Address by Mr. Noel Treacy T.D Minister for Science, Technology & Commerce At the Official Opening of S3 Silicon and Software Systems Limited at Ballybrit, Co. Galway, on Friday 6th October 2000.

I am delighted to be here today to mark a significant stage in the growth and development of Silicon & Software Systems S3.

I heartily congratulate you on completing the first phase of your company’s growth plan. I understand Phase 2 is well underway and that you hope to have the final phase completed at end of next year with over 100 employees in your company, here in Galway.

S3 is a top Irish electronics design company offering high tech silicon and software design services to the international electronics industry. Companies such as S3 are excellent examples to illustrate how Ireland’s capabilities and international success play a very important role in shaping global industry developments.

I would like, at the outset, to pay special tribute to Professor Maurice Whelan, former head of Microelectronics at Trinity College Dublin and Philips Electronics, Holland who in 1986 founded S3. Prof. Whelan realised the tremendous potential for establishing an Irish electronics company that could achieve international success and recognition by combining homegrown talent with engineers from around the world. This was the first independent electronics design service company in Ireland and it must be of great satisfaction to know that your company has recently been ranked as one of the top 5 design houses in Europe.

The design services industry developed as a stand-alone business during the late ‘80’s. The industry has grown out of several background scenarios such as the need for specialised knowledge of new technology and development methods, as well as the lack of available in-house expertise in large multi-nationals.

As communications technology improved during the 90’s and as development tools became more sophisticated, allowing a more standardised approach to design, the attractiveness of using design services companies, such as S3, as an alternative to internal development greatly increased.

Today, the electronics industry operates in an atmosphere of rapid change and ever-reducing timescales. Product lifecycles of most consumer goods are now measured in months rather than years. The rate of innovation is constantly increasing. The concept of "Web Years" is becoming common terminology where one "Web Year" is Three Months!

Technology convergence is generating new product concepts (eg. the merging of Personal Digital Assistants with Digital Cellular Phone technology is giving rise to Mobile Internet Terminals). This convergence is compelling companies to integrate technology into their products that is not from their traditional area of expertise.

Electronics companies are starting to focus strongly on their own core strengths and to outsource everything else. If the required technology is not available in-house, they gain access to it externally. These trends create an important role for specialist design services companies who have developed skills in these "non-core" areas of technology.

S3’s strength is based on a unique mix of design technology skills in the company; namely, software, silicon and hardware systems design. Based on customer requirements and on market trends, your company recognised the need to augment your in-house design skills with market specific application knowledge so that you could deliver added-value services. This comprehensive and flexible range of services has led to an established client base of industry leading companies.

Keeping all this in mind it is not surprising therefore that there have been many milestones in S3’s development such as to-date, such as - The formation of a new business unit, to grow the market potential in the USA with both new and existing customers. - The establishment of a new engineering division in Cork. - The opening of a new purpose built facility at Leopardstown, Co. Dublin. - The setting up of new design centres in Prague, Czech Republic and Wroclaw, Poland. - The merging of the European and USA operations - and of course the setting up of this new design facility here in Galway in 1998.

S3 indicate that their key asset is the intellectual capacity of their staff. The fact that S3 located in Galway is a credit to the exceptional educational establishments in the West of Ireland as well as to a workforce which is predominantly young, skilled and well educated with strong technological and business skills.

Being a Galway man myself I am very proud that you chose Galway as your location. Both myself, the IDA and the people of Galway are both proud and pleased with your success here.

Galway has always been known worldwide as a place of culture, arts, music and craic and that image has placed Galway firmly on the international map. Galway is now seen as an exciting hub of business activity and the perfect place to advance one’s career, particularly in the IT Sector.

Software is the fastest growing sector of the Irish economy. Internationally, Ireland is now recognised as a prime source of high quality software development services and as an ideal gateway to European markets. S3 has played its part in this development with its knowledge, skills and expertise.

I have no doubt that the S3 success is due to your company’s philosophy

• to deliver excellence with the highest standards of integrity,
• to bring out the best in people, operating in a multi-cultural, multi-national - environment,
• to strive to deliver a challenging and rewarding work environment, and
• to embrace learning, innovation and change.

I know that it is a priority of S3 to facilitate people regionally, offering leading edge technology jobs within a challenging industry and I complement you sincerely on this. I congratulate you again on the expansion of your company here in Galway and I wish S3 and all of your staff continued success in the future, in the beautiful West of Ireland.