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CEOs Call for $4.6 billion to Bolster Europe’s PIC Supply Chain

Leaders from eight of Europe’s largest integrated photonics companies presented a plan to the European Commission that calls for €4.3 billion ($4.6 billion) in funding over eight years to build a resilient European supply chain for PICs. The plan provided a range of recommendations aimed at enabling the European Union’s (EU’s) integrated photonics industry to autonomously supply customers on the continent and help the EU to become a global market leader for the technology.

The group, comprised of Rudi de Winter, CEO of XFAB; Johan Feenstra of SMART Photonics; Felix Grawert of Aixtron; Albert Hasper of PHIX Photonics Assembly; Inigo Artundo of VLC Photonics; Jean-Louis Gentner of Almae; Thomas Hessler of Ligentec; and Ewit Roos of PhotonDelta, stated that the low level of EU manufacturing capacity and over-reliance on Asia threatens the union’s economic security and resilience. They presented their plan to Thomas Skordas, deputy director-general, DG Connect; Lucilla Sioli, director for artificial Intelligence and digital industry, DG Connect; and Werner Steinhögl, head of sector, Unit for Microelectronics & Photonics for the European Commission.

Johan Feenstra, CEO of SMART Photonics (left) was among a group of eight CEOs from Europe’s PIC industry to present a plan calling for €4.3 billion ($4.6 billion) in funding over eight years to bolster the continent’s supply chain for the technology. They presented their plan to DG Connect officials Thomas Skordas (middle) and Lucilla Sioli (right), as well as Werner Steinhögl, head of sector, Unit for Microelectronics & Photonics for the European Commission. Courtesy of SMART Photonics.

The plan recommends that the EU provide €2 billion in incentives for industrial-scale manufacturing capacity for indium phosphide (InP) and silicon nitride (SiN) PICs, and improve access to industrial PIC test and experimentation facilities for small and medium-sized enterprises. 

It further proposes the EU establish a manufacturing-supply-chain resilience fund of €200 million to support the investments needed to strengthen linkages and minimize vulnerabilities on the continent; provide a €360 million fund to stimulate application development; and to promote and incentivize collaboration among vertical clusters and the European PIC ecosystem.

In an email to Photonics Media, PhotonDelta said that the EU is serious about investing in a semiconductor supply chain. Integrated photonics, a semiconductor technology essential to emerging computing and networking needs, particularly in security applications, will require a robust supply chain in Europe for the EU to establish itself as a leader. 

Currently, <6% of the globe’s InP and SiN PICs are manufactured in the EU and <4% of global assembly, testing, and packaging capacity occurs there. Further, research by Dutch photonics ecosystem PhotonDelta highlights that competitor nations are making concerted efforts to acquire EU PIC technologies and assets and are seeking stakes in EU small and medium enterprise (SME) companies in the EU PIC supply chain.

Regarding materials, components, and machinery that Europe could onshore, PhotonDelta noted ASML’s supply chain, the InP wafer supply from Freiberger and Impact, and Aixtron, a leader in III-V reactors. 

 “To ensure we keep this technology in EU, we need to play a role in the global production and value chains, secure supply, and get a balanced strategic autonomy in this field,” PhotonDelta told Photonics Media.

*This story has been updated.


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