Although the microchip is an American invention, early, unbridled
competition among U.S. companies and the worldwide race for new
products allowed the Japanese to move in on the microchip market.
By the mid-1980s, Japan dominated the industry, in this country as
well as abroad, and the U.S. semiconductor industry faced
irrecoverable loss of production capability. Desperation led to the
creation of Sematech.
In Sematech, Larry D. Browning and Judy C. Shelter trace the
history of Sematech, a consortium formed by fourteen major American
semiconductor manufacturers and the U.S. government. Sematech's
founders were aware that consortia emphasizing cooperative research
had been unsuccessful; Sematech planned a different approach. Its
founding charter stated its goal: "To provide the U.S.
semiconductor industry the capability for world leadership in
manufacturing" -- in other words, improve core manufacturing
competence without making end products.
By 1994, U.S. chip makers were once again ahead in global market
share, and Sematech began to phase out government funding.
Sematech's success was based on first identifying the companies
with the best operating solutions to each problem and then
disseminating these practices to the industry.
Sematech not only provided a solution to many problems of the
U.S. semiconductor industry, it also provided a template for other
public/private enterprises. Examining what Sematech did and how it
did it is important to the health of the U.S. economy in an
increasingly multinational competitive environment.
Browning and Shetler's well-written, thoughtful history will
inform and engage business historians, managers, public policy
scholars, and othersinterested in the development and success of
the U.S. computer chip industry and the application of its
techniques to other fields of business.
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