Federal Research

Lessons Learned From SEMATECH Gao ID: RCED-92-283 September 28, 1992

SEMATECH--formed in 1987 to help the United States regain its leadership role in semiconductor production--has shown that a government-industry research and development alliance can help improve a U.S. industry's technological position while protecting the government's interest that the consortium be managed well. Whether this feat can be replicated and what conditions would lead to this result in other cases is uncertain. This report discusses the specific strengths and weaknesses of SEMATECH and makes suggestions to Congress in considering any future support for consortia intended to improve the competitive position of U.S. manufacturers.

GAO found that: (1) a government-industry R&D consortium on manufacturing technology can help improve a U.S. industry's technological position while protecting the government's interest that the consortium be managed well and public funds spent appropriately; (2) SEMATECH has worked well because its member companies have led the consortium and members' senior executives have been actively involved in overseeing its activities; (3) equipment suppliers of SEMATECH are the primary beneficiaries of its R&D program through equipment improvement and development contracts and efforts to improve long-term working relationships between semiconductor manufacturers and their key suppliers; (4) the consortium is improving the U.S. industry's efficiency by developing industrywide standards and practices and leveraging R&D resources; (5) SEMATECH might have improved its initial manufacturing R&D program by more thoroughly assessing the declining market share of U.S. semiconductor equipment and material suppliers; and (6) SEMATECH might have improved its initial manufacturing R&D program by more realistically aligning its overall mission with the funds available to accomplish it.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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