Strengthening the competitveness of U.S. microelectronics

US competitiveness problems stem from difficulties in sustaining competitiveness when commercialization is dominated by product and process improvements. A partial shifting of research and development investment by the private sector from innovative new products to improvement of manufacturing processes will help correct these deficiencies, but may not be sufficient to regain competitiveness in areas where US industry has fallen behind foreign competition. For the US to catch up with Japan in all areas of microelectronics, it is recommended that industry-wide, catch-up consortia be established or continued in the 6 areas where the US is becoming noncompetitive. Additionally, the US should establish programs managed by consortia for microelectronics research integration, application, simulation, and modeling. The consortia would be managed by an industry-led Microelectronics Alliance, such as SEMATECH, whose establishment would be coordinated by a federal agency designated by Congress.