Using federal technology policy to strength the US microelectronics industry

A review of US and Japanese experiences with using microelectronics consortia as a tool for strengthening their respective industries reveals major differences. Japan has established catch-up consortia with focused goals. These consortia have a finite life targeted from the beginning, and emphasis is on work that supports or leads to product and process-improvement-driven commercialization. Japan`s government has played a key role in facilitating the development of consortia and has used consortia promote domestic competition. US consortia, on the other hand, have often emphasized long-range research with considerably less focus than those in Japan. The US consortia have searched for and often made revolutionary technology advancements. However, technology transfer to their members has been difficult. Only SEMATECH has assisted its members with continuous improvements, compressing product cycles, establishing relationships, and strengthening core competencies. The US government has not been a catalyst nor provided leadership in consortia creation and operation. We propose that in order to regain world leadership in areas where US companies lag foreign competition, the US should create industry-wide, horizontal-vertical, catch-up consortia or continue existing consortia in the six areas where the US lags behind Japan -- optoelectronics, displays, memories, materials, packaging, and manufacturing equipment. In addition, we recommendmore » that consortia be established for special government microelectronics and microelectronics research integration and application. We advocate that these consortia be managed by an industry-led Microelectronics Alliance, whose establishment would be coordinated by the Department of Commerce. We further recommend that the Semiconductor Research Corporation, the National Science Foundation Engineering Research Centers, and relevant elements of other federal programs be integrated into this consortia complex.« less