Regional Collaboration: Key for Success in Globalization

Transcription

1 Regional Collaboration: Key for Success in Globalization Monika Kircher-Kohl International Business Symposium on Globalization of R&D August 28, 2007 Beijing, China

2 The New Infineon s Sharper Image Page 2

3 Infineon Technologies offers semiconductor and systems solutions for a variety of applications More than EUR 4 bn in revenues in the fiscal year 2006 Approx. 30,000 employees (incl. 6,000 R&D staff) as of March 31, 2007 Strong technology portfolio with about 22,900 patents and applications; more than 35 major R&D locations worldwide Focus on Energy Efficiency, Connectivity and Security Majority holding of Qimonda Page 3

4 Customers Infineon Technologies is organized in two business groups according to applications: AIM and COM Business Groups AIM Automotive, Industrial & Multimarket Applications Car Electronics (powertrain, safety management, body & convenience, infotainment), Power control (distributed power generation, automation / motor control, transportation, power supplies, medical, building control), Chipcard & Security (communications, payment, identification, entertainment) COM Communication Solutions Wireless communications (mobile phones, cellular base stations, cordless telephones, RF technology for short, medium and longrange distances, TV receivers, navigation), Wireline communications (Voice and broadband data communications, integrated voice and data communications, wireless infrastructure, home networks) Page 4

5 Infineon has a global R&D network, with Infineon R&D Network in Europe more than 35 major R&D centers world wide Duisburg Warstein Aalborg Horten Skoppum Linköping Stockholm Riga Leuven Hanover Dresden Bristol Milpitas Morgan Hill Yorktown Heights Corbeil- Essonnes Regensburg Bucharest Tempe 6.40 Ulm Sophia Antipolis Augsburg Munich, Neubiberg Padua Villach Graz Page 7 Austin East Fishkill Shanghai Netanya Bangalore Malacca Singapore Xi'an Hsinchu 8.60 Page 5

6 We Contribute To The Three Challenges Of Modern Society Energy Efficiency Connectivity Security Page 6

7 Increased Efficiency In all Areas Of Electric Supply Chain Through Semiconductors Saving potential is everywhere Traction Industry Speed controlled motors Pumps Generation Distribution Consumption Computer & server power supply Lighting Wind, water and solar power Fuel cells FACTS & SVC HVDC Transmission Consumer TV, DVD, etc. supply & stand-by Inductive cooking FACTS = Flexible Alternating Current Transmission Systems; SV = Static Variable Compensator; HVDC = High Voltage Direct Currect Page 7

8 Why do we look across borders? What is the motivation for investment in R&D collaborations with universities & private research institutes? Access to human resources Access to pool of experts/ human capital For recruiting purposes Access to specific Know-how Competence Expertise Proximity to customers/ markets Corporate investment in (crossborder) R&D collaboration s Profit from favorable R&D environment Funding programs Incentives (e.g. taxes) Lower cost level (wages) IPR stability of the law Page 8

9 Infineon Technologies Austria the largest regional subsidiary of Infineon Infineon Technologies Austria AG incl. subsidaries & holdings Villach Linz Research & Development Villach Headquarters AIM PS Production Research & Development Vienna Sales Graz Research & Development Klagenfurt Headquarters IT Services GmbH Graz Kulim/Malaysia Bucharest/Romania Linz Klagenfurt Production Research & Development Page 9

10 Austria has established attractive conditions for R&D intensive companies Clear strategy Lisbon agenda and Barcelona target Austrian Innovation Plan 2002 Strategy 2010 on research, technology & innovation Attractive funding programs Clear structures Establishing of clear structures/bundling regarding funding organizations FFG, FWF, Tax incentives Attractive corporate income tax Group Taxation Research premium Research allowance Excellent education Kplus competence centers Christian Doppler Gesellschaft Headquarter program Top level universities and schools but not enough science/technology graduates Page 10

11 Infineon Austria profits from a broad spectrum of educational and academic co-operations Educational and academic Co-operations Research co-operations Universities Clusters Universities of Applied Science Technically oriented high schools (HTL) Professional training institutes/ life long learning Competence Centers Research Labs and Institutes in Austria and internationally Page 11

12 A Challenge: How to encourage the link between academia and industry? Universities Research institutes Industry Examples Austria to encourage the link: Kplus Centers of Competence Christian Doppler Laboratories Page 12

13 Kplus Competence Centers - Example to encourage the link between academia and industry Kplus Competence Centers Goal To overcome the gap between science and industry Approach Foundation of temporary competence centers in cooperation with partners of industry and academia for long-term, focused and internationally relevant R&D Scope Since 1998 three calls 18 Kplus Centers K_ind program line (industry lead) 300 industry and 150 scientific partners Since 2007 follow-up program COMET Source: FFG Page 13

14 Christian Doppler Society bridging fundamental research and industrial application Christian Doppler Society Christian Doppler Laboratories Goal Support of application oriented fundamental research Technology and know-how transfer between science and industry Approach Scope CD labs are established in universities for a max. of 7 yrs around a talented (young) scientist Company funds for labs provided are doubled by the CDG Currently 45 labs in 6 research areas Source: Christian Doppler Gesellschaft Page 15

15 Infineon experience with cross border R&D some examples Design Center in Bucharest Focus power mixed signal Close cooperation with University of Bucharest Hyundai Infineon Innovation Center Strategic cooperation Joint development projects Training of employees in Austria Kulim Villach 400+ engineers of Infineon Kulim Power Fab as trainees in Europe Page 16

16 APAC is becoming the most important region for Infineon Technologies Infineon Technologies regional sales split Q3/FY07 Total: EUR 1,751 m Europe (1) 270 Germany 272 NAFTA/RW (2) % 24% 16% 12% Japan % APAC 585 Geographic origin of graduates with technical background Australia, New Zealand 1% United States MENA*** SA** NCA* Central, Eastern Europe 12% 4% 4% 5% 12% 16% Western Europe Sub-Sahara Africa 1% 45% Asia Source: Accenture (1) Excluding Germany (2) Remaining world *) North Central America, **) South America, ***) Middle-East, North Africa Page 17

17 Infineon s strong expansion & strategic positioning in China s major economic zones 1995 CAT plant established, Wuxi 1995 Sales company, Hongkong 2002 Trading company, Shanghai 2003 April COC, Shanghai 2003 June R&D center, Xi an 2003 July Holding Company, Shanghai 2003 July MP plant, Suzhou 2004 Feb IT Center, Suzhou 2004 April MP module plant, Suzhou 2006 April, Qimonda R&D, Xian 2006 May MP Carve-out Beijing Sales Office Jingjing Delta Offices Production Center of West China Xi an Design Center Wuxi Suzhou CC/DS Plant MP Plants/IT Center Shenzhen Sales and FAE Shanghai HQ/ CoC/Trading Yangtze Delta Lab or DC Qimonda Hong Kong Sales/Marketing/ SMS Lab Pearl Delta Page 18

18 Infineon China also closely cooperates with local top university on joint R&D research in different areas Xi an Jiaotong University University of Electronics Science and Technology Southeast University Chengdu Xi dian University Chongqing - Chongqing Jiaotong U - Chongqing University of Post Communication MCU Training Lab High Power Experimental Platform Xi an Hefei Tsinghua University Beijing Tianjin Shanghai Hefei University of Technology (newly setup) Harbin Institute of Technology Tianjin University Tongji University Shanghai Hangzhou University Zhejiang University Automotive Electroncis Tsinghua: focus on Safety & Dynamic Application Tongji University: focus on Body and Motor Drive Control Tianjin University: focus on Powertrain for Diesel Engine and Motorcycle Motor Control Shanghai University: focus on high-end motor control Harbin Institute of Technology: focus on general motor control Power Electronics (Energy Efficiency) Zhejiang University: focus on Low power (ultra high efficient converter) Xi an Jiaotong University: focus on Windpower project Tsinghua University: focus on Power Quality & multilevel converter (very high power) Harbin Institute of Technology: forcus on High efficient motor control for home appliances Communication: Tsinghua University: T-DVB solution project Page 19

19 Where does China stand today? Why do High Tech companies envisage to push R&D activities in China? What are the limiting factors? Proximity to customers/ markets Access to human resources Corporate investment in (crossborder) R&D collaboration s ~ graduates in engineering and natural sciences each year But High fluctuation of employees Lack of experts Language barriers Profit from favorable R&D environment Still opportunities for action! Intellectual property rights - stability of the law Funding programs/research cooperations Eg: Sino-European R&D center with joint education program Page 21

20 Don t forget the intercultural aspects! The Iceberg Model behaviour rituals language systems practices institutions architecture traditions heroes beliefs attitudes values Source: ICUnet.AG Page 23

21 Opinion Me Contacts Source: Yang Liu Page 24

22 Worries Dealing with problems Transport Source: Yang Liu Page 25

23 Boss Trendy Image of the other Source: Yang Liu Page 26

24 Contact method: Page 28

25 Back-up Page 29

26 Our China Headquarters Locates in Shanghai Infineon Technologies (China) Co., Ltd. was established in July 2003, it is now qualified as the regional headquarters for Infineon China. China has become a key driver for our business development in the region and worldwide. Infineon Technologies (China) Co., Ltd focuses as headquarter, shared service, service provider, sales & mkt. Page 30

27 Project Office The R&D Center for Mobile Phones in Shanghai Infineon Technologies Center of Competence Ltd. in Shanghai is a central part of the Development and Customer Center Mobile Systems in APAC (DCC MS). There are currently 7 CoC locations with over 100 engineers for cellular systems. Chip Design Platform R&D R&D, Design-in & Customization Client & Project Management SW Customization & Development HW Customization & Development Cust omer The DCC MS develops, customizes and supports wireless products and provides customer support based on platform R&D for mobile phones to enable fast interaction between customer requests and system development. Test & Measurement Training, Services & Support Center of Competence APAC The UltraLowCost platform is the latest product which was developed in DCC MS. Since the first CoC was established in 2001 our APAC customers launched over 100 different mobile phones into the market with a total of over 21 million chipsets sold. Page 31

28 The R&D Center in Xi An Infineon Technologies (Xian) Co., Ltd. incorporated in June, 2003, now has over 350 engineers and 25 support staff, including Qimonda with 90 engineers and 10 support staff. Technical staff is engaged in projects onsite or overseas for state-of-the-art IC-design projects. Focus on creating innovative products in the fields of communications, automotive and industrial electronics. Qimonda's focus is on memory products Develop Integrated circuits for new applications (system-on-chip integration) Support Infineon globally by IC design implementation with best manufacturability at lowest possible cost. Page 32

29 Our Back-end Manufacturing Capabilities in Wuxi Infineon Technologies (Wuxi) Company Ltd. was founded in October 1995, manufacturing discrete components and smart card modules. By Dec 2006, the company had about 779 employees. Product Information Discrete components, mainly Diodes & Transistors, fulfil the quality & reliability standard of global OEM's in a wide range of applications, such as house-hold appliances, mobile electronics & automotive electronics. Being the most universal component in electronic industry, SOT23 package is the largest volume runner in Discrete group. And the High- Frequency products of Discrete are the market leader in term of technology and performance. Deployed the new FCOS (Flip Chip on Substrate) production line in Only Infineon Regensburg and Wuxi plants have FCOS assembly lines. FCOS technology has a bright future in the market, Infineon Wuxi plays a critical role in developing our global smart card business. Page 33

30 Qimonda Suzhou-Memory Product Manufacturing Shipment qualification for components and modules achieved by end 2004, Maximum capacity planned of up to 1billion chips per year, volume production has been ramp up. Qimonda Suzhou Co., Ltd. focus on component assembly & test, and Qimonda Modules (Suzhou) Co., Ltd. focus on modules assembly and test Investment of about US$ 1 billion planned in total, official opening in September 2004 More than 1,000 employees planned when completely ramped, first products: 256M DDR in BGA packages and related modules Page 34

31 Qimonda Suzhou-IT Infrastructure Systems and Service As the Qimonda IT development and support center, it opened in September 2004, supporting our worldwide IT development as well as its operations in Asia Pacific. The Qimonda IT development is concentrating on the manufacturing process, while the regional support is covering the complete set of IT services. Qimonda IT uses a standard set of applications and systems for the manufacturing processes. It will build and maintain those major systems used in all Infineon production sites worldwide; thereby supporting its standard manufacturing processes. Page 35

32 Infineon built strong presence in China Infineon added its market share year after year, resulting in a ranking improved from 15 th to 7 th in Chinese semiconductor market in the past 3 years. (Source: IC Insights) Developed strong and reliable partnerships with government, industry and universities: - Established collaboration especially for solutions business opportunity with local enterprises such as Lenovo, Huawei, Tsinghua Tongfang, Konka etc. - Established cooperation like Automotive and Chip Card projects with local universities such as Tsinghua, Tongji, Fudan, TianJin, etc. Commitment and contribution to Chinese semiconductor industry - Technologies transfer like 0.14-µm and 0.11-µm DRAM trench technology to SMIC. - To expand registered capital to 50 million in Wuxi plant. - To establish a MP backend factory with US$ 1 billion investment in Suzhou. - To grow our total local staff to about 3,000 people by 2007 Page 36