1. SEMICONDUCTEURS « Moteurs de l’Industrie » Conseil d’Orientation du GIP CNFM 30 novembre 2011 1 Gérard MATHERON Président du GIP CNFM SITELESC Chairman GIP CNFM CO 30/11/11 GM

2. SEMICONDUCTORS ARE EVERYWHERE Source Décision may 2010 2 GIP CNFM CO 30/11/11 GM

3. VALUE ADDED PYRAMID Market turnover in 2009 Full chain competitiveness is dependant on key technologies Microelectronics Electronic Eqpt Services Application domains 1 600 B$ 298 B$ 6 800B$ Automobile Industrial Internet Defense others Telephony Operators Pay TV Oth.Services Materials 47 B$ Equipment 40 B$ Source Décision 2010 3 GIP CNFM CO 30/11/11 GM

4. A maturing industry o Global slow down of revenue market growth from 15% to 6% over the last decade, while keeping a double digit volume growth o The market is moving to Asia o Europe’s share of the market declining from 21% to 16% since 2000 o Growing importance of the consumer markets, which represent more than 60% of the global market TRENDS IN THE GLOBAL PLAYING FIELD Europe Americas Japan Asia Global market share 4 GIP CNFM CO 30/11/11 GM

5. SEMICONDUCTOR MARKET DEVELOPMENT Source: WSTS, June2011 -40% -20% 0% 20% 40% Annual Growth Rate 100 180 260 340 420 Sales ($B) CAGR 6% 1995200020052010 (was 15% from the 1960s to 1995) 5 GIP CNFM CO 30/11/11 GM

6. SEMICONDUCTORS TOP LEAGUE Si Foundry Fabless 6 Main evolutions: -UP: Fabless and Foundries Taiwan and Korea -DOWN: Japan and Europe GIP CNFM CO 30/11/11 GM

7. IDMS STILL THE DOMINANT MODEL 7 GIP CNFM CO 30/11/11 GM

8. SEMICONDUCTOR R&D INTENSITY 8 GIP CNFM CO 30/11/11 GM

9. 9 EU MARKET SHARE BY ELECTRONIC APPLICATIONS GIP CNFM CO 30/11/11 GM

10. 10 SEMICONDUCTORS PRODUCTION SITES IN EU GIP CNFM CO 30/11/11 GM

11. EU SEMICONDUCTOR INDUSTRY CLUSTERING Semiconductor Clusters in Europe: built around Universities, Research & Design Centers, Manufacturing Plants, Mask Shops, Equipment and Material Suppliers, various SME’s… supported by local & national Public Authorities 3 of these technology clusters include Advanced Manufacturing on 300mm wafers: –Dresden (Germany) –Leixlip-Dublin (Ireland) –Crolles-Grenoble (France) Each cluster develops Excellence via: –Cooperation & synergies –Joint education programs –Shared know-how –Resources management … Source: EECA – ESIA (2008) 11 GIP CNFM CO 30/11/11 GM

12. MICROELECTRONICS IN FRANCE Source AEPI, 2011 12 Semiconductors attract JOBS GIP CNFM CO 30/11/11 GM

13. EUROPE: A CHANGING LANDSCAPE ( AT LAST!…) 13 GIP CNFM CO 30/11/11 GM

14. KEY ENABLING TECHNOLOGIES 14 GIP CNFM CO 30/11/11 GM

15. SC IS A KEY ENABLING TECHNOLOGY Source KET HLG Report, June 2011 15 GIP CNFM CO 30/11/11 GM

16. KET’S HLG RECOMMENDATIONS Make KETs a technological priority for Europe The EU should apply the TRL scale R&D definition Fully exploit the scope of relevant R&D definitions. Rebalancing of EU RDI funding programmes A strategic approach to KETs programmes Establish an appropriate set of rules to implement KETs programmes Combined funding mechanisms KETs state aid provisions Globally competitive IP policy in Europe Build, strengthen and retain KETs skills A European KETs observatory and consultative body Source KET HLG Report, June 2011 16 GIP CNFM CO 30/11/11 GM

17. PUBLIC FUNDING FOCUSING 17 GIP CNFM CO 30/11/11 GM

18. 18 TECHNOLOGY READINESS LEVELS TRL 9 = Actual technology system qualified through successful mission operations TRL 8 = Actual technology system completed and qualified through test and demonstration TRL 7 = Technology prototype demonstration in an operational environment TRL 6 = Technology demonstration in a relevant environment TRL 5 = Technology validation in a relevant environment TRL 4 = Technology validation in a laboratory environment TRL 3 = Analytical and experimental critical function and/or characteristic proof-of-concept TRL 2 = Technology concept and/or application formulated TRL 1 = Basic principles observed and reported KET’s pilot lines KET’s Advanced research GIP CNFM CO 30/11/11 GM

19. Europe still awake and healthy in Electronics Plenty of opportunities for successful applications of Silicon technologies In Europe, competitive clusters ensure: o Top-class silicon process devt via local and ww alliances o Design Platform expertise for complex system-on chip development o Service-oriented manufacturing Politicians rediscover the benefit of Industry and will take measures to restore the competitiveness of Europe NO, designing and manufacturing advanced semiconductors in Europe is not an Utopia ! Let’s continue the success stories… SUMMARY 19 GIP CNFM CO 30/11/11 GM