Brief analysis - the Semiconductor Manufacturing sector in Emerging Europe
Jackie Bojor
Romania / Emerging Europe Market Entry Consulting: Off-market Deal Origination, Market Research, Strategic Business Intro at Decision Maker level, New Suppliers Identification, pre-M&A services, New Leads Generation
What is the current situation and the expected development of the semiconductor manufacturing sector in Emerging Europe?
What are the investments in microchip development facilities in Romania, Poland, Czechia and Hungary? How about Germany or Finland?
For more details go to the link: https://market-entry-romania.blogspot.com/2024/08/brief-analysis-semiconductor.html
The FRD Center has analysed briefly these topics and generated a brief analysis available for free consultation and free download at the link?https://www.frdcenter.ro/wp-content/uploads/2024/08/FRD-Center-analysis-Semiconductor-sector-in-Emerging-Europe.pdf
Over the last 2-3 years, the semiconductor crisis has caused losses of almost 100 billion euros in the global automotive industry alone. The European economy has been hit hard because it is largely dependent on the Asian chip production.?
On the other hand, Europe has a certain tradition in manufacturing semiconductors, the so-called microchips, industrial elements that have become extremely important in today's world.?
The EU currently has around 9% of the global semiconductor market, currently dominated by the Asian players, but it is striving to reach 20%-30% of the market by 2030.
Check out this link for more details: https://www.frdcenter.ro/the-semiconductor-manufacturing-sector-in-emerging-europe-a-brief-analysis-by-frd-center/
FRD Center has been monitoring the sector for several years. Here is a brief analysis on the?Microelectronics Sector in Romania that FRD Center generated - it is available for free consultation and free download at the link?https://market-entry-romania.blogspot.com/2023/05/how-to-approach-opportunities-in.html
How to obtain primary research in Romania and Emerging Europe? More details at the link: https://market-entry-romania.blogspot.com/2022/01/how-to-obtain-primary-research-in.htm
As it results from the FRD Center analysis , Europeans need increased microchip manufacturing capacity all the more as they hope to ramp up production of electric cars, which is heavily dependent on semiconductors. Similarly, the home appliances manufacturing sector, which is well represented in Europe, is reliant on microchips.
One of the sectors which is seriously reliant on semiconductors is the White Goods and Household Equipment manufacturing industry . What is the current situation of the White Goods and Household Equipment manufacturing industry in Emerging Europe: Romania, Poland, Czechia, Hungary, Slovakia, Bulgaria, Slovenia?
Are there any market expansion opportunities for international electric home appliances manufacturers looking to expand to Europe through a crossborder merger and acquisition of a local player in Eastern Europe?
Which are some of the most relevant independent local manufacturers of Home Appliances in Emerging Europe: Romania, Poland, Czechia, Hungary, Slovakia, Lithuania and Bulgaria?
The market entry consulting firm, FRD Center , has recently conducted a sector analysis focusing on the independent local manufacturers of White Goods and Household Equipment in Emerging Europe that might be potential targets for acquisition for an international player looking to expand to Europe through a strategic partnership or a crossborder acquisition.
One of the most important stakes is breaking the dependence on China and other countries in Asia, from where European countries currently massively import these products of strategic importance.
The EU introduced the “Chips Act” in 2022, a strategic move to further strengthen its key advantages and empower Europe to venture into new segments of the semiconductor industry. The European Chips Act is on track to attract more than 100 billion euros of private investment in the European semiconductor industry by 2030.
The Union is registering investments in factories in all Member States, with some projects also being eligible for European Regional Development Funds and Recovery and Resilience Funds.
As part of a call for projects, the European Union will invest 325 million euros in the semiconductor sector. The amount would be supplemented by additional funding from the Member States participating in the joint initiative.
For example, in Germany, an area that’s becoming known as Silicon Saxony – in East Germany - has seen an explosion in the number of microelectronics and related companies establishing operations there recently.?
For innovative projects in microelectronics, including the development of microchips, Romania allocates half a billion euros through the National Recovery and Resilience Plan.
What are the investments in microchip development facilities in Romania, Poland, Czechia and Hungary? How about Germany or Finland?
The FRD Center has analysed briefly these topics and generated a brief analysis available for free consultation and free download at the link?https://www.frdcenter.ro/wp-content/uploads/2024/08/FRD-Center-analysis-Semiconductor-sector-in-Emerging-Europe.pdf
INVESTMENTS and M&A
In order for the emerging countries of Central and Eastern Europe to achieve a rapid rate of economic development, attracting foreign direct investments (FDI) is essential.
Thus, increasing the attractiveness of countries for FDI becomes a strategic objective in the context of regional and global competition, including in the context of the recently increasing “phenomenon” of reshoring.
Investments in the Emerging European countries continue to represent a good opportunity for foreign investors who want to diversify their portfolios and take advantage of the region's potential economic growth alert.
In this context, European producers are trying to bring production closer to adjacent markets, and Romania has also entered the race to attract investments in these products.?
ROMANIA
The European Commission selected NXP , Continental and Bosch to receive total financing of 420 mEUR for the research and production of microchips and semiconductors in Romania, within the National Recovery and Resilience Plan.
Bosch submitted the project “European microelectronics value chain for highly automated driving and green mobility - EuroDrives”, in partnership with two local universities.
NXP submitted the project "Senthicom", in partnership with six universities and three companies in Romania.?
NXP advances technology through a global reach and their presence in Romania focuses on software development for automotive, microcontrollers and connectivity products as well as IT service management and customers supply operations.
领英推荐
Continental submitted the project “Automotive Systems Smart Energy Efficient Transducers-Innovation across value Chain (ASSET IxC)”, in partnership with one research institute, nine universities and three companies in Romania.
Are you considering market expansion to Emerging Europe? Do you know which are the opportunities presented by the Electronic, Robotics or Mechatronic products manufacturing in Romania?
We, at FRD Center, have been assisting international players with market opportunity assessment and target origination in Romania and the region for over 23 years. Perhaps we could be of assistance to you too. Email us at [email protected] with your specific needs for assistance.
Here are more details in the DEMO report created by FRD Center and available for free download at the link https://www.frdcenter.ro/wp-content/uploads/2022/08/Microelectronics-Sector-in-Romania-by-FRD-Center.pdf
CZECHIA
The largest single foreign investment in the country's modern history comes from the US manufacturer ON Semiconductor (Onsemi ) who announced in June 2024 an investment of 2 bn USD to increase its semiconductor output in Czechia.?
Following this investment, the Onsemi operations in Czechia will house the full production chain for silicon carbide semiconductors. The Czech site will produce intelligent power semiconductors used in electric vehicles, renewable energy and AI data centres. Pending approval of state aid, this brownfield project will be the largest one-off direct foreign investment in Czechia.
The US manufacturer ON Semiconductor (Onsemi) entered Czechia in 2003 by acquiring the local producer of semiconductor chips Tesla Sezam and the producer of silicon Terosil. Currently, Onsemi produces 10 million chips a day in Roznov, Czechia.?
POLAND
In Poland too, the largest foreign investment in the country's history is in the semiconductor sector. Last summer, the American tech giant Intel announced that it would invest $4.6 billion (18.7 billion zlotys) to create a new semiconductor assembly and testing facility.
The number of jobs created amounts to 2,000, and the unit is expected to become operational from 2027.
The US manufacturer Intel announced in June 2023 an investment of 4.6 bn EUR in a new semiconductor assembly and test facility in Poland. The plant is expected to become operational in 2027 and to create 2,000 jobs onsite. The Intel plant will be the largest greenfield project in Polish history.
HUNGARY
In July 2023, the Hungarian government approved the proposal of the Ministry of Economic Development to launch a Research, Development and Innovation project on chip-supporting ceramic base plate, allowing the country to enter the semiconductor manufacturing market. The government will support the capacity building with 2.64 mEUR.
FINLAND
AMD will acquire Finnish AI startup Silo AI for 665 million euros in one of the largest such takeovers in Europe as the US semiconductor maker looks to expand its AI services to compete with the leader in Nvidia market, according to the Financial Times .
GERMANY
Construction work of the Taiwan Semiconductor Manufacturing Co . factory in Germany will begin in the fourth quarter of 2024, with an estimated completion date of 2027.?
TSMC brought the German manufacturers Infineon, NXP and Bosch on board in this investment, each of which has a ten percent stake.
How to analyse their capabilities, the technologies they use and their offering? More details at the link: https://www.frdcenter.ro/wp-content/uploads/2021/10/FRD-Center-New-Suppliers-Search-and-Selection-services-Presentation.pdf
How to identify and approach at Owner level the off-market manufacturing companies you want to acquire and expand to countries such as Romania, Poland, Hungary, Bulgaria, Czechia etc.?
Recently, the FRD Center team have successfully completed a multi-country project for a US manufacturer listed at the NYSE looking for strategic partners in Romania, Poland, Czechia and Bulgaria.
FRD Center - www.frdcenter.ro - has over 23 years expertise in researching the industry in Eastern Europe looking for local manufacturers and facilitating strategic business contacts Decision Maker level. Do you need such local support for your strategic market expansion, new suppliers search, off market deal sourcing ??
Email us at [email protected] with your specific requirements and we can send you our offer for a customised project of New Suppliers Search and Selection or of Target Origination according to your requirements.
What is the current situation and the expected development of the semiconductor manufacturing sector in Emerging Europe?
What are the investments in microchip development facilities in Romania, Poland, Czechia and Hungary? How about Germany or Finland?
The FRD Center has analysed briefly these topics and generated a brief analysis available for free consultation and free download at the link?https://www.frdcenter.ro/wp-content/uploads/2024/08/FRD-Center-analysis-Semiconductor-sector-in-Emerging-Europe.pdf
How to be successful in the semiconductor industry, Integrated Circuit (IC) manufacturing and design, OEM wafer manufacturing and microchip development? What is the current situation and the expected development of the semiconductor manufacturing sector in Emerging Europe?
What are the investments in microchip development facilities in Romania, Poland, Czechia and Hungary? How about Germany or Finland? Who are the contract chipmakers in Emerging Europe and what are their development plans?
How to identify and approach at Owner level the off-market manufacturing companies you want to acquire and expand to countries such as Romania, Poland, Hungary, Bulgaria, Czechia etc.? Email us at [email protected] with your specific requirements.
#semiconductor #microchip #EmergingEurope #semiconductorindustry #microelectronics