©Ch ri s S ch m id t - ist ock p h ot o
The German Electronics Industry
Japanese Delegation Visit to SEMICON Europa
October 13, 2011
Agenda
I. About Germany Trade & Invest
II. The German Electronics Industry
III. Organic & Printed Electronics in Germany
IV. Germany as a Business Location
Germany Trade & Invest…
• is the foreign trade and inward investment promotion agency of the Federal
Republic of Germany.
• is promoted by the German Federal Ministry of Economics and Technology.
• provides comprehensive foreign market information for export-oriented
companies based in Germany.
• supports foreign companies to establish successful business operations in
Germany.
• offers investment consultancy and project management services
free-of-charge.
• works in close partnership with the 120 German Chambers of Commerce
Abroad (AHKs) in 80 countries across the globe.
Who we are
Germany Trade & Invest helps you to successfully establish your
business in Germany
About Germany Trade & Invest
Project Management Assistance
Location Consulting/Site Evaluation
Project partner
identification
and contact
Business opportunity
analysis and market
research
Market entry
strategy
support
Joint project
management
with regional
development
agency
Coordination
and support of
negotiations
with local
authorities
Final site
decision
support
Site
preselection
Identification of
project-specific location factors
Cost factor
analysis
organization
Site visit
Organization of
meetings with
legal advisors
and financial
partners
Identification of relevant
tax and legal issues
Project-related
financing and
incentives
consultancy
Administrative
affairs support
Accompanying
incentives
application and
establishment
formalities
Decision & Investment
Evaluation
Strategy
Two Headquarters in Germany - 46 Locations Worldwide
About Germany Trade & Invest
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Agenda
I. About Germany Trade & Invest
II. The German Electronics Industry
III. Organic & Printed Electronics in Germany
IV. Germany as a Business Location
• 815,000 employees in Germany plus
670,000 employees abroad
• Third largest industry segment in
Germany by revenue, second
largest by employment
• Export volume of 150 billion EUR in
2010
• 12 billion EUR spent on R&D in 2010
• 40% of turnover generated with
products less than three years old
The German Electronics Industry
The Germany Electronics Industry has been experiencing a remarkable
rebound
161 165
179 183 182
145
165
180
0
20
40
60
80
100
120
140
160
180
200
2004 2005 2006 2007 2008 2009 2010 2011*
Turnover of the German Electronics
Industry (in billion EUR)
The German Electronics Industry
The semiconductor industry rebounded to pre-crisis levels in less than a
year and keeps growing
Source: ZVEI 2011
9.27
6.99
10.32
11.18
0
2
4
6
8
10
12
14
16
18
20
2008
2009
2010
2011
Semiconductors
Passive components
Electromechanical components
Printed circuit boards
Film circuits
11.93
16.75
18.07
Electronic components market Germany 2008 – 2011 (in billion EUR)
• Germany dominates the European
market in per capita
microelectronics consumption and
occupies a position ahead of the
USA and China.
• Per capita spending is expected to
further increase by 2015 thanks to a
strong automotive electronics
industry and growing industrial
electronics segment.
The German Electronics Industry
Germany shows the 2nd highest per capita microelectronics
consumption in the world (after Japan)
0
50
100
150
200
250
300
USA
Western
Europe
Germany
China
2005
2010
2015*
Per capita microelectronics
• Biggest microelectronics
cluster in Europe, Nr. 5
worldwide
• 280 companies, research
institutes, universities
• 35,000 employees and 4
billion EUR turnover
• Encompasses the entire
value chain
• Innovations in organic
electronics, RFID and
nanotechnology
The semiconductor industry cluster „Silicon Saxony“ is Germany„s most
important center of competency
Source: Silicon Saxony 2011
Agenda
I. About Germany Trade & Invest
II. The German Electronics Industry
III. Organic & Printed Electronics in Germany
IV. Germany as a Business Location
Recent Investment in OLED Technology
in Germany:
• Merck: Opening of OLED Material
Research Center in Darmstadt (2010)
• OSRAM: 50 million EUR investment in
OLED pilot production in Regensburg
(2010)
• Philips: 40 million EUR expansion of OLED
manufacturing capacity in Aachen (2011)
• EU Project “OLED100.eu”: 10 German
companies involved in 12.5 million EUR
project
• “Innovation Alliance OLED 2015”
(German government and private
sector): 100 million EUR public funding
Organic & Printed Electronics in Germany
Organic & Printed Electronics is set for extraordinary growth
Sources: oe-a, IDTechEx
2,2
3,62
8,46
16,46
27,3
44,23
0
5
10
15
20
25
30
35
40
45
50
2011
2013
2015
2017
2019
2021
Global market for organic and printed
electronics (in billion USD)
Organic & Printed Electronics in Germany
Europe is the most important region for printed electronics – Germany
leads the way within Europe
Germany
29%
UK 22% France 12% Netherlands 6% Italy 4% Belgium 4% Sweden 4% Finland 4% Switzerland 3% Israel 3% Austria 2% Portugal 2% Other 5%Organisations active in printed
electronics by country in Europe
Europe
1050
North
America
975
East Asia
825
Other
countries
150
Organisations active in printed
electronics by world region
Organic & Printed Electronics in Germany
R&D Institutes
Material Supliers
Equipment Manufacturers
Device Manufacturers
Applications
Cluster Competencies
Germany benefits from close
cooperations between numerous
organic and printed electronics
players across the value chain
Forum Organic Electronics
Agenda
I. About Germany Trade & Invest
II. The German Electronics Industry
III. Organic & Printed Electronics in Germany
IV. Germany as a Business Location
Hightech Exports (2009, in billion EUR)
Germany„s hightech exports rank first in Europe
Source: World Bank 2010
2
5
8
11
13
41
42
60
71
101
102
250
0,0
50,0
100,0
150,0
200,0
250,0
300,0
Slovak Republic
Poland
Spain
Czech Republic
Hungary
UK
Netherlands
France
Japan
USA
Germany
China
from 0 – „Knowledge transfer is
lacking‟
to 10 – „Knowledge transfer is highly
developed‟
Knowledge transfer between companies and universities
(2011, executive opinion survey)
International executives recognize the German R&D environment and its
highly developed knowledge transfer capabilities
2,79
4,04
4,05
4,26
4,42
4,55
4,55
6,19
6,24
6,41
7,02
7,88
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
Slovak Republic
Poland
Czech Republic
China
France
Spain
Hungary
UK
Japan
Netherlands
Germany
USA
Thanks to Germany„s education system, the workforce is very well
trained
Business Location Germany - Workforce
Germany has 105 universities, 102 colleges and
211 universities of applied sciences (UAS).
Over 52,000 engineers and 58,000
mathematicians and natural scientists graduated
in 2009.
A combination of on and off-the-job training
reduces hiring and training costs, thus minimizing
recruitment risks.
Vocational schools closely cooperate with ca.
500,000 companies in Germany.
The focus is determined by specific industry
needs.
Higher Education
Dual Education System
1
Sources: Federal Statistical Office 2010 Federal Institute for Vocational Education and Training 2010
Workforce in Germany by Level of
Professional Education (2009, in % of
total workforce)
Note: 1 Dual education system in Germany is a combination of
three-year on-the-job training combined with classroom instruction
University
Graduates
18%
Unskilled
19%
Graduates from
vocational colleges and
technicians (master craftsmen)
8%
Skilled craftsmen
(apprentices from dual
education)
55%
Business Location Germany - Workforce
Worker Motivation in Companies (2011, 10 = highest motivation)
Employees in Germany are highly motivated
4,42
4,82
4,95
5,00
5,24
5,70
5,96
6,05
6,47
6,88
7,14
7,24
8,09
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
France
Slovak Republic
Spain
Poland
Hungary
UK
China
Czech Republic
USA
Japan
Netherlands
Germany
Denmark
Growth of Labor Costs in Total Economy (2001-2010, yearly average growth in %)
Germany has the most stable labor costs in Europe
Source: Eurostat 2011
8,3
7,7
6,8
6,3
4,1
3,6
3,4
2,1
1,6
0
1
2
3
4
5
6
7
8
9
Hungary
Slovak Republic
Czech Republic
Poland
UK
Spain
Netherlands
France
Germany
Incentives Available to Investment Projects in Germany
Germany offers a wide range of incentive programs which can reduce
capital expenditure and operating costs
Business Location Germany - Incentives
Incentives
Operational Incentives Package
R&D Incentives
Labor-Related
Incentives
Training Support
Recruitment
Grants
Silent / Direct
Partnership
Loans
Wage Subsidies
State
Investment
Grant
Cash Incentives
Interest-Reduced
Loans
Guarantees
Public
KfW Loans
(National Level)
Investment
Allowance
1State Development
Bank Loans
State/ Federal
Combined
Thank you for your attention!
Mr. Sebastian Wittke Senior Manager Transportation Technologies T. +49 30 200 099 405 [email protected] Mr. Robert Krauss Senior Manager Transportation Technologies T. +49 30 200 099 401 [email protected] Beijing Office Mr. Markus Hempel China Representative Beijing, China T. +86 10 6539 6725 F. +86 10 6590 6167 [email protected] Mr. Marko Kolbe Senior Manager Machinery & EquipmentT. +49 30 200 099 405 [email protected] Chicago Office Mr. Emilio Brahmst Senior Manager Chicago, USA T. +1 312 377 6130 F. +1 312 377 6134 [email protected] Berlin - Headquarters Mr. Oliver Seiler Director
Mechanical & Electronic Technologies
T. +49 30 200 099 400 [email protected]
North America
Europe
Asia-Pacific
© 2011 Germany Trade & Invest
All information provided by Germany Trade & Invest has been put together with the utmost care. However, we assume no liability for the accuracy of the information provided.
Washington, D.C. Office Dr. Marcus C. Schmidt Director Washington DC, USA T. +1 202 347 7470 F. +1 202 347 7473 [email protected] Tokyo Office Mr. Iwami Asakawa Japan Representative Tokyo, Japan T. +81 3 5275 2072 F. +81 3 5275 2012 [email protected]
New York Office
Mr. Claus Habermeier
Director
New York, USA T: +1 212 584 9715 F: +1 212 262 6449 [email protected]
Mr. Jonathan Schoo
Manager
Electronics & Microtechnology
T. +49 30 200 099 430 [email protected]
San Francisco Office
Ms. Angelika Geiger
Director
San Francisco, USA T: +1 415 248 1246 F: +1 415 627 9169 [email protected] Mr. Jérôme Hull
Manager
Machinery & Equipment
T. +49 30 200 099 602 [email protected] Dr. Rainer Mueller Senior Manager Nanotechnology T. +49 30 200 099 410 [email protected]
Mechanical and Electronic Technologies Division - Worldwide Contacts
Mr. Max Milbredt
Manager
Electronics & Microtechnology
T. +49 30 200 099 408 [email protected]
Korea
Mr. Brian H. Yoo
Senior Advisor
Korean Business Community
Frankfurt, Germany T. +49 173 5764 843 F. +49 69 9585 962286 [email protected] Mumbai Office Ms. Asha-Maria Sharma India Representative Mumbai, India T. +91 22 66652 180 F. +91 22 66652 179 [email protected]
