capacity of 5,000 wafer stocks per meter at 300 mm, starting with DRAM manufacturing.

He summarized another major collaboration between Infineon and Motorola, which had cumulatively spent $300 million in the previous 2 1/2 years. Both the German federal government and the state government of Saxony agreed that the project had excellent potential to create jobs and they provided substantial funding.

For comparison he mentioned a decade-long collaboration with IBM, and to a large extent also with Toshiba, to develop DRAM technology in New York state. They have expanded this partnership to add a logic program. The cumulative cost to all partners has been $1.1 billion.

Partnerships Have to Be Global

Finally, he said that these kinds of partnerships now have to be global. He mentioned Infineon partnerships with Intel, which was a strategic investor in Infineon at the initial public offering. There is also a three-way partnership now among Infineon, IBM, and UMC (United Microelectronics Co. of Taiwan) to develop and manufacture advanced logic processes. The company also participates in a newly founded advanced DRAM consortium which brings together the major companies in the field, along with Intel.

Dr. Beinvogl closed by saying that “we are very deeply convinced that there is no way around globalization in our business today.” Everyone has to find and fund their own best partnerships—those that are consistent with the globalization of their development efforts and of their business.


A Decrease in the Number of Engineers

In response to a question about the sufficiency of human resources in Germany, Dr. Beinvogl described a major decrease in the supply of engineering graduates since the early 1990s. “This is absolutely dramatic,” he said, “it’s not just a little effect.” He said Infineon is now forced to look all over the world for skilled people. He said that about eight years ago young people were discouraged by predictions that electrical engineers would not be able to find jobs. He conjectured further that career “fashions,” which may dictate that it is more desirable to be a lawyer than an engineer, have had an inhibitive effect.

Bill Long of Business Performance Research asked whether the relatively long history of multinational cooperation in Europe gives it an advantage over other countries in this symposium. Dr. Beinvogl said that they had indeed learned to cooperate across borders, which is an advantage. He said the cooperation was necessary, moreover, to achieve a critical mass to compete with a country as large as the United States.

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