Panel Offers Broad Strategy to Protect U.S. Chip Industry
The latest steps in a far-reaching strategy to boost and protect the faltering U.S. semiconductor industry were proposed Monday by a congressionally appointed committee.
In its report to Congress, the committee, composed in part of representatives from the nation’s largest semiconductor companies, recommended that the federal government help the chip-making industry compete with foreign firms that have access to low-cost funds for new plants, equipment and research.
The committee also called for the reform of trade laws, increased protection of intellectual property, improved educational programs to create more skilled workers and updating antitrust regulations.
“Millions of jobs in the electronics industry are at stake in the country,” said Ian M. Ross, president of AT&T; Bell Laboratories and chairman of the committee. “The electronics industry is the largest employer in the United States. Further erosion of the domestic semiconductor industry must be stopped if we are to maintain a vigorous competitive position and ensure the nation’s economic and military security.”
The report, however, comes as some lawmakers and industry representatives contend that the Bush Administration is considering cuts in spending on high-technology research programs. The Administration also has expressed resistence to direct financial support of any industry.
During the past decade, Japan and other foreign competitors have captured a major share of the world semiconductor market as the U.S. share continues to decline. In addition, there has been a rapid decline in the market share held by the U.S. semiconductor materials and equipment industry, which provides the critical tools used to manufacture semiconductors.
The recommendations are contained in a report to the president and Congress from the National Advisory Committee on Semiconductors, a panel of top executives from the U.S. electronics industry and representatives of several branches of the federal government. Congress established the committee in 1988 as part of the Omnibus Trade Act to develop a national semiconductor strategy.
The committee called on U.S. businesses to underwrite a Consumer Electronics Capital Corp. that would serve as a source of low-cost venture capital to domestic consumer electronics firms.
The goal of the new corporation would be increasing U.S. semiconductor sales by underwriting the introduction of new consumer electronics products that use U.S.-made electronic components.
