Semiconductor Industry Association

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PRESIDENT’S 2005 LETTER

Forty years ago, a young engineer from Fairchild Semicon-ductor authored a magazine article in which he observed that progress in semiconductor technology had been advancing at an exponential rate, with the number of transistors on a chip doubling every year since the invention of the integrated circuit. He noted that the ability to cram more components onto each chip was also driving exponential reductions in the cost of each transistor. The author went on to predict that these advances would one day lead to “such wonders” as home computers, automatic controls for automobiles, and personal communications equipment.

Today, of course, we take these wonders—and many more—for granted, and the observation of Gordon Moore is universally known as “Moore’s Law.”

Indeed, the pace of progress in our industry has been so continuous and so steady that we have almost come to assume that such progress is inevitable. In the real world, however, progress is not inevitable. Moore’s Law, as its author has repeatedly insisted over the years, is really an observation, not a law of physics. The fact that Moore’s Law, albeit through several iterations, has remained in effect for four decades is a testament to the dedication and creativity of scientists and engineers in industry, government, and university research programs throughout the country.

In the final analysis, Moore’s Law really is all about competition. In a number of segments of the semiconductor industry, leading-edge—and sometimes even “bleeding-edge”—technology is absolutely essential to remaining competitive. Even in those product lines that do not require leading-edge process technology, continuous technological advances have yielded benefits for everyone, including chipmakers, their customers, and ultimately the end-users of semiconductor-based products.

Today we are in a global competition for leadership in the Nanotechnology Era. Within our industry there is general agreement that this new era begins when we reach the ultimate scaling capabilities of CMOS technology. At SIA, we are working to ensure that U.S. semiconductor manufacturers will lead the way into the Nanotechnology Era.

The experts who produce the International Technology Roadmap for Semiconductors (ITRS) project that we will reach the scaling limits of CMOS technology within 15 years, or sometime around 2020. History tells us that it typically takes around 15 years to move from basic research on a new technology to commercial implementation.

Our immediate challenge therefore is twofold:

First, we must continue aggressive research to solve the barriers along the road to ultimate CMOS technology.

Second, we must launch a major research program to identify new materials, create new device structures, and develop new manufacturing methods that will enable U.S.-based companies to continue to lead advances in information technology at the pace of Moore’s Law in the Nanotechnology Era.

The Focus Center Research Program (FCRP) was established by SIA in 1999 to undertake coordinated research to keep pace with the ITRS. The FCRP involves more than 30 leading universities, the U.S. semiconductor industry, and the federal government to take CMOS technology to its ultimate limits.

This year SIA will launch the Nanoelectronics Research Initiative (NRI)—a collaborative research effort involving government, industry, and academia on the new materials, device structures, and assembly methods that will be essential in the Nanotechnology Era.

Meanwhile, we must and will continue to deal with the more immediate challenges confronting the U.S. semiconductor industry.

OUR PRIORITIES FOR 2005:

Continuing efforts to bring China into the mainstream of the world trading community, with special short-term emphasis on improving intellectual property protection.

Driving continuous improvement in all aspects of environ-mental protection and maintaining the safest possible working environment for those employed in semiconductor manufacturing throughout the world.

Successfully launching the NRI, including building a national consensus on the initial priorities, organizational structure, and funding of the NRI effort.

Working to assure that U.S. chipmakers continue to be the world leaders in semiconductor technology through coordinated research on “ultimate CMOS” technology.

As 40 years of progress under Moore’s Law have demonstrated, the U.S. semiconductor industry thrives on challenge. Maintaining world leadership will not be easy. We face intense competition from nations and regions around the world that have recognized the value and importance of leadership in semiconductor technology. Our nation’s economic progress, standard of living, and national security depend in large measure on maintaining leadership in semiconductor technology.

With the continued support and involvement of SIA members, I am confident that we are up to the challenge.

Sincerely,

George M. Scalise, President