U.S. Companies Land In French Silicon Valley [ASND working with DT/FT/BT and ISPs]
techweb.com
(07/31/98; 1:44 p.m. ET) By Alan Tillier, Contributor, TechWeb
A host of American technology companies, drawn by the ability to hire top multilingual development engineers more cheaply than in California and the development of the Internet in Europe, have arrived in France's answer to Silicon Valley.
There are now around 50 American high-tech companies, employing 2,500 people, in Sophia Antipolis, near Nice in southern France. The area is spread over 6,000 acres of pine-studded landscaped parkland, surrounded by Europe's most expensive real estate.
Aside from sales and servicing across Europe, the companies are increasingly engaged in the development of systems. Cadence, the Californian electronic design-automation company, now has 20 engineers working in the park on software for chip design, according to Jacques-Olivier Piednoir, local engineering director at Cadence.
"It is becoming increasingly difficult to hire and retain people in Silicon Valley. There's salary inflation in California, but here a top man costs 60 percent of his Californian counterpart, and that includes highFrench social security and other charges," said Piednoir.
The latest arrival is Packet Engines of Spokane, Wash., a provider of gigabit networking solutions, which has established a new European headquarters at Sophia Antipolis. "We set up because of the huge interest from companies in Europe," said Bernard Daines, Packet Engines' president and CEO.
The park has now become a "hotbed of Internet companies," according to Jon Axon, Packet Engines' new European manager, and formerly of Bay Networks, another U.S. company on the park.
Cadence's big European customers, such as Philips, Siemens, Matra, British Aerospace, and SGS Thomson, want support engineers close to them, according to Piednor. "We can fly from here quickly to just about anywhere in Europe," he said. U.S. companies, such as VLSI, Mentor, Texas Instruments, and Compaq have found a pool of skilled people in the area. "It's a good place to find talent," he said.
Sophia Antipolis started as a science and arts park. Pablo Picasso, who lived nearby, took a spade and broke the first ground. Since then, it has become a high-tech center rivaled in Europe only by Cambridge, England's Silicon Fen technology area, in the view of many experts.
Ascend, the fast-growing $1 billion Alameda, Calif., provider of integrated remote networking solutions, now has 50 staff members on the park working with European carriers such as France Telecom, Deutsche Telekom, and British Telecommunications, as well as with ISPs. It has moved staff to Sophia Antipolis from Cascade, the Boston core switching company it acquired last year.
"From here, we provide technical support, training, and consulting in Europe, Africa, and the Middle East," said Edgardo de Fonseca, Ascend's director of client services. "This place is booming because of firms integrating into Internet," he said.
U.S. companies are staging their first microelectronics forum, devoted largely to electronic design automation, at Sophia Antipolis Oct. 29 to show their products to European companies and underscore their major presence in the South of France. |