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Published on: May 31, 2017
Sematech: purpose and performance
1Graduate School of Business, University of Chicago, IL 60637, USA.
Summary
Semiconductor manufacturing involves a steep learning curve with knowledge spillovers. Government-funded consortia like Sematech may increase R&D efficiency but not necessarily overall research volume.
Area of Science:
- Economics of Technology
- Industrial Organization
- Semiconductor Manufacturing
Background:
- Semiconductor production exhibits a steep learning curve.
- Knowledge spillovers exist between firms, justifying government intervention.
- Joint ventures can enhance learning curve efficiency.
Purpose of the Study:
- To analyze the impact of the Sematech consortium on R&D spending and efficiency.
- To evaluate the effectiveness of government subsidies in stimulating semiconductor research.
Main Methods:
- Analysis of R&D spending patterns of Sematech member firms.
- Estimation of knowledge spillover effects in semiconductor production.
Main Results:
- Sematech has potentially reduced R&D spending among member firms.
- This reduction may indicate increased research efficiency through knowledge sharing.
- Government contributions might not lead to additional semiconductor research beyond what would naturally occur.
Conclusions:
- Sematech may enhance R&D efficiency but not necessarily increase total research output.
- Government funding might be better utilized if firms self-fund research post-subsidy.
- Policy implications for R&D consortia and government support in high-tech industries.
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