France in 2030: a transformative vision
19 January 2024
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In November 2022, French President Emmanuel Macron outlined a vision for France in 2030. Launched in 2021 with a substantial budget of €54b, the France 2030 programme aims to strengthen strategic sectors, including the electronics industry.
The program aims to sustainably transform key sectors through innovation, industrialization, and research in order to position France as a leader in the world of tomorrow.
The French government has outlined ten objectives and six conditions for success ranging from small nuclear reactor development and leadership in green hydrogen to cutting-edge renewable energy technologies, and low-carbon aircraft production as well as significant investment in electronics.
France’s “Electronique 2030” program, an integral part of the France 2030 investment plan, aims to strategically position the country in the global electronics landscape.
France aims to reduce dependence on global tech giants by focusing on job creation, talent development, and investments in semiconductor manufacturing. The future mega-factory in Crolles is one example of France’s commitment to cutting-edge electronics manufacturing.
The Evertiq Expo in Sophia Antipolis on February 8, 2024 promises a deeper exploration of the French market, investment, and competitive landscape of the European electronics industry.
In 2023 the global semiconductor market slowed down, with a projected decline of 9% from 2022. In particular, the memory market experienced the most significant decline of 37%, whereas the logic, analog, and discrete markets remained relatively stable. However, these sectors are expected to recover between 9%–12% in 2024, driven by robust demand for high-performance computing (HPC) and gradual inventory reductions in wireless communications and smartphones.
Key trends projected for 2024 include growth in the server market fueled by artificial intelligence applications and continued inventory reduction in distribution channels. The telecommunications market shows clear signs of a slowdown as 5G rollout progresses in specific regions. Global consumer confidence remains low, potentially reducing demand for consumer electronics, although a weak recovery is expected. Early signs of weakness are being seen in the industrial and automotive markets.
(Source: Strategic Semiconductors)
The semiconductor landscape showed a shortage of Chip-on-Wafer-on-Substrate (CoWoS), with a slight increase expected in 2024. High demand for advanced packaging, driven by artificial intelligence applications, will push the market to explore alternative solutions in the near term.
Europe maintains a significant position in the semiconductor landscape. Companies such as ASML, Infineon, STMicroelectronics, and Robert Bosch are diversifying their product portfolios by investing in advanced technologies such as silicon carbide and gallium nitride. ASML’s high numerical aperture EUV machines play a crucial role in enabling the production of smaller and more powerful chips.
The surge in investment activity in 2023, with more than $3.4b earmarked for innovative startups, underscores Europe’s commitment to securing semiconductor advances in various applications.
France’s vision for electronics forms part of the global semiconductor trends and will require agile and strategic management to realize. The CoWoS shortages and increasing demand for advanced packaging driven by artificial intelligence applications are key issues in the overall landscape. Careful inventory management remains critical, as is the need to balance growth in demand with inventory normalization.
Collaboration with independent distributors and innovation in the semiconductor industry will be key to addressing challenges and capitalizing on emerging opportunities.
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