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R&D in the Framework of the New Transatlantic Agenda
Pages 76-87

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From page 76...
... Flamm, that the VLSI project contributed greatly to Japan's market dominance in semiconductors in the 1980s. One issue to consider in thinking about I300I is how unique cooperation in semiconductor equipment development really is.
From page 77...
... the attitude toward foreign suppliers. He said that DOD operated under three unwritten rules in considering work with foreign suppliers: · Monopoly.
From page 78...
... Flamm observed that business may have a similar set of "unwritten rules" when considering whether to engage in international cooperation. THE 300-MM INTERNATIONAL INIATIVE William Spencer SEMA TECH Dr.
From page 79...
... First, if the semiconductor industry is to adhere to the pattern of making things "faster, smaller, and cheaper," technology in the semiconductor equipment sector must advance. About 75 percent of future improvement in device functionality would come from better manufacturing equipment, with the remaining improvement coming from changes in the structure of the transistor and other design advances.
From page 80...
... However, the semiconductor industry has had a year of unexpectedly poor sales, largely because of the Asian economic crisis. Combined with the overcapacity among chip makers, there has been a glut of dynamic random access memories (DRAMs)
From page 81...
... Standards At one time it looked as if there would be two sets of standards for 300-mm development. It was a major accomplishment of the I300I project, working with the Semiconductor Equipment Manufacturers Institute, to reach agreement with Japan on a single set of standards.
From page 82...
... It requires a commitment of resources, people, and time, but such cooperation also promises large payoffs. DISCUSSANTS John Shamaly Silicon Valley Group, Inc.
From page 83...
... government regulations with respect to cooperation with foreign firms; · keeping its obligation to stockholders and employees, namely, to earn enough profits to maintain or increase employment at SVG, while stockholders receive a good return on their investment; and maintaining competitiveness for SVG and the entire equipment industry. Increased cooperation, along with productivity increases in the semiconductor equipment sector, may limit the size of the world market.
From page 84...
... Mr. Borrus recalled an anecdote regarding the sale by the American conglomerate ITT of its German subsidiary Standard Electric Lorenz (SEL)
From page 85...
... Borrus argued that the launch market for an innovative new product is typically local, and that if such a product sets an industry-wide standard, the local economy benefits. When a product becomes a standard, additional investment in a specific region results as production volumes grow and as a network of supporting industries and suppliers grows.
From page 86...
... Semiconductor device makers in the United States and Europe have agreed in I300I to move equipment development forward based on common interests and to compete in the market for devices.
From page 87...
... Mr. Borrus responded by noting that, whereas collapsing DRAM prices may have contributed to financial problems in Korea, it would be very difficult to assign a causal link between falling DRAM prices and the general economic crisis in Asia.


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