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Best in France:Best in France:Altis SemiconductorAltis Semiconductor
May 2004May 2004
Interviews ofInterviews of
Franck Bermon, HR DirectorFranck Bermon, HR Director
Pascal Louis, R&D Director Pascal Louis, R&D Director
Marcus Reisinger, Financial DirectorMarcus Reisinger, Financial Director
Vincent MAHEO
Thibaud MOULIN
Louis POULAIN
HEC
Master in Large Projects
Management
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
MAP OF ALTIS CASE
1. Presentation of Altis and its challengers
2. Interviewed People
3. France, factors of (un)success• HR• R&D• Social and Laws• Finance• Logistic• Quality of life
4. Multiculture in Altis
Conclusion : Why does Altis stay in France ?
PRESENTATION of ALTIS and its CHALLENGERS
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France Multiculture Conclusion
• IBM on the site of Corbeil-Essonnes in 1941
• IBM Microelectronics is created there in 1964, first advanced components manufacture in Europe
• in the early 90’s, Siemens works on a technical project in the site of Corbeil
• the financial sky of IBM Microelect. looks stormy and to save the company, a 50/50 joint-venture between IBM and Infineon (Siemens) is created in July 1999. Altis Semiconductor was born.
2500 people Logics
a revolutionary R&D project:
MRAM
40% sales in Europe
Flash memory578 M€ (gross income 2001)
15% of mobile phones use Altis components
PRESENTATION of ALTIS and its CHALLENGERS
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France Multiculture Conclusion
in Europe: Siemens and their famous semiconductor center in Dresden (Germany)
the twin manufacture of Altis
in Asia: Taïwan, China, Korea...many foundries with low costs but not a so
high technology and IP issues
in the USA: not so many on Altis’ sector
INTERVIEWED PEOPLE
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France Multiculture Conclusion
• Franck Bermon, HR & Communication Director
Social & Laws aspects Operating and managing qualities Subsidies
• Pascal Louis, New Technologies Director
Research in France Operating and managing qualities State structure
• Marcus Reisinger, Financial Director
Managing in France, Germany and the USA Taxes and salaries Investment policy
HUMAN RESSOURCES
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• to work 24h a day, Altis needs 5 teams whereas US and Asian need only 4 (vacation, work time)
• Asian salaries are not comparable to French
• in this sector, investments are huge so the impact of higher salaries is reduced: 15 to 20% of costs
20 to 25% less for competitiveness
• French engineers have a general education and are creative
• French need a strong boss who takes final decisions on his own and do not appreciate to find a consensus (≠ German)
• Not enough technicians in France
RESEARCH & DEVELOPPMENT
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• Partnership with high level Universities (Orsay)
• IBM has decided to give a revolutionary R&D projet, MRAM to Altis, why ?
pre-existing R&D engineering
close from Orsay Univ. (the creators of MRAM)
state subsidies
SOCIAL and LAWS
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• Laws:
Intellectual property well protected (≠ Asia) Flexibility hardly possible (≠ world)
• Syndicates: embarrassing partners...
• Important role of politics: the mayor of Corbeil, Serge Dassault, very close from the current government has put pressure to get important subsidies from MRAM project
• To handle with all complex administrative issues, foreign companies have to hire French specialists (≠ USA)
• Government structure not appropriate to companies: Research and Industry administrations do not walk the same way
FINANCE
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• Subsidies: in France, the system is very complex (many actors from the State down to the city), they are low and only dedicated to projects (≠ China, rusty sites: Dresden)
• Taxes: very high (≠ USA) and complex (≠ Germany) for the company and its employees. But the SC sector is in crisis, and a company does not pay taxes if it looses money...
• Banks: only international banks can deal with this amount of investment, so no specially French banking behaviour
• Investment: French think more on a long run (≠ USA, IBM’s demand for ROI=6 months !) and take less risks (=Europe)
LOGISTIC
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• the proximity of the two Parisian airports is important: all products are delivered by air and 60% are sent out of Europe
QUALITY of LIFE
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• the French way of life is an advantage to convince foreigners to work in France
• Paris and its prestige is well appreciated by singles
• the Parisian suburbs are a good location for families with their international schools
MULTICULTURE in ALTIS
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France Multiculture Conclusion
• triple culture: French, German and American (advantage for managers)
• 15 nationalities (~40 German)
• languages problems
• less cultural differences between a French and a German than between an engineer and a commercial
CONCLUSION:
WHY DOES ALTIS STAY IN FRANCE ?
Best in France - HEC - May 2004 MAHEO – MOULIN - POULAIN
Presentation People France MulticultureConclusion
• now, on Altis’ sector, engineering is more important than costs
• Intellectual Property is a major issue
• an important part of Altis’ clients are European
France keeps its leading position, but until when ?
China developps their engineering education
With high level engineering and low costs, there will last only one point to prevent Altis from relocating in China: IP