News Article
European jobs at risk says SEMI
Decline in European semiconductor industry putting up to halve a million European jobs at risk. SEMI Europe calls on EU and European national governments to invest in this key industry, jobs, and access to technology it guarantees.
SEMI Europe (Semiconductor Equipment and Materials International) warned that the decline in the European semiconductor industry could be putting as many as halve a million European jobs at risk. During the 3rd SEMI Brussels forum, the organisation presented to EU officials its SEMI white paper which urgently calls on EU and national policy makers to invest to support the European semiconductor industry given the primary importance of the industry to the health and global competitiveness of the EU economy.
Both the equipment/materials producers and the semiconductor device manufacturers together today contribute some €29bn directly to the EU economy and provide around 215,000 direct jobs, which rises to halve a million jobs when indirect jobs are counted. The European semiconductor industry value chain provides a significant contribution to the GDP of 11 EU countries, most particularly Austria, Belgium, France, Germany, Ireland, Italy, the Netherlands, and the United Kingdom. However the importance of this value chain to EU growth and competitiveness goes well beyond the confines of the industry itself. It is instrumental in providing European companies in key industries, such as energy, transportation, telecommunication, defence, aerospace, medical equipment and biotechnology, with the pioneering products that help these European companies remain innovative and competitive in globalised markets. One estimate puts the semiconductor industry at the origin of 90% of innovation made in these key sectors of the European economy.
However this industry at the very source of European innovation and competitiveness is putting Europe in front of a perilous future. The European share of the global semiconductor market has declined, from 21% in 2001 to just 16% in 2007 , representing a drop of almost a quarter. European semiconductor manufacturing has also been contracting again by almost 25% in just two years from 2005 to 2007. To make matters worse, on 19 November the Semiconductor Industry Association in the US further predicted a slump in worldwide semiconductor sales for 2009 which also risk exposing Europe’s position further.
The decline of market share despite the continuous increase in total volumes sold is also a reflection of the role played of manufacturing which is differentiating and moving away from Europe due largely to unfavourable global level playing field conditions. The European equipment and materials manufacturers that supply the semiconductor industry with machinery and parts are mostly small and medium sized indigenous European businesses that rely on a future European semiconductor industry to guarantee their own future and that of the 105,000 European jobs they represent.
“If semiconductor manufacturers leave Europe, indigenous equipment & materials producers will face an uncertain future”, said Franz Richter, chairman of the SEMI European advisory board. “The current economic crisis and rising unemployment underscore the urgent need to safeguard jobs in the European semiconductor industry. Supporting a robust and competitive semiconductor industry in Europe is critical to keeping jobs in Europe across all industries and supporting key European economies.”
The forum showed that there are indeed ways out and opportunities ahead which Europe can and must drive to stay in the game, and these require leadership and co-ordination in terms of devising sector specific industrial innovation policy solutions at both EU and EU member state level.
During the course of the 3rd SEMI Brussels Forum, SEMI representatives met with Viviane Reding, European Commissioner for Information Society and Media to impress upon her the need to support a more competitive European semiconductor industry. SEMI representatives also met with: Andreas Schwartz, Member of the Cabinet of Commission Vice President Verheugen, Jean-Noël Durvy, Director, and Costas Andropoulos, Head of Unit, all DG Enterprise and Industry; Mirjam Söderholm, Deputy Head of Unit DG Internal Market; Luc Devigne DG Trade; MEP Louis Grech (Malta).
Both the equipment/materials producers and the semiconductor device manufacturers together today contribute some €29bn directly to the EU economy and provide around 215,000 direct jobs, which rises to halve a million jobs when indirect jobs are counted. The European semiconductor industry value chain provides a significant contribution to the GDP of 11 EU countries, most particularly Austria, Belgium, France, Germany, Ireland, Italy, the Netherlands, and the United Kingdom. However the importance of this value chain to EU growth and competitiveness goes well beyond the confines of the industry itself. It is instrumental in providing European companies in key industries, such as energy, transportation, telecommunication, defence, aerospace, medical equipment and biotechnology, with the pioneering products that help these European companies remain innovative and competitive in globalised markets. One estimate puts the semiconductor industry at the origin of 90% of innovation made in these key sectors of the European economy.
However this industry at the very source of European innovation and competitiveness is putting Europe in front of a perilous future. The European share of the global semiconductor market has declined, from 21% in 2001 to just 16% in 2007 , representing a drop of almost a quarter. European semiconductor manufacturing has also been contracting again by almost 25% in just two years from 2005 to 2007. To make matters worse, on 19 November the Semiconductor Industry Association in the US further predicted a slump in worldwide semiconductor sales for 2009 which also risk exposing Europe’s position further.
The decline of market share despite the continuous increase in total volumes sold is also a reflection of the role played of manufacturing which is differentiating and moving away from Europe due largely to unfavourable global level playing field conditions. The European equipment and materials manufacturers that supply the semiconductor industry with machinery and parts are mostly small and medium sized indigenous European businesses that rely on a future European semiconductor industry to guarantee their own future and that of the 105,000 European jobs they represent.
“If semiconductor manufacturers leave Europe, indigenous equipment & materials producers will face an uncertain future”, said Franz Richter, chairman of the SEMI European advisory board. “The current economic crisis and rising unemployment underscore the urgent need to safeguard jobs in the European semiconductor industry. Supporting a robust and competitive semiconductor industry in Europe is critical to keeping jobs in Europe across all industries and supporting key European economies.”
The forum showed that there are indeed ways out and opportunities ahead which Europe can and must drive to stay in the game, and these require leadership and co-ordination in terms of devising sector specific industrial innovation policy solutions at both EU and EU member state level.
During the course of the 3rd SEMI Brussels Forum, SEMI representatives met with Viviane Reding, European Commissioner for Information Society and Media to impress upon her the need to support a more competitive European semiconductor industry. SEMI representatives also met with: Andreas Schwartz, Member of the Cabinet of Commission Vice President Verheugen, Jean-Noël Durvy, Director, and Costas Andropoulos, Head of Unit, all DG Enterprise and Industry; Mirjam Söderholm, Deputy Head of Unit DG Internal Market; Luc Devigne DG Trade; MEP Louis Grech (Malta).
