site.btaGTAI: Bulgarian Electronics Industry's Hopes for Microchip Production

The latest edition of the bulletin of the German-Bulgarian Chamber of Commerce and Industry has an analysis of the current position and prospects of the electronics industry in Bulgaria. Prepared by the German Trade and Invest agency (GTAI), it says that Bulgaria wants to become an integral part of the European microchip industry, and the potential is there, but the political framework conditions are not yet right.

One stage in the development of a European microchip industry is the establishment of research and development (R&D) centres. For this purpose, the European Union plans to allocate some EUR 3 billion to the member states. Bulgaria could also benefit from this, says the story.

Bulgaria offers good facilities for research and development, according to the analysts.

"Bulgaria can aim for small- or medium-scale production of niche products in the chip sector with subsequent testing," says Bogdan Bogdanov, Executive Director of the InvestBulgaria Agency.

The Belgian company Melexis already operates a development centre for sensors and chips for the automotive industry in Bulgaria. Recently, the company expanded its capacities in Sofia and opened a research and development centre in which Melexis invested 75 million euros.

The automotive industry drives technical development.

Bulgaria's location is an advantage that attracts potential investors: Wage levels are the lowest in the EU and the Technical University in Sofia has been licensed to train highly qualified specialists in micro- and nanoelectronics since 1994.

Since the 1980s, more than 130,000 people have worked in the Bulgarian electronics industry. It is one of the country's strongest export industries. The largest customers of the Bulgarian electronics industry are the car manufacturers.