Valencia is on the map of big tech multinational companies. In just a few months, our city has been chosen as the destination for firms such as Siemens, HP, Hitachi, Toshiba and even the UN to open new headquarters from which they will drive innovative and strategic projects.
Considering that almost simultaneously with these arrivals, massive redundancies were happening in Silicon Valley at companies such as Google, Facebook, Twitter and Netflix, the fact that big tech companies such as these are betting on Valencia in their future plans becomes particularly relevant, thus consolidating the position of our hub as the third most innovative region in Spain.
What are the big tech firms that have settled in Valencia?
Among the tech giants that have chosen Valencia to open their work centres, the following corporations stand out:
- Siemens
The German multinational has opened its new ‘Sustainable Mobility Technology Centre’ in the capital of our digital ecosystem. The aim of this division will be to “operate in the fields of Engineering and Software Development, focusing on the creation of new sustainable mobility technologies and focusing on innovation and digitisation”, as announced by the company itself in a statement, where it also reports that it has an extensive hiring process underway with which it hopes to reach 150 employees in the first installation phase.
As part of Smart Mobility Valencia, the smart and sustainable mobility event promoted by the Automotive Cluster (AVIA) and now in its second edition, Siemens Mobility officials clarified that their new centre will specialise in signalling for rail transport, as the company seeks to “promote public transport through the combination of data and technology to help make cities more friendly”, in the words of Karolina Korth, its Director of Strategy.
- Toshiba
Beyond its activity in consumer electronics, where the Japanese company is dedicated to the manufacture and marketing of various devices and terminals, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) is one of the world leaders in the automation and control of port machinery.
In their more than 1,000 square metres on Avenida de Cortes Valencianas, they will work on advanced artificial intelligence tools such as automatic image identification and optical character recognition (OCR). “We want it to be a benchmark for our employees and to give us visibility to our global customers,” said Francisco J. Grau, Managing Director at TMEIC Port Technologies, in reference to their new workplace in Valencia.
- Hitachi
Another Japanese multinational that is strengthening its presence in Valencia is GlobalLogic, a Hitachi subsidiary specialising in advanced software development. The Japanese firm acquired the Valencian startup Photonics, which specialises in the development of photonic microchips, in 2020. Now it will open new facilities where it will relocate part of the employees it had in Ukraine until the activity in the Eastern European country was affected by the start of the war and, together with the new hires, it is expected to exceed one thousand jobs.
- HP
Also in the field of software development, Valencia will have a new global technology giant in the form of HP, a partner of Startup Valencia. From its base in Valencia, the firm will promote the development and innovation of software for industrial sectors with the aim of facilitating their automation and digital transition.
Aware of the importance of attracting talent, the multinational has aligned with the Universitat Politécnica de Valencia (UPV) to promote a chair that will train professionals in the field of IT with knowledge in the development of Cloud Applications, Artificial Intelligence and Software Quality.
- United Nations
The very United Nations organisation itself, which for a decade has had a headquarters in the Valencian town of Quart de Poblet that was recently expanded, will strengthen its presence in our digital ecosystem with the opening of an innovation and computing centre located in La Marina. There are only UN facilities of this kind in New York, Rome, Geneva and Brindisi.
- Hyperion Group
The so-called ‘Silicon Valley of Belgium’ belonging to the parent company Cronos Groep, joins the list of major tech companies that choose Valencia as a gateway to their activities in Spain and southern Europe. Cronos Groep has almost 8,000 employees worldwide, and Hyperion, which has several companies under its umbrella, has 400, with the goal of doubling that figure. Among their most common services are digital marketing, digital customer relationship management and administration at all levels, targeted advertising campaigns for digital media, and data integration at all levels.
- Lufthansa
The saying ‘every company is a media company’, which refers to the constant need to communicate what companies have, needs to be updated to ‘every company is a digital company’. What is an airline doing among so many tech companies? The reality is that no self-respecting multinational is immune to ‘digital’, as is the case with the German firm and its subsidiary Aviatar, recently installed in Valencia.
Aviatar is Lufthansa’s independent platform for digital products and services, offering users digital products such as predictive maintenance (very useful in preventing machine failure, among other use cases), fleet management solutions, process automation, etc.
- Volkswagen
And from an airline to a car manufacturer. Indeed, the automotive industry is set to be the sector that will undergo the greatest revolution during this and the next decade, with the electrification of cars. It is said that ‘America was built on cars’, referring to the expansion of the American economy in the early 20th century, coinciding with the start of assembly line manufacturing.
It is not surprising that the automobile industry has a great economic impact, and that of Volkswagen’s gigafactory in Sagunto is estimated at 8,000 million euros. The high specialisation and concentration of Valencian microchip companies has been one of the keys for the German manufacturer to settle in Valencia through its subsidiary PowerCo Spain, which will manage from the capital of the Turia the six European gigafactories that Volkswagen plans to open.
Why do big tech firms choose Valencia?
It cannot be a coincidence that all these large corporations settle in our city in less than a year with strategic projects in many cases.
If we review the statements and press releases that some of them have made to announce their arrival in Valencia, we detect three key factors in their decision making that form a virtuous circle:
1) Talent
Money and investment go where the talent is because it allows them a higher degree of efficiency and return. And when it comes to tech companies, technical talent is at a premium. This is recognised by some of the aforementioned companies, such as Siemens Mobility, that highlighted the “reputable universities” that exist not only in Valencia, but throughout the Valencian Community, and which constitute a pipeline of diamonds for these corporations.
To give a revealing fact, in studies such as Computer Engineering there is a 100% employability rate two years after completing the degree. This talent, with the arrival of these corporations, has more opportunities for quality employment due to the high competition for its recruitment.
2) Quality of life
The climate, safety, cultural and leisure offerings, value for money, etc. are factors that make up a high quality of life, which acts both as a lure for new talent and an anchor for existing talent. Valencia is “the best city in the world to live in”, according to the vast majority of foreign talent settled in our city.
3) Future of the ecosystem
When you bring together talent and quality of life, and you have also laid the foundations for a dynamic ecosystem over the last 10 years by aligning the interests of startups, investors, accelerators, business schools, universities, and other key pieces of this ecosystem, the future is bright, and the return is exponential.
This is why more big tech startups are considering Valencia as the next destination in their expansion plans.
