Tokyo (SCCIJ) — Switzerland’s semiconductor industry’s strengths help the country stand out as a business location. A recent study by Swissmem, the association for Switzerland’s mechanical and electrical engineering industries and related technology-oriented sectors, highlights the positioning of this industry on the global market.
Strong market position
A survey of 50 companies and research partners in Switzerland shows that over 60% of the Swiss commercial semiconductor industry is active in development, integration, and industrialization, while 15% focus on research activities. This underlines Switzerland’s role as a major player in the development and industrialization of semiconductor technologies.
Almost 60% of the companies surveyed see themselves in a leading position worldwide, with some even being considered market leaders. Particularly noteworthy is that 80% of the companies consider innovation and new technologies as their key differentiator, followed by product and technology performance.
Around two-thirds of Swiss semiconductor companies have an export share of over 80%, with a large proportion of exports going to Western Europe and North America. Less than 5% of them currently consider China to be a serious competitor. However, this situation could change due to increasing export controls and trade barriers with China, if China continues its technological development in semiconductor production.
Attractive location factors
Around 80% of companies see Switzerland as an attractive location for developing new technologies. This is due to stable pillars such as the liberal economic system, the excellent education system, the high standard of living, and political stability. Challenges include the exchange rate situation of the Swiss franc, access to qualified personnel, further exacerbated by the international competition for talent, and high personnel costs.
For the next ten years, the companies mention several main risks. Access to a sufficient number of qualified personnel is becoming increasingly difficult. Also, development and operation of semiconductor technologies are extremely costly and sufficient capacity utilization is needed to make the investments worthwhile.
Finally, as a result of major investment subsidy programs in other regions (e.g. through Chip Acts), Switzerland could lose its leading role in semiconductor technology. This would be a bitter loss because semiconductors are of central importance in almost all modern technologies and products.
In view of these challenges, it would be important that Swiss politics recognize the relevance of the semiconductor industry, Swissmem said. Chips are essential for innovation and digitalization today, and many of these technologies are even relevant to security. Only with strong support and a clear strategy can Switzerland secure its global leadership position in semiconductor technology in the long term, the organization argued.
Text: Swissmem (Translation and editing by SCCIJ)
