Spur semicon industry, committee urges. (Perspectives: news and views of the current research...

The semiconductor industry has been a star of the U.S. manufacturing sector and a powerful driver of the entire economy. Nevertheless, there's concern that this position could erode as more semiconductor manufacturing and capital investment move offshore.

The concern surfaced in May

at a Congressional staff briefing by the Senate Manufacturing Task Force on the future of the industry and the release of the new study by the National Academy of Science's Board on Science, Technology and Economic Policy, Securing the Future: Regional and National Programs to Support the Semiconductor Industry (RTM, May-June 2003, p. 63).

In presenting the report's recommendations, program director Charles W. Wessner observed that well-funded, aggressive programs in China were currently drawing manufacturing away from the U.S. and could ultimately affect R&D in the same way.

Randall D. Isaac, vp, strategic alliances for the IBM Technology Group, warned that R&D and manufacturing requirements were becoming unaffordable for many companies, especially the smaller players. "Only vertically-integrated U.S. IDMs [Integrated Device Manufacturers] will be able to stay the course in semiconductors for the near term (4-8 years)," he said.

To counter these challenges, Securing the Future recommends "modest steps that nonetheless may prove important to the long-term welfare, economic growth and security of the United States." Specifically, it calls for an industry-academia-government partnership that would:

* Encourage collaboration between universities and industry, especially in training students.

* Increase government funding for current research programs.

* Create incentives that would rectify the undersupply of talented students.

"Continued U.S. leadership cannot be taken for granted," the report warns, stressing the need for "continued policy engagement and public investment through renewed attention to basic research and cooperative mechanisms such as public-private partnerships."