a european perspective for electronic industry in latin
TRANSCRIPT
A European Perspective for Electronic Industry
in Latin America
François GuibertCorporate Vice President, Emerging Markets Region General Manager
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Security Networking
Storage
Consumer
Automotive
Wireless
Computer Science
Electronic, a Global WorldElectronic, a Global World
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Electronic is a key-industryfor the wealth of nations
Electronic is a key-industryfor the wealth of nations
Most other industries and all services will be unable to operate without electronic.Electronic generates more added-value than any other manufacturing industry.Electronic Industry controls three times more jobs than it generates.Electronic accounts for 30% of the fixed asset investments of the overall industries.In the next ten years, the Electronic Industry will continue growing more than two times the global world GDP.
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Electronic Industry worldwide represents ($US):
Electronic Industry worldwide represents ($US):
4.404.40 x Oil, Petrol & Minerals2.752.75 x Chemical & Plastics2.452.45 x Food, Beverage & Tobacco2.442.44 x Transportation2.202.20 x Electricity, Gas & water
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Electronic is a key enabler of added-value and jobs for the whole industryElectronic is a key enabler of added-value and jobs for the whole industry
Traditional Manufacturing
$1,020B
Telecom operators… $5,000B …Broadcasting Cies…
$213B
Automobile, Petrol, Chemical, Aviation
Semiconductor Industry
Service providers
Electronics Industry
Industrial world in 2004
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Electronic Industry profile in 2004Electronic Industry profile in 2004
Segments
Industrial15%
Computer33%
Commu-nication
28%Consumer
10%
Gov. Military
8%
Automo-tive6%
RegionsOther Asia/Pac.
17%
China16%
Japan14%
Europe25%
Americas28%
Total : $1,020BSource : IC Insights
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Electronic Industry production growthElectronic Industry production growthCAGR comparisons
1978-2004
3%
-2%
-1%
2%
3%
5%
5%
7.5%Electronics
Civil aviation
Chemical
Auto.
Oil
Textile
Steel
world GDP
Electronic Industry is the fastest growing industry
Long-term evolution
0
200
400
600
800
1000
1200
78 83 88 93 98 03
$B
Source : IC Insights, ST
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Electronic Industry trendsElectronic Industry trendsWorld Electronic Industry growth
$1,020B$1,080B
$1,440B
00 01 02 03 04 05 06 07 08 09 10
CAGR 7%
Electronic industry growth is driven by:
Development of consumer applications through digitalization.
Development of new regions “BRIC”: Brazil, Russia, India, and China.
CAGR is 4 percentage points above the world GDP growth.
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Electronic is a pillar for the industrial strategy of nations
Electronic is a pillar for the industrial strategy of nations
Research Programs
•Energy savingphotovoltaic
•Medicalelectronic analysis
•Etc…
Development and InnovationPrograms
• Buildingsenergy controlsecurityaccess control
•Automotivesecurity and intelligencehybrid vehicles
•Airplanesautomationair control
•Etc…
• City transitautomaticmass transport
•SecurityIdentitycontrolNetwork
•Transportationfast traincontainersfollow-up
•Etc…
InfrastructurePrograms
•Internethigh bit rate
•TV high definition•Medical
electronic network•Etc…
Sources: ST based on Jan 2005 report to French government
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Electronic is at the center of the industrial policy of Nations
Electronic is at the center of the industrial policy of Nations
'50 '60 '70 '80 '90 '00
USA
INDIA
EUROPE
CHINATAIWAN
KOREA
EUROPEJAPAN
Semiconductor
Reinforcing the strategic programs through R&D in Semiconductor:
USAEuropeTaiwan
ComputerTelecom
CommunicationSemiconductor FoundriesPC
ConsumerSemiconductor
ConsumerSemiconductor
SoftwareCommunication
DefenseSemiconductorComputer
Launching the strategic programs through R&D in systems
PCSemiconductor
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United States of AmericaUnited States of America
SILICONVALLEY
Semiconductors
Equipment
NationalDefense
Electronicprograms
Component
Software
PC & Peripherals
Defense
Enhancement through
Microelectronic programs
Sematech…
Mainframe Computer
Digital Consumer
20001950
Data Com.Radio Com.
1970/1980
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1960 1970 1980 1990 2000 2010
JapanJapan
Radio
AudioK7
VideoRecorder
VHS standardTV
Production for export
RenewedMicroelectronicPublic Programs
Foreign design
Original design
Production for local demand
Large equipment production creating market for microelectronics
Governmental microelectronic program « VLSI » :
LogicMemories
World recognized microelectronic industry
VLSI public program
Subcontracting
Enhancing Semiconductor Industry
Enhancing Equipment Industry
Exports
Exports
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EuropeEurope
Defenseelectronics
Consumer Applicationsupport
National programs
Smart Card
ESPRIT
EUREKA
JESSI
MEDEA
European and Pan National programsEuropean and Pan National programs
Digitalcommunication
European programs
ComputerIndustry:
ICLSiemensBull
Pan National programs
Equipment industry support
Telecommunications
Digital TV
Semiconductor support
1960 1970 1980 1990 2000
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TaiwanTaiwan
AudioToys
Diversified Electronic Leadership
PC
Consumer
Becoming a Leading Semiconductor Supplier
SCfoundryindustry
TSMCUMC……
PCMotherboardPeripherals
ITRIERSO
Subcontracting SemiconductorsSubcontracting EquipmentsHsinchu (High Tech Park)
1980 1990 2000
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Peoples Republic of ChinaPeoples Republic of ChinaBalancing Growth and Cost
Competitiveness
2000 2010 2020
Mastering Electronic manufacturing science
Thru foreign companies transplant :
OEMEMS
EstablishingChina as asignificant
Competitor inAdvancedElectronic
Creation of areas of competenciesShenzhen/Hong Kong: Consumer/PCShanghai: SemiconductorsBeijing: Telecom
Design houses
ODM
Foundries development
EstablishingChina as theworkshop of
the world
PC
Wireline
Wireless
Consumer
EstablishingChina as a
competitor inSemiconductor
OEM (Original Equipment Manufacturers)EMS (Equipment Manufacturer Services)ODM (Original Design Manufacturers)
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Ingredients for success in Electronic IndustryIngredients for success in Electronic IndustryElectronic
Focus
RegionalEconomicSuccess
Education
Tax incentives
Technologic Parks
Diversification of major Industrial Companies
Development of Startups
Government Focus
Government
Key Financial & Industrial Players
R&D efforts
Electronic IndustryCompetitiveness
Semiconductors Innovation/Integration
Electronic Key Applications(PC, Telecom, Consumer, Appliances…)
With Electronic / Semiconductor world leaders
Partnership
Entrepreneurs Dedication
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Europe has reached leading position in many key-applications :
Telecommunication (in particular Mobile Phone…)Digital consumer (SetTopBox…)Smart Card (telecom, banking, security…)Automotive (electronic, security…)Semiconductors (STMicroelectronics, Infineon, Philips…)
Why Europe is the partner of choiceWhy Europe is the partner of choice
Solid member of the top 10 semiconductor suppliers, key contributor to the European Electronic success and having a strong historical culture of cooperation, STMicroelectronics is ready to contribute to Latin America Electronic Industry Development.
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Opportunities for Latin America in Electronic
Opportunities for Latin America in Electronic
Present Situation Possible driversMarket Potential
Regional (around 550M inhabitants)Worldwide Export opportunities
Stable and High Growth Economic ProspectAvailable Industry Structure with access to External Technical CooperationPossible Partnership with Key Local EntrepreneursEngineering Educational System
Digital Set Top Box / HDTV
Smart Cards
White Goods (appliances)
Electronic Meters
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STMicroelectronicsa global semiconductor company
27 %Europe
14 %North
America
5 %Japan
42 %Asia Pacific12 %
Emerging Markets*
o 2004 Sales : US$ 8.76 billiono over 45,000 employeeso 17 main production siteso 16 advanced R&D centerso 39 design and application centerso 88 direct sales offices in 31 countries
* Latin America, India, Middle East & Africa, Russia & Eastern Europe,
Sales by region as % of 2004 sales
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Global manufacturing
8" Front-end
Back-endOther Front-end
infrastructure
USA France Italy
MaltaMoroccoChina
Malaysia
Singapore
Advanced wafer fabs:12" Crolles (France) - Pilot line in operation12" Catania (Italy) – Building & Facilities underway
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STMicroelectronics Strategy focusing on Key Programs and Product Lines
STMicroelectronics Strategy focusing on Key Programs and Product Lines
NOR Flash
NAND Flash
Memory cards
Smartcards
Discretes
MOSFET
VIPower
Wireless broadband - handsets
3G PlatformNomadik
Wireless LANWireline broadbandComputer Peripherals
Storage & Printing
Automotive
Set-Top BoxesDVDsDigital TVsShared Platform
ImagingMicrocontrollers
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STMicroelectronics ContributionMultiple Product Offerings
STMicroelectronics ContributionMultiple Product Offerings
FromSystem-on-Chip
System-above-ChipSystem-in-Package
To PLATFORM SOLUTIONS