TIRIAS Research believes that the semiconductor industry is critical to the long-term competitiveness of the US, as well as its economic growth. It’s time for the US Congress to step up and pass the US CHIPS Act. Hopefully, we’ll see some action next week.
In many ways, the situation parallels a similar situation the US found itself in more than 40 years ago. Back in 1980, the US semiconductor industry was in a funk while Japan’s semiconductor industry was becoming increasingly competitive. In only five years, Intel, the company that invented the commercial DRAM in 1970, would exit the DRAM market because it could not compete financially or from a quality perspective with Japanese DRAM makers.
In September 1990, the VHSIC Program Office issued a report titled “Very High Speed Integrated Circuits - VHSIC - Final Program Report 1980- 1990” that said: Perhaps more important, a critical new chip-design methodology called VHDL emerged. VHDL stands for the VHSIC Hardware Description Language. Without VHDL and a similar language called Verilog, created by a company named Gateway Design Automation, it would be impossible to design today’s large chips. VHDL and Verilog remain the mainstream languages for chip design today, more than four decades later. That’s quite an achievement by itself.
ICBM and aerospace/defense programs underwrote the development of the silicon transistors and more than a decade of transistor innovations The Internet would not exist without the funding provided by the DoD’s Advanced Research Projects Agency to create the ARPANET and its packet protocols, which sent its first message from computer to computer in 1969. ARPANET paved the way for the Internet.
However, the US CHIPS Act is stuck in a political tug-of-war game between Senate minority leader Mitch McConnell and nearly everyone else in the US congress. Here’s what Leader McConnell tweeted on June 30:
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