New Top Managers and Manufacturing in Europe

Project engineer Michael Montano of Twitter and head of design Dantley Davis will step down by the end of this month as part of a major restructuring of the social network’s management, Reuters reported.

This comes days after the official statement of the co-founder Jack Dorsey that he will resign as CEO immediately, and will be replaced by the current technology director Parag Agrawal.

Twitter reports that in its new role, Agrawal has decided to reorganize the company’s leadership structure and move to a general management model for consumers, revenue, and core technologies that will oversee all major teams in engineering, product management, design. and research.

Three other employees related to the management of these activities in the company will head all three new units. Lindsay Ianuchi, senior executive director of operations strategies, will be chief of staff.

Can Europe become a leader in chip production?

The European Union has presented ambitious plans to significantly increase chip production in the bloc and take a leading position in the industry. To that end, however, the union will need large investments from key players in Asia and the United States to make up for the region’s lagging behind in some important aspects of production, CNBC reports.

This week the European Commission presented the so-called Euro-Eastern Europe – a multi-billion euro plan to strengthen supply chains, avoid future chip shortages and encourage investment in the sector. The plan must first be approved by the European Parliament before it enters into force.

Semiconductors are critical to many modern products, from refrigerators to cars to smartphones. Their global shortage since the second half of 2020 has brought many headaches to a number of sectors, causing delays and even shutdowns in large plants.

For the United States, semiconductors have even become a matter of national security and a point of conflict with China. This geopolitical tension has brought sanctions on China’s largest chipmaker, MIS, and pushed Beijing to seek self-sufficiency.

The EU is trying to avoid these risks with its new proposal.

“Faced with growing geopolitical tensions, rapid demand growth and the potential for new supply chain challenges, Europe must use its strengths to create effective mechanisms for gaining leadership and securing supplies within the global industrial chain.” , according to the EC.

Production challenges

The European Union’s goal is to invest € 43 billion in chip production so that the EU can become an ‘industrial leader in the future’. The bloc wants to increase its market share in the sector to 20% in 2030 from the current 9%, as well as to produce “the most complex and energy efficient semiconductors in Europe”.

Part of the plan is related to “reducing excessive dependencies” from other countries, although the EU notes that it needs partnerships with “like-minded people”.

It may sound paradoxical, but in its attempts to become more independent, the EU will have to rely on the United States and Asia, due to some specifics of the sector. In the last 15 years, many technology companies have begun to move to a model of work in which they create the design of the chips, and their production takes place elsewhere – in the so-called “foundries”. This has led to major changes in the chip market, which is now dominated by Asian companies. Taiwan’s TSMC holds about 50% market share in foundry revenues. South Korean giants Samsung and UMC follow, again from Taiwan.

The American giant Intel, which was once a key player in production, has lagged significantly behind in recent years. However, the company announced that it intends to direct large investments to direct production and even start executing design orders from other companies. However, its technology lags far behind that of TSMC and Samsung.

The EU, for its part, does not have any companies that can produce high-end chips.

“The main area in which the EU needs a partner is semiconductor wafers. European players are still relying on a 22-nanometer process, so it’s unrealistic to think they can go 22 nm. at 2 nm. ”

The aforementioned nanometers are related to the size of the transistors on the chips. If the size of the transistors is smaller, it means that more of them can be placed per square millimeter on a chip. This leads to the creation of more powerful and energy efficient chips. The chips in Apple’s latest iPhone model use a 5-nanometer process.

European companies may also have to rely on US designs.

“Increasing production to 20 percent market share is an ‘extremely difficult task’ for the EU,” said Jeff Blaber, chief executive of CCS Insights. “The focus on production is the biggest challenge,” he added

Is the EC sufficiently attractive?

As countries and regions around the world try to secure semiconductor supplies, competition is growing to attract investment and the best talent. As a chat from the package of economic incentives of 2 trillion. US President Joe Biden has set aside $ 50 billion for R&D and chip production in the United States. A bill known as the CHIPS for America Act is also making its way through Congress.

Countries such as Japan, South Korea and China are increasing investment in the sector.

“The main challenge will be to attract new players to the EC. In particular, the EU needs to become a more attractive location than other regions, “Hanbupi said.

The EU has been trying to attract investment from leading chipmakers for a long time. Intel has announced plans to set up a new plant in Europe, although no specific location has yet been selected. TSMC is at an early stage of building a manufacturing plant in Europe.

“The EU, or any other location, should not invest more money than the producers themselves, but simply try to influence them in such a way as to ensure that their investment will be in their territory,” Hanbury said.

Management strengths of EU

Although European companies are lagging behind in the production process, there are some key players in the industry in the EU. The most important of them is ASML – the Dutch company that is a leader in photolithographic machines used for the production of semiconductors. Component suppliers for Arrle ЅTMisro and NHP are also based in Europe.

“The EU has several key assets in the industry,” Hanbury said.

According to him, the EU’s focus should be on securing chip supplies for sectors in which European companies have a large presence, such as the automotive industry. The chips used in cars do not have to be of the highest class and often do not require the latest manufacturing technology.

“Think of some of those sectors where we will see great demand for technology in the coming years. “The car industry is a great opportunity for Europe, and I expect the EU to focus on it.”

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Can Europe become a leader in chip production?

The EU is trying to avoid these risks with its new proposal.

Production challenges

Is the EC sufficiently attractive?

Management strengths of EU

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Can Europe become a leader in chip production?

The EU is trying to avoid these risks with its new proposal.

Production challenges

Is the EC sufficiently attractive?

Management strengths of EU

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