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Larry D. Browning - Sematech: saving the U.S. semiconductor industry

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title Sematech Saving the US Semiconductor Industry Kenneth E - photo 1

title:Sematech : Saving the U.S. Semiconductor Industry Kenneth E. Montague Series in Oil and Business History ; No. 10
author:Browning, Larry D.; Shetler, Judy C.
publisher:Texas A&M University Press
isbn10 | asin:089096937X
print isbn13:9780890969373
ebook isbn13:9780585372266
language:English
subjectSematech (Organization)--History, Semiconductor industry--Government policy--United States.
publication date:2000
lcc:HD9696.S44S453 2000eb
ddc:338.7/62138152/0973
subject:Sematech (Organization)--History, Semiconductor industry--Government policy--United States.
Page i
Sematech
Number Ten:
Kenneth E. Montague Series in Oil and Business History
Joseph A. Pratt, General Editor
Page ii
Page iii Sematech Saving the US Semiconductor Industry Larry D - photo 2
Page iii
Sematech
Saving the U.S. Semiconductor Industry
Larry D. Browning and Judy C. Shetler
Page iv Copyright 2000 by Larry D Browning and Judy C Shetler - photo 3
Page iv
Copyright 2000 by Larry D. Browning and Judy C. Shetler
Manufactured in the United States
All rights reserved
First edition
The paper used in this book meets the minimum requirements of the American National Standard for Permanence of Paper for Printed Library Materials, Z39.48-1984. Binding materials have been chosen for durability.
Picture 4
For a complete list of books in print in this series, see the back of the book.
Library of Congress Cataloging-in-Publication Data
Browning, Larry D.
Sematech: saving the U.S. semiconductor industry / Larry D. Browning and Judy C. Shetler.
p. cm.(Kenneth E. Montague series in oil and business history; no. 10)
Includes bibliographical references and index.
ISBN 0-89096-937-X (cloth)
1. Sematech (Organization)History. 2. Semiconductor industryGovernment policy
United States. I. Title: Saving the U.S. semiconductor industry. II. Shetler, Judy C.
III. Title. IV. Series.
HD9696.S4 S453 2000
338.7'62138152'0973dc21
99-057068
Page v
Contents
Preface
vii
Chapter 1. Long-established relations drive cooperation
3
Chapter 2. The black book sets the structure
31
Chapter 3. Collaboration amidst Controversy: Working the Issue of Secrecy
53
Chapter 4. Start-up Struggles: Noyce Becomes CEO
75
Chapter 5. Reaching Consensus on Standards
100
Chapter 6. Supplier relations lead toward partnering
126
Chapter 7. Quality: Meeting the Customer's Needs
140
Chapter 8. A New Mission: Sematech II
163
Chapter 9. Learning from the Sematech Experiment: 1987 to the Future
185
Chapter 10. The Complexities of Sematech: A Theoretical Summary
202
Appendix 1. Chronology
234
Appendix 2. Sematech Centers of Excellence
238
Appendix 3. Intel's Four-Step Model for Constructive Confrontation
239
Notes
243
Bibliography
261
Index
267

Page vii
Preface
On a fall day in 1994, Dr. William Spencer, chief executive officer (CEO) of Sematech, startled many observers by announcing that his organization would soon relinquish its federal funding. Sematech, a semiconductor manufacturing consortium, had been created only a few years before as a collaborative effort between semiconductor makers and the U.S. government to counter the imminent threat of foreign domination of the global microchip market.
This threat was still a grave one. By the mid-1980s, foreign competition, notably from Japan's government-subsidized collaborative production, was rapidly overrunning the global market for semiconductors, especially with their aggressively priced memory chips. The goal of recovering competitive leadership in this vital economic sector supplied the rationale for establishing an American chip-making consortium. Its founding charter in 1987 was a sweeping pronouncement: "To provide the U.S. semiconductor industry the capability for world leadership in manufacturing."
By 1994, pressure from global competition was even more widespread. It thus caused consternation when Sematech's CEO said: "The industry can afford to support the consortium and we should. We are setting an example for other U.S. industries and for the world. We never intended direct federal funding to become an entitlement program."1 His announcement was all the more startling because federal funding is seldom given up after it has been gained.
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