones in Wacker's semiconductor history are as follows:
1960—First sales of hyperpure silicon were made in the United States.
•
1965—Wacker Chemicals Corporation, New York, U.S.A., was established.
1968—Wacker-Chemitronic GmbH, Burghausen, West Germany, was established as a
wholly owned subsidiary of Wacker Chemie GmbH.
1977—^Heliotronic GmbH established for carrying out advanced studies in solar-grade
silicon.
1978—^Wacker Siltronic Corporation, Portland, Oregon, U.S.A., was established for the
manufacture of silicon wafers.
1983—Wacker Chemicals East Asia Ltd., Tokyo, Japan, was established.
1984—Capacity of polycrystalline hyperpure silicon reached 2,000 tons per aimum.
1987—^Wacker Chemicals East Asia established the Yokohama Technical Center in
Hakusan-Cho, Yokohama, Japan.
1988—^The faciMties for the manufacture of hyperpure silicon underwent major expansion. A new plant was opened in Wasserburg.
1989—^The parent company, Wacker-Chemie, started construction of new headquarters in
Munich-Neuperlach and celebrated its 75th anniversary in October.
ESIS Volume H
0006573
©1990 Dataquest Incorporated April
Wacker-Chemitronic GmbH
Operations
Headquarters of Wacker-Chemie GmbH are located in Munich, West Germany. Shareholders
are the Hoechst AG and the Familiengesellschaft Wacker, which have equal share.
Today, the Wacker-Chemie Group employs approximately 14,000 persons worldwide in 100
countries on five continents. Burghausen alone employs almost 10,000 persons. The Group
produces approximately 2,600 chemical products, which are manufactured in plants located at
Burghausen, Kempten, Merkenich near Cologne, and Stetten in Wurttemberg, all in West Germany.
It also has production facilities in the United States, Mexico, Brazil, Japan, and the Netherlands.
Wacker's activities in the area of semiconductor products and related technologies are
administered by the following four operating companies:
•
Wacker-Chemitronic GmbH, West Germany—Since the Company's establishment in
1968, Wacker-Chemitronic has grown into one of the world's leading suppUers of silicon
wafers. In 1988, the Company acquired facilities in Wasserburg am Inn that provided
clean rooms and corresponding auxiliary equipment. By doing this, Wacker-Chemitronic
was able to consolidate its epitaxy activities—coating silicon wafers, which requires
clean room conditions—in high-performance facilities. This consohdation also enabled
additional space to become available at Burghausen, where 200mm diameter polished
wafers are produced.
•
Wacker Siltronic Corporation, United States—^This company is situated in Portland,
Oregon. It is 100 percent owned by Wacker-Chemie and is an affiliate of
Wacker-Chemitronic. The company handles Wacker-Chemie's semiconductor business in
the United States and Canada and manufactures siUcon single crystals by Czochralski
crucible pulling, and produces silicon as cut, lapped, etched, polished, and epitaxial
wafers in its Portland plant.
•
•
Wacker Chemicals East Asia Ltd.—This company is 75 percent owned by Wacker and is
a joint venture between Wacker-Chemie and Hoechst Japan Limited. It supplies hyperpure silicon to the East Asian semiconductor industry and silicone products to the
electronic, electrical equipment, transportation, and construction industries. In 1987, the
Chemitronic Division of this company established a technical service laboratory to meet
its customers' specific needs more efficiently. This center is located in Yokohama.
Heliotronic GmbH, West Germany—^This company is located in Burghausen. It is a
wholly owned subsidiary of Wacker-Chemitronic GmbH and is engaged in research and
development (R&D) to produce a low-cost silicon material for the mass production of
photo-voltaic solar cells and its translation to a manufacturing process. TTiis long-term
research program is supported by West German Federal Ministry for Research and
Technology.
Financial
A summary of the most recent financial information for the Wacker Group is shown in
Table 1. It covers the fiscal years that ended December 31, 1987 and 1988.
©1990 Dataquest Incoiporated April
ESIS Volume n
0006573
Wacker-Chemitronic GmbH
Table 1
Wacker-Chemie GmbH
Statement of Income
(Millions of Dollars)
Sales Income
Change in Inventories
Total Operating Performance
Less Cost of Materials
Gross Resuh from Operations
Other Income
Total Gross Income
Less Wages and Other Deductions
Operating Result
Profit before Income Tax
Net Profit
1987
1988
$1,143
20
$1,163
501
662
98
760
670
90
64
25
$1,282
12
$1,294
564
730
110
840
735
105
90
34
Souioe: WackBr-Qwmie GmbH
Annual Report & Accounts 1988
OaUquest
Afdl 1990
The Company had a record year in 1988, with sales increasing approximately 11 percent
over 1987. Sales of Wacker-Chemitronic were reported to have improved by 12 percent in 1988
over 1987, to DM 475 million ($270 million). Wacker-Chemie GmbH therefore accounted for
approximately 20 percent of Group turnover,
Table 2 shows sales revenue for Wacker-Chemie expressed as percentages by geographical
region.
Table 2 reveals that 83 percent of the Group's revenue is derived within Western Europe.
ESIS Volume II
0006573
©1990 Dataquest Incorporated April
Wacker-Chemitronic GmbH
Table 2
Wacker-Chemie GmbH
Sales by Geographic Region for 1988
(Percentage)
Geographic Region
West Germany
Other EC
Other West Europe
East Europe
North America/Latin America/Africa
Asia/Australia/Oceania
50%
23
10
4
7
6
100%
Total
Source: Wacker-Oieniie OmbH
Amnial Report & Accounts 1988
Ditaquest
April 1990
Research and Development
Spending on R&D and application engineering amounted to $120 milUon in 1988, or
approximately 9 percent of sales.
As in previous years, the main emphasis in research was on silicon chemistry. Semiconductor
research at Wacker-Chemitronic focused on improving the quality of hyperpure siUcon wafers. The
miniaturization of circuit elements calls for top-quality wafers, and new techniques for improving
surface flatness significantly are being developed. Research also is being conducted into
monocrystals made of gallium gadolinium garnet and doped with chrome neodymium, which have
been proved in solid-state laser technology.
Research priorities at Heliotronic were redefined in 1988. The Company focuses on increased
efficiency of solar cells, reducing production costs, and ribbon casting of solar silicon. Sufficient
quantities of suitable hyperpure silicon as basic material are available from the production of
silicon for electronics applications.
Other areas of research include the development of engineered ceramics for use primarily in
engine technology. Work also continues in organic intermediates for pharmaceutical and agrochemical applications.
Basic research for the future is concentrated in the field of biotechnology. Production
processes for certain polysaccharides are being investigated. The suitability of liquid crystal silicon
compounds for displays and information storage is being examined, with a view to their possible
application in information technology.
©1990 Dataquest Incorporated April
ESIS Volume n
0006573
Wacker-Chemitronic GmbH
Products
m
Wacker-Chemie's products cover the following fields:
Plastics—Includes PVC and copolymers, PVA and hot melts, vinyl chloride and vinyl
acetate resins, dispersions, pressure-sensitive adhesives, and vinyl acetate monomer
Plasticizers—^Phthalates and sebacates
Silanes—Chlorosilanes, siloxanes, silazanes, and functional silanes
Silicones—^Rubbers, fluids, pastes, greases, release/antifoam agents
Highly dispersed silica—^Fumed, precipitated, and dispersions
Solvents—Includes methyl and ethyl acetate and butyl glycolate
Organic intermediates—Covers a wide variety of chemicals
Pesticides
Semiconductor products—^These Wacker-Chemitronic products serve the semiconductor
industry. They include the following:
Hyperpure silicon
Silicon monocrystals produced by float zoning and by Czochralski crucible pulling
Polished, epitaxial, and diffused silicon wafers
High-resistivity float-zone crystals and wafers for detector applications
Solar-grade silicon
SILSO, multicrystalline square slices 100 100mm, monocrystalline sUces, round or
cut to nearly square shape
III-V semiconductor compounds
Gallium arsenide, monocrystal ingots and wafers, polished or cut and etched.
Chemicals
Chlorosilanes
Hyperpure hydrogen chloride
Laser crystals
Gadolinium—Gallium-garnet doped with chromium/neodymium
New products
200mm polished wafers—Controlled oxygen and precipitation, with superior
geometry
200mm epitaxial wafers, specifically designed for CMOS application
ISOmm diameter float-zone (FZ) material
Backdiffused wafers
Superflat wafers for submicron technology, tightly controlled bulk properties,
double-side poUshed, outstanding geometry: TTV 2-micron for up to 200mm
ESIS Volume H
0006573
©1990 Dataquest Incorporated April
Wacker-Chemitronic GmbH
OUTLOOK
Wacker-Chemitronic anticipates that products dependent on silicon chemistry will continue to
be major growth areas.
In the area of semiconductor materials, Wacker-Chemitronic views the future for its products
optimistically. Consequently, a new plant is being commissioned to meet the increasing demand for
epitaxial wafers, and as microelectronic structures diminish in size the Company sees an increasing
demand for the larger ISOnmi and 200mm wafers. The Company also foresees an increasing
demand for III-V semiconductors.
The confidence with which Wacker-Chemitronic views the future is exemplified by the time
and expense the Company is expending on improving employee skills and qualifications.
High-quality training programs now are in operation at various locations. As an investment for the
future, Wacker-Chemie believes that funds devoted to advanced training are as important as those
spent on initial training. Furthermore the establishment of the imified European market in 1992 is
hkely to increase competition. To meet this situation the Company is creating a pool of highly
qualified employees. In 1988, approximately DM 6.2 million ($3.5 million) was spent on in-house
training, with particular attention given to the development of potential managers. The Company
anticipates that increasing sums will be expended on advanced training in the future.
©1990 Dataquest Incorporated April
ESIS Volume n
0006573
|i^ Invtttment
6 Investment
IMTRODUCTION
This service section deals with European aspects of investments in
the electronics industry, with emphasis on the semiconductor industry.
The section is divided into four main parts:
6.1
6.2
6.3
6.4
Capital Investment
Research and Development Investment
Venture Capital
Government and Private Investment
The four parts really overlap each other, and should be read
together. This is particularly so in the case of 6.2, because the major
research and development programs are detailed in section 6.4, Government
and Private Investment.
ESIS Volume II
1987 Dataquest Incorporated March
6-1
1.1 R&D Investment
R&D EXPENDITURE BY MERCHANT EUROPEAN COMPANIES
Dataquest surveys the European merchant semiconductor manufacturers on an annual basis to
track their R&D spending plans. Table 1 supplies a summary of the history of worldwide R&D
spending in US dollars by European-owned companies for 1989 and 1990. Table 2 expresses
European companies' R&D expenditures as a percentage of their worldwide sales. It also includes
an R&D spending forecast for 1991. Table 3 shows R&D expenditure by European-owned
merchant companies in European Currency Units (ECUs).
Table 1
Estimated European Companies Woldwide R&D Expenditure
(Millions of US Dollars)
Company
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electrdnica
GEC Plessey Semiconductors*
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
Total
Percent Change
1989
($M)
1990
($M)
4
5
7
6
8
3
2
25
9
6
7
395
5
210
315
1
2
28
7
5
7
8
7
9
5
2
36
21
0
13
425
8
240
335
2
2
26
7
1,045
1,158
10.7%
* 1989 expenditure is for Plessey SemicaaductDis only.
AOR s Annual growth rate
Somce: Data^wst (March 1991)
ESIS Volume n
0008322
©1991 Dataquest Europe Limited March
AGR
1990/1989
26.0%
39.2%
9.6%
12.0%
12.5%
56.0%
20.0%
44.0%
133.3%
-100.0%
84.0%
7.6%
51.2%
14.3%
6.3%
92.0%
0.0%
-5.7%
-3.6%
1.1 R&D Investment
Table 2
Estimated European Companies Woldwide R&D Expenditure
As a Percentage of Worldwide Semiconductor Revenue
Company
1989
1990
1991
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electr6nica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
11%
10%
13%
11%
44%
10%
7%
10%
11%
10%
13%
23%
5%
16%
26%
5%
9%
9%
16%
12%
12%
13%
12%
33%
12%
8%
9%
21%
NA
14%
22%
7%
16%
27%
8%
8%
8%
15%
13%
13%
14%
10%
14%
11%
8%
13%
20%
NA
14%
13%
7%
18%
26%
8%
9%
10%
13%
Total Merchant
19%
19%
NA = Not Applicable
Source: Dataquest (December 1990)
©1991 Dataquest Europe Limited March
ESIS Volume n
0008322
1.0 Capital Investment
CAPITAL SPENDING BY MERCHANT EUROPEAN COMPANIES
Dataquest surveys the major European merchant semiconductor manufacturers on an annual
basis to track their capital spending plans. Table 1 gives a summary of the history of worldwide
capital spending in US dollars by European-owned companies for 1989 and 1990. Table 2 expresses
European companies' capital expenditure as a percentage of their worldwide sales. It includes a
capital spending forecast for 1991. Table 3 shows capital spending by European-owned merchant
companies in European Currency Units (ECUs).
Table 1
Estimated European Companies Woldwide Capital Expenditure
(Millions of US Dollars)
•
Company
1989
($M)
1990
($M)
AGR
1990/1989
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European SiUcon Structures
Eurosil
Fagor Electrdnica
GEC Plessey Semiconductors*
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
5
7
10
7
3
4
2
26
12
8
8
292
8
240
193
2
2
39
20
5
7
11
8
6
5
3
34
13
0
22
290
11
278
175
3
3
46
14
0.8%
-0.6%
12.1%
20.0%
100.0%
17.0%
50.0%
30.8%
8.3%
-100.0%
176.0%
-0.8%
35.0%
15.8%
-9.3%
32.0%
50.0%
18.5%
-30.0%
Total
888
934
Percent Change
5.2%
* 1989 ffiqxudinire is for Plessey Semicaoducton only.
AGR = Anmul giowtti rate
Source: Dataquest (Match 1991)
ESIS Volume H
0008321
©1991 Dataquest Europe Limited March
•
1.0 Capital Investment
Table 2
Estimated European Companies Woldwide Capital Expenditure
As a Percentage of Worldwide Semiconductor Revenue
Company
1989
1990
1991
ABB-HAFO
ABB-IXYS
Austria Mikro Systeme
Ericsson Components
European Silicon Structures
Eurosil
Fagor Electr6nica
GEC Plessey Semiconductors
Matra-MHS
MEDL
Mietec
Philips
Semikron International
SGS-Thomson Microelectronics
Siemens
STC Components
TAG Semiconductors
Telefunken
TMS
Total Merchant
14%
14%
18%
13%
17%
13%
7%
11%
14%
13%
15%
17%
8%
18%
16%
11%
9%
13%
44%
12%
12%
19%
15%
22%
12%
10%
9%
13%
NA
24%
15%
10%
19%
14%
11%
12%
14%
31%
14%
14%
16%
15%
15%
14%
11%
9%
13%
NA
25%
14%
10%
18%
13%
10%
12%
16%
25%
16%
15%
#
NA = Not AppUcaUe
Souice: DottKiaest (March 1991)
©1991 Dataquest Europe Limited March
ESIS Volume H
0008321
6.1 Capital Investment
In 1986, European companies decreased their worldwide
related capital spending by 21 percent, to $978 million.
semiconductor-
Tables 1 and 2 show the history and forecast, respectively, of the
European companies' worldwide merchant capital expenditures.
Table 1
ESTIMATED EUROPEAN COMPANIES' WORLDWIDE CAPITAL EXPENDITURES
1982 THROUGH 1986
(Millions of U.S. Dollars)
1982
1983
1984
1985
1986
Worldwide Semiconductor Revenue
$1,946
$2,229
$3,183
$2,850
$3,425
Worldwide Semiconductor
Capital Expense
$
$
$
$
$
315
Worldwide Capital Expense as a
Percent of Semiconductor Revenue
0
350
11.1%
630
80.0%
600
(4.8%)
Soure:
670
11,7%
Dataquest
March 1987
Table 2
ESTIMATED EUROPEAN COMPANIES' WORLDWIDE CAPITAL EXPENDITURES
1987 THROUGH 1991
(Millions of U.S. Dollars)
1987
Worldwide Semiconductor Revenue
Worldwide Semiconductor
Capital Expense
Worldwide Capital Expense as a
Percent of Semiconductor Revenue
1988
1989
1990
1991
N/A
N/A
N/A
N/A
N/A
$787
$1,062
$1,136
$1,363
$1,636
N/A
N/A
N/A
N/A
N/A
N/A = Not available
Source:
ESIS Volume II
© 1987 Dataquest Incorporated March
Dataquest
March 1987
6.1-1
6.1.1 Proposed Plant Investments
Some reasons for semiconductor plant investment in Europe, are as
follows:
•
To avoid EEC tariffs of 17 percent (finished units) and
9 percent (semifinished units) that apply to products imported
from non-EEC countries
•
To provide local support
coordination is required
•
To gain access to certain programs where there are stipulations
on products used (e.g., products must be manufactured locally)
•
To cut costs through better yields, shorter cycle times,
elimination of trade barriers, closer customer support, greater
product security (built locally with local resources)
in
cases
where
close
customer
Table 6.1.1 lists press announcements to extend or build new plants
from 1985 onward. The data have been entered as they were announced, and
the latest developments, if any, are listed under the "Comments" section.
ESIS Volume II
© 1987 Dataquest Incorporated March
6.1.1-1
Table 6.1.1-1
EUSOPEAN MERCHANT SEMICONDUCTOR PLANT INVESTMENTS
I
Company
Year
Announced
Amount
Location
«M)
Product/
Technoloqy
Comments
European
Companies
Eurasem
1986
Netherlands
$13
Ass. & Pack
Eurosil
1985
Eching. W.G.
N/A
6-inch 2.5micron CMOS
®
U3
00
-J
35K sq. ft., class 1000
60 employees in first year
Start up in 1987
o
0)
rt
0)
1986
Neuchatel, Switzerland
N/A
CMOS
6' wafers, 2-Bicron double ae
caE>3billty. Large inveataent
upgrade plant. Capacity - 1,
wafers per week. Full produc
19B8. Source of money - pare
conpany (Soclete Suisse de
Klcroelectronique et
d'Horlogerie)
Micronas
1985
Espoo, Finland
$15
CMOS
1* watetsi Start up in 1986
Philips
1985
Eindhoven, Netherlands
CMOS
Part of the "Mega project"
D-
1985
Hamburg, W.G.
N/A
N/A
Plant expansion in 1987
cu
1985
Caen, France
N/A
N/A
Plant expansion in 19S7.
$3M spent In 1985 on
restructuring.
1986
Hazel Grove, Cheshire,
U.K.
$20
N/A
Revamp of existing power
sentconductor plant. It wil
take 4 years to complete. M
produce "POWERHOS" products.
1985
Caswell, U.K.
$13
GaAs
Plant development area of
ZOK sq. ft. under constructi
1985
U.K. k U.S. (Los Angeles)
$500
Hegacell
semicustom
Plans to build 2 plants in
1985-90. '
1985
Walthan Grange, U.K.
N/A
CMOS
1.25-micron double-level meta
capacity > 1,000 wafers/week
iQ
p:
(D
CO
rt
a
n
o
•1
O
^^
(U
rf
(D
fi
o
if
Plessey
a
Ui
M
CO
<
O
Racal
Microelectronics
(Contin
#
Table 6.1.1-1 (Continued)'
m
01
H
EUROPEAN MERCHANT SEMICONDUCTOR PLANT INVESTMENTS
en
<
o
Company
Amount
Year
Announced
Location
mi
Product/
Technology
Comments
European
Companies
(Continued)
1985
Agrate, Italy
N/A
CMOS VLSI
CuHtoA circuits
1985
Swindon. U.K.
N/A
CMOS
Custom circuits) start up in
1987/88
1985
West Berlin, H.G.
$70
N/A
Hfc. of components for optical
fiber technology
1985
Regensburg, H.G.
$300
HOS,
submicron
Start up In 193£
1985
Munich, w.G.
M/A
!i
(D
1985
West Berlin, W.G.
$24
N/A
Electronic control systems
CA
ft
1985
U.S.
N/A
N/A
3 possible sites in the U.S. ar
being considered.
Sopran i Eltek
1985
Nantes, Yvelines, France
Thomson
1985
St. Egreve, France
N/A
l«>S VLSI
Start up in 1986
1985
Hoirons, France
N/A
HOS VLSI
Start up in 1986
1985
Far East or U.S.
N/A
6" 1-micr
fab.
1985
Aix en-Province France
$50
Standard
product
3-micron
SGS
Siemens
\o
CD
»J
o
(U
ft
Submicron pilot facility with
production at Regerisburg
P)
>Q
a
o
o
•1
>o
Plant to test, cut, inspect, an
stock semiconductorsf 37 emplo
ees) sales forecast at FFr 20M
o
•1
01
ft
(D
Oi
O
•i
n
if
European Silicon
Structures (ES2)
»
I
LJ
Plant Hill be in operation in
19S7, Design centers to be
opened in 19S6/7 in Palls,
Munich, London, Kilan,
Stockholm,'Edinburgh. A
second plant nay be built in
a few years time in the O.K,
or West Germany. No, of
employees - 300 by end of 1986
1,000 by 1990.
[Continue
Table 6.1.1-1 (Continued)
EUROPEAN MERCHANT SEMICONDUCTOR PLANT INVESTMENTS
I
ll^
Company
Amount
($M)
year
Announced
Product/
Technology
U.S. Companies
AMD
1985
Greystones, Ireland
$241
CMOS,
telecom)
memory
6S0 jobs; Greenfield site;
area " 2 x 22K sq. ft. wafer
fab areasI start-up date is
19STi nay consider adding ass
and test later. 19ae plant ha
been indefinitely postponed.
AMI
1985
Graz, Austria
$20
MOS
Plant expansion
1985
U.K.
$134
N/A
Hay set up semiconductor plant
deetgn center definitely in
pipeline Cor custom circuits
ATT
Hlcroelectronica
de Espana
1985
Madrid, Spain
$200
CMOS HPU i
memory
Start up in 1987; Cull capacit
3,000 wafers per week; 700
employees; agreement with CTN
to build a semiconductor plan
Pull capacity in 1991 26 million units a year.
80* ATiT owned
201 Telefonica owned
Burr Brown
1985
Scotland, U.K.
N/A
Bipolar
Unconfirmed; start up in 1987
Cypress
1985
England, U.K.
N/A
MOS LSI
No firm plan
Exel
1985
Eire
N/A
MOS Memory
Unconfirmed
Fairchild
1985
Wasserburg, W.G.
$150
MOS
New fab area next to existing
Assy, and test plant. Furthe
expansion is planned.
1985
U.K.
N/A
N/A
New design center in U.K.;
location not known. Montrouge
France, facility will be clos
down and relocated.
to
00
>J
a
(U
fi9)
iP
(D
U
ft
tS
o
o
n
fd
o
^1
(I)
ft
(D
olu
1
o
£3*
a
Vi
M
<
O
M
i
(D
(Continu
n
Table 6.1.1-1 (Continued)
Ui
EUROPEAN MERCHANT SEMICONDUCTOR PLANT INVESTMENTS
m
M
<
o
Company
M
M
Year
Announced
Location
Amount
($M)
Product/
Technology
Comments
U.S. Companies
(Continued)
Hewlett-Packard
1985
South Queensferry,
Scotland
$12
PCB facility
Holt
1985
Scotland, U.K.
N/A
Custom LSI
1985
Northern Germany
N/A
N/A
IMP
1985
Livingston, U.K.
N/A
CMOS Std. cell
Intel
1985
Feldkirchen, W.G.
N/A
2-micron CMOS
Unconfirmed
ITT
1985
Freiburg, W.G.
N/A
MOS LSI
Unconfirmed extension
Lattice
1985
England, U.K.
N/A
N/A
Unconfirmed
Linear
Technology
1985
Scotland, U.K.
N/A
N/A
Possible linear facility
LSI Logic
1985
Braunschweig, W.G.
$40
2-micron MOS
70,000 sq. ft. facility
1985
Irving, Scotland
N/A
N/A
No details known
Unconfirmed
\o
09
»0
a
CU
rt
S
^
(D
CO
rr
M
a
o
o
•o
o
•1
0)
rt
(D
&
0>
•i
n
tJ*
I
Ol
Micro-Image
Technology
1985
Micron
Technology
1985
Hay set up aaoewbily
plant In Europe:
N/A
N/A
No details known
Motorola
1985
Bast Kilbride
$60
K05
G* fab out at mothballs as of
sumneE 1986. More money to b
invested.
1985
Toulouse, France
N/A
N/A
Silicon wafer recovery fMOt^l
\i employees initially) (^y^
200,000 wafers/yeai
$1
Unconfinaed expansion in 198
(Cont
Table 6.1.1-1 (Continued)
EUROPEAN MERCHANT SEMICONDUCTOR PLANT INVESTMENTS
I
Amount
Product/
Technology
Year
Announced
Location
1985
Furstenfeldbruck, W.G.
N/A
Memory
M f r . o f 1- and 4-Mblt D R A H s ; s
up in 1 9 8 7 . N o firm p l a n
currently.
1985
Nice, France
N/A
N/A
Extension
1985
Freising, W.G.
N/A
N/A
Upgrade
1985
Bordeaux, France
M£r.
N/A
M a y b e in 1 9 8 8 . I n i t i a l l y R F
d e v i c e s . P o t e n t i a l for V L S I .
Fujitsu
1985
Landshut, W.G.
N/A
MOS
Not
finalized
Hitachi
1985
Limerick, Ireland
N/A
MOS
Not
finalized
Mitsubishi
1985
Site unknown
N/A
Mfr.
Planning stage only.
1985
Not yet known
N/A
fab
Assy/Test
G r a z s i t e r e j e c t e d by l o c a l c o
d u e to e n v i r o n m e n t a l c o n s i d e r
tions. New site being sought
Whole program subsequently pu
hold.
Company
(M)
U.S. Companies
(Continued)
National
Semiconductoi
VO
00
Texas
Instruments
O
p)
rt
(u
e
TRW
(D
CA
rr
»
n
o
Japanese Companies
^d
o
fi
0)
rr
(D
a
S
(U
o
Notes:
a
H f r . > M a n u f a c t u r e , A s s y . - A s s e m b l y , T e s t = T e s t , N / A = Not A v a i l a b l e
Sou r c e :
M
M
CO
<
o
M
#
Da taq
March
6.2 R&D Investment
INTRODUCTION
Long-term structural change, i.e., economic growth, or decline,
depends to a great extent upon technological innovation. Europe has a
history of leading the world with ideas, which are then better exploited
elsewhere. Europe has a large resource of talented designers and CAD
tools, but they lack proximity to advanced-technology wafer production.
Faced with the possibility of an increasing technology gap in Europe,
the EEC has implemented several research programs in information
technology (see Section 6.4, "Government and Private Investment"). It is
known that Europe has strengths in basic scientific research; however,
there are weaknesses in the chain from pure research to commercial
exploitation.
The EEC has listed a number of points that must be implemented in
order to achieve a leading role in new industrial technologies:
•
The education system must be adapted.
managerial skills plus the encouragement
change must be emphasized.
•
The tax system and capital market institutions must provide a
financial environment that is favorable to innovation and
investment involving risk.
•
Technical standards (norms, testing procedures, certification)
need to be set at a level that is valid for Europe, so as to
give full access to world market norms.
•
The relevant agencies in EEC countries need to collaborate with
a view to opening up national markets and assuring consistency
in the specification of their future equipment requirements.
•
Open trade in fast-growing goods and services that employ new
technology should be encouraged.
•
The competition policy at the EEC level needs to be directed in
a manner that favors the collaborative research and development
efforts of European enterprises, and subsequently increases
efficiency.
ESIS Volume II
New technical and
of adaptability to
© 1987 Dataquest Incorporated March
6.2-1
6.2 R&D Investment
EUROPEAN GOVERNMENTS' ROLE
European governments are playing an important role in the recovery of
their information industries. They have begun to take aggressive action,
helping locally based companies not only to recapture large parts of
their home markets, but also to export technology across Europe and
outside Europe.
European governments are also funding information-technology-related
research and development (R&D).
This is to enhance the competitive
position of their national information industries. The United Kingdom
has only minimal planning at the national level (see Section 6.4,
"Government and Private Investment" about the Alvey program), and
government support is decentralized and loosely coordinated. In Germany,
the program is characterized by well-coordinated, close cooperation
between the public and private sectors. The German government is moving
away from direct grants for projects, and toward indirect incentives such
as tax advantages to encourage research and development. France has a
centrally planned program, directed and controlled by the French ministry
of research and industry. (See Volume II, Section 6.4, for further
details.)
JOINT VENTURES
Joint ventures are another way of developing technologies. Examples
include: Bull, Siemens, and ICL created a joint research center in
Munich; Olivetti
and AT&T in office automation; Philips and AT&T in
telephone exchange switches; Ericsson and Honeywell in PBXs; and Siemens
and Philips in the joint development of advanced memory products. Some
companies are also entering into agreements with U.S. and Japanese
companies to penetrate markets outside Europe, or to acquire technological advantages over competitors.
HEED FOR UNIFICATION
The fragmentation of Europe's markets is largely responsible for the
poor performance of its manufacturers in fast-growing and fast-changing
industry sectors such as computers. The United States has the advantage
in that it has one domestic market as opposed to many national ones,
enabling it to grow quickly. Even the biggest of Europe's electronics
companies tend to grow more slowly because they rely on their home
markets for the major portion of their sales. There are a few exceptions, such as Philips and Olivetti.
6.2-2
© 1987 Dataguest Incorporated March
ESIS Volume II
6.2 R&D Investment
At a recent conference on Multinationals and High Technology held in
London, the need for a unified European market was emphasized by most
companies. Statements made there included the following:
•
Unless Europe develops a unified domestic market, multinational
companies might be driven to find better conditions outside
Europe.
•
The European market has been divided at every turn by differences in language, business practices, distribution channels,
and government regulations.
•
European companies
oriented.
•
Europe's diversity of skills, language, and culture is a major
strength that can be capitalized upon to give Europe an
advantage over its competitors.
•
European companies must play the enemy's own game and not sit
complacently on the fence.
have
to
become
more
dynamic
and
profit
Although made in 1985, the above points are still valid today.
Finally, however, several fundamental points remain to be overcome:
•
European companies must take more risks.
•
No one is thinking on the scale that is needed--in BILLIONS (not
millions) of dollars.
•
Europe now knows what actions are necessary, but has not yet
moved to take them.
•
There is a lot of grass-root activity, but little at the highest
levels.
•
Europe needs to be single-minded and to concentrate on the
development of components and technologies that will maximize
opportunities.
ESIS Volume II
© 1987 Dataquest Incorporated March
6.2-3
6.2 R&D Investment
RESEARCH AND DEVELOPMENT IN THE SEMICONDUCTOR INDUSTRY
Research and development (R&D) costs in the semiconductor industry
are becoming increasingly prohibitive. In Europe, the cost factor plus
the increasing desire of European companies to overcome the go-it-alone
policy that was the motto some time ago, are just two reasons that
encourage companies to pool their R&D resources.
Perhaps the most widely publicized joint agreement is the semiconductor Megaproject made between Siemens and Philips.
Under this
agreement, the companies aim to produce 4-Mbit RAMs by 1989 at a cost of
more than US$300 million.
In Table 1, we have compiled the worldwide semiconductor-related R&D
expenditures of European companies in the period from 1980 through 1986.
Table 6.2-1
ESTIMATED WORLDWIDE SEMICONDUCTOR-RELATED R&D EXPENDITURES
BY EUROPEAN COMPANIES
(Millions of Dollars)
Year
Worldwide
Sales
R&D
Expenditure
Percent of
Worldwide Sales
1980
1981
1982
1983
1984
1985
1986
$2,145
$1,903
$1,929
$2,215
$3,183
$2,850
$3,446
$120
$110
$110
$155
$225
$260
$315
5.6%
5.8%
5.7%
7.0%
7.0%
9.1%
9.1%
Source:
Dataquest
March 1987
The limited amount that European companies spend on R&D can also be
seen in value terms.
For comparison purposes, in 1986, European
companies' R&D expenditure totaled US$315 million, whereas U.S. companies
spent US$1,008 million and Japanese companies spent US$1,746 million.
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6.3 Venture Capital
OVERVIEW
Ever since 1986, there has been a significant increase in venture capital activity in
Europe. Although not all European countries are at the same level of development, most
have active programs currently under way. Some countries have recorded slow venture
capital fund growth, mainly due to unsympathetic government treatment, while others
have shown signs of excessive activity with too many venture capitalists chasing too few
deals. However, the sharp decline in the stock market in October 1987 (Black Monday),
has helped to correct this excess.
Therefore, Black Monday did not adversely affect the venture capital industry. Its
worst effect so far has been to postpone stock market flotations. Although the unlisted
security market has become less attractive to both entrepreneurs and venture capitalists
as an exit route for investment, and the other (less profitable) route of corporate
buy-out has also narrowed since big corporations have less money to spend, things are
not all bad.
Raising new venture capital could be even easier. Until Black Monday, the high
returns from venture capital projects (40 percent a year) looked unspectacular against
listed share prices (45 percent a year). Since the crash, valuations of unquoted
companies have fallen in line with those of listed ones, reaching what most venture
capitalists say are more realistic levels. Although there is (temporarily) less money
around, venture capital-backed firms now have a better chance of getting their equity.
The principal sources of capital for the venture capital industry differ from country
to country. In Belgium, Italy, and Spain, government-sponsored institutions and banks
have taken a leading role in providing equity capital. In the Netherlands, the government
provides venture capital through its majority stake in the MIP Equity Fund and through
the National Investment Bank. In France, the state provides funds until the privatization
of banks. In the United Kingdom, public sector venture capital is evident at the regional
level, for example, the Scottish and Welsh Development Agencies.
In the private sector, sources can be pension funds (prevalent in the United
Kingdom, the Netherlands, and the United States), or banks and industrial corporations
(prevalent in West Germany, where pension funds are not structured as independent
investment entities). Banks provide venture capital in nearly all European countries.
Most of the leading banks in France have venture capital subsidiaries as well as
investments in independent venture capital funds. In Spain, some of the largest private
sector venture capital organizations are bank-owned or affiliated.
SINGLE COMMON MARKET
Why a Common Market?
The European Economic Community (EEC) has set 1992 as the deadline when tax and
trade barriers will be abolished. A single European common market was created for
several reasons. Perhaps the most important reason is the awareness that the United
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States and Japan are challenging Europe, particularly in high technology. For years,
Europe has been active in economic and technological development, which makes it even
more difficult to adjust to this new situation.
One of the ingredients necessary for success in Europe is availability of capital.
Japan may be an example to emulate. The Japanese government is aware that ample,
low-cost industrial capital is vital to the nation's international competitiveness. One of
its goals is to assure this capital to industry and to this end, it encourages consumer
savings and channels these savings to industry. Other government policies decrease the
banks' risks so that they can safely lend industry large amounts of capital at low rates.
Japanese laws encourage banks to be closely involved in the management of their prime
clients; this involvement allows the bank to act if a company gets into trouble. The
Japanese government also directly controls interest rates. It can keep them low by
tightly regulating the financial system and keeping this system close to its international
market situation.
Recently, Europeans have become increasingly aware of the need for a single
common market in Europe. Isolation policies and go-it-alone tendencies have become a
thing of the past. Politics may claim isolationism is a form of patriotism and belief in
oneself, but the economic reality has proven that this policy is wrong. Such was the case
in France. When the socialist government came to power in 1981, President Mitterand
announced that henceforth France would go it alone. In 1983, the experiment having
failed. President Mitterand admitted that without international cooperation, France
could not progress—in industry, in research and development, or in many other important
aspects. He recognized the fact that European countries must work together to achieve
a single and united Europe, particularly in the area of high technology, if Europe is to
remain as a comparable power to the United States and Japan. This sentiment is echoed
by the major European countries, and steps have been taken and continue to be taken in
this direction.
The EEC is also working toward this goal. It is making headway in encouraging
collaboration in precompetitive research and in adoption of Europe-wide technical
standards. It believes that a unified European market is crucial to stimulating
innovation, entrepreneurial activities, venture capital, and creation of small and
medium-size businesses.
WHAT IS HAPPENING IN EUROPE?
In Europe, the venture capital pool (funds already invested or available for
investment) rose by 39 percent in 1986 to approximately ECU 10 billion, according to the
European Venture Capital Association (EVCA) yearbook. Italy showed the fastest growth
(103 percent) in 1986 over 1985, although its venture capital industry is small. The
United Kingdom still dominates the European venture capital market with approximately
120 firms and a total venture capital pool of ECU 5.7 billion. France follows in second
place with 90 firms and a venture capital pool of ECU 1.3 billion; the Netherlands is
third with 90 firms and a venture capital pool of ECU 0.9 billion.
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6.3 Venture Capital
In the last year or two, some large corporations have formed their own venture
capital areas of business. It has also been a time of internationalization or networking in
Europe by the venture capital industry. The results are as follows:
•
Venture capital firms working independently
•
Venture capital firms working jointly with the European Commission of the
EEC
•
The European Commission working independently
•
Industry working independently
Independent Networking
Independent networking by venture capital firms can mean working as partners with
other venture capital firms in different countries, or with branches of the same firm in
different countries. The aim is to give the "client" company access to the advice and
contacts of venture capitalists in potential export markets; it is not primarily to raise
equity finance in more than one country, since national venture capital pools should be
able to fund most deals. Anything that can be done to open up other European markets,
particularly in high-technology areas, is considered. With the 1992 deadline of a single
European common market fast approaching, the venture capital industry is working
toward removing its constraints on business.
Joint Venture Capital/European Commission Projects
The venture capital industry is working with the European Commission to put
together cross-border deals. In 1985, the EVCA and the European Commission launched
the Venture Consort Scheme, a joint venture designed to help new companies expand in
Europe and particularly to encourage cooperation across national boundaries. The
scheme gives grants to companies backed by international venture capital syndicates.
The grants are intended to offset the problems investors have with language and the
difficulty of getting around the various legal and financial systems in Europe. The
ECU 3.3 million originally earmarked for the scheme sparked off a total equity
investment of ECU 38.3 million. Because of such an enthusiastic response, the average
grant came to only 10 percent of any one project, not the 30 percent originally planned.
Venture Consort backed 18 projects in its first phase in 1986. In 1987, only
ECU 400,000 was allotted by the European Commission, with a further ECU 1.5 million
being provided by the community's Task Force for Small and Medium Enterprises. The
EVCA has since begun lobbying members of the European Parliament to increase the
Venture Consort funding to ECU 4 million in 1988. The first phase was successful
because funding was timely. Once the EVCA members had vetted and chosen projects
for backing, the European Commission had just three weeks to give its opinion. If it
failed to do so, the project was simply considered approved.
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Another area of the EVCA and European Commission cooperation is to back Eureka
projects. Eureka now has more than 100 projects in progress, but the large companies
get the majority of funding. Venture capitalists believe that the small companies they
back deserve a chance to participate. The EVCA wants to encourage this approach by
providing venture funds for Eureka projects. In return, it hopes its members' clients will
have the advantage of working with big companies throughout Europe.
To date. Eureka projects and their financing needs have been circulated to EVCA
members. By examining these projects, the EVCA can sort out where it can help to fund
companies resulting from Eureka projects. It can also help small companies on its books
to take part in the projects.
The European Commission Working Independently
The European Commission is funding its own projects. Its main project, Eurotech,
aims to provide larger sums of money than the Venture Consort Scheme for a much
earlier stage of a new company's development. It mainly finances projects coming out of
European R&D programs such as ESPRIT.
Initially, the European Commission said it would provide ECU 200 million for
Eurotech, with the rest coming from banks. This plan has upset the venture capital
industry, which would also like to be involved.
Industry Working Independently
European companies themselves are working more and more closely with one
another. In 1983, a 20-company strong Round Table of Industrialists was formed to help
strengthen and develop Europe's industrial and technological base by creating lessfragmented markets. The 20 Round Table members are: ASEA, BSN, Ciba Geigy,
Eternit, Fiat, Lafarge Coppee, National Coal Board, Nestle, Olivetti, Philips, Pilkington
Brothers, Pirelli, Plessey, Renault, Robert Bosch, Saint Gobain, Siemens, Thyssen,
Unilever, and Volvo. The chairman is Mr. Gyllenhammar of Volvo, and the vice chairmen
are Mr. Agnelli of Fiat and Mr. Dekker of Philips.
The Round Table has also provided financial backing for Euroventures BV, a
trans-European venture capital operation. Seventeen members are involved including
ASEA, BSN, Fiat, Lafarge Coppee, Olivetti, Philips, Pirelli, Robert Bosch, Saint Gobain,
and Volvo. Euroventures BV started operating in 1985 and invests through several
independently managed satellite funds in European countries. There is a central fund of
£36 million. It is hoped that the satellite funds will eventually raise the total financing
available to £93 million.
The Round Table's other main proposal is to set up a postgraduate European
institute of technology. Such an institution, specializing in electronics, physics, and
mathematics, would improve the technical education of the best engineers and help them
to consider the best interests of Europe rather than of individual countries. The
institution would draw on the resources of European industry, universities, and
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6.3 Venture Capital
governments. Research would be applied rather than theoretical and would concentrate
on semiconductors and informatics. The institute would be financed by a fund of at least
$5 million a year, set up by participating companies.
TRADE ASSOCIATIONS
As of July 1987, nine European countries had national trade associations in
place—Belgium, France, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and
the United Kingdom. West Germany has a venture capital "club" that brings together
entrepreneurs and potential investors of capital, but no trade association as such.
The objectives of these associations are similar:
•
To promote and stimulate the growth of venture capital in their countries
•
To provide an effective mechanism for lobbying government on issues of
concern to the venture capitalist
•
To introduce and operate a code of practice covering professionals in the
industry
In 1983, the EVCA was established to promote venture capital and ensure a smooth
flow of information on developments in the sector. The association also develops
international markets for the young companies its members are helping to form. The
EVCA now has about 100 members, each of which paid ECU 2,200 to join. This bought
them the chance to attend international meetings and exchange information.
Furthermore, it gave them a joint voice with which to lobby the European Commission
for a more uniform legal and financial environment throughout the EEC. Membership
also lends credibility to the members—a company has to be reputable to join.
The EVCA is broadening its scope. It is no longer necessary to be an EEC country to
join; other European countries are being considered. At the same time, it is forming
tentative links with the United States through meetings with the U.S. National Venture
Capital Association. In the long term, it could open up the U.S. market for Europe's
young companies.
SEED CAPITAL
Seed capital (the financing of embryonic new ventures, i.e., the preventure capital
stage) is just beginning to attract interest in Europe. The venture capital industry can
back a small company once it is on the road, but usually avoids funding it until it reaches
that stage. It is at the previous stage that seed capital is used.
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6.3 Venture Capital
Because it is such a risky venture, there are few seed capital firms, and these firms
usually subsidize their seed funding with other activities. Some of the larger venture
capital firms subcontract the "seed" part of their activities to such small firms. The
reason for not doing it themselves is that seed capitalists have to work very closely over
a period of time with an entrepreneur to get his idea off the ground and it is not viable
for a larger venture capital firm to add a seed capital specialist to its staff to do the
job. Why bother at all? By investing at an earlier stage than anyone else, the seed fund
can come in more cheaply and obtain a higher return (30 to 50 percent) if the venture
prospers.
COUNTRY OVERVIEWS
The venture capital industries in France, the Netherlands, West Germany, and the
United Kingdom are briefly described in the following sections.
France
Currently, venture capital is prevalent in French industrial policy. In 1981, when
the socialist government first came to power, the main emphasis of industrial policy was
on nationalization of the large industrial groups. However, since then, there has been a
shift toward helping the small and medium-size business sector. The government is now
firmly committed to encouraging the development of new small and medium-size
industries, particularly in high-technology areas.
In 1983, the French government announced a series of measures to help promote the
concept of venture capital and accelerate the creation of small businesses. These
measures included fiscal incentives for new businesses, streamlining and shortening of
considerable red tape, new soft loans for potential entrepreneurs, and encouragement of
cooperation between academic institutions and the business world. These measures have
largely been put into practice, so they are no longer an issue. What is an issue is the lack
of liquidity, since most companies offer only the 10 percent minimum to the public. If
companies offered 25 to 30 percent, prices would be more representative of true values
and would fluctuate less widely.
About half the venture capital pool is provided by banks and insurance companies;
the other half is provided by industrial and commercial concerns.
In the past couple of years, the French venture capital industry has continued to
develop, encouraged by the government which sees it as a way to create new businesses
and jobs. However, some investors feel that the government is not going far enough, and
that it should back not only companies with proven track records, but also the more risky
start-ups.
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6.3 Venture Capital
The Netherlands
In the past few years, the venture capital industry in the Netherlands has grown
considerably. Although initially there were few institutionally backed venture capital
funds, this has now changed. The government put forward a series of initiatives, and
subsequently, a large amount of institutional capital was injected into the venture
capital market. In 1982, the venture capital industry was given a boost with the
formation of a secondary stock market.
The present Dutch government is seeking to stimulate industrial growth through less
intervention in industry. It aims to reduce the regulatory burden for companies, to
introduce fiscal measures to encourage entrepreneurs, and to increase its use of private
enterprise for government contracts.
Two important steps have been taken by the government to encourage venture
capital. The first was to set up a guarantee scheme for private venture capital
companies. It provides for a public authority guarantee for losses incurred on individual
investments made by recognized private venture capital firms.
The second step was to set up an MIP equity fund in 1982. The government holds a
majority stake in this fund; however, the fund is independently managed by a group of
experienced senior industrialists and has strictly commercial objectives. The goal is to
invest relatively large amounts of capital in either new or established innovative
businesses that are likely to have a significant impact on the Dutch economy. The MIP
equity fund complements the private venture capital firms. In 1984, there were
approximately 30 private venture capital companies in the Netherlands. The bulk of all
investment activity by Dutch-based groups within the country at the smaller end of the
scale is channeled through these 30 companies.
The government has decreased its financing role in the industry from 72 percent of
all venture capital in 1982, to 44 percent in 1985 while the private sector has increased
its role.
The Dutch venture capital industry has matured into a serious industry that plays a
significant role in financing young, growing companies.
West Germany
Venture capital activities have been growing in West Germany, but still account for
a relatively small part of Germany's business. However, venture capital is becoming an
acceptable form of financing and now is better understood by the German business
community.
Currently, there are approximately 30 venture capital firms in West Germany with
an estimated DM 1 billion of invested funds available. Although much capital is available
and there are many ventures available for that capital, there is a dearth of experience
and management skills. This means that most ventures do not come to fruition.
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Traditionally, venture capital is not part of the German approach to business.
Approximately 75 percent of German companies are family-owned, and the idea of going
public with a stock market listing, or financing a business mainly with bank loans, is not
part of the German personality. However, this is changing. It is now recognized that
there is a need for capital rather than credit for both small and medium-size businesses.
More people are risking leaving a secure job to strike out on their own. Big companies,
too, are becoming more tolerant of spin-offs; for example, Siemens and Nixdorf are
engaged in venture capital activities.
The main West German venture capital firms include:
•
Techno-Venture Management (TVM)
•
International Venture Capital Partners (IVCP)
•
Deutsche Gesellschaft fuer Wagniskapital (WFG)
•
Citicorp Venture Capital
•
Euroventures Deutschland (part of Euroventures BV)
The United Kingdom
The number of venture capital organizations has been increasing steadily in the
United Kingdom. There are two basic categories of U.K. venture capital companies:
•
Independent firms, which receive venture capital funds from a number of
different sources (These firms have grown rapidly over the last few years.)
•
Captive firms, which are subsidiaries or sometimes simply divisions of larger
financial institutions
The ratio is currently around half and half.
As the U.K. venture capital industry matures, it is becoming segmented—separate
funds are being set up for different investor groups. U.K. merchant banks are becoming
more and more involved in the venture capital business. Major corporations are showing
interest in venture capital organizations, and it is the institutionally backed funds that
will ultimately determine the course of the industry's future development. The U.K.
government's Business Expansion Scheme (BES) encourages individuals to invest risk
capital in the ordinary shares of qualifying companies. This effort has stimulated the
growth of large professional fvmds, many based in London. The scheme offers a way to
stimulate the flow of smaller amounts of investment capital into growing small firms.
Regional venture capital funds have grown in the last year. More London-based
fund managers are getting out to meet the people behind regional funds, and the regional
funds themselves are being taken more seriously.
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INTRODUCTION
Investment in the electronics industry can be broadly divided into
government and private investment. We define government investment in
the strictest sense, that is, funding provided directly by a government
through its relevant departments.
The definition does not include
government involvement through its nationalized industries. Private
investment, on the other hand, is funding by anyone who is not
representing national or regional governments or the European Economic
Community (EEC). This category includes venture capitalists, corporate
and individual investors, and private trusts.
Over the past decade, European governments and the EEC have placed
increasing emphasis on an indigenous European electronics industry. The
following service section lists major electronics investment programs, by
region.
RECENT ELECTRONICS INVESTMENT PROGRAMS
Europe (Total)
EEC and Industry
The project was started in 1982. The EEC was to invest $40 million,
together with a similar amount put up by companies chosen for support.
The purpose was to encourage development of Key equipment for VLSI
design, test, and production.
The project was not successfully taken up because the industry was
not capable at the time and the project's objectives were too fixed. The
project funds were transferred to ESPRIT.
ESPRIT
In February 1984, the EEC announced plans for link-ups across its
internal borders between academics and industrialists, as part of the
ESPRIT program. Approximately 270 different universities, companies, and
research institutes have pledged to work together on information
technology projects. There is a planned investment of approximately
ECU1.5 billion by 1990. The EEC is meeting 50 percent of the cost, while
participating companies will meet the remaining 50 percent.
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6.4 Government and Private Investment
In January 1985, the European Commission announced the projects and
the successful tenders for the first full year of ESPRIT's 10-year
program. Table 1 shows the division of these projects.
ESPRIT will concentrate on producing early results, rather than on
long-term research projects, as a result of requests by participating
companies.
Table 1
ESPRIT:
HOW THE PROJECTS ARE DIVIDED
(National Involvement)
Sector
Advanced microelectronics
Software technology
Advanced information processing
Office systems
Computer integrated
manufacturing
Total
Number
U.K.
France
W. Germany
Italy
28
14
20
23
18
9
13
14
18
9
12
15
17
10
11
16
6
7
12
15
19
13_
10
13.
_2
104
67
64
67
49
Source:
DATAQUEST
September 1985
Groupe Tallois
This is like a small "club of Rome." It was formed because of the
need for Europe to do something in Information Technology.
Action Committee for Europe
Its aim is to create a genuine common market without frontiers, to
stimulate European industry and growth, to develop the European Monetary
System, and to open up the telecommunications and transport sectors.
Members include Mr. Helmut Schmidt, Mr. Agnelli, Mr. Van den Hoven,
Mr. Simon May, and two leaders of the French trade unions.
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6.4 Government and Private Investment
RACE
In March 1985, the EEC published a proposal to undertake an
initiative in the telecommunications sector. The project will be called
Research in Advanced Communications in Europe (RACE).
There will be
three main phases:
•
RACE Definition Phase (1985).
This will define what the
Integrated Broadcast Communications (IBC) network should become
over the next decade, thus creating a commonly accepted
objective. The cost is estimated at ECU44.2 million paid for
50/50 by the Commission and industry.
•
RACE (Main) Phase I (1986 through 1991). This period will cover
development of the technology base for IBC, conduct the
precompetitive development required, provide for services and
equipment, field trials and support CEPT and CCITT standards
work.
•
RACE Phase II (beyond 1991 through 1996) . This will be a period
of evolutionary development of the technology base established
in Phase I for enhanced IBC equipment and services beyond 1995.
BRITE
This is an EEC initiative in flexible manufacturing to ascertain the
condition of, and prospects for, the machine tool industry in Europe.
Kangaroo Group
This group was set up by Mr. Basil de Ferranti, and it was named thus
because the Kangaroo is good at leaping over and kicking down barriers.
It is a club of European parliamentarians formed to promote a truly
common market in Europe.
FAST program
Twenty-one Council of Europe member countries have given support to a
European research network to make better use of science and technology
resources, and to create greater mobility between countries for
scientists.
Three-Year Program
In April 1984, a three-year program was announced to develop more
robust and efficient numerical models to simulate the detailed physical
behavior of semiconductor devices. Industrialists and academics from the
United Kingdom, the Netherlands, and the Republic of Ireland are involved.
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6.4 Government and Private Investment
Independent European Progranane Group
In June 1985, the Independent European Programme Group, composed of
defense ministers from 13 European nations, agreed to launch a
cooperative research program in five specific areas of advanced
technology with military applications: microelectronics, high-strength
lightweight materials, compound
materials, image
processing, and
conventional warhead design.
Projects will be funded jointly on a
case-by-case basis.
Belgium
In 1982, the Flemish government launched a program to fund
approximately half the cost of building a full semiconductor facility for
the Bell Telephone Manufacturing Company.
The Netherlands
1.
In 1981, the Dutch
government launched an ongoing program of
FLIO million per year, to set up three microelectronics centers,
each concentrating on different aspects and areas. The centers are
located in Delft, Enschede, and Eindhoven. The goal of the centers
is to recover investment costs through contract work. The centers
also house a forum for business contacts, an information center, and
exhibition space.
2.
The Dutch Ministry of Economic Affairs launched two ongoing programs
to encourage Dutch companies to design microelectronic technology
projects through subsidies and an advisory scheme for participating
companies by external consultants.
France
1.
Following the Integrated Circuits Plan (1978 through 1981) and the
Components Plan (1982 through 1986), the French government currently
has a "Filiere Electronique" Plan. Emphasis is on global rebuilding
of the entire electronics industry.
For microelectronic investment, the government had forecast a budget
of FFr12.5 billion for 1983 (of which only FFr9.7 billion was
actually spent) and of FFr15 billion for 1984 (of which FFrll billion
was spent) .
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Of the above budgets, some FFr2.4 billion in 1983 and FFr3 billion in
1984 were spent on company subsidies.
In 1985, the government hopes to reach the planned expenditure level
of FFr12 billion for the first time.
•Kie PAFE program deals with Computer-Aided
1-micron technology.
Design
(CAD) for
VLSI
In February 1985, the French government announced that it will inject
FFr2.75 billion into three nationalized companies—Thomson, Bull, and
CGCT—in
the form of capital grants.
Thomson will receive
FFrl.3 billion to build up its electronic components business and to
improve competitiveness of its consumer products division. Bull will
receive FFrl billion, and CGCT will get FFr4 50 million.
At the beginning of 1985, in response to President Reagan's Strategic
Defense Initiative, France's President Mitterand announced a proposal
for Europe to go ahead on its own with a European Research
Coordination Agency under a program entitled Eureka. The program
aims to attain the capacity to build technological hardware involving
a research effort that draws on the technological base already
achieved.
Ministers of 17 European countries met in Paris on July 17, 1985, to
start the program.
They created an advisory group to set up
procedures that would be acceptable to at least the major countries
wanting to take part. The advisory group will also attempt to better
define Eureka. A six-nation steering group will do most of the work.
Italy
In 1982, the Italian government announced a five-year program.
One-fifth of the amount to be spent is for small and medium-size
companies. The remainder includes financing a new VLSI center at a
cost of Lirel70 billion.
The Italian PTT's National Plan for Telecommunications Service, which
included charges made by Italtel, was set up for companies in the
State Telecommunications Sector.
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Scandinavia
1.
In 1982, the Finnish government funded a FIM34 million program for a
semiconductor project at the Helsinki Institute of Technology. The
project is to develop a CMOS process technology suitable for
production in 1985 and is supervised by a special council from
Micronas, Lohja Electronics, and Vaisala, to guarantee production
adaptability.
2.
Sweden has an ongoing grant system to technical universities. The
Swedish State Industrial Board (SIND) is the primary funding body for
applications and research grants to both the technical universities
and the private sector.
United Kingdom and Ireland
1.
The Microelectronics implication Project (MAP) was set up by the U.K.
government in 1978, at a cost of £85 million, to raise awareness of
the microchip. The project was extended to 1985.
2.
The CAD/CAM, CAT/MAT program (1981 through 1985) consisted of capital
grants for computer equipment.
3.
The British Technology Group set up Inmos between 1979 and 1983.
4.
In June 1982, the Department of Industry allocated £60 million to
encourage engineering companies to automate production lines with
electronic techniques.
5.
In January 1983, the Science and Engineering Research Council
allocated £2.5 million to Edinburgh University for VLSI research and
development.
6.
The Department of Industry has an ongoing Microelectronics Industry
Support Programme (MISP) to provide financial aid for companies with
new products.
7.
The Flexible Manufacturing Systems Scheme is an ongoing project run
by the Department of Industry to aid companies whose products would
benefit from installing flexible manufacturing systems.
8.
The Department of Industry launched a £40 million Fiber Optics and
Optoelectronics
Scheme
to
support
the
fiber
optics
and
optoelectronics industries through grants of up to
a third of
eligible costs.
6.4-6
© 1985 Dataquest Incorporated Sept. 20 ed.
ESIS Volume II
6.4 Government and Private Investment
9.
in 1983, the Scottish
incentive package for
area is just starting
electronics industry,
Development Agency (SDA) launched a £10 million
companies setting up business in Scotland. The
to get an influx of supporting companies to the
thereby creating an effective infrastructure.
10. In 1983, the Alvey program was launched to run for five years. It is
intended to keep the United Kingdom in the race to build the
fifth-generation of intelligent computers. Currently, the program is
half-way through its time span and 85 percent through its
£200 million budget.
One hundred two joint projects involving
60 companies, 40 universities, and 15 polytechnics have been approved.
West Germany
1.
The Research Ministry in Bonn allocated DM 450 million to help small
companies use microelectronics in their products, in the period 1981
through 1984.
2.
From
1982
through
1985
the
West
German
government
spent
DM 100 million per year through VDI-Technologiezentrum of Berlin to
develop new microelectronic products, up to production stage.
3.
In 1983, the Research Ministry in Bonn announced a package
measures to assist the formation of technology-based businesses.
4.
In January 1985, the Bundestag, West Germany's parliament, approved a
DM 3.8 billion research package to help key sectors of the
electronics industry catch up with the competition.
of
Rest of Europe
1.
In 1982, in Spain, the Instituto Nacional de Industrie (INI)
announced an ongoing investment program to increase R&D effort in
INI's electronics group by setting up an R&D center in Madrid.
2.
The Spanish PTT—Compania Telefonica Nacional de EspaTia (CTNE)—has
defined its four-year plan (1985 through 1988), which envisions
investments of approximately Pta965 billion. The objective is the
modernization of the telecommunications network.
3.
In 1983, the Spanish government announced the Plan Electronico y
Informatico Nacional (PEIN). There are four basic objectives:
•
To increase demand for and consumption of electronics products
•
To attain larger domestic production levels of electronics
products, thus gaining greater domestic market shares
ESIS Volume II
® 1985 Dataquest Incorporated Sept. 20 ed.
6.4-7
6.4 Government and Private Investment
•
To achieve very high levels of exports
•
To diminish technological dependence of indigenous firms
The amounts invested are expected to be at Pta62.9 billion. Part of
this amount is destined for the IC plant to be built by CTNE and AT&T, as
well as for IBM EspalTa to produce medium-range computers.
4.
In April 1985, the electronics and informatics industries in Spain
were declared to be of "preferential interest" by a Royal Decree.
This enables companies in this category to apply for certain
benefits, provided they do so by December 31, 1985.
6.4-8
© 1985 Dataquest Incorporated Sept. 20 ed.
ESIS Volume II
6.4 Government and Private Investment
INTRODUCTION
Investment in the electronics industry can be broadly divided into
government and private investment. We define government investment in
the strictest sense, that is, funding provided directly by a government
through its relevant departments. Private investment, on the other hand,
is funding by anyone who is not representing national or regional
governments or the European Economic Community (EEC).
This category
includes venture capitalists, corporate and individual investors, and
private trusts.
Over the past decade, European governments and the EEC have placed
increasing emphasis on an indigenous European electronics industry. The
following service section lists major electronics investment programs, by
region.
Recently it has become apparent that nobody is currently reporting in
detail what kind of and how much investment each government is providing
for the electronics industry. The EEC has published a set of guidelines
on how far and in what way governments will be permitted to subsidize
civil R&D programs. However, even these guidelines are not in detailed
form. In essence, the guidelines suggest that governments should not
finance more than 50 percent of government R&D projects. However, in
practice there is no way of knowing if the 50 percent limit is exceeded.
RECENT ELECTRONICS INVESTMENT PROGRAMS
Europe (Total)
ESPRIT
In February 1984, the EEC announced plans for linkups across its
internal borders between academics and industrialists, as part of the
ESPRIT program. Approximately 270 different universities, companies, and
research institutes have pledged to work together on information
technology projects. There is a planned investment of approximately
ECU1.5 billion by 1990. The EEC is meeting 50 percent of the cost, while
participating companies will meet the remaining 50 percent.
As a result of requests by participating companies, ESPRIT will
concentrate on projects that produce early results, rather than on
long-term research projects.
m
ESIS Volume II
© 1987 Dataquest Incorporated January
6.4 Government and Private Investment
Plans for ESPRIT II are currently nearing completion. ESPRIT II will
keep to the same system as the previous phase with the possible inclusion
of EFTA nations.
They will have no say, however, in the ESPRIT
decision-making process, and they are not funded for their efforts.
Details will be announced in late 1986. The program will start in 1987.
Eureka
The European Research Coordination Agency (Eureka) program aims to
attain the capacity to build technological hardware involving a research
effort that draws on the technological base already achieved.
In July 1986, 60 more projects (mainly in computers, semiconductors,
and telecommunications) were approved to a total value of $2.1 billion.
The total value of projects involving U.K. firms is currently at
$1.1 billion. The U.K. government announced it would pay $15 million
towards the Eureka program, through the Support for Innovation scheme,
which apparently compares favorably with inputs from other governments.
However, the U.K. government recently announced it would not put in any
new money for Eureka. The U.K. government has reservations about whether
Eureka will open up Europe to be a truly homogeneous internal market.
Mrs. Thatcher thinks it is more an aspiration than a reality. The result
is uncertainty as to what the participating governments will contribute.
To keep each government's contribution as much in line with other
governments
as possible, a decision was made for participating ,
governments to talk to each other before allocating funds.
Iceland is the latest country to join the Eureka program, making a
total of 19 participating countries.
Countries most involved are:
•
France with 40 out of 62 projects—government
40 percent of total cost of $554 million.
pays
up
to
•
United Kingdom with 29 out of 62 projects—government pays up to
50 percent of research cost and 25 percent of development
costs. Since no figures are published on individual levels of
support, there is no way of knowing how much has been given in
any particular case.
•
West Germany with 19 out of 62 projects—government funding is
at DM 485 million over 10 years. Total cost is DM 1.6 billion
of which the share falling to West German companies is
DM 625 million.
•L
1987 Dataquest Incorporated January
ESIS Volume II
6.4 Government and Private Investment
Group Tallois
This is like a small "club of Rome." It was formed because of the
need for Europe to do something in Information Technology.
Action Coimnittee for Europe
Its aim is to create a genuine common market without frontiers, to
stimulate European industry and growth, to develop the European Monetary
System, and to open up the telecommunications and transport sectors.
Members include Mr. Schmidt, Mr. Agnelli, Mr. van den Hoven, Mr. May, and
two leaders of the French trade unions.
RACE
In March 1985, the EEC published a proposal to undertake an
initiative in the telecommunications sector. The project will be called
Research in Advanced Communications in Europe (RACE).
There will be
three main phases:
•
RACE Definition Phase (1985). This defined what the Integrated
Broadcast Communications (IBC) network should become over the
next decade, thus creating a commonly accepted objective. The
cost was approximately ECU40 million paid for 50/50 by the
Commission and industry.
•
RACE (Main) Phase I (1986 through 1991). This period will cover
development of the technology base for IBC, conduct the
precompetitive development required, provide for services and
equipment, field trials and support CEPT and CCITT standards
work.
•
RACE Phase II (beyond 1991 through 1996). This will be a period
of evolutionary development of the technology base established
in Phase I for enhanced IBC equipment.
In March 1986 the EEC approved $19 million in funding 31 component
level R&D projects for the initial phase, involving 109 companies.
Future RACE grants are expected to total around $500 million (no
long-term funding has been formally established). U.S. companies are
participating in this program provided that they have R&D facilities in
Europe.
In December 1986, the European Parliament will debate whether to fund
the project proper—the RACE Main—with ECU800 million. Detailed plans
have recently been proposed by the European Commission. If approved, the
RACE Main is due to start on January 1, 1987, when companies will be
invited to tender for specific projects, as yet undetailed. At the same
time a more general framework for EEC-funded R&D will be decided upon
(see below).
ESIS Volume II
© 1987 Dataquest Incorporated January
6.4 Government and Private Investment
EEC-funded R&D
The EEC put forward a ECU7.7 billion program for R&D in the next five
years, up from ECU3.7 billion in the past four years. West Germany, the
United Kingdom and France vetoed the proposal. The three countries agree
that Europe has to meet the technology challenge from Japan and the
United States, but are reluctant to channel much national R&D spending to
EEC programs.
The countries argue that the EEC should complement
national R&D work, not replace it; more money in Brussels means each
government has less say in how this money is used; each country believes
its own industrial base is still broad enough to cover most areas of R&D
without EEC programs. The crux of the matter is national interest—the
bigger the country the better off it is keeping its research national; a
smaller country is better off joining a community program.
BRITE
This is an EEC initiative in flexible manufacturing to ascertain the
condition of, and prospects for, the machine tool industry in Europe.
Kangaroo Group
This group was set up by Mr. Basil de Ferranti, and it was so-named
because the kangaroo is good at leaping over and kicking down barriers.
It is a club of European parliamentarians formed to promote a truly
common market in Europe.
FAST program
Twenty-one Council of Europe member countries have given support to a
European research network to make better use of science and technology
resources, and to create greater mobility between countries for
scientists.
Three-Year Program
In April 1984, ai three-year program was announced to develop more
robust and efficient numerical models to simulate the detailed physical
behavior of semiconductor devices. Industrialists and academics from the
United Kingdom, the Netherlands, and the Republic of Ireland are involved.
Independent European Progranmie Group
In June 1985, the Independent European Programme Group, composed of
defense ministers from 13 European nations, agreed to launch a
cooperative research program in five specific areas of advanced
technology with military applications: microelectronics, high-strength
lightweight
materials,
compound materials, image processing, and
conventional warhead design.
Projects will be funded jointly on a
case-by-case basis.
© 1987 Dataquest Incorporated January
ESIS Volume II
6.4 Government and Private Investment
STAR
Special Telecommunications Actions of Regional Development, is a
program with an initial budget of ECU7 million to be used to introduce
the latest telecommunications techniques to "disadvantaged areas"—Irish
Republic and Ulster, Corsica, the Mezzogiorno part of Italy, and some of
Greece. There is a proposal to later help parts of Portugal and Spain,
and overseas departments of France.
Philips> Siemens, Thomson
Philips, Siemens, Thomson, may establish a joint research program to
develop semiconductor technologies for the 1990s. The aim is to set up a
joint research institute, at a cost of $720 million, to come from both
company and government sources.
Belgium
In 1982, the Flanders regional investment bank (GIMV) launched a
program to fund approximately half the cost of building a full
semiconductor facility, jointly with the Bell Telephone Manufacturing
Company. The company, Mietec, was formed in 1983 and is dedicated to
ASICs.
The Netherlands
In 1981, the Dutch government launched an ongoing program of
FLIO million per year, to set up three microelectronics centers, each
concentrating on different aspects of the technology and areas of the
marketplace. The centers are located in Delft, Enschede, and Eindhoven.
The goal of the centers is to recover investment costs through contract
work.
The centers also house a forum for business contacts, an
information center, and exhibition space.
The Dutch Ministry of Economic Affairs launched two ongoing programs
to encourage Dutch companies to design microelectronic technology
projects through subsidies and an advisory scheme for participating
companies by external consultants.
Franrf*
Following the Integrated Circuits Plan (1978 through 1981) and the
Components Plan (1982 through 1986), the French government currently has
a "Filiere Electronique" Plan. Emphasis is on global rebuilding of the
entire electronics industry.
ESIS Voliime II
© 1987 Dataquest Incorporated January
6.4 Government and Private Investment
For microelectronic investment, the government had forecast a budget
of FFr12.5 billion for 1983 (of which only FFr9.7 billion was actually
spent) and of FFr15 billion for 1984 (of which FFrll billion was spent).
Of the above budgets, some FFr2.4 billion in 1983 and FFr3 billion in
1984 were spent on company subsidies. The amounts spent by companies
themselves
on R&D
(as distinct from government subsidies) were
FFrl.2 billion in 1983 and FFrl.35 billion in 1984.
In 1985, the government hopes to reach the planned expenditure level
of FFr12 billion for the first time, of which FFr2.5 billion is earmarked
for the electronics sector.
The PAFE program deals with Computer-Aided Design
1-micron technology.
(CAD) for VLSI
At the beginning of 1985, in response to President Reagan's Strategic
Defense Initiative, France's President Mitterand announced a proposal for
Europe to go ahead on its own with a program entitled Eureka.
Italy
The Italian PTT's National Plan for Telecommunications Service, which
included charges made by Italtel, was set up for companies in the State
Telecommunications Sector.
Scandinavia
In 1982, the Finnish government funded a FIM34 million program for a
semiconductor project at the Helsinki Institute of Technology.
The
project is to develop a CMOS process technology suitable for production
in 1985 and is supervised by a special council from Micronas, Lohja
Electronics, and Vaisala, to guarantee production adaptability.
Sweden has an ongoing grant system to technical universities. The
Swedish State Industrial Board (SIND) is the primary funding body for
applications and research grants to both the technical universities and
the private sector.
United Kinqd""' awH Tr^lanfl
The Department of Industry has an ongoing Microelectronics Industry
Support Programme (MISP) to provide financial aid for companies with new
products.
1987 Dataquest Incorporated January
ESIS Volume II
6.4 Government and Private Investment
The Flexible Manufacturing Systems Scheme is an ongoing project run
by the Department of Industry to aid companies whose products would
benefit from installing flexible manufacturing systems.
The Department of Industry launched a £40 million Fiber Optics and
Optoelectronics Scheme to support the fiber optics and optoelectronics
industries through grants of up to a third of eligible costs. The scheme
is called JOERS (Joint Optoelectronics Research Scheme).
JOERS II—second phase of above.
Submissions for funding are
currently being received. Total funding is estimated to be $16.8 million.
In 1983, the Alvey program was launched. The program will run for
five years at a cost of £350 million. It is intended to keep the United
Kingdom in the race to build the fifth generation of intelligent
computers.
When the Alvey VLSI initiative was announced it was strongly
criticized for being unambitious and poorly funded.
An independent
review in 1985 concluded that its time scales for producing the key
1 micron bulk CMOS process were two to three years behind the world
leaders.
The review did, however, report that the 1 micron bipolar
process target date was on a par with the best of the U.S. and Japanese
producers.
Projects are currently running 3 to 18 months late. The program
needs two or three times more than the £107 million already committed to
complete the VLSI work in progress. Total additional investment to
exploit all Alvey projects requires $795 million—$345 million for
production; and library building, and $450 million for production
development.
A total of 110 companies are currently engaged in the Alvey program.
GEC is involved in the largest number of projects, 59; followed by ICL,
49; British Telecom, 37; and Plessey, 35. Almost every U.K. university
is involved in about 85 percent of projects.
The U.K. government
contributed £200 million to current Alvey funding.
West Germany
From
1982
through
1985
the
West
German
government
spent
DM 100 million per year through VDI-Technologiezentrxun of Berlin to
develop new microelectronic products.
In 1983, the Research Ministry in Bonn announced a package of
measures to assist the formation of technology-based businesses.
ESIS Volume II
© 1987 Dataquest Incorporated January
6.4 Government and Private Investment
In January 1985, the Bundestag, West Germany's parliament, approved a
DM 3.8 million research package to help key sectors of the electronics
industry catch up with the competition.
Rest of Europe
In 1982, in Spain, the Instituto Nacional de Industria (INI)
announced an ongoing investment program to increase R&D effort in INI' s
electronics group by setting up an R&D center in Madrid.
The Spanish PTT—Compania Telefonica Nacional de Espana (CTNE)—has
defined its four-year plan (1985 through 1988), which envisions
investments of approximately Pta965 billion.
The objective is to
modernize the telecommunications network.
In 1983, the Spanish government announced the Plan Electronico y
Informatico Nacional (PEIN). The plan was approved in 1984, to run for
three years. There are four basic objectives:
•
To increase demand for and consumption of electronics products
•
To attain larger domestic production levels of electronics
products, thus gaining greater domestic market shares
•
To achieve very high levels of exports
•
To diminish technological dependence of indigenous firms
The amounts invested are expected to total Pta62.9 billion. Part of
this amount is destined for the IC plant to be built by CTNE and AT&T, as
well as for IBM Espana to produce mediiim-range computers. The plan is
showing results in that high-tech investment is coming to Spain—AT&T is
building a semiconductor plant in Madrid in conjunction with Telefonica.
Siemens is investing PtalO billion in a three-year program, including a
design center geared to export hard and software products to Europe.
Pacific Telesis will build an R&D center in conjunction with Telefonica.
Hewlett-Packard is to build a new plant to manufacture graphic plotters.
In April 1985, the electronics and informatics industries in Spain
were declared to be of "preferential interest" by a royal decree. This
allowed companies in this category to apply for certain benefits,
provided they did so by December 31, 1985.
© 1987 Dataquest Incorporated January
ESIS Volume II
I
7.0 Packaging
INTRODUCTION
This section discusses semiconductor packaging trends in Europe.
material contained in this section covers:
•
Overview
•
Major package technologies
•
Packaging trends
•
Surface-mounted devices (SMDs)
The
Overview
A basic market force is driving the trends in component packaging.
That force is cost, which, in turn, is directly related to materials.
DATAQUEST believes that semiconductor material reductions will be
achieved through:
•
Improved IC chip functional density (smaller geometries)
•
Improved performance through denser geometries
•
Improved automation (for improved yield)
Other material reductions will be achieved through:
•
Fewer and smaller printed circuit boards (PCBs)
•
Less external hardware
•
Smaller cabinets
•
Smaller, more efficient power elements (VLSI and CMOS)
Wafer Package Technologies
The integrated circuit industry's rapid move toward VLSI complexity
and the market's demand for more function in less space have prompted
several new packaging alternatives. These major package options are:
•
Small-outline (SO) plastic packages, which are primarily limited
to 28 pins or less.
•
Chip carrier and quad packages grouped in the range of 28 to
84 pins
ESIS volume 11
© 1985 Dataquest Incorporated Oct. 23 ed.
7.0-1
7.0 Packaging
•
Pin grid array (PGA) packages for primarily 64 pins or more
•
Dual in-line packages (DIPs)
PACKAGING TRENDS
DATAQUEST expects the following packaging trends: "
•
Plastic DIPS will continue to be the dominant package throughout
the forecast period.
•
The plastic chip carrier/quad package will sustain a high growth
rate, with the LCCC version becoming the dominant package.
•
SO packages will have a high initial growth rate due to their
acceptance in very large automotive, telecommunications, and
consumer programs.
•
Both plastic chip carrier and SO package growth will be through
displacement of the plastic DIP.
•
Ceramic chip carriers will have modest growth at the expense of
the flatpack, CERDIP, and Ceramic DIP.
•
The pin grid array (PGA) package is an important package in the
over 64-pin VLSI segment. Although it will have a high growth
rate, absolute volumes are not expected to be large.
•
Chip carrier, SO, and PGA packages represent the fastest growth
areas.
SORFACE-MOUNTED DEVICES (SMDs)
Even though leaded components still predominate in units, the future
clearly lies with SMDs. There are four major market forces at work:
•
Economy
•
Miniaturization
•
Quality
•
Complexity
7.0-2
e 1985 Dataquest Incorporated Oct. 23 ed.
ESIS Volume II
7.0 Packaging
The benefits of SMDs can be summarized as follows:
•
Higher levels of automation possible
•
Denser component packaging
•
Improved performance (especially high frequency)
•
Improved quality (primarily as a result of automation)
•
Smallest system size
•
Lower system cost
DATAQUEST believes that SMDs will be significant in providing the
ultimate in cost-effective solutions, especially in the consumer,
government and military, and telecommunications end-user markets.
ESIS Volume II
C 1985 Dataquest Incorporated Oct». 23 ed.
7.0-3
7.1 Packaging Market Estimates
IMTRODUCTIOM
The DATAQUEST European Semiconductor Industry
packaging trends by the following package types:
Service
analyzes
Plastic DIP
CERDIP
Ceramic DIP
FlatpacK
Ceramic chip carrier
Plastic chip carrier and quad
SO
PGA
Header
Other
Tables 7.1-1 and 7.1-2 give DATAQUEST's estimates of European
shipment by package type. Table 7.1-1 covers all package types; Table
7.1-2 summarizes that portion that is surface mounted.
A full list of the tables and figures is presented below:
Table 7.1-1—Estimated European shipments by package type
Table 7.1-2—Estimated European SMD shipments by package type
Figure 7.1-1—Estimated functional board density
Figure 7.1-2—Projected cost reduction trends
Figure 7.1-3—Surface-mount vs. through-hole packages
ESIS Volume II
® 1985 Dataquest Incorporated Nov. 18 ed.
7.1-1
7.1 Packaging Market Estimates
Table 7.1-1
ESTIMATED EUROPEAN SHIPMENTS BY PACKAGE TYPE
(Millions of lAiits)
Package
Plastic DIP
CERDIP
Ceramic DIP
Flatpak
Ceramic Chip Carrier
Plastic Chip Carrier
and Quad
SO
PGA
Header
Other
•total
1983
1984
1985
1986
3,601
4,300
5,551
6,546
392
23
6
12
433
25
6
28
520
29
6
51
580
32
5
91
10
14
2
23
125
31
37
5
25
177
80
78
10
29
259
• 162
4,208
5,067
6,613
1987
1988
7,237
608 •
8,552
32
5
145
669
35
5
281
134
19
32
344
271
212
26
31
403
654
520
50
33
563
7,945
8,970
11,362
Table 7.1-2
ESTIMATED EUROPEAN SMD SHIPMENTS BY PACKAGE TYPE
(Percent)
Package
Plastic DIP
CERDIP
Ceramic DIP
Flatpak
Ceramic Chip Carrier
Plastic Chip Carrier
and Quad
SO
PGA
Header
Other
Itotal
1983
1984
1985
1986
1987
1988
85.6%
9.3
0.6
0.2
0.3
84.9%
8.6
0.5
0.1
0.6
83.9%
7.9
0.4
0.1
0.8
82.4%
7.3
0.4
0.1
1.1
80.7%
6.8
0.4
0.1
1.6
75.3%
5.9
0.3
0
2.5
0.2
0.3
0.1
0.5
3.0
0.6
0.7
0.1
0.5
3.5
1.2
1.2
0.2
0.4
3.9
2.0
1.7
0.2
0.4
4.3
3.0
2.4
0.3
0.4
4.5
5.8
4.6
0.4
0.3
5.0
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Percentages may not add to 100.0% due to rounding.
Source:
7.1-2
e 1985 Dataquest Incorporated Nov. 18 ed.
DATAQUEST
October 1985
ESIS Volume II
7.1 Packaging Market Estimates
DATAQUEST estimates that by the end of this decade, approximately
50 percent of all PCBs produced in Europe will use SMDs (surface-mounted
devices) predominantly. The main inhibiting factor will be the high cost
of entry associated with the necessity to tool up for automation.
Figure 7.1-1 illustrates the trend toward increasing board functional
density. We believe that this trend away from the present level of
around 7 percent to the projected 42 percent level in 1993 is due to:
•
The movement from conventional DIPs to SMDs
•
Package pitch reductions from 0.1-inch lead spacing
•
Increased chip functional density
Figure 7.1-2 illustrates the potential opportunities for system cost
reduction through the use of SMD packaging techniques. System cost is a
function of size and materials. The lowest system costs can therefore be
achieved via:
•
The densest chip technology (VLSI)
•
Minimum chip encapsulation (SMD)
•
The lowest-cost substrates
•
Automation
Ultimately, we believe that cost reductions will be achieved by
direct chip-on-board techniques. Already commonplace in the low-end,
consumer-oriented products, DATAQUEST expects chip-on-board techniques to
mature sufficiently with the necessary quality and reliability to be used
in other application areas.
Figure 7.1-3 illustrates the trend toward SMDs as a percentage of
total IC packages. The trend shows this going from 3 percent in 1984 to
almost 15 percent by 1988. DATAQUEST expects, however, that this growth
may be even faster due to a number of factors:
•
SMDs that are more suitable high-speed, high-performance systems
•
Device dissipation becoming less of a problem as CMOS technology
is used more extensively
•
Increasing availability
insertion equipment
ESIS Volume II
of
improved
plastics
and
© 1985 Dataquest Incorporated Nov. 18 ed.
handling/
7.1-3
7.1 Packaging Market Estimates
Figure 7 . 1 - 1
ESTIMATED FONCTIONAL BOARD DENSITY
Percent On-Board
Functional Density
Preferred Package—Pin Count
Small Outline (SO)—28
Chip Carrier—28-84
Pin/Pad Grid Array (PGA)—84
60^
5040-
Trend from DIP Caused by
• Higher Functional Density
• Potential Pitch Reductions
3020-
Move to TAB via SO then
LCC then PLCC as Assembly
Techniques Evolve
100
—I—
-I
—r-
i«a3
1993
1968
Figure 7.1-2
PROJECTED COST REDDCTION TRENDS
• Cost Proportional
to Size
• Cost Proportional
to Material
Percent System
Cost
100
Lowest System Cost
through Densest Chip
Technology in Minimal
Encapsulation Using
Low-Cost Substrates
Chip Carrier
Snull Outline
Surface Mounted
Board*
tan
Doubie-Clao
Surtac* trfourtied
1963
Chip on Board
1907
Source:
7.1-4
1985 Dataquest Incorporated Nov, 18 ed.
DATAQUEST
October 1985
ESIS Volume II
7.1 Packaging Market Estimates
Figure 7 . 1 - 3
SURFACE-MOONT VS. THBOUGH-BOLE PACKAGES
( P e r c e n t o f SMO D e v i c e s )
PERCENT
15
10
1984
1985
1986
1987
1988
Source: DAIAQUEST
October 1985
ESIS Volume II
e 1985 Oataquest Incorporated Nov. 18 ed.
7.1-5
7.1 Packaging Market Estimates
(Page intentionally left blanH)
7.1-6
© 1985 Dataquest Incorporated Nov. 18 ed.
ESIS Volume II
Dataquest
tLuropean ASIC Market
Consumption Forecast 1987-1995
and Market Share Rankings
t
European ASIC Market
Consumption Forecast 1987-1995
and Market Share Rankings
\
A European Semiconductor Industry Service Report
Published by Dataquest Europe Limited
Dataquest cannot and does not guarantee the accuracy and completeness of the data used in the comfulation of this report and
shall not be liable for any loss or damage sustained by users of this review.
Printed in the United Kingdom. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or
transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or
otherwise—without the prior written permission of the publisher.
® 1991 Dataquest Europe Limited
Jaimary 1991
00082S9
i
Table of Contents
Page
1. Introduction and Definitions
1
2. European ASIC Consumption Forecast 1987-1995
3
3. European Gate Array Consumption Forecast 1987-1995
11
4. European Programmable Logic Devices Consumption Forecast 1987-1995
17
5. European Cell-Based IC Consumption Forecast 1987-1995
25
6. European Custom IC Consumption Forecast 1987-1995
33
chapter 1
Introduction
and
Definitions
Introduction
Application revenues and percentage splits for
the product
This booklet gives Dataquest's history and forecast for the European ASIC market. The ASIC
market is divided into the following product categories: gate array; programmable logic device
(PLD); cell-based integrated circuit (CBIC); and
custom. The definition of these categories is given
below. Figure 1.1 shows the relationship between
the product categories.
Diagrams illustrating relevant trends
The product chapters are divided into sections as
follows:
• An introduction containing a summary, trends
and Dataquest conclusions about the market
• Forecast and history tables for the product
• The top ten suppliers, where applicable, by
technology
• Regional revenues and percentage splits for the
product
Definitions
The term application-specific integrated circuit
(ASIC) can refer to a multitude of product types.
However, when Dataquest first coined the term it
had a definite meaning, and the product types
tracked and forecast conformed to that specific
meaning. When comparing company or market
data with history, or forecasting potential market
share, it is of vital importance that definitions are
consistent. For this reason, Dataquest uses the
original definition, which is restated as follows:
• ASIC. A single-user IC that is manufactured
using vendor-supplied tools and/or libraries.
• Gate Array. An ASIC device that is customized
using the final layers of interconnect. Included
Figure 1.1
ASIC Family Tree
Source: Dataquest Qanuary 1991)
European ASIC Market Consumption Forecast
Chapter 1
in this category are generic or base wafers that
include embedded functions such as static random access memory.
• PLD. A logic device that can be customized by
the user after assembly.
• Cell-Based Integrated Circuits. An ASIC device
that is customized using a full set of masks and
which uses automatic placement of cells and
automatic routing.
• Custom. An ASIC device that is customized
using a full set of masks and which requires
manual placement and routing of the cells.
• Mixed Signal. An ASIC device with both digital
and analog signal input or output (excluding
line driver outputs and single comparator and
Schmitt trigger inputs).
We understand that mixed signal ASICs fall into
two categories: simple mixed signal ASICs that
use pre-characterized cells that can be tested
using a digital tester; and more complex, highperformance mixed signal devices that require
analog test. This definition is intended to cover
both types of mixed signal ASIC.
It is important to note that ASIC refers to singleuser ICs, and not mulitple-user standard products
which are targeted at specific applications such as
PC chip sets. These multiuser products are more
aptly named application-specific standard
products (ASSPs). ASSP-type products are currendy included in the microperipheral category of
both Dataquest and the World Semiconductor
Trade Statistics (WSTS) organization.
Data Tables
The tables and figures give Dataquest's ASIC forecast data according to the indexes in each section.
In the tables, columns may not add to totals due
to rounding.
0008259
©1991 Datoquest Europe limited Januarys-Reproduction Prohibited
ESIS
Chapter 2
European ASIC Consumption
1987^1995
Summary
The European ASIC market will continue to grow
faster than the European semiconductor market as
a whole, over the next five years. By 1995 Dataquest estimates the European ASIC market to be
worth $2,803 million. This represents a compound
annual growth rate (CAGR) of 15.8 percent over
the five years from 1990 to 1995. The CAGR for
the European semiconductor market over the
same period is 14.4 percent.
In 1989 the European ASIC market grew by
20 percent compared to a European semiconductor market growth of 14.9 percent. However, in
1990 we expea growth to slow to about 14 percent, followed by 9 percent in 1991. At the end of
1990 there are clear signs of a slowdown in the
world economy, and this is expected to worsen as
we enter 1991. Inevitably this will impact the
European semiconductor market, including ASICs.
Dataquest expects the market to begin to recover
in the second half of 1991, and climb towards a
peak growth rate in 1993.
Gate arrays currendy have the largest share of the
European ASIC market, representing 34 percent in
1989. This share is expected to remain constant
out to 1995, but by then cell-based ICs (CBICs)
will have the largest share of the ASIC market, at
37 percent. This is because of the increasing use
of mixed signal CBICs, driven by the growth in
the telecommunications segment of the semiconductor market. The CAGR for gate arrays for the
period 1990 to 1995 is 15.8 percent, compared to
a CAGR of 19.0 percent for CBICs. This will give a
revenue of $960 million for gate array, and
$1,051 million for CBICs.
The ASIC product with the highest CAGR for the
period 1990 to 1995 is the programmable logic
device (PLD), with a CAGR of 30.2 percent. PLD
revenue in 1995 is expected to be $560 million,
representing 20 percent of the ASIC market. The
high growth for PLD is from a low base of
$127 million in 1989, and is due to the expected
Forecast
large growth in usage of CMOS field programmable gate arrays (FPGAs) in telecoms and industrial applications.
The use of full-custom ASIC is expected to decline
over the next five years. By 1995 the market is
estimated to be worth $232 million, declining at a
CAGR of ^.d percent. In 1995 full-custom is
expected to represent only 8 percent of the European ASIC market, declining from 22 percent in
1990.
Trends
The cost per gate of ASICs is expected to decline
over the next five years, but the increased complexity of the devices should compensate for this,
resulting in a higher average unit price overall.
The nonrecurring engineering (NRE) charge for
designs is also expected to increase in line with
the increase in complexity. In particular, the
greater use of analog cells will drive a significant
increase in NRE cost for CBICs. The limited number of manufacturers which are capable of supplying mixed signal devices means that in the short
term there will be litde price competition for
mixed signal products. The longer term is less
rosy, though, as design tools ease the design of
mixed signal devices, and more manufacturers
enter the mixed signal arena.
The lifetime of equipment is reducing, as manufacturers fight for market share by introducing
new products at a faster rate. As a result, the
number of units for any one product will fall, but
the number of new designs should rise. This trend
is not apparent at the moment, but should
become more so in the next few years. The result
of this shorter product life means that the design
time, and time to market for a product, will be
reduced. This will drive equipment manufacturers
towards gate arrays for digital applications, as the
manufacturing time for gate array is faster than for
CBIC. CBIC will therefore be used for designs
which carmot be fitted onto a gate array. Typically
these are where special cells are required, or
3
European. ASIC Market Consumption Forecrast
where large areas of RAM are needed, or where
higher-performance analog cells are required.
The main trend apparent in ASIC applications is
the migration through the various implementations of ASIC, as each of these implementations
offers additional capabilities as part of the product
development. There is a shift through the ASIC
implementations from custom to CBIC, from CBIC
to gate array, and from gate array to FPGA.
The increased use of FPGAs will attract new ASIC
users, who would not have used ASICs before.
FPGAs will also take market share from the existing gate array market. The applications w^here
gate arrays will lose share to programmable gate
arrays are where the volumes are low, and the
NRE represents a large part of the total cost of the
ASIC; or where the gate count is low enough to
merit the use of the FPGAs. The complexity of
FPGAs is gradually increasing, so they will be able
to be used for more and more of the applications
which were previously only within the capabilities
of standard gate array.
Gate arrays will become the preferred choice over
CBICs for most digital applications. This will be
due to the lower cost of prototyping and manufacturing gate arrays, and the abUity to manufacture gate arrays faster. Where time to market and
cost are of key consideration, gate arrays will be
the first choice. The gate densities of gate arrays
are approaching those of CBICs, so the increased
cell densities previously achieved for CBICs will
not give sufficient advantage to outweigh the
increased prototype time or NRE cost.
Cell-based ICs will be used for making devices
which cannot be made cost-effectively with gate
arrays. Typically, these will be devices which
include large areas of RAM, or where specialized
cells are required. These cells are most likely to be
analog cells, and this will be the biggest growth
area for CBICs. The strength of the telecoms market in Europe will give a strong pull to mixed
signal ASICs, and cell-based design currently is
the most suitable implementation for mixed signal
ASICs.
Chapter 2
The use of custom is in decline, as cell-based
design gives layout densities which are sufficient
for most applications. The fast design time offered
by CBIC design tools easily compensates for the
slighdy larger area of the devices. The increasing
use of design standards such as VHDL ensure that
only cell-based design is used for many projects.
These design standards are expensive to implement for custom design, and are not usually costeffective. Custom design will still be used in some
areas, such as some consumer or very highvolume designs, but generally the use of custom
ASIC design is in decline.
Conclusions
To achieve success in ASIC a vendor must concentrate in areas of high growth and high profitability. These areas are currently mixed signal
CBIC, high gate count gate array, and field
programmable gate arrays. However, these areas
are likely to become saturated with suppliers and
products, forcing prices and profits down. Staying
ahead will need continued investment in new
products and processes, but this will ultimately
result in a situation similar to that of DRAMs,
where the development of the next generation of
products includes the building of a billion dollar
fabrication plant. The real key to success will be
the closer coupling of ASIC suppliers and users, to
develop the key products that the customer
wants, and can use.
In the short term the reduction of design and
manufiacture time for end equipment will be a
requirement by the ASIC user, and so the success
of FPGAs should be assured, as these have the
shortest manufacture time. Overall, the reduction
in design time can only be achieved through the
development of better design tools.
While there is some cannibalization of gate array
designs by FPGAs, and CBIC designs by gate
arrays, the replacement of full-custom designs by
CBIC methodology has been virtually total.
0008259
©1991 Dataquest Europe Linuted January^-^teixoduction Prohibited
ESIS
Chapter 2
European ASIC Consumption Forecast 1987-1995
Index of Tables and F^ures—Chapter 2
Total ASIC Revenue History and Forecast
Table 2.1
Figure 2.1
Share of ASIC Market by Product
Figure 2.2
ASIC Product Growth
Figure 2.3
Share of ASIC Market by Technology
Table 2.2
Top 10 European Bipolar ASIC Suppliers
Table 2.3
Top 10 European MOS ASIC Suppliers
Table 2.4
Top 10 European Total ASIC Suppliers
Table 2.5
Total ASIC Consumption Forecast by Application
Figure 2.4
Total ASIC Consumption by Application
Table 2.6
Total ASIC Consumption Forecast by Region
Table 2.1
Total ASIC Revenue History and Forecast
(MllUons of Dollars)
1991
1992
1993
1994
1995
1,465
1,198
1,779
2,193
2,541
2,803
CAGR
1990-95
15.8%
1,473
1,833
16.8%
202
203
204
2,123
202
2,345
198
24
225
40
66
103
156
216
260
-2.5%
45.4%
358
407
461
488
15.8%
308
361
748
828
18.1%
95
0
100
96
95
393
88
743
636
960
257
599
498
867
165
88
84
-3.1%
3
5
7
13
23
83
36
81
1
51
59.1%
82
118
127
150
264
369
560
30.2%
195
297
72
455
382
490
44.8%
73
70
-0.7%
19.0%
Category
1987
1988
Total ASIC
792
982
MOS
583
Bi{X)lar
BiCMOS
209
0
Gate Array
MOS
Bipolar
BiCMOS
PLD
1989
1,182
1990
1,344
739
232
918
1,079
240
11
260
MOS
15
27
48
77
191
126
Bip>olar
67
91
79
73
66
69
151
220
324
440
538
671
210
294
401
481
590
829
712
973
814
1,051
151
867
16.7%
Bipolar
0
0
8
10
11
14
11.8%
0
10
31
47
70
103
13
146
14
BiCMOS
9
21
170
40.5%
299
252
286
324
293
240
248
245
252
246
232
-4.6%
198
190
188
179
160
-7.8%
49
4
38
35
20
34
33
34
33
-7.6%
39
57.7%
CBIC
MOS
Custom
MOS
47
245
41
268
Bipolar
BiCMOS
0
0
0
56
12
30
Soufce: Dataquest (January 1991)
ESIS
©1991 Dataquest Europe Limited January—Reproduction Prohibited
0008259
European ASIC Market Consumption Forecast
Chapter 2
F^:ure 2.1
Share o f ASIC Market by Product
Percent Share
1988
1989
- Gate Array
1990
—t— PLD
1991
1992
1993
-•^" Cell-Based
1994
1995
- H - Custom
Source: Dataquest Qanuaiy 1991)
Figure 2.2
ASIC Product Growth
Percent Growth
50%
-20%
1988
1989
—"— Gate Array
1990
1991
PLD
1992
*
1993
Cell-Based
1994
1995
Custom
Source: Dataquest Qanuaiy 1991)
0008259
©1991 Dataquest Europe Limited January^^teproduction Prohibited
ESIS
Chapter 2
European ASIC Consumption Forecast 1987-1995
F^ure 2.3
Share of ASIC Market by Technology
Percent Share
100%
80% -
60% -
40% -
20%
1994
BiCMOS
Bipolar
*
1995
CMOS
Source: Dataquest Qanuafy 1991)
ESIS
©1991 Dataquest Europe Limited January—Reproduction Prohibited
0008259
Chapter 2
European ASIC Market Consumption Forecast
i
Table 2.2
Table 2.4
Top 10 Bipolar ASIC Suppliers
(MllUons of Dollars)
Top 10 Total ASIC Suppliers
(MilUons of Dollars)
Company
Plessey
Revenue
Rankii^
1987 1988 1989
54
5
43
1989
1
Revenue
Company
Plessey
Advanced Micro Devices
43
56
49
2
Siemens
Siemens
51
28
37
ITT Intermettal
8
28
10
29
14
3
4
Texas Instruments
Philips
1987 1988
82
26
Ranking
19891989
1
101
90
56
92
2
102
95
54
91
79
3
4
59
58
69
52
5
6
7
Texas Instruments
22
LSI Logic
44
Advanced Micro Devices
National Semiconductor
18
15
16
11
5
6
Telefunken
10
10
7
7
Toshiba
45
16
44
52
7
5
4
6
8
Mietec
32
42
50
8
11
5
SGS-Thomson
25
35
50
0
0
5
9
10
National Semiconduaor
35
51
47
9
10
Motorola
Fujitsu
NEC
Source: Dataquest Qatoarf 1991)
Source: Dataquest 0»>uaiy 1991)
Table 2.3
Top 10 MOS ASIC Suppliers
(MllUons of Dollars)
Revenue
Company
1987
102
95
91
1989
1
59
28
69
2
42
55
50
3
4
14
26
50
Toshiba
16
41
50
5
6
SGS-Thomson
23
21
n r Intermettal
LSI Logic
44
Siemens
Mietec
39
32
Texas Instruments
Plessey
Austria Mikro Systeme
VLSI Technology
Source: E>ataquest Qanuaiy 1991)
29
17
i
Rankii^
1988 1989
35
48
7
39
36
47
8
44
25
37
9
10
i
0008259
©1991 Dataquest Europe Liinited January—Sei»tiduction Prohibited
ESIS
European ASIC Consumption Forecast 1987-1995
Cliapter 2
Table 2.5
Total ASIC Consumption Forecast by Application
Minions of Dollars
1987
1988
401
1991
432
1992
521
1993
643
1994
316
1989
368
1990
Communication
259
210
255
312
370
406
129
171
200
230
252
499
308
613
392
707
Industrial
Application
Data Processing
743
1995
835
774
76
95
114
129
162
198
230
495
261
50
63
79
102
138
171
195
113
35
130
158
165
167
187
208
236
243
1987
1988
1989
1990
1993
1994
33%
32%
26%
28%
28%
29%
28%
29%
27%
16%
29%
28%
1995
30%
Communication
31%
26%
30%
1991
30%
1992
Data Processing
28%
28%
17%
17%
17%
17%
17%
18%
18%
18%
8%
8%
8%
9%
9%
3%
14%
7%
13%
5%
11%
7%
13%
5%
12%
9%
6%
9%
4%
9%
6%
9%
4%
11%
9%
9%
9%
Military
Transportation
Consumer
59
22
455
Percent of Revenue
Application
Industrial
Military
Transportation
Consumer
Soiirce: Dataquest Qanuaiy 1991)
Figure 2.4
Total ASIC Consumption by Application
Data Processing
Data Processing
30%
31%
Communications
28%
Communications
26%
Consumer
9%
Consumer
13%
Transportation
Military
4%
8%
Industrial
17%
1989
Transportation
7%
Industrial
18%
Military
9%
1995
Source: Dataquest Qanuaiy 1991)
©1991 Dataquest Europe Liniited January—Reproduction Prohibited
0008259
Chapter 2
European ASIC Market Consumption Forecast
10
i
Table 2.6
Total ASIC Consumption Forecast by Region
MiUlons of Dollars
1987
32
1988
38
France
169
203
Italy
103
143
76
Region
Benelux
Scandinavia
1994
1990
1991
1992
55
63
93
271
305
73
322
1993
114
373
440
129
496
157
177
194
302
334
94
98
225
121
276
88
150
177
200
1989
1995
142
525
UK and Eire
63
152
380
480
340
265
388
301
245
179
308
227
West Germany
420
513
628
567
741
643
804
Rest of Europe
27
36
45
52
58
75
104
130
155
1987
1988
1989
1993
1994
1995
Region
Percent of Revenue
1992
1990
1991
5%
5%
5%
21%
22%
23%
4%
4%
5%
France
21%
21%
23%
Italy
13%
8%
15%
8%
13%
7%
13%
7%
13%
7%
Benelux
Scandinavia
5%
5%
5%
20%
20%
13%
7%
13%
7%
12%
19%
12%
7%
7%
UK and Eire
19%
18%
19%
20%
21%
21%
22%
22%
23%
West Germany
31%
29%
4%
29%
4%
29%
4%
29%
3%
29%
4%
29%
Rest of Eurojje
31%
4%
5%
5%
29%
6%
Source: Dauquest (Jsanary 1991)
i
i
0008259
©1991 Dataquest Europje Limited January—^Reproduction Prohibited
ESIS
Chapter 3
European
Forecast
Gate Array
1987-1995
Summary
The European gate array market grew by 14 percent in 1989, reaching $407 million. This was a
modest growth by comparison with previous
years, where annual growth rates were high,
characteristic of a market in its infancy. We see
this more stable growth continuing into 1990, with
the market increasing by 13 percent over 1989. A
close inspection of gate arrays reveals that a
maturing of CMOS gate array, which represented
76 percent of total gate array in 1989, lies behind
this slower growth.
As the semiconductor market continues to slow in
1991, total gate array will show a modest 6 percent growth over 1990. Typical of a maturing
market we expect that, while gate array will continue to grow above the semiconductor market
average, its growth will track the market average
more closely than in the past.
Consumption
a particular application. The ability to integrate a
large number of gates onto a single chip means
the number of chips required to implement complex systems is reduced.
The higher gate density now available in gate
arrays is resulting in a lower cost in cents per gate
for these arrays. This lower unit cost is therefore
giving the user a choice between gate arrays and
CBICs in many pure digital applications, as the
gate densities for gate array are now approaching
diose achieved by CBIC designs. Gate arrays are
becoming the preferred choice for many digitalonly ASICs because they offer faster prototyping
and lower nonrecurring engineering charges.
The dominant technology for gate array at the
moment is CMOS, but the development and application of BiCMOS technology for gate arrays
offers higher performance and drive capability
when compared to standard CMOS.
Over the five-year period from 1990 to 1995 Dataquest estimates the European gate array market
will grow at a CAGR of 15.8 percent. In 1990 gate
array will be the largest portion of the European
ASIC market, at 34 percent. By 1992 CBICs will
have become the largest product category, overtaking gate array. This is due to the rapid growth
of mixed analog/digital CBICs. However, in pure
digital ASICs gate arrays will continue to be the
major product category for the next five years.
However, the manufacturing technology which
these BiCMOS arrays need is expensive, and the
cost in terms of cents per gate is currently five to
ten times that of existing CMOS designs. This
means that the replacement of CMOS arrays by
BiCMOS arrays will be low in the short term. The
improvement in speed offered by BiCMOS, however, means that the arrays are approaching the
speed achieved by ECL arrays, and the cost is still
lower than ECL. In addition, the BiCMOS arrays
use significantly less power than the ECL arrays.
As a result, BiCMOS growth will be achieved in
the short term at the expense of ECL.
Trends
CMOS gate arrays are also under threat from the
recently introduced field programmable gate
arrays (FPGAs). The gate density of these FPGAs
is reaching 8,000 gates, and will continue to rise
as new architectures and processes improve the
density and size of the devices. This means FPGAs
will be more cost-effective than standard gate
arrays for lower-volume, lower gate count
applications.
The average gate count per design for gate arrays
is increasing, and the unit cost of the arrays, in
terms of cents per gate, is decreasing. The result
of this is an increase in unit price, because the
gate count is growing faster than the reduction in
cents per gate. The maximum number of gates
available on a single array is also increasing, and
the consequence of this increase in gate density is
a reduction in the number of designs required for
11
12
European ASIC Market Consumption Forecast:
Conclusions
Gate arrays will lose their dominant position in
the ASIC market to CBIC within the next two
years. The growth in demand for mixed signal
ASICs is very strong, and CBICs are the only ASIC
implementation which is able to meet the performance requirements of the mixed signal applications. This, when added to the growth in digital
CBICs, will topple gate array ft-om its number one
position.
Gate arrays are also under attack from FPGA for
low-volume, low gate count applications. However, CMOS gate arrays are increasing their maximum achievable gate count by utilizing the
increase in gate density to integrate more gates
onto a single chip. The price paid for this, though,
is a higher cost for the arrays themselves, in a
market where the price expectation for these
arrays is very low.
Chapter 3
The gate array market is low margin business, due
to the number of gate array suppliers available.
The cost of development of the new products
with the bigger profit margins is high, so only the
larger manufacturers can afford to compete in the
long term. The need to find added value can only
be met with specialist development and applications of cells in the array, or the development of
unique gate array products. The risk of the development of these cells or products will be that their
use may be low, as ASIC users try to standardize
on more established arrays, or are unsure of their
application.
i
Index of Tables and Figures—Chapter 3
Table 3.1
Gate Array Revenue History and Forecast
Figure 3.1
Share of Gate Array Market by Technology
Table 3.2
Top 10 Bipolar Gate Array Suppliers
Table 3.3
Top 10 MOS Gate Array Suppliers
Table 3.4
Top 10 Gate Array Suppliers
Table 3.5
Gate Array Consumption Forecast by .^plication
Figure 3.2
Gate Array Consumption by Application
Table 3.6
Gate Array Consumption Forecast by Region
i
i
0008259
©1991 Dataquest Europe Limited January—BeproductUon Prohibited
ESIS
Chapter 3
European Gate Array Consumption Forecast 1987—1995
13
Table 3.1
Gate Array Revenue History and Forecast
(Millions of Dollars)
Category
1988
Total ASIC
1987
792
MOS
583
Bipolar
BiCMOS
209
0
739
232
Gate Array
MOS
982
CAGR
1990-95
15.8%
2,193
1994
2,541
2,803
1,833
204
2,123
202
2,345
198
103
156
216
260
-2.5%
45.4%
599
498
743
636
867
960
15.8%
748
828
18.1%
88
84
83
36
81
-3.1%
51
59.1%
1989
1,182
1990
1991
1992
1993
1,344
1,779
918
1,079
1,465
1,198
1,473
240
225
40
202
203
(£
461
488
361
1995
16.8%
11
24
260
358
165
257
407
308
95
0
100
96
95
393
88
1
3
5
7
13
23
MOS+BiCMOS
165
258
311
366
400
511
257
1
305
6
360
393
6
7
499
12
754
879
844
19.2%
165
0
659
638
784
Digital
21
30
35
42.3%
95
100
96
95
88
88
84
-3.1%
100
92
84
80
78
-2.6%
0
4
89
6
82
83
80
81
95
0
6
4
4
3
3
-12.9%
1994
1995
Bipolar
BiCMOS
Linear
Bipolar
Digital
Linear
Scrutce: Daiaquesi (Januaiy 1991)
18.6%
Figure 3.1
Share of Gate Array Market by Technology
Percent Share
100%
80%
60% 40%
20%
0%*
1987
1988
1989
CMOS
1990
1991
1992
*
1993
BiCMOS
Source: Dataquest Qanuary 1991)
ESIS
©1991 Dataquest Europe Limited January—Rejjroduction Pnsliibited
0008259
Chapter 3
European ASIC Market Consumpttoa Forecast
14
i
Table 3.2
Table 3.4
Top 10 Bipolar Gate Array Suppliers
(Millions of Dollars)
Top 10 Gate Array Suppliers
(Millions of Dollars)
Company
Revenue
Ranking
1989
1
Siemens
1987 1988 1989
34
4
35
22
26
39
Motorola
5
4
6
National Semiconductor
6
6
11
7
4
NEC
0
0
5
Philips
2
5
STC Components
0
Raytheon
0
Applied Micro Circuits
2
Plessey
Fujitsu
Company
Plessey
Revenue
Ranking
1987 1988 1989
21
70
60
1989
1
2
LSI Logic
40
52
58
2
3
4
Toshiba
16
41
50
SGS-Thomson
17
30
3
4
5
6
National Semiconductor
13
20
32
28
8
18
24
5
6
7
Siemens
42
28
24
7
7
5
4
8
Fujitsu
21
16
8
7
1
3
2
9
10
5
9
7
19
14
5
Source: Dataquest (Januaiy 1991)
NEC
Texas Instruments
Hitachi
5
12
9
10
Source: Dataquest O^""^^ 1991)
Table 3.3
Top 10 MOS Gate Array Suppliers
(MiUions of Dollars)
Company
LSI Logic
Revenue
Ranking
1987 1988 1989
52
40
58
1989
1
Toshiba
16
41
50
2
Plessey
17
26
SGS-Thomson
11
17
35
28
3
4
National Semiconduaor
14
8
25
18
10
12
NEC
Fujitsu
Texas Instruments
Matra-MHS
Hitachi
Source: Dataquest Qanvaty 1991)
22
5
19
14
6
7
8
3
9
8
14
12
5
7
11
9
10
5
i
i
0008259
©1991 Dataquest Europe Limited January—Reproduction Prohibited
ESIS
chapter 3
European Gate Array Consumption Forecast 1987-1995
15
Table 3.5
Gate Array Consumption Forecast by Application
Millions o f Dollars
1993
306
224
1994
125
149
41
158
16
18
47
53
1993
37%
1994
1995
38%
31%
20%
31%
31%
19%
19%
31%
18%
5%
2%
5%
2%
5%
2%
5%
2%
5%
2%
7%
6%
6%
6%
6%
1992
252
1987
1988
1989
1990
1991
137
60
175
85
183
114
199
132
209
142
Industrial
41
65
65
77
80
Military-
10
15
22
3
17
6
20
2
7
8
27
10
10
15
22
26
28
31
1987
1988
37%
37%
1990
34%
1991
35%
1992
Data Processing
1989
34%
Communication
26%
26%
Industrial
25%
25%
31%
21%
31%
21%
31%
20%
Transportation
5%
1%
5%
1%
5%
2%
5%
2%
Consumer
6%
6%
7%
7%
Application
Data Processing
Communication
Transportation
Consumer
177
102
35
13
40
1995
391
294
350
265
46
Percent of Revenue
Application
Military
36%
37%
Source: Dataquest Qanuary 1991)
F^^re 3.2
Gate Array Consumption b y Application
Data Processing
34%
Data Processing
30%
Consumer
7%
Transportation
Consumer
6%
Transportation
MliitarP"
5%
Communications
31%
Industrial
21%
1989
MIBtary^"*
5%
Communications
31%
Industrfal
18%
1995
Source: Dataquest Qanuaiy 1991)
ESIS
©1991 Dataquest Europe Limited January—jteproduction Prohibited
0008259
Chapter 3
European ASIC Market Consumption Forecast
16
i
Table 3.6
Gate Array Consumption Forecast by Region
Millions of Dollars
1987
10
1988
France
34
Italy
43
49
64
Region
Benelux
Scandinavia
UK and Eire
31
61
13
39
77
1989
20
1990
67
75
61
63
25
1991
26
1992
1993
40
1994
46
1995
50
112
124
130
81
103
114
127
70
78
94
33
94
79
68
44
47
48
54
89
111
142
177
214
246
138
250
268
17
169
26
208
34
40
45
West Germany
77
107
113
103
130
Rest of Europe
5
8
13
17
Region
1987
1988
1989
1990
1991
1992
1993
1994
1995
Benelux
3%
16%
3%
16%
5%
5%
5%
18%
5%
5%
5%
17%
16%
Scandinavia
23%
6%
23%
6%
15%
8%
UK and Eire
21%
15%
7%
24%
15%
14%
5%
14%
24%
West Germany
27%
Rest of Eurofje
5%
Percent of Revenue
France
Italy
19%
18%
19%
16%
21%
7%
21%
7%
22%
28%
28%
26%
27%
3%
3%
4%
5%
16%
7%
23%
27%
4%
8%
14%
9%
26%
27%
25%
28%
27%
5%
5%
5%
Source: Dataquest 0*n"*'y 1991)
i
i
0008259
©1991 Dataquest Europe limited January—Reproduction Prohibited
ESIS
Chapter 4
European
Programmable
Logic Devices
Consumption Forecast 1987—1995
Summary
The European programmable logic device (PLD)
market grew by 8 percent in 1989 to $127 million.
The growth of this market is controlled by the size
of the bipolar segment, which is suffering severe
price erosion. Bipolar PLDs represent 62 percent
of the total PLD market for 1989 and this sector of
the PLD market declined by 13 percent in 1989,
compared with a growth of 78 percent for CMOS
PLD over the same period.
Bipolar PLDs are forecast to decline at a CAGR of
only 0.7 percent over the period 1990 to 1995, to
a total of $70 million. This compares with a CAGR
for CMOS PLD of 44.8 percent over the same
period, to a value of $490 million. The total PLD
market will grow by a CAGR of 30.2 percent to
$560 million by 1995. CMOS PLD shipments are
forecast to overtake bipolar PLD shipments by
1991.
Trends
The section of the PLD market with the highest
growth rate is the field programmable gate array
(FPGA), with a CAGR over the period 1990 to
1995 of 61.7 percent. By 1995 these devices will
represent 57 percent of the total PLD market.
These devices have the capability of integrating
up to 8,000 gates at present, which means they
are able to implement a large number of designs
that were previously only possible with a gate
array. As a result, field programmable gate arrays
are "stealing" designs from gate arrays, as well as
creating a market of their own. Their strength lies
in the ability to prototype devices instantly, without undergoing the delay in manufacture that is
needed for conventional gate arrays. In addition,
the saving of the nonrecurring engineering charge
means FPGAs are very cost-effective for low
volumes. The trend for shorter production runs
and shorter time to market for equipment will
ensure the success of these devices.
There is severe price erosion in bipolar PLDs, as
competition forces the price down. This is seen in
the reduction of bipolar PLD revenue, in spite of
an increase in the number of units shipped during
1989. The main battle for share is in the slower
15ns to 25ns parts, and this is where unit prices
are at their lowest.
Bipolar PLDs continue in their eternal quest for
speed, and the use of ECL cores—and in some
cases complete ECL devices—^has pushed the
propogation delays down as low as 2.5ns. These
very high-speed devices fit into narrow niche
applications, and command premium prices
where they are needed. Bipolar PLDs may have to
fight off competition from high-speed gallium
arsenide (GaAs) PLDs, though, in their key
markets—high-performance supercomputers.
These GaAs devices are now becoming more
readily available as the manufacturing issues come
under more control, and GaAs devices are able to
match the performance offered by high-speed
bipolar devices.
CMOS standard PLDs are also reducing the propagation delays, and are able to meet the speed
requirements of most bipolar PLD applications.
CMOS devices are currently able to meet 10ns
delays, with some devices offering delays as short
as 7.5ns. The mainstream bipolar PLD is therefore
under attact by these CMOS devices, which offer
lower power, resulting in cooler operation for
equipment.
Conclusions
The major area of growth in PLD is with
FPGAs—an area which is already experiencing
massive growth, although fi-om a low base. Success here depends initially on the ability to establish an installed based of proprietary design tools,
tying in customer to a single vendor's product.
The short term will see FPGA vendors fitting to
achieve a large penetration of these design tools,
prior to shipping volume product.
17
IS
European ASIC Market Consumption Forecast
Chapter 4
i
The customer is not ignorant of this strategy,
though, having seen it applied with both cellbased ASICs and gate arrays. Some multivendor
FPGA programmers are emerging, and customers
are likely to latch on to this to ensure safety of
supply. Standards are needed to ensure portability
of designs between the various implementations
of FPGA, and there are already signs of some
interchangeability of designs. Success for the
FPGA supplier will, then, depend on costeffectiveness and customer support.
Bipolar PLD will still find niche applications, but
the longer-term future will belong to CMOS in all
but specialist applications.
Index of Tables and Figures—Chapter 4
Table 4.1
PLD Revenue History and Forecast
Figure 4.1
PLD Market Share by Technology
Figure 4.2
PLD Market Trends
Table 4.2
Top 4 Bipolar PLD Suppliers
Table 4.3
Top 9 MOS PLD Suppliers
Table 4.4
Top 10 Total PLD Suppliers
Table 4.5
PLD Consumption Forecast by Application
Figure 4.3
PLD Consumption by Application
Table 4.6
PLD Consumption Forecast by Region
i
i
0008259
©1991 Dataquest Europe Limited Januaiy—Keproduction Prohibited,
ESIS
Chapter 4
European Programmable Logic Devices Consumption Forecast 1987—1995
19
Table 4.1
PLD Revenue History and Forecast
(Millions of Dollars)
Category
2,345
198
103
156
216
260
-2.5%
45.4%
264
455
382
560
30.2%
195
369
297
490
44.8%
69
72
73
70
-0.7%
148
190
240
14.6%
79
118
215
142
73
62
69
64
169
70
28.6%
72
62
-2.7%
5
(£
6
65
4
8
8
33.2%
64
116
179
240
321
61.7%
225
40
202
(£
150
77
191
126
79
73
(£
112
114
121
35
48
127
62
73
(A
1
71
2
13
29
583
918
1,079
Bipolar
209
0
739
232
240
11
24
82
118
MOS
15
27
127
48
BipKjlar
67
91
78
PLA
2,123
202
1,473
MOS
PLD
203
1,833
204
1,779
1990
1,344
BiCMOS
2,193
1993
1989
1,182
Total ASIC
1995
2,803
1992
1988
982
MOS (CMOS)
11
21
Bipolar
67
91
TTL
67
ECL
0
91
0
79
78
CAGR
1990-95
15.8%
1994
2,541
1991
1,465
1,198
1987
792
16.8%
-0.7%
Field Prog.
MOS (CMOS)
4
Source: Dataquest Oanuaiy 1991)
ESIS
6
©1991 Dataquest Europe Umited January—Jteproduction Prohibited
0008259
Chapter 4
European ASIC Market Consumption Forecast
20
i
Figure 4.1
PLD Market Share by Technology
Percent Share
100%
eo%
60%
40% -
20%;^
1990
1991
CMOS
1992
1993
1994
1995
Bipolar
Source: Dataquest (January 1991)
i
Figure 4.2
PLD Market Trends
Percent Share
Percent Growth
100%
140%
1987
1988
1989
1990
1991
1992
1993
PLA Share
—H-
FPGAShare
PLA Growth
^ 1
FPGA Growth
1994
1995
Source: Dataquest Qanxarf 1991)
i
0008259
©1991 Dataquest Europe Limited January—Reproduction Prohibited
ESIS
Chapter 4
21
European Programmable Logic Devices Consumption Forecast 1987-1995
Table 4.2
Table 4.4
Top 4 Bipolar PID Suppliers
(MiUions of Dollars)
Top 10 Total FU> Suppliers
(Millions of Dollars)
Revenue
Company
Advanced Micro Devices
Texas Instruments
1987 1988 1989
43
56
49
5
18
Philips
8
10
National Semiconductor
9
7
1989
1
1987 1988 1989
52
58
45
1989
1
18
18
2
7
12
8
3
4
Xilinx
9
4
8
5
2
5
4
8
Cypress
7
6
Intel
4
7
7
Philips
3
8
10
6
8
Lattice Semiconductor
0
0
3
0
4
Actel
9
10
6
3
Altera
4
National Semiconductor
Revenue
Ranking
1987 1988 1989 1989
Altera
4
7
12
1
Xilinx
4
2
2
5
4
8
Cypress
7
Intel
3
0
2
4
7
4
3
4
0
1
Actel
0
0
3
3
2
SGS-Thomson
0
1
1
3
2
Rankii^
5
4
5
Top 9 MOS PLD Suppliers
(Millions of Dollars)
Advanced Micro Devices
National Semiconductor
Advanced Micro Devices
Texas Instruments
Table 4.3
Lattice Semiconductor
Company
2
18
Source: Dataquest Qanuaiy 1991)
Company
Revenue
Ranking
2
Source: Dataquest Qanuary 1991)
5
6
7
8
9
Source: Dataquest Qanuary 1991)
ESIS
©1991 Dataquest Europe Limited January—Reproduction Prohibited
0008259
Chapter 4
European ASIC Market Consumption Forecast
22
Table 4.5
PLD Consumption Forecast by Application
Millions of Dollars
Application
162
45
63
77
82
95
101
3
11
15
9
14
22
1991
34%
1992
1993
1994
32%
31%
31%
1995
30%
25%
20%
28%
28%
29%
29%
18%
18%
17%
17%
17%
1%
4%
17%
2%
18%
2%
18%
2%
4%
3%
4%
54
17
33
65
48
74
34
35
38
2
19
1
23
2
31
2
4
3
4
8
17
Industrial
23
Military
15
1
31
18
2
132
47
103
66
53
29
12
47
Communication
Consumer
141
1995
168
1992
1989
Transportation
1994
1991
1988
Data Prcx:essing
1993
114
1990
1987
84
7
11
Percent of Revenue
Application
1987
35%
1988
40%
1989
42%
1990
Data Processing
Communication
15%
14%
13%
22%
Industrial
28%
26%
27%
23%
Military
18%
1%
15%
2%
15%
1%
15%
1%
16%
•MUt.-
3%
2%
3%
4%
Transportation
Consumer
Source: Dataquest Qanuafy 1991)
DW
36%
1%
i
F^ure 4.3
PLD Consumption by Application
Data Processing 42%
Data Processing 30%
Communications 29%
Communications 13%
Qpni
,..jsumer2%
Trai
ransportotion 1 %
Consumer 4%
Transportation 2%
Military 15%
Military 18%
Industrial 17%
Industrial 27%
1989
1995
Source: E>ataquest (January 1991)
i
0008259
©1991 Dataquest Europe Limited January—Reproduction Prohibited
ESIS
Chapter 4
European Programmable Logic Devices Consumption Forecast 1987—1995
23
Table 4.6
PLD Consumption Forecast by Region
Millions of Dollars
Region
1987
Benelux
3
11
France
Italy
1988
4
1989
4
14
15
7
14
15
11
1991
6
1992
1993
11
1994
8
14
1995
17
36
50
64
78
17
25
21
28
56
16
22
39
30
46
14
36
42
1990
5
20
8
12
UK and Eire
23
30
33
38
48
(A
92
114
140
West Germany
25
6
37
39
48
61
84
118
146
8
9
10
14
20
30
36
179
48
Region
1987
1988
1989
1990
1991
1992
1993
1994
1995
Benelux
4%
3%
12%
3%
12%
3%
3%
3%
14%
3%
14%
12%
13%
11%
3%
14%
12%
13%
12%
3%
14%
11%
11%
10%
10%
8%
8%
Scandinavia
Rest of Europe
Percent of Revenue
France
Italy
13%
8%
Scandinavia
10%
10%
9%
9%
9%
8%
UK and Eire
28%
25%
9%
26%
West Germany
30%
31%
31%
25%
32%
25%
32%
25%
32%
25%
32%
25%
32%
25%
32%
Rest of Europe
7%
7%
7%
7%
7%
7%
8%
8%
8%
Source: Dataquest O^nuary 1991)
ESIS
©1991 Dataquest Europe Limited January—Reproduction Prohibited
0008259
Chapter 5
European
Forecast
Cell-Based IC
1987-1995
Suminaiy
The European cell-based IC (CBIC) market grew
by 47 percent in 1989, to $324 million. This was
achieved through high growth in both digital
CBICs and mixed signal CBICs. Growth for CBIC
will fall to 36 percent for 1990, and continue its
decline in growth into 1991, with a revenue
increase of 22 percent.
Cell-based ICs are forecast to dominate the ASIC
market by 1995, with a CAGR of 19.0 percent over
the period 1990 to 1995. The CBIC market is
forecast to be $1,051 million by 1995. CBICs will
overtake gate array as the dominant ASIC technology, mainly through the high growth of mixed
signal CBICs in the telecoms and automotive
markets.
Trends
The use of CBICs in digital applications will
decline from 70 percent of total CBIC revenue in
1989, to 56 percent of all CBIC revenue by 1995.
The growth of mixed signal CBIC will be built on
telecoms and automotive applications. The European telecoms market is very strong, and the ASIC
needs of this market are best met by mixed signal
ASIC. The mixed signal capabilities of gate array
are not adequate to meet the demands of the
telecoms market, so CBIC is the dominant factor
here.
The CBIC market will also "steal" designs from
custom applications. The increase in the capabilities of CBIC design tools means the benefits
offered by custom design become marginal when
compared to the cost of these benefits. CBIC
designs will have the capability to customize certain cells in a design, giving greater flexibility to
the CBIC designs. Several CBIC suppliers are
already offering this cell customization service to
selected customers.
The c:ost of prototyping CBICs has always been
higaer than for protot5T>ing gate arrays, as all the
Consumption
layers used in manufacture need to be defined for
a cell-based design. This prototyping cost has
normally been a reasonably small percentage of
the total cost of prototyping and production for a
cell-based design, as the volume orders for CBICs
have been high. The newer manufacturing processes such as BiCMOS, however, require many
more masks than the older CMOS processes, and
this increases significantly the prototyping cost for
CBICs. In addition, the volumes needed for the
production runs for devices are reducing, meaning a higher prototyping cost will need to be
amortized over a lo^rer production run. Therefore, much higher cost will be associated with a
cell-based design.
The increase in cost for CBICs means that all of
the layers used in manufacture will need to be
utilized effectively. This can be achieved through
the use of complex or high-performance library
cells. The future of CBICs lies with the development of these cells. This development will meet
very specialized requirements, which can only be
defined and met by close cooperation between
the CBIC supplier and the customer.
Conclusions
The greatest strength of CBICs is the flexibility
offered by the utilization of all the layers used in
manufacture. But, this is also CBICs greatest
weakness, as the cost of using all these layers for
manufacture will rise with the increased complexity of the manufacturing processes used. The
success for CBIC lies with using this flexibility to
its greatest advantage, which is best achieved by
offering product functionality that carmot be met
by using a gate array. This will be high-density
functionality such as memory, or specialized cells
such as large microprocessor cores; or with the
inclusion of high-performance analog cells.
There are currendy few CBIC suppliers which can
offer high-performance mixed signal capability,
but the development of adequate mixed signal
design tools within the next five years will mean
25
Chapter 5
European ASIC market Consumption Forecast
26
Other CBIC suppliers will be able to chase this
profitable sector of the market. In the meantime,
closer cooperation between the CBIC supplier
and the customer to define and develop the specialist cells needed by specific applications will
ensure success in the short term.
Index of Figures and Tables—Chapter 5
Table 5.1
CBIC Revenue History and Forecast
Figure 5.1
Share of CBIC Market by Technology
Figure 5.2
CBIC Market Trends
Table 5.2
Top 10 Digital MOS CBIC Suppliers
Table 5.3
Top 10 Mixed Signal CBIC Suppliers
Table 5.4
Top 10 Total MOS CBIC Suppliers
Table 5.5
CBIC Consumption Forecast by Application
Figure 5.3
Digital CBIC Consumption by Application
Figure 5.4
Mixed Signal CBIC Consumption by Application
Table 5.6
CBIC Consumption Forecast by Region
Table 5.1
CBIC Revenue History and Forecast
(Millions of Dollars)
Category
1987
1988
Total ASIC
792
982
1989
1,182
1990
1,344
1991
1992
1993
1994
1995
1,779
2,193
2,541
2,803
CAGR
1990-95
15.8%
1,473
1,833
204
2,123
202
2,345
16.8%
203
198
103
156
216
260
-2.5%
45.4%
671
590
829
712
973
814
1,051
867
13
146
14
11.8%
170
40.5%
585
576
13.5%
13.2%
43.1%
MOS
583
1,079
1,465
1,198
Bipolar
209
739
232
918
240
225
202
0
11
24
40
151
220
324
440
538
151
0
210
294
401
481
0
10
11
14
10
9
21
8
0
31
47
70
103
110
155
226
344
407
484
110
155
0
226
311
310
341
478
0
0
1
403
1
551
544
2
2
5
3
6
422
466
270
BiCMOS
CBIC
MOS
Bipolar
BiCMOS
Digital
MOS
Bip>olar
0
0
0
0
1
2
3
4
Mixed Signal
41
65
98
129
194
264
MOS
41
55
0
68
91
140
187
345
234
9
21
8
9
10
12
11
291
11
30
45
67
99
141
164
BiCMOS
Bipolar
0
0
BiCMOS
Source: Dataquest Qanuaiy 1991)
0008259
<£
10
©1991 Dataquest Europe Limited January—Reproduction Prohibited
19.0%
16.7%
29.3%
26.2%
(>.(Wo
40.5%
ESIS
27
European Cell-Based IC Consumption Forecast 1987-1995
Chapter 5
F^ure 5.1
Share of CBIC Market by Technology
Percent Share
120%
100%
1987
1988
1989
1990
CMOS
1991
1992
Bipolar
*
1993
1994
1995
BiCMOS
InntmMf
HfiM
Source: Dataquest (January 1991)
Figure 5-2
CBIC Market Trends
Percent Share
Percent Growth
80%
60%
40%
20%
1987
1988
1989
1990
1991
1992
1993
1994
- ^
Digital CBIC Share
Mixed Signal Share
^M
Digital CBIC Growth
Mixed Signal Growth
1995
Source: Dataquest (January 1991)
ESIS
©1991 Dataquest Eiuope Limited January—Reproduction Prohibited
0008259
Chapter 5
European ASIC market Consumption Forecast
28
Table 5.2
Table 5.4
Top 10 Digital MOS CBIC Suppliers
(Millions of Dollars)
Top 10 Total MOS CBIC Suppliers
(MlUlons of DoUars)
Company
VLSI Technology
Austria Mikro Systeme
Revenue
Banking
1987 1988 1989
22
15
29
24
16
13
1989
1
1987 1988 1989
34
27
29
1989
1
2
Texas Instruments
5
12
30
2
VLSI Technology
15
22
29
Austria Mikro Systeme
15
27
17
5
6
MEDL
SGS-Thomson
5
2
19
12
3
4
15
10
7
8
European Silicon Structures
6
3
12
19
17
9
10
15
2
15
7
17
11
7
11
5
12
European Silicon Structures
6
12
17
MEDL
5
11
17
15
2
15
3
6
SGS-Thomson
AT&T
Ranldi^
3
4
24
Texas Instruments
Siemens
Company
Mietec
Revenue
Harris Semiconduaor
4
9
8
10
Honeywell/Atmel
0
0
10
Siemens
IMP Europe
LSI Logic
4
19
5
6
7
8
9
10
Source: Dataquest O^nuary 1991)
Source: Dataquest January 1991)
Table 5.3
Top 10 Mixed Signal CBIC Suppliers
(Millions of Dollars)
Company
Mietec
IMP Europe
Revenue
Ranking
1987 1988 1989
22
20
27
1989
1
2
7
11
2
10
10
10
7
8
3
4
National Semiconduaor
3
2
5
6
Texas Instruments
0
0
6
5
6
Philips
0
SGS-Thomson
0
5
0
5
4
7
8
Sierra Semiconduaor
0
6
4
Austria Mikro Systeme
2
3
3
9
10
Telefunken
Plessey Semiconductor
i
Source: Dataquest Qanuary 1990
i
0008259
©1991 Dataquest Europe Limited January—^Reproduction Prohibited
ESIS
European Cell-Based IC Consumption Forecast 1987-1995
Chapter 5
29
Table 5.5
CBIC Consumption Forecast by Application
Application
Data Processing
Communication
Industrial
Military
Transportation
Consumer
1987
27
63
1988
31
81
1989
61
100
Millions of Dollars
1992
1991
1990
83
132
107
133
157
102
189
127
1993
1994
173
225
203
254
165
194
209
97
127
105
147
1995
230
264
42
62
83
42
80
26
57
40
64
5
8
29
15
22
54
74
91
100
33
44
54
68
76
99
96
1987
1988
1989
1990
1994
1995
22%
29
20
Percent of D ^ t a l Revenue
Application
1991
20%
1992
20%
1993
21%
29%
28%
27%
26%
19%
12%
20%
20%
25%
20%
11%
10%
10%
13%
10%
14%
1993
10%
1994
1995
10%
10%
33%
14%
Data Processing
18%
14%
19%
Communication
42%
37%
31%
19%
30%
Industrial
19%
19%
19%
19%
Military
13%
13%
13%
Transportation
3%
11%
12%
5%
9%
10%
10%
Consumer
7%
10%
13%
8%
19%
12%
10%
10%
9%
10%
21%
9%
Percent of Mixed Signal Revenue
Application
1990
11%
1991
10%
1992
13%
1989
12%
37%
31%
36%
38%
38%
35%
14%
34%
14%
9%
14%
8%
14%
18%
20%
1987
14%
1988
Data Processing
Communication
42%
10%
Industrial
19%
19%
19%
16%
Military
13%
13%
7%
11%
13%
8%
12%
15%
11%
10%
13%
10%
14%
17%
15%
13%
14%
Transportation
3%
Consumer
9%
14%
8%
15%
20%
Source: Dataquest Qanuary 1991)
ESIS
©1991 Dataquest Europe Limited January—Reproduction Prohibited
0008259
Chapter 5
European ASIC market Consumptioii Forecast
30
Figure 5.3
Digital CBIC Consumption by Application
Communications
25%
Data Processing
19%
Communications
31%
Consumer
10%
Industrial
19%
Military
13%
Data Processing
22%
Consumer
9%
Industrial
20%
Transportation
8%
Transportation
14%
Military
10%
1995
1989
Source: Dataquest Qanuaiy 1991)
F^;ure 5.4
Mixed Signal CBIC Consimiptlon by Application
Communications
31%
Communications
33%
Data Processing
12%
Industrial
14%
Industrial
19%
Consumer
17%
Military
13%
Transportation
8%
1989
Data Processing
10%
Consumer
20%
Military
8%
Transportation
15%
1995
Source: E>ataquest Qanuaiy 1991)
0008259
©1991 Dataquest Eurof>e Limited January—Repnxluciion Prohibited
ESIS
31
European Cell-Based IC Consumptioa Forecast 1987-1995
Chapter 5
Table 5-6
CBIC Consumption Forecast by Region
Millions of Dollars—Total MOS CBIC
Begioa
Bendux
1987
4
1988
1989
14
1990
1991
28
1992
1993
1994
1995
40
51
57
174
207
112
239
121
63
252
33
166
44
48
195
215
271
46
287
1993
2%
1994
2%
1995
2%
25%
16%
25%
24%
15%
15%
98
19
128
52
70
149
82
4
10
27
46
13
72
16
20
97
127
91
122
147
13
16
20
187
22
France
41
7
60
Italy
27
38
Scandinavia
UK and Eire
3
14
West Germany
54
Rest of Europe
7
79
11
94
Percent ' of I>^tal Revenue
1992
1990
1989
1991
2%
2%
2%
2%
227
33
130
56
Region
1987
1988
Benelux
1%
1%
France
28%
28%
32%
30%
28%
26%
Italy
18%
2%
18%
2%
17%
17%
17%
16%
4%
5%
5%
16%
3%
18%
4%
19%
20%
20%
20%
"West Germany
9%
36%
3%
14%
3%
9%
36%
28%
28%
28%
6%
4%
4%
4%
29%
4%
30%
6%
29%
4%
30%
Rest of Europe
3%
4%
Region
1987
1988
8%
9%
1993
12%
1994
Benelux
11%
1995
11%
25%
18%
25%
16%
25%
10%
24%
24%
2%
2%
3%
3%
4%
4%
9%
4%
10%
19%
20%
20%
21%
36%
15%
28%
17%
West Germany
9%
36%
3%
18%
9%
4%
27%
26%
26%
24%
2%
2%
4%
3%
3%
2%
25%
4%
25%
Rest of Europe
7%
7%
Scandinavia
UK and Eire
Percent of Mixed S^nal Revenue
France
Italy
Scandinavia
UK and Eire
1989
10%
1990
26%
27%
14%
13%
10%
1991
11%
1992
27%
12%
26%
12%
11%
Source Dataquest (Januaiy 1991)
ESIS
©1991 Dataquest Europe limited Januaiy—Reproduction Prohibited
0008259
Chapter 6
European
Forecast
Custom IC
1987-1995
Suniniary
The European custom IC market grew by 13 percent in 1989 to $324 million. This is considerably
less than the growth for the ASIC market as a
whole, which grew by 20 percent in 1989. Neither
is the future for the custom IC market so rosy, as it
is forecast to decline by 4.6 percent per year over
the period 1990 to 1995. The years 1990 and 1991
show the largest decline, with falls of 10 percent
and 15 percent respectively.
Trends
The use of custom design is in decline, as more
cost-effective methods are used by designers. The
main advantages of custom are a smaller die size,
and the ability to achieve higher performance by
optimizing either the cells in a design or the
design layout. The improvements in speed or
layout area are becoming minimal, as new design
tools give layout densities comparable with custom layout and are able to perform the layout in a
fraction of the time.
The performance improvement achieved by custom design is also being eroded. Again, CBIC
design tools are able to optimize layout so that
critical paths are as short as possible, giving performance that is difficult to improve upon by
customizing the design.
Consumption
CMOS will be the preferred choice for most of the
custom designs, as CMOS offers the best compromise of speed and peformance. BiCMOS is
emerging as the newer technology, but the cost of
BiCMOS manufacture is high when compared to
CMOS. BiCMOS offers a speed advantage over
CMOS without the high cost and requirement for
power needed by bipolar designs. In addition to
this, BiCMOS is particularly suitable for mixed
signal applications. BiCMOS will therefore be
used where mixed signal is required, or where
high speed or high current drive is needed. By
1995, BiCMOS will represent 10 percent of all
custom applications, and this is the only segment
of custom ASIC which shows a positive CAGR.
Conclusions
The time-to-market requirements for many
products will dictate the design style used by ASIC
customers. The price paid for using custom design
is a long design time, and a need for experienced
custom designers. There are few applications
where the length of time to develop a product
allows for custom design. For some products the
product life is long enough to allow CBICs to give
the initial product within the time scales required,
and then replace the CBIC with a custom device
as part of the cost reduction of the product, but
this is the exception rather than the rule.
The flexibility given through custom design can
also be met with CBIC design methods. It is
unusual to have a design composed of cells which
all need customizing. Cell-based design methods
allow customization of some of the cells in a
design, giving the required performance or area
improvement. Cell-based design will therefore
meet many applications which previously
required custom design.
33
34
European ASIC Market Cansumption Forecast
Chapter 6
Indeac of Tables a n d Figures—Chapter 6
Table 6.1
Custom ASIC Revenue History and Forecast
Figure 6.1
Share of Custom ASIC Market by Technology
Table 6.2
Top 6 Bipolar Custom ASIC Suppliers
Table 6.3
Top 10 MOS Custom ASIC Suppliers
Table 6.4
Top 10 Custom ASIC Suppliers
Table 6.5
Custom ASIC Consumption Forecast by Application
Figure 6.2
Custom ASIC Consumption by Application
Table 6.6
Custom ASIC Consumption Forecast by Region
{
0008259
©1991 Dataquest Europe limited Januarys-Reproduction Prohibited
ESIS
Chapter 6
European Custom IC Consumption Forecast 1987—1995
I
35
Table 6.1
Custom ASIC Revenue History and Forecast
(Millions of Dollars)
Category
Total ASIC
MOS
Bipolar
1987
792
1988
982
1989
1,182
1990
1991
1992
1993
1994
1995
1,344
1,779
2,193
2,541
2,803
583
918
1,079
1,473
202
203
198
0
11
24
225
40
2,123
202
16.8%
240
1,833
204
2,345
209
739
232
1,465
1.198
CAGR
1990-95
15.8%
(A
103
156
216
260
-2.5%
45.4%
299
252
286
324
245
190
252
246
232
-A£Va
245
41
293
240
248
268
188
179
160
-i.m>
35
20
34
33
34
33
-7.6%
0
49
4
38
0
39
57.7%
BiCMOS
Custom
MOS
BifKalar
BiCMOS
47
0
56
198
12
30
Source: Dataquest (Janua/y 1^1)
F^ure 6.1
Share o f Custom ASIC Maket b y Technology
Percent Share
100%
\
80%
60%
40%
20%
•
,..
0 % *
1987
*
*
1988
1989
CMOS
-
*
•
-*• -
1990
1991
Bipolar
•
-
*
-
I
•-*-
-^.
_i_
1992
1993
1994
1995
* • • BiCMOS
Source: Dataquest Qmvavi 1991)
\
ESIS
©1991 Dataquest Europe Uinited January—Reproduction Prohibited
0008259
36
Table 6.2
Table 6.4
Top 6 Bipolar Ciistom ASIC Suppliers
(Millions of Dollars)
Top 10 Custom ASIC Suppliers
(Millions of Dollars)
Revenue
Banking
1987 1988 1989 1989
Company
Plessey
1
Siemens
12
9
2
15
15
11
2
Siemens
3
4
Telefunken
5
6
Plessey
3
10
10
Mitsubishi
0
0
7
2
Toshiba
0
3
2
Source: Dataquest Qanuary 1991)
1987
102
Top 10 MOS Custom ASIC Siippliers
(MlUlons of Dollars)
Revenue
1987
102
Rankii^
1988 1989
95
91
13
1989
1
2
25
51
22
23
2
25
21
15
19
7
15
17
5
6
13
12
16
7
Austria Mikro Systeme
5
10
8
Thomson Military Semi.
0
0
13
12
Philifw
5
5
8
Asea Brown Boveri
Texas Instruments
Mietec
Table 6.3
Intermettal
Company
ITT Intermettal
Telefunken
Company
Revenue
1
10
Texas Instruments
m
Chapter 6
European ASIC Market Consumption Forecast
33
20
3
4
9
10
Source: Dataquest Qataaiy 1991)
Ranking
1988 1989
1989
1
Siemens
21
95
11
91
36
Asea Brown Boveri
23
25
21
Mietec
Telefunken
5
10
13
16
3
4
5
10
15
12
15
Austria Mikro Systeme
6
TMS
0
0
13
12
7
Philips
5
8
8
Sprague
5
0
3
8
Eurosil
7
7
7
9
10
2
Source: Dauquest (January 1991)
0008259
©1991 Dataquest Europe limited January—Reproduction Prohibited
ESIS
chapter 6
European Custom IC Consumption Forecast 1987-1995
37
Table 6.5
Custom ASIC Consumption Forecast by Application
Millions of Dollars
Application
Data Processing
Communication
1988
1987
66
Industrial
75
36
63
72
34
1989
71
1990
64
1991
52
1992
81
73
60
35
32
59
32
52
1993
50
1994
60
57
34
49
1995
46
53
32
Military
15
14
39
16
15
12
10
35
10
10
9
Transportation
15
14
16
15
15
18
20
Consumer
93
89
100
91
15
77
79
78
76
19
72
Appllcatton
Data Processing
1987
22%
1988
1990
1991
21%
1992
21%
1993
20%
1994
22%
1989
22%
20%
1995
20%
Communication
25%
12%
25%
12%
25%
12%
25%
12%
24%
24%
24%
13%
14%
23%
14%
5%
5%
5%
4%
4%
5%
5%
5%
6%
4%
5%
5%
5%
13%
4%
23%
14%
31%
31%
31%
31%
Percent o f Revenue
Industrial
Military
Transportation
Consumer
Source; Oauquest Qamaiy 1991)
22%
31%
6%
7%
8%
8%
32%
31%
31%
31%
Figure 6.2
Custom ASIC Consumption b y Application
Communications
23%
Data Processing
22%
Communications
25%
Data Processing
20%
Industrial
14%
Industrial
12%
Military
Consumer
31%
Trans(K>nation
5%
1989
Military
4%
Transportation
8%
Consumer
31%
1995
Source: Dataquest Qanuary 1991)
ESIS
©1991 Dataquest Eurof>e Limited Januaiy^-Reproduction Prohibited
0008259
Chapter 6
European ASIC Market Consumption Forecast
38
Table 6.6
Custom ASIC Consumption Forecast by Region
Millions of Dollars
1987
1988
15
84
14
1989
16
80
91
Italy
27
26
29
Scandinavia
21
20
UK and Eire
54
23
58
West Germany
90
Region
Benelux
France
Rest of Europe
9
51
86
97
9
10
1991
12
1992
26
69
22
69
22
21
17
17
44
1990
15
82
12
1993
1994
13
71
12
1995
12
69
22
65
21
17
44
42
23
18
16
53
88
45
74
74
45
76
74
70
9
7
7
8
7
7
Percent of Revenue
R^on
1988
1989
1990
1991
1992
1993
1994
1995
28%
5%
28%
5%
28%
5%
28%
5%
28%
5%
28%
5%
28%
5%
28%
5%
28%
9%
7%
9%
7%
9%
7%
9%
7%
9%
9%
9%
9%
9%
7%
7%
7%
7%
7%
UK and Eire
18%
18%
18%
18%
18%
18%
18%
18%
18%
West Germany
30%
30%
30%
30%
30%
30%
30%
30%
30%
3%
3%
3%
3%
3%
3%
3%
3%
3%
Benelux
Fiance
Italy
Scandinavia
Rest of Europe
Source: Dataquest Qanuary 1991)
0008259
1987
5%
©1991 Dataquest Europe Limited January—Keproduction Prohibited
ESIS
DataQuest
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Technology Producis Group
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DataQUCSt
European ASIC Market
Share Estimates 1987-1989
>
European ASIC Market Share
Estimates 1987-1989
\
A European Semiconductor Industry Service Report
I
Published by Dataquest Europe Limited
Dataquest cannot and does not guarantee the accuracy and completeness of the data used in the compilation of this report and
shall not be liable for any loss or damage sustained by users of this review.
Printed in the United Kingdom. All tights reserved. No part of this publication may be reproduced, stored in retrieval systems, or
transmitted, in any form or by any means—mechanical, electronic, {diotocopying, duplicating, microfilming, videotaf>e, or
otherwise—without the prior written permission of the publisher.
® 1991 Dataquest Europe Limited
Jamiaiy 1991
0008263
Table of Contents
Page
1. Introduction and Definitions
1
2. Estimated European ASIC Revenue 1987-1995
5
3. Estimated European Gate Array Revenue 1987-1995
17
4. Estimated European PUD Revenue 1987-1995
25
5. Estimated European CBIC Revenue 1987-1995
31
6. Estimated European Custom Revenue 1987-1995
39
iii
Chapter 1
Introduction
and
Definitions
Introduction
This booklet presents Dataquest's historical market share tables and rankings for the European
application-specific integrated circuit (ASIC) market. The historical data for the period 1987 to 1989
is presented in chapters according to the ASIC
produa groupings as shown in Figure 1.1.
Product Segmentation
Figure 1,1 shows how the ASIC family tree breaks
out into the four categories: gate array; programmable iogic devices (PLD); cell-based integrated
circuits (CBIC); and full-custom integrated circuits.
The market share tables are subdivided into bipolar and MOS technology, with separate market
share and ranking tables for the two technologies.
The only exception to this B for bipolar CBIC,
where the size of the bipolar CBIC market in 1989
($9 million) precludes the detailing of the bipolar
CBIC suppliers.
Definitions
The term application-specific integrated circuit
(ASIC) can refer to a multitude of product types.
However, when Dataquest first coined the term it
had a definite meaning, and the product types
tracked and forecast conformed to that specific
meaning. When comparing company or market
data with history, or forecasting potential market
share, it is of vital importance that definitions are
consistent. For this reason, Dataquest uses the
original definition, which is restated as follows:
• ASIC. A single-user IC that is manufactured
using vendor-supplied tools and/or libraries.
Figure 1.1
ASIC Family Tree
Source: Dataquest 0anuary 1991)
European ASIC Market Share Estimates 1987-1989
• Gate Array. An ASIC device that is customized
using the final layers of interconnect. Included
in this category are generic or base wafers that
include embedded functions such as static random access memory.
• PLD. A logic device that can be customized by
the user after assembly.
• Cell-Based Integrated Circuits. An ASIC device
that is customized using a full set of masks and
which uses automatic placement of cells and
automatic routing.
• Custom. An ASIC device that is customized
using a full set of masks and which requires
manual placement and routing of the cells.
• Mixed Signal. An ASIC device with both digital
and analog signal input or output (excluding
line driver outputs and single comparator and
Schmitt trigger inputs).
We understand that mixed signal ASICs fall into
two categories: simple mixed signal ASICs that
use pre-characterized cells that can be tested
using a digital tester; and more complex, highperformance mixed signal devices that require
analog test. This definition is intended to cover
both types of mixed signal ASIC.
It is important to note that ASIC refers to singleuser ICs, and not mulitple-user standard products
which are targeted at specific applications such as
PC chip sets. These multiuser products are more
aptly named application-specific standard
products (ASSPs). ASSP-type products are currently included in the microperipheral category of
both Dataquest and the World Semiconductor
Trade Statistics (WSTS) organization.
Revenue Classification
ASICs may be fabricated, assembled and sold in
several different locations, and because of this
Dataquest uses the country of origin as the basis
for classifying suppliers. The home office where
the balance sheet is consolidated is therefore considered the country of origin for multinational
companies. For example, a company such as
Texas Instruments selling in Europe is considered
a North American company, whereas a company
such as Philips selling in North America is considered a European company.
0008263
Chapter 1
Estimates for each company comprise the following four sources of revenue (w^here applicable):
• Intracompany revenue
• Sales of EDA software
• Nonrecurring engineering (NRE) charges
• Device production
ASIC Shipments Model
Many suppliers make ASICs for internal consumption as well as for merchant customers, so Dataquest uses the ASIC shipments model as shown in
Figure 1.2 to accurately reflect the manufacture
and sale of ASICs in the marketplace. Figure 1.2
shows four types of ASIC supplier.
• Supplier 1 is a straightforward ASIC manufacturer which manufactures ASICs and sells them
on the open market. Dataquest's ASIC revenue
estimates include all of the ASIC sales for supplier 1.
• Supplier 2 subcontracts part of the manufacture
of the ASIC to another foundry, and then finishes the ASICs with its own facility. Dataquest's ASIC revenue estimates include the
ASIC revenue for supplier 2, but the foundry
revenue for supplier 2's subcontractor is not
included, as this is measured in supplier 2's
revenue.
• Supplier 3 is a manufacturing company with an
internal ASIC manufacturing capability. Supplier 3 has chosen to sell some of the ASIC
manufacturing capability on the merchant market. Dataquest's ASIC revenue estimates include
all of the ASIC sales achieved by supplier 3,
because the internal ASIC sales are potentially
available to outside suppliers, but these sales
are in fact filled by internal supply. An example
of this would be Philips, which manufactures
its own ASICs and sells them both internally
and externally, and which also purchases ASICs
fi-om external suppliers.
• Supplier 4 has an internal ASIC capability, and
has chosen not to sell the ASIC capability onto
the open market. Dataquest's ASIC revenue
estimates include none of the captive ASIC
sales, as this internal market is not normally
available to outside suppliers. An example of
this would be IBM, or Digital Equipment Corporation, which manufacture their own ASICs,
and do not sell these ASICs into the merchant
market.
©1991 Dataquest Europe Limited January—Reproduction Prohibited
ESIS
Chapter 1
Introduction and Definitions
Figure 1.2
ASIC Shipments Model
r\
Supplier 1
Supplier Finishes
Product
Completed Fabrication
by Supplier
Supplier 2
/
( iji"*! I-
Dataquest Total
ASIC Revenue
Estimate
I
Subcontract
Customer
Merchant Sales
Supplier 3
Supplier 4
XT
Captive "Sales"
Captive "Sales" Only
Source: Dataquest Qanuary 1991)
ESIS
©1991 Dataquest Europe Limited January—^Reproduction Prohibited
0008263
Chapter 2
Estimated
1987-1989
European
ASIC
Revenue
Index of Tables and Figures—Chapter 2
Table 2.1
Estimated European Total ASIC Revenue
Table 2.2
Estimated Eurojjean Bipolar ASIC Revenue
Table 2.3
Estimated Europ>ean MOS ASIC Revenue
Figure 2.1
European ASIC Revenue by Produa 1987 and 1989
Table 2.4
Estimated European 1989 Total ASIC Market Share Rankings
Table 2.5
Estimated European 1989 Bipolar ASIC Market Share Rankings
Table 2.6
Estimated European 1989 MOS ASIC Market Share Rankings
Figure 2.2
Top 10 Suppliers 1989, Estimated European Total ASIC Revenue
Figure 2.3
Top 10 Suppliers 1989, Estimated European Bipolar ASIC Revenue
Figure 2.4
Top 10 Suppliers 1989, Estimated European MOS ASIC Revenue
Note; Some Tigures may not add to totals due to rounding.
Chapter 2
European ASIC Market Share Estimates 1987-1989
Table 2.1
Table 2.1 (Continued)
Estimated E u r o p e a n Total ASIC Revenue
(Millions of Dollars)
Estimated E u r o p e a n Total ASIC Revenue
(Millions of Dollars)
1987
Total Shipments
European Companies
Austria Mikro Systeme
1989
$1,182
1987
$792
1988
$982
$377
$438
$546
29
36
44
Xilinx
Others
1988
1989
i
8
Texas Instruments
Q
22
54
VLSI Technology
17
25
79
37
4
5
8
33
9
7
$59
21
$102
$132
16
5
0
7
23
12
0
2
10
22
31
Sprague
23
16
25
21
6
7
6
12
17
Japanese Companies
9
28
12
13
0
Fujitsu
14
Mietec
32
15
42
17
21
Mitsubishi
MEDL
3
8
50
Oki
1
2
3
Philips
21
34
38
Seiko Epson
0
Plessey
26
82
101
Toshiba
16
9
44
9
52
25
90
35
56
50
Others
6
2
0
8
13
$0
$0
Telefunken
30
0
0
$1
1
IMS
0
24
35
0
21
$355
$442
0
0
$503
2
45
4
58
52
7
12
Applied Micro Circuits
2
1
2
AT&T
6
Cypress
2
9
4
12
19
10
Asea Brown Boveri
Ericsson
ES2*
Eurosil
Ferranti
Matra-MHS
SGS-Thomson
S