{"id":18350,"date":"2024-08-07T15:11:40","date_gmt":"2024-08-07T14:11:40","guid":{"rendered":"https:\/\/telecomkh.info\/?p=18350"},"modified":"2024-08-07T15:11:40","modified_gmt":"2024-08-07T14:11:40","slug":"photonics21-urges-eu-to-increase-investment-in-photonics-or-risk-falling-behind-china","status":"publish","type":"post","link":"https:\/\/telecomkh.info\/?p=18350","title":{"rendered":"Photonics21 urges EU to increase investment in photonics or risk falling behind China"},"content":{"rendered":"

New research reveals that investments from government and regional clusters worth billions of euros have enabled China to become the world\u2019s biggest photonics powerhouse \u2013 prompting calls from EU photonics experts for increased funding to close the gap in critical technologies<\/strong><\/p>\n

A new study published by Europe\u2019s premier photonics technology platform, Photonics21, shows the tremendous growth of China\u2019s photonics industry, with a global market share increasing from 10% to more than 30% over the past two decades \u2013 dwarfing both the US and Europe each with 15% respective shares.
\nThe research, called Political Steering Processes in China in Core Segments of the Photonics Industry, which was conducted by international management consultancy EAC reveals how China\u2019s political system steers and funds the industry.
\nPhotonics \u2013 the science and technology of generating and harnessing light \u2013 is a linchpin that supports and enhances critical technologies like quantum, 5G, AI, IoT, biotechnology, aerospace, intelligent manufacturing, and life sciences and is crucial for applications in displays, lasers, lighting, ICT, and photovoltaics.
\nThe new study shows despite China\u2019s GDP growth gearing down from a rapid ~7% to a steadier ~4% over the next few years, photonics production in China is still expected to reach \u20ac315 billion in 2025.
\nThis global dominance has prompted calls by European experts to increase funding for optics and photonics technologies. Photonics21 President Dr. Lutz Aschke said: \u201cPolicymakers must take heed of China\u2019s market and technological leadership. China is penetrating sectors traditionally dominated by Europe, such as laser manufacturing, sensing, optical components and systems. Basic research and enabler processes need to be strenghthened and matched by investments in future markets such as Artificial Intelligence (AI). We have to take timely measures.
\n\u201cWhile Europe currently holds the second position in the global photonics industry, there is a pressing risk of falling behind. Without significant investment, Europe faces the threat of losing ground in this crucial technology sector, which could undermine its economic competitiveness and technological independence.
\n\u201cTo maintain and defend this position, it is essential for national and European policymakers to prioritise this strategic sector. We need to implement a European strategy on critical materials and components for key industries and technologies to secure a resilient photonics supply chain in Europe. Specifically, research and development activities, as well as the production of photonic components in Europe that are critical to the industry supply chain, should be strengthened.
\n\u201cThe future of our innovation and industry rests on our ability to match China\u2019s strategic advancements and secure our place in the global market. We must urgently increase funding for Europe\u2019s photonics industry to keep pace and close the gap with China.\u201d<\/p>\n

\u20ac5 billion in China\u2019s regional clusters<\/strong>
\nThe EAC report shows that China\u2019s unique photonic industry clusters have allowed the central government to take a back seat, enabling regional strategies and market demands to drive the photonics boom.
\nAccording to the study, China\u2019s financial backbone consists of local governments, investment institutions, and enterprises. These entities are set to exceed national contributions with around \u20ac5 billion for photonics innovations over the next few years. The research shows that public funds account for only 20%-30% of this regional revenue. In contrast, the remaining 70%-80% is composed of funds from investment institutions and enterprises.
\nThese clusters are based in eight different cities in major industrial areas across China, each with its own focus and strategy. In Suzhou, a 10 billion RMB ( approx. \u20ac1.3 billion) photonics industry fund aims to establish the Suzhou Taihu Photonics Center, enhancing scientific innovation. Wuxi plans the Taihu Optics Valley with significant investments, including a 3 billion RMB (approx \u20ac390 million) fund for silicon photonics and a 2 billion RMB (approx \u20ac260 million) industrial park. Wuhan, known as China\u2019s Optical Valley, boasts a 10 billion RMB (approx \u20ac1.3 billion) venture capital fund. Beijing plans a \u20ac30 million optoelectronics fund, while Xi\u2019an\u2019s 750 million RMB (approx \u20ac97 million) fund supports its photonics industry. Chengdu offers incentives like 10 million RMB (approx \u20ac1.3 billion) grants for optoelectronics investments. Shanghai identifies photonics as a future-leading industry, and the Guangdong-HK-Macao Greater Bay Area has received the equivalent of \u20ac1 billion in photonics investments since 2021.<\/p>\n

Billions in industrial development plans<\/strong>
\nThe research shows a significant part of China\u2019s success lies in a series of proactive industrial development plans, including Made in China 2025, the 14th Five-Year Plan and Beyond, and the National Science and Technology Plan.
\nWhile the US passed its \u201cCHIPS and Science Act\u201d in August 2022, a landmark piece of legislation aimed at bolstering the United States\u2019 semiconductor manufacturing capabilities and fostering technological innovation, China has had something much bigger in the shape of its \u2018National Integrated Circuit Industry Investment Fund\u2019 (ICF) or the \u2019Big Fund\u2019. According to EAC, 2024 marked the start of Phase III of the ICF, which has a budget of \u20ac39 billion. Integrated photonics is one of the technologies funded in the third phase of the ICF.
\nDaniela Bartscher-Herold, Partner at EAC Munich and co-author of the EAC-study, said, \u201cOur latest market research reveals that China\u2019s strategic investments leveraged through its regional cluster funds alongside its national funds specifically for integrated photonics have helped the region advance as a critical technology leader.
\nRather than be left irreversibly behind, it would be advisable for Europe to significantly increase its funding to close this gap in critical technologies. Without substantial investment, the EU risks losing its competitive edge and relinquishing its leadership in this key industry.\u201d<\/p>\n

Above, image credited to Photonics21\u00a0<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

New research reveals that investments from government and regional clusters worth billions of euros have enabled China to become the world\u2019s biggest photonics powerhouse \u2013 prompting calls from EU photonics experts for increased funding to close the gap in critical technologies A new study published by Europe\u2019s premier photonics technology platform, Photonics21, shows the tremendous … <\/p>\n

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