Semiconductor Executives Urge Support for University Research Program; SIA Says Focus Center Research Program is Vital to US Tech Leadership.

SAN JOSE, Calif. -- Basic research on advanced microchip technology at 33 U.S. universities is vital to economic growth and national security. This was the key message in a letter sent to the members of the House and Senate Armed Services Committees and Defense Appropriations Subcommittees by the Semiconductor Industry Association (SIA). The letter was signed by 11 member company chief executive officers and SIA board members. The SIA is asking Congress to appropriate $20 million for the Focus Center Research Program (FCRP) for fiscal year 2006.

"Basic university research provides the critical foundation for the $17 billion invested annually in R&D by U.S. semiconductor companies," said SIA President George Scalise. "The Focus Center program has provided an excellent model for financial and technical collaboration on basic research by industry, government, and academia. The basic research undertaken at 33 U.S. universities has translated into continued U.S. leadership in microchip technology, which in turn, is a major contributor to economic prosperity and national security."

The U.S. Department of Defense and the semiconductor industry have jointly funded the Focus Center program since 1998. Thirty-three universities nationwide are engaged in research aimed at advancing current microchip technology to its ultimate physical limits. It is generally agreed that scaling of current chipmaking technology can continue for at least another 10 to 15 years, but that physical, economic, and technological limits will require the use of new device structures, materials, and manufacturing methods to continue progress after 2020.

All funding through the FCRP program goes directly to universities. Since the program's inception, the semiconductor industry has contributed more than $99 million to the program, and the Department of Defense has provided over $57 million in the same period.

Scalise noted that a recent report by the Defense Science Board underscored the critical importance of high-performance microchips to national security and specifically recommended continued funding for the Focus Center program. "The Defense Science Board report noted that 'semiconductor technology and manufacturing is a national priority that must be maintained if the U.S. military is to continue to lead in the application of electronics to meet the needs for defense and homeland security,'" said Scalise. "Regarding the Focus Center program, the report stressed that 'DOD funding needs to keep pace with industry contributions.'

"Unfortunately, the Administration has not been requesting full funding for this program in the past three years. The industry encourages the Department of Defense to include full funding in its budget request for next year and beyond," Scalise concluded.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of 255,000 people. More information about the SIA can be found at www.sia-online.org.