STRENGTHENING THE COMPETITIVENESS OF UNITED-STATES MICROELECTRONICS

U.S. competitiveness problems have not been due to a lack of research; rather, they stem from difficulties in sustaining competitiveness when commercialization is dominated by product and process improvements. Partial shifting of R & D investment by the private sector from innovative new products to improvement of manufacturing processes will help correct these deficiencies, but it may not be sufficient to regain competitiveness in areas where U.S. industry has fallen behind foreign competition. National programs are believed to be required where catch-up situations prevail. In order for the United States 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 six areas where the United States is rapidly becoming noncompetitive. In addition, it is recommended that the United States establish programs managed by consortia for microelectronics research integration, application, simulation, and modeling. These consortia would be managed by an industry-led Microelectronics Alliance (perhaps SEMA-TECH) whose establishment would be coordinated by a federal agency designated by Congress. Annual funding of $1 000 000 000 for this consortia complex would increase the U.S. microelectronics R & D investment by 25% and within seven years restore the competitiveness of the U.S. microelectronics industry in all areas. Where appropriate, consortia work would be delegated to U.S. universities and U.S. government-owned laboratories with government bearing the full cost of consortia management. Funding of consortia work at industrial facilities would be negotiated with the government offering increased R & D tax credits, accelerated equipment depreciation schedules, and partial R & D funding to consortia members. These consortia would be operated according to the success principles determined from Japan and U.S. consortia experiences.