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"Survival hinges on the
acquisition of a steady stream of new technology and on the talents of a highly educated
workforce." |
C. The Needs of the Semiconductor Industry
The vast majority of companies making up the Semiconductor Equipment
and Materials Industry are small businesses. More than 350 of the 500+ California
companies have annual sales less than 25 million. Small businesses do not have the
resources to support large in-house research and development programs. The close proximity
of a University with active research in their area of technology is a great benefit to
them. Technology and human resources acquired from local Universities often plays a key
role in the development of their business. The importance of small businesses to the
California economy should not be overlooked. It is often the start-up company which
introduces the breakthrough that keeps California’s share of the high-tech equipment
market high.
The semiconductor industry and its equipment and material suppliers are
faced with enormous challenges over the next ten years. Each generation of electronics
products must handle more difficult operations, at a faster speed, and at a lower cost
than preceding ones. In order to do this, individual devices (e.g. transistors) must be
packed into smaller and smaller dimensions. Soon more than a billion devices will be
crammed into an area no larger than a dime. To accomplish this task, semiconductor
manufacturing technology must be reinvented every few years. The industry is faced with
the herculean task of constantly developing materials and processes to meet rapidly
changing demands. Survival hinges on the acquisition of a steady stream of new technology
and on the talents of a highly educated workforce. As a consequence, these companies spend
on average 20% of their revenue on research and development, which is a higher percentage
than any other manufacturing enterprise.
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