U.S. Urged to Take Role in Chip-Making Facility

A group of House members called for federal support Tuesday of a private enterprise plan adopted in Texas to help the U.S. semiconductor industry to be more competitive with foreign counterparts.

“Japan Inc., has put the U.S. semiconductor industry on the ropes,” Rep. Victor H. Fazio, (D-Calif.), said, adding that an agreement signed last year failed to increase U.S. semiconductor sales to Japan.

“The U.S. semiconductor industry can compete with foreign companies, but not against a sovereign state like Japan, which is intent on winning jobs and . . . a whole industry in itself,” Fazio said.

The private enterprise plan, adopted by the Semiconductor Industry Assn. of 41 companies at a meeting in Dallas earlier in the day, calls for establishment of a state-of-the-art semiconductor manufacturing facility known as Sematech--Semiconductor Manufacturing Technology--that can be used to develop advanced manufacturing techniques and equipment.

The association said Sematech would need $250 million a year for six years and is asking the federal government to provide 50-50 matching funds.

“This merger of the federal government in Sematech is the catalyst needed for the U.S. semiconductor industry to regain its international stature,” Fazio said.

Reps. Les AuCoin (D-Ore.), Don Ritter (R-Pa.) and James Florio (D-N.J.) joined in the call to support Sematech.

Fazio and AuCoin are heading an Appropriations Committee effort to get funding for semiconductor manufacturing technology and research, and Florio and Ritter got a provision into the House-passed trade bill authorizing $500 million over five years for research and development.

The U.S. share of the semiconductor market has fallen to less than 45% last year from 60% in 1975, while Japan’s market share increased to more than 45% from 20% in the same period.