Willy Van Puymbroeck

European Commission

Head of Unit Nanoelectronics

Key Enabling Technologies and HORIZON 2020

2

Outline presentation

KEY Enabling Technologies – KET’s How and which Observations of the High Level Group Recommendations by the High Level Group Considerations on implementation

HORIZON 2020 Outlook and budget Impact, simplification and architecture Challenges and funding schemes

NANOELECTRONICS – A Key Enabling Technology Evolution of the area Research in Europe Addressing value chains

3

Screening of the common high-tech areas at Member State-levelInitial selectionInitial selection

Based on this assessment, five + one key enabling technologies were selected

Value adding enabling Role Value adding

enabling Role Technology-IntensityTechnology-Intensity Capital Intensity Capital Intensity Economic PotentialEconomic Potential

•Initial investments

•Capital expenditure/ Production costs

•Amortisation rates

•Investment per employee

•GDP contribution

•Employment

•Market Growth

•Systemic relevance

•R&D-Intensity•Innovation cycles•Know-how intensity•IPR/ Patenting•High-skill ratio

•General Purpose

Technology

•Innovation driver

•Productivity driver

•Spill-over effects

Economic criteriaEconomic criteria

KEY Enabling TechnologiesKEY Enabling TechnologiesHow and which – Key Performance Indicators

http://ec.europa.eu/enterprise/sectors/ict/key_technologies

Nanotechnology

Micro- and nanoelectronics,including semiconductors

Photonics

Advancedmaterials

Biotechnology

Communication COM(2009)512 of 30.9.2009

Advanced manufacturing Systems

KEY Enabling TechnologiesKEY Enabling TechnologiesHow and which

5

KEY Enabling TechnologiesKEY Enabling TechnologiesHow and which – High Level Group

Mission of the KETs HLG

1. To assess the competitive situation of the relevant technologies in the EU with a particular focus on industrial deployment and their contribution to address major societal challenges;

2. To analyse in depth the available public and private R&D capacities for KETs in the EU;

3. To propose specific policy recommendations for a more effective industrial deployment of KETs in the EU.

27 High Level Group members + Sherpa Group

+ Technology-specific Working Groups

6

USAUSA EUROPEEUROPE ASIAASIA OTHERSOTHERS

LI-ION LI-ION BATTERY BATTERY

PRODUCTIPRODUCTIONON

20082008

Patent share

Manufacturingshare

BIOETHANBIOETHANOLOL

PRODUCTIPRODUCTIONON

20092009

Patent share

Manufacturingshare

PV CELL PV CELL

PRODUCTIPRODUCTIONON

20092009

Patent share

Manufacturingshare

% 31%31% 35%35% 4%4%

% 1%1% 0%0% 87%87% 12%12%

30%30%

34%34% 36%36% 26%26% 7%7%

USA 54%BRAZIL34%USA 54%

BRAZIL34% 5%5% 3%3% 4%4%

12%12% 13%13% 57%57% 18%18%

27%27% 29%29% 42%42% 2%2%

%

%

%

%

KEY Enabling TechnologiesKEY Enabling TechnologiesObservations of the HLG – Disconnect between EU patent base and EU manufacturing

7Source: Preliminary HLG KET Report, Brussels, 09/02/2011

Technological facilities

Pilot linesDemonstrator

Globally competitive manufacturing facilities

KEY Enabling TechnologiesKEY Enabling TechnologiesObservations of the HLG – The ‘Valley of Death’

US

CHINA

BRAZIL

RUSSIA

US President Barack H. Obama, in his state of The Union speech, on January 25 2011, STATED “At stake [right now] is whether new jobs and industries take root in this country, or somewhere else.[…] The rules have changed! […] We need to out-innovate, out-educate, and out-built the rest of the world”

The technology of magnetic random access memory was recently mastered and led to development and commercialisation in Europe. This type of memory could replace traditional memory on silicon as it is faster, less expensive and consumes less energy. This year, RUSNANO, the Russian government controlled investment fund, tasked with the mission of creating by 2015 a “Nano industry” took high JV stake in the relevant European industry.

June 2011, Brazilian state-owned development bank BNDES announced that it will

make $18-22 billion in loans to the sugarcane and ethanol sector.

Shift form a PRO1- centred innovation system to a firm-centred one

KEY Enabling TechnologiesKEY Enabling TechnologiesObservations of the HLG – Competition is on – some examples

9

• Recommendation n°1: Make KETs a technological priority for Europe The High Level Group recommends that an integrated KETs policy should be implemented, that KETs should be visibly prioritised in EU policies and financial instruments and that the European Investment Bank group should pro-actively support KETs initiatives in Europe.

• Recommendation n°2: The EU should apply the TRL scale R&D definitionThe High Level Group recommends the EU to align its RDI activities on the TRL scale in line with the OECD definition. The Commission should also systematically apply this definition in order to include technological research, product development and demonstration activities within its RDI portfolio.

• Recommendation n°3: Fully exploit the scope of relevant R&D definitionsThe High Level Group recommends that the EU should apply R&D definitions in its programmes which support the full and simultaneous implementation of the three pillar bridge model along the innovation chain, from basic research, through technological research, product development and prototyping up to globally competitive manufacturing.

• Recommendation n°4: Rebalancing of EU RDI funding programmesThe High Level Group recommends that the EU and Member States firmly rebalance their RDI funding in KETs-related programmes towards technological research, product development (including pilot lines, prototypes, first-in-kind equipment and facilities and demonstrator activities). In particular in the future CSF, the EU should set indicative targets for the percentage of funding dedicated to basic research, technological research and development activities.

KEY Enabling TechnologiesKEY Enabling TechnologiesRecommendations by the HLG

10

• Recommendation n°5: A strategic approach to KETs programmesThe High Level Group recommends that the European Commission defines and implements a strategic, industry driven and coordinated approach to KETs programmes and related policies across EC RDI funding programmes and instruments (CSF, ERDF).

• Recommendation n°6: Establish an appropriate set of rules to implement KETs programmesThe High Level Group recommends that the European Commission adapts its selection criteria and implementation rules in the CSF programme to maximise its impact on the value and innovation chains. In particular, a "value chain correctness" criterion should be added

• Recommendation n°7: Combined funding mechanismsThe High Level Group recommends that the EU should introduce a tripartite financing approach based on combined funding mechanisms involving Industry, Commission, and national authorities (Member States and local government), when required by the high costs of the KETs RDI projects, and put in place the appropriate program management and mechanisms to allow the combination of EU funding (CSF, structural funds), to enable the optimum investment in significant KET pilot line and manufacturing facilities across Europe.

• Recommendation n°8: KETs state aid provisionsThe High Level Group recommends that the EU adapts state aid provisions to facilitate RDI activities and large-scale investment in KETs, in particular through the introduction of a matching clause in the EU state aid framework across the board, review of the scaling-down mechanism for larger investments increased thresholds for notifications, faster procedures and the use of projects of common European interest.

KEY Enabling TechnologiesKEY Enabling TechnologiesRecommendations by the HLG

11

• Recommendation n°9: Globally competitive IP policy in EuropeThe High Level Group recommends that the selection criteria and terms of the consortium agreements of EU RDI funding programmes should be amended to ensure that participating consortia have a clear and explicit plan for both the ownership of and first exploitation of IP resulting from the project within the EU. It should explicitly include provisions similar to those of the “Bayh-Dole Act” and “Exception Circumstances”-like provisions to encourage the first exploitation and manufacturing of products based on this IP within the EU.

• Recommendation n°10: Build, strengthen and retain KETs skillsThe High Level Group recommends that the EU should create a European Technology Research Council (ETRC) to promote individual excellence in technologically focused engineering research and innovation and establish the appropriate framework conditions through the ESF regulation in order to support KETs skills capacity building at national and regional level.

• Recommendation n°11: A European KETs observatory and consultative bodyThe High Level Group recommends that the European Commission establishes a European KETs Observatory Monitoring Mechanism tasked with the mission of performing analysis and a “KETs Consultative Body” comprised of stakeholders across the entire innovation chain to advise and monitor the progress in Europe of the HLG KET recommendations towards the development and deployment of KETs for a competitive Europe this should include all relevant data regarding policies and strategies evolution outside EU.

KEY Enabling TechnologiesKEY Enabling TechnologiesRecommendations by the HLG

12

Key Enabling Technologies

KEY Enabling TechnologiesKEY Enabling TechnologiesConsiderations on implementation

13

• Proposal by the Commission in ‘A budget for Europe 2020’ on Research and Innovation– Budget for 2014 -2020 of EUR 80 billion in constant

2011 prices– Bring together FP7, the innovation part of

Competitiveness and Innovation Programme (CIP) and European Institute of Innovation and Technology (EIT)

– Structured around three distinct reinforcing blocks• Excellence in the science base• Tackling societal challenges• Creating industrial leadership and competitive

frameworks– Includes both agenda-driven activities and more

open areas for applications– Implementation will be simplified and standardised

Horizon 2020Horizon 2020Outlook and budget

14

• FROM different priorities in each programme and initiativeTO common strategic priorities, focusing on

societal challenges, competitiveness and research excellence

• FROM gaps between the stages (R&D, demonstration, piloting, market uptake …)TO coherent support for projects and organisations

across the innovation cycle

Horizon 2020Horizon 2020Increasing impact

15

• FROM a large variety of funding schemes within and between programmes TO a rationalised toolkit of funding schemes across

the CSF

• FROM different rules in each programme and initiative TO more standardised rules across all initiatives –

which meet the different needs and with flexibility where needed

• FROM multiple websites, guidance documents, applicationsTO common entry point, one stop shop, common IT

platform

Horizon 2020Horizon 2020Achieving simplification

16

Creating Industrial Leadership & Competitive Frameworks− Leadership in enabling technologies

ICTNanotech, Production, MaterialsBiotechSpace

− Access to risk finance & venture capital − High potential SMEs

Excellence in the Research BaseFrontier research (ERC & FET Flagships)Skills and career development (Marie Curie)Research infrastructures incl. e-Infrastructures

Tackling Societal ChallengesHealth, demographics and wellbeingFood security and bio-based economySecure, clean and efficient energySmart, green and integrated transportResource efficiency & climate impactInclusive, innovative & secure society(EIT)

Common rules, toolkit of funding schemes

Shared objectives and principles

Horizon 2020Horizon 2020Architecture

17

Horizon 2020Horizon 2020Challenges and funding schemes – a comprehensive picture

Societal challenges

Industrial leadership

Excellence in science

Infrastructures and skills

Strategic,Roadmap based

Open, Agile User-driven testing, piloting

Pilots

Pilots

ERC

Small size

SMEs specific

Light WP

Anytime

e.g. support to

EIPs

e.g. PPPs

e.g. FET Flagships

eInfrastructures

e.g. HPC access

e.g. Living labs

18

Increasing complexity and cost

This triggered major changes:

Further Globalisation of Semiconductor R&D and ManufacturingShift of markets and Investments to Asia Global strategic alliances for process RTD & manufacturing

Changing Business Models and ConsolidationShift from IDM to fab lite, fabless and foundry Focus on products rather than on technology Complex value chains

Changing R&D Models:Multi-disciplinarity, system level view Global alliances for process R&D - sharing of R&D infrastructureApplication driven derivatives “at home”

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyEvolution of the area

19

More than Moore: Diversification

Mo

ore

’s L

aw:

Min

iatu

riza

tio

n

Bas

elin

e C

MO

S:

CP

U, M

emo

ry, L

og

ic

130nm

90nm

65nm

45nm

32nm

22nm

Beyond & Extended CMOS

Analog/RF Passives HV PowerSensors

ActuatorsBiochips

InformationProcessing

Digital content System-on-Chip

(SoC)

Interacting with people and environmentNon-digital content SoC & System-in-

Package (SiP)

Combining SoC and SiP: Higher Value Systems

, Beyond & Extended CMOS technologies need to meet

the criteria of integratability and systemability and manufacturability

- Advanced components in advanced systems enabling pervasive applications -

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyResearch in Europe

20Source: CT IC

The dynamics of two decades of computer computer chipchip technology development and their mineral and element impacts.

In the 1980s, computer chips were made with a palette of twelve minerals or their elemental components. A decade later, sixteen elements were employed. Today, as many as sixty different minerals (or their constituent elements) are used in fabricating the high-speed, high-capacity integrated circuits that are crucial to this technology.

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyResearch in Europe

21

Specific ProgrammeSpecific ProgrammeSpecific ProgrammeSpecific Programme

FP7FP7FP7FP7

Vision, Mission, StrategyVision, Mission, StrategyVision, Mission, StrategyVision, Mission, Strategy

FP7FP7FP7FP7

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyAddressing value chains

22

2222

• 191 projects analysed in total• 20% funded by Nanoelectronics Unit directly• 50% in MEDEA+/CATRENE/ENIAC

Programme Sub-programme No

COOPERATIONICT-Nanoelectronics (including Design)

38

 ICT-Micro/Smart Systems

17

 ICT-Photonics/Organic Electronics

18

  ICT-other 7

  ICT-FET 8

NMP 5

JTI/JU ENIAC 28EUREKA MEDEA+ 39

CATRENE 25

CAPACITIES Research for SMEs 1  Research Potential 1

PEOPLE

Marie-Curie Industrial-Academic Partnerships

3

IDEASERC Advanced Investigator Grants

1

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyAddressing value chains

23

– Major players here are defined as those who are prominent in current manufacturing supply chains (taken from EC reports, e.g. ICT MAN study):• OEMs: NOKIA, ERICSSON, BOSCH, SIEMENS (5), PHILIPS (5), THALES (9), EADS, FIAT (5)• IDMs and Foundries: INTEL, STM (24), INFINEON (12), GLOBAL FOUNDRIES, NXP (4), NUMONYX, BOSCH, AMS,

ARM• Design Companies: CADENCE, PHOENIX, SYNOPSYS (4)• Equipment and Materials Suppliers: SILTRONIC, SOITEC, APPLIED MATERIALS, KLA-TENCOR (3), LAM, ASMI,

AIXTRON, SUSS MICROTEC, ADIXEN, ION BEAM SERVICES

23

 

EQUIPMENT & MATERIALS

SUPPLIERS

DESIGN

COMPANIES IDMs & FOUNDRIES OEMs

No 9 8 43 25% of Total (94) 9% 8% 43% 25%

26 FP7 APPLICATION Projects

35 FP7 INTEGRATION Projects

18 FP7 DESIGN Projects14 FP7 EQUIPMENT

Projects

FP7 is successfully involving major players across the supply chain in line with the types of projects being funded, but participation of key players is patchy and there are significant omissions

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyAddressing value chains

24

Top OEMs – THALES, FIAT, PHILIPS and SIEMENS - are involved in 18 projects. Another 7 projects involve other OEMs eg Ericsson

24

IDMs & FOUNDRIES

OEMs

DESIGN COMPANIES

EQUIPMENT & MATERIAL SUPPLIERS

6

2

12

25 43

8 9

2 7

2

Top IDMs – STM and INFINEON - are involved in 33 projects. Another 10 projects involve other IDMs eg Numonyx, Bosch, NXP, Global

NANOELECTRONICS – A Key Enabling TechnologyNANOELECTRONICS – A Key Enabling TechnologyAddressing value chains

THANK YOUWilly.VanPuymbroeck@ec.europa.eu

Information Society and Media:http://ec.europa.eu/information_society http://cordis.europa.eu/fp7/ict/nanoelectronics/mission_en.html

European research on the web:http://cordis.europa.eu http://www.eniac.eu