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United Micro Technologies: An International Start-Up Company in the Global Chip Market

Created a year ago, United Micro Technologies (United Micro) is an international start-up company with headquarters in China, Europe, and in the USA developing the Internet-of-Things (IOT), modems to support 5G and, in the future, 6G. The Linz-based team is developing the high-frequency technology chips for this purpose. Soon, the OIC will unfortunately be too cramped for this rapidly growing young company and they will move to its own location in Linz at the end of 2025. Until then, however, we look forward to supporting Thomas and his ambitious team in their success story at the OIC! Reason enough for Elisabeth Ulbrich and Valentina Schmelzer (OIC) to talk with Thomas Lüftner, Vice-President for RF and Programs.

[Translate to Englisch:] Thomas Lüftner Interview

EU: Thomas, thank you for speaking with us! Would you like to tell us how you decided to return to the OIC with United Micro after already having been at the OIC as CTO and Head of Research at Silicon Austria Labs (SAL)?

TL: United Micro is a start-up company created by former co-workers and together we developed modem chips at Infineon Technologies, then later on at Intel, first in 2 and 3G, and later in the 4 and 5G range, for devices such as Siemens Mobile, Samsung Galaxy S and iPhone.

After the wireless business was sold by Intel to Apple, we decided to just return to what we enjoy doing, which is developing modem chips. In this case, 4G and 5G modem chips for the Internet of Things (IoT), which means chips for everything except smart phones, but for PCs through to applications in the automotive industry and industrial applications.

Today, our international start-up has six office locations worldwide, including two in China (Shenzhen and Xian), three in Europe (Munich, Dresden, Linz) and one in the USA (Austin).

EU: At the moment, your company is active in the field of 5G and the media are already talking about 6G. Where do you think technology is headed? What kind of potential can you see for the future and why is being close to the university important in this context?

TL: 5G adds a new dimension as it is no longer just about modems for cell phones. The applications are more diverse, including automotive, industrial and various consumer applications. We are headed towards 6G, but right now our business focus is on 5G. We will launch our initial products in 2025/2026, even before 6G really becomes a thing.

6G applications are going to be similar to 5G, but from a technical point of view, 5G already utilizes high frequencies in the millimeter-wave range to some extent. We are not sure how this will evolve under 6G. Fortunately, we are close to research institutions in Linz, such as the university and Silicon Austria Labs (SAL), which can help us identify the research trends and apply them to our products.

EU: We have a pilot factory at the OIC. Can you give us a simple example to illustrate what these technical advancements involve?

TL: SAL built its own 5G private network here at the LIT Factory, meaning they installed small radio stations to support 5G. These radio stations can communicate with machines. The machines need some kind of remote station - a modem - to communicate with these radio stations. That's exactly what the modem chips we are developing are for. We can incorporate these chips directly into industrial equipment, making it possible to send sensor data from machines to radio stations, and in turn facilitate targeted automation and monitoring systems in industrial plants. For example, a robot could drive around the factory. This robot, however, needs a modem chip, and United Micro can provide that chip. This way, it can communicate wirelessly with the equipment, and that is what's known as sensor networks. As I was the CTO at SAL and co-initiated this 5G private network, the whole thing comes full circle for me.

EU: That sounds very exciting. You have chosen Linz as your base, you live here, so this is probably a factor in favor of Linz. How do you assess Upper Austria as a location for business and the microelectronics ecosystem in Linz?

TL: True, United Micro has settled in Linz because of me, too, but it's all about networking and expertise in high-frequency technology, especially in microelectronics. Linz has managed to establish a considerable global presence in this field. This kind of concentrated expertise is found worldwide only in San Diego and Munich. Linz may be small, but 25 years ago, the JKU spin-off company, Danube Integrated Circuit Engineering (DICE, a subsidiary of Infineon), created something amazing here. We also created Silicon Austria Labs here, focusing on high-frequency technology. It's all about working together with other companies, as well as being located near JKU's research and Silicon Austria Labs.

The shortage of skilled workers is an issue and the JKU cannot meet the industry's high demand on its own. This is why we are recruiting internationally more and more, similar to Silicon Austria Labs.

VS: Can you expand on your particular roles and responsibilities at United Micro Technologies as Vice-President of RF and Programs?

There are five company co-founders and I am part of the global management team. On one hand, I am partly responsible for managing United Micro as a whole, and on the other hand, as one of the two managing directors of our United Micro Technology GmbH based in Munich, I look after a wide range of operational affairs on behalf of the European sites, such as setting up human resources and communications departments, IT infrastructure and more.

Globally, I have an executive responsibility for United Micro's Radio Frequency (RF) business which is centered here in Linz. Our primary responsibility is developing high-frequency technology chips for modems, starting with the concept and circuit design and ending with the layout. The chips are manufactured in so-called foundries, such as GlobalFoundries and TSMC. Afterwards, we test and integrate the chips on circuit boards, then we measure and verify them at a high-frequency measurement laboratory in Linz.

The term "program" stands for program management which involves bringing everything together so that the RF works and both the baseband and the modem's software operate smoothly together.

VS: What makes United Micro Technologies unique and how do you account for the company's rapid growth?

TL: The thing that makes us unique is the team we've been able to bring back together on a global scale. We have long years of experience and expertise in developing mobile chips. We have an extended management team with an average of 20 years of industry experience. We have over 100 employees worldwide, about 70% of whom are former colleagues. The number of semiconductor start-up companies in the world is small, but we are unique in Europe, and even in China. Most semiconductor start-up companies are local. An international start-up company like ours in this respect is really quite special.

VS: Your company has locations in China, Europe and the USA. What opportunities are there for the Linz team as a result of an international partnership of this magnitude?

TL: The partnership is tremendously positive for us. On one hand, because Europe has a lack of venture capital. In both China and Silicon Valley, there are financial resources available for start-ups that we benefit from and which would not be lucrative in Europe. In other words, most of our funding comes from Chinese investors, and we have now also managed to attract a prominent American investor. At the same time, China is offering an enormously fast growth market and leading the way in terms of innovation, especially when it comes to introducing new 5G standards. This allows us not only to serve the Chinese market, but also to successfully operate on a global scale. Having this access to the market is highly valuable to us.

EU: What do you think about the geopolitical competitive relationship between Europe and China and where do you stand on that?

TL: I think the real competitiveness is more between the U.S. and China. As I see it, it's a competition. The semiconductor market is global. A book I recently read - "Chip War" - describes just how the global semiconductor market came about and how interdependent the supply chains are. It's unrealistic to assume that China, Europe - or the U.S. alone - could tackle all of the logistics involved in chip development. The factories are largely located in Taiwan, the chip development software is mainly from the U.S., and the high-frequency technology is centered in Linz, among other places. Lithography is required for wafer production, and a company in the Netherlands is available to handle this. The industry is globally connected, our focus is also global, so I see things in a more laid-back way.

EU: That means, attempts for the EU or Europe to become more independent...?

TL: I find the term "independence" to be completely misleading, and politicians frequently don't get it. In order to be able to compete in a global industry, you have to be competitive. That's the key to success. A good example of this is what we have done in Linz at Silicon Austria Labs. We invested in the area of high-frequency to attract international investors. It also gave me the opportunity to bring United Micro to Linz, create jobs, and hire highly qualified specialists.

EU: We are pleased that you have returned to the Open Innovation Center together with your start-up company. Why did you decide to come back?

TL: The energy at the Open Innovation Center is very positive and it's perfect for a start-up conpany like ours, especially to facilitate growth. We can rent tables individually, the environment is dynamic, the available infrastructure is ideal, and we have everything we need. We truly enjoy being here. It's a great facility.

ERU: For those thinking about starting their own company, what do you consider to be the secret to success?

TL: I suppose at the end of the day it's all about acting quickly and having just the right trajectory. That's important for a start-up company. Driving forward every day, making decisions every day, making sure that things are moving forward. When you build a chip development company, you are subject to a lot of skepticism. In the beginning, you are faced with a huge mountain of work but you have to spring into action in order to reap the benefits of the accumulative effect. And then suddenly it's huge. We launched a year ago in August and back then, I posted a photo of an empty table at the OIC. We now have 100 employees worldwide and there are no signs of slowing down.

Doing things that make a difference is crucial. As part of a start-up company, I think you can spend all day worrying about issues that don't really make a difference. I think you have to focus on the things that matter.

Ultimately, the team is the key. You need team players you enjoy working with and people who have a sense of team spirit and who want to accomplish something together. At the end of the day, it's all about making a difference as a team because that's what makes it all fun.


EU: Thomas, thank you very much for this open, honest conversation. We value your insight greatly.

TL: Absolutely.