Infineon Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity Velden, 21.09.2006 DI Thoma...
Infineon at a Glance <ul><li>Infineon – the no. 4 semiconductor company worldwide </li></ul><ul><li>Revenues of Euro 6.8 b...
Infineon – Business Groups Communication Solutions Automotive, Industrial  & Multimarket Memory Products * a 100% subsidia...
Automotive, Industrial & Multimarket Product Range <ul><li>Pressure, temperature, hall sensors; RF ICs </li></ul><ul><li>8...
Why Infineon Goes Bucharest - Keyfactors Villach Austria Bucharest Romania Padua Italy Munich Germany Graz Austria R&D net...
Infineon Romania Facts & Figures <ul><li>Official annoncement in April 05: formation of Infineon Technologies Romania </li...
Internal Success Factors for a new R&D Center <ul><li>Clear definition of required competencies </li></ul><ul><ul><li>not ...
Success Factors in Entering the Romanian Market <ul><li>Pool of experienced, well educated people </li></ul><ul><ul><li>su...
Challenges <ul><li>Complicated visa procedure inbound and outbound </li></ul><ul><ul><li>Inbound: getting work- and reside...
Lessons Learned: Logistics, IT <ul><li>Must have reliable shipping company with good contacts to authorities/ customs </li...
Lessons Learned: Personnel, Service <ul><li>To start up, a high quality local recruiter is essential </li></ul><ul><li>To ...
Knowledge Transfer as an Opportunity <ul><li>Setting up a high-tech R&D center </li></ul><ul><li>Knowledge transfer throug...
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2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden.

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2006. Thomas Simonis. Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity. CEE-Wirtschaftsforum 2006. Forum Velden.

  1. 1. Infineon Success Factors in Entering the Romanian Market: Knowledge Transfer as an Opportunity Velden, 21.09.2006 DI Thomas Simonis Managing Director Infineon Technologies Romania
  2. 2. Infineon at a Glance <ul><li>Infineon – the no. 4 semiconductor company worldwide </li></ul><ul><li>Revenues of Euro 6.8 billion in the fiscal year 2005 and 1.97 billion in the third quarter of fiscal year 2006 </li></ul><ul><li>Approx. 41,100 employees (incl. 7,400 R&D staff) as of June 30, 2006 </li></ul><ul><li>Strong technology portfolio with about 42,000 patents and applications; more than 35 major R&D locations worldwide </li></ul><ul><li>Focus on automotive and industrial electronics, security and chip cards, communication and memory products via its affiliate Qimonda </li></ul>
  3. 3. Infineon – Business Groups Communication Solutions Automotive, Industrial & Multimarket Memory Products * a 100% subsidiary continuing the operations of the former MP COM AIM *
  4. 4. Automotive, Industrial & Multimarket Product Range <ul><li>Pressure, temperature, hall sensors; RF ICs </li></ul><ul><li>8-bit, 16-bit, 32-bit TriCore® microcontrollers </li></ul><ul><li>MOSFETs, IGBTs, voltage regulators, transceivers, smart power, system ICs </li></ul><ul><li>Power discretes, - modules, -stacks, - ICs </li></ul><ul><li>AF and RF diodes and transistors; SSICs, MMICs </li></ul><ul><li>Chip card controllers and memories (contactbased and contactless) </li></ul><ul><li>Security ICs </li></ul><ul><li>Customer specific solutions and design </li></ul>Market Positions No. 2 in Automotive ww, no. 1 in EU No. 3 in RF Discretes No. 1 in Power No. 1 in Chip Card and Security ICs Sources: Strategy Analytics (2005), iSuppli (2004), IMS (2005), Gartner Dataquest (2005) Core competencies <ul><li>Highest quality products and services </li></ul><ul><li>Leading edge technology and IP portfolio </li></ul><ul><li>System expertise with broad application competence </li></ul><ul><li>Strong worldwide presence with local sales and R&D support </li></ul><ul><li>Dedicated and committed account teams and distributors </li></ul>
  5. 5. Why Infineon Goes Bucharest - Keyfactors Villach Austria Bucharest Romania Padua Italy Munich Germany Graz Austria R&D network for power mixed signal <ul><li>Strengthens alliance of intelligent power semiconductors </li></ul><ul><li>Proximitiy to customers </li></ul><ul><li>Surrounding infrastructure </li></ul><ul><li>Proximity to universities </li></ul><ul><li>Highly qualified engineers </li></ul><ul><li>Strong high-tech orientation among authorities </li></ul><ul><li>Cost advantages </li></ul>
  6. 6. Infineon Romania Facts & Figures <ul><li>Official annoncement in April 05: formation of Infineon Technologies Romania </li></ul><ul><li>June 05: Legal entity Infineon Technologies Romania & Co. SCS founded </li></ul><ul><li>Operations started in August 2005 with 19 employees </li></ul><ul><li>18. January 2006: Inauguration of the Development Center Bucharest </li></ul><ul><li>Today 120 employees </li></ul><ul><ul><li>80 on site </li></ul></ul><ul><ul><li>40 abroad on training </li></ul></ul><ul><li>R&D focus on </li></ul><ul><ul><li>Automotive Power </li></ul></ul><ul><ul><li>Sense and Control </li></ul></ul><ul><ul><li>Radio Frequency </li></ul></ul><ul><ul><li>Chipcard </li></ul></ul>
  7. 7. Internal Success Factors for a new R&D Center <ul><li>Clear definition of required competencies </li></ul><ul><ul><li>not to mention the low cost argument first </li></ul></ul><ul><li>Convince and buy-in of internal customers </li></ul><ul><ul><li>guarantees the active support of involved persons and departments </li></ul></ul><ul><li>Comprehensive location analysis </li></ul><ul><ul><li>ranking list of criteria, weight factors </li></ul></ul><ul><li>Consulting and governmental relations by lobbyist </li></ul><ul><ul><li>door opener, lobbying </li></ul></ul><ul><li>Professional and experienced project team </li></ul><ul><ul><li>HR, finance, purchasing, facilities, export control, IT </li></ul></ul><ul><li>Delegates for management and knowledge transfer </li></ul><ul><ul><li>well connected to mother company, processes, technologies </li></ul></ul>
  8. 8. Success Factors in Entering the Romanian Market <ul><li>Pool of experienced, well educated people </li></ul><ul><ul><li>sufficient number of people with the required specialization </li></ul></ul><ul><li>Close co-operation with technical universities </li></ul><ul><ul><li>Master studies, laboratory, interns, masters/ PhD thesis </li></ul></ul><ul><li>Infrastructure </li></ul><ul><ul><li>good internet and phone supply, airport, public transport </li></ul></ul><ul><li>Cultural proximity </li></ul><ul><ul><li>European country and culture </li></ul></ul><ul><li>IP protection enforced </li></ul><ul><li>Regulatory proximity as far as laws are concerned </li></ul>
  9. 9. Challenges <ul><li>Complicated visa procedure inbound and outbound </li></ul><ul><ul><li>Inbound: getting work- and residential permit takes more than 3 months </li></ul></ul><ul><ul><li>Outbound: long process in some EU countries </li></ul></ul><ul><li>Compensation package finding </li></ul><ul><ul><li>starting a new industry, right „price“ finding </li></ul></ul><ul><ul><li>false expectations and unrealistic demands of candidates </li></ul></ul><ul><li>Bureaucracy </li></ul><ul><ul><li>huge number of documents for simple processes </li></ul></ul><ul><li>Customs </li></ul><ul><ul><li>very entertaining behaviour of customs staff </li></ul></ul><ul><ul><li>long approval processes to get customs clearance </li></ul></ul><ul><li>Frequently changing laws and regulations </li></ul><ul><ul><li>labour and tax laws, 2h per day to go through alterations </li></ul></ul>
  10. 10. Lessons Learned: Logistics, IT <ul><li>Must have reliable shipping company with good contacts to authorities/ customs </li></ul><ul><li>Invoices to be in Romanian language; otherwise, risk that goods are not being delivered </li></ul><ul><li>Approval needed for </li></ul><ul><ul><li>hardware and software for security applications (e.g. encryption) </li></ul></ul><ul><ul><li>software tools used in all design processes </li></ul></ul><ul><ul><li>all project, design, and technology data </li></ul></ul><ul><li>Very good experience with Internet and telephone provider </li></ul><ul><ul><li>high flexibility in providing tailored solutions on short notice </li></ul></ul><ul><li>IT personnel is well educated and experienced </li></ul><ul><ul><li>but seldom familiar with centralizes IT systems/ operations </li></ul></ul><ul><li>Local hardware vendors try to ignore internationally agreed conditions with Infineon </li></ul>
  11. 11. Lessons Learned: Personnel, Service <ul><li>To start up, a high quality local recruiter is essential </li></ul><ul><li>To reduce cost, quickly set up inhouse HR department </li></ul><ul><ul><li>comprehensive training on inhouse processes required </li></ul></ul><ul><li>Clearly set rules and regulations – and that they are compulsory and not negotiable </li></ul><ul><li>Outbound delegates (trainees): logistics, accomodation, allowances must be well though-out </li></ul><ul><li>Service and support structures and service levels are not up to Austrian standards </li></ul><ul><ul><li>suppliers are happy with 80% solutions, do not reply </li></ul></ul><ul><ul><li>craftsmen do not appear since they already work somwhere else for more </li></ul></ul>
  12. 12. Knowledge Transfer as an Opportunity <ul><li>Setting up a high-tech R&D center </li></ul><ul><li>Knowledge transfer through comprehensive training </li></ul><ul><ul><li>working in a solid international R&D network on an equal footing </li></ul></ul><ul><li>Project responsibility, no extended workbench </li></ul><ul><ul><li>highly motivated teams, working on essential projects </li></ul></ul><ul><li>Long term perspective </li></ul><ul><ul><li>further potential for expansion </li></ul></ul><ul><ul><li>Competence Center </li></ul></ul><ul><li>Opportunity for Romania </li></ul><ul><ul><li>starting a new high tech industry with future-proof work places </li></ul></ul><ul><ul><li>will attract more high tech industry and create more jobs in other industries as well </li></ul></ul>
  13. 13. Never stop thinking.

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