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through distribution, but the large investments required to be pan-European and- the
declining profitability of the industry may turn out to be insurmountable hurdles for
some companies.
"Introductory Remarks on the European Renaissance"
Jean-Marie Cadiou, Director of ESPRIT
Commission of the European Communities
The European IT industry has some weaknesses—it is dependent on non-European
microprocessors and foreign chips—but it is looking better. ESPRIT 2 will produce
0.5-micron CMOS ASIC and 0.5-micron SOI processes. Europe still needs an engineering
culture to bring leading-edge chips to market. ESPRIT I's successes included a
state-of-the-art BiCMOS process; spectacular results in the silicon compiler project;
and the Supernode project, which produced parallel processing machines that beat Intel.
Opportunities for Europe lie in HDTV, ISDN, and broadband communications networks.
"Procuring in the 1990s"
Dan Byrne, Director of European Operations
Apple Computer
Apple wants to be a truly European computer company. Since 1986, it has been
doubling the annual amount of its European-sourced components. Recently that process
has accelerated and in 1989, the company will source the same number of components
from Europe in one quarter as it sourced in the whole of 1988. Apple's procurement
requirements are as follows:
• Shipment on an as-needed basis to fit with the Cork manufacturing plant's
flexible production schedules
• Apple works to 0.5 percent defects today and is moving to 0.05 percent in the
early 1990s as part of its commitment to high quality
• Competitive prices that are key to Apple, because 90 percent of its product
cost is materials cost
• New products/technology, because Apple has a total bias toward innovation
and needs suppliers that can keep it ahead of the technology curve
"A European in the International Scene"
Heinz W. Hagmeister, Managing Director and CEO, Business Unit ICs
Philips Components
Fewer companies are buying more and more of the world IC output. These
companies are multinationals that operate with local profit centers, but which demand
worldwide pricing and high standards of service and quality. Currently, 15 companies
buy 15 percent of the output of the semiconductor industry. These major customers are
reducing the numbers of vendors that they deal with and thus require global servicing.
Philips Components is responding by strengthening its presence in the Asia/Pacific region.
© 1989 Dataquest Incorporated July ESAM Newsletter