Although the US semiconductor industry has a major advantage that cannot be duplicated in other regions. The IC industry was born in the United States. Major technological breakthroughs and changes in the industry have also started in the United States. However, the U.S. gains and losses in the tech industry ecosystem, the role of government policies, and personnel training. Still worth exploring.
Editor's note
In the first three global commercial observations, we reviewed the current competitive landscape of the international semiconductor industry, analyzed the history of the development of the semiconductor industry in Europe, leading global Korea and Taiwan, and the current situation and gains and losses in Europe. The semiconductor industry, analyzing why the birthplace of the semiconductor industry can maintain the everlasting foundation of more than half a century, it has always maintained the world's leading support logic and password. At the same time, the famous 'traitor' culture and semiconductor giants of Silicon Valley Intel and AMD Love and hate stories also do a glimpse. (Li Yanxia)
A recent survey report from market research firm Strategy Analytics shows that in 2017, in the global baseband chip and smart phone application processor market, US semiconductor company Qualcomm accounted for 53% and 42% of the market share respectively, and continued to solidify the field. The dominance of Strategy Analytics believes that Qualcomm will continue to maintain its leading position in the market in 2019 and beyond in the transition from 4G to 5G.
Qualcomm’s strength is just one example of the leading position of the US semiconductor industry. The data from IC Insights, a semiconductor industry research organization, updated in May shows that with revenue as the standard, in the first quarter of 2018, the world’s top 15 semiconductor manufacturers (including wafer foundry) The United States holds 8 seats. In 2017, semiconductor manufacturers in North America together accounted for 49% of the global semiconductor market.
In addition, unlike other regions where manufacturers focus on different areas of subdivision or foundry business, US manufacturers can produce almost all types of semiconductor products, and have similar layouts in terms of equipment and materials. VLSI announced 2016 among the top ten semiconductor equipment manufacturers in the world. , Applied Materials, Lam Research, KLA-Tencor and Teradyne are the top four companies in the United States, third, fifth and eighth respectively.
Although the US semiconductor industry has a major advantage that cannot be duplicated in other regions. The IC industry was born in the United States. Major technological breakthroughs and changes in the industry have also started in the United States. However, the United States has played a role in the ecology of science and technology industry, the role of government policies, and personnel training. The gains and losses are still worth exploring.
The rise of Silicon Valley and IC industry
When asked about the success factors of the U.S. integrated circuit industry, a U.S. semiconductor practitioner was somewhat confused: Integrated circuits were born in the United States, which made it extremely difficult to pinpoint the 'most important reason' for their success.
According to the reporter of the 21st Century Business Herald from the Director of the China Polyesters and Semiconductors Association (CASPA), the IC industry started in the United States. Following the simultaneous development of the US economy after the Second World War, it is necessary to take a holistic view of the success factors of the US semiconductor industry.
In 1947, William Shockley, the 'father of transistor', and two colleagues at Bell Labs made the first transistor, and the three shared the 1956 Nobel Prize for physics. Then, Shockley left. Bell Laboratories came to the Silicon Valley of today to establish the Shockley Lab. In the talented man who came to defect to Shockley, there were eight co-founders of Fairchild.
In 1957, eight people set off Fairchild Semiconductor Corporation, and they were therefore snarled by Shockley as an 'eight traitors'. However, soon this name became the legend of Silicon Valley and even the US technology industry. 'Treason' entrepreneurial spirit Affected generations of Silicon Valley entrepreneurs and scientists.
In 1958, Texas Instruments's Jack Kilby made the first integrated circuit, but failed to find the right silicon crystal. His device used helium. Fairchild Semiconductor soon achieved a breakthrough. Robert Noyce, one of the traitors, submitted a patent application for the manufacture of integrated circuits using silicon planar processes in 1959, and in March 1961 produced the first silicon-based integrated circuit. The curtain kicked off.
In 1968, Gordon Moore and Neuss, who finally left Fairchild in the 'Eight Rebels', also founded their own world-leading semiconductor company, Intel.
In 1971, Electronic News reporter Don Hoefler first published a series of reports on the computer chip company in the San Francisco Bay Area under the title "Silicon Valley." Silicon Valley was named after this. The 'silicon' word was derived from the IC industry in the area. Silicon raw materials used.
Economic and technological advantages support
Chris Taylor, director of market research firm Strategy Analytics RF and Wireless Component Services, pointed out to 21st Century Business Herald reporter that the strong economic foundation of the United States is one of the core advantages of its semiconductor industry. The US economy achieved strong growth in the 19th and 20th centuries. Encouraging investment in the technology industry while expanding employment.
The recently released Mary Mickler Internet Trends Report 2018 shows that in terms of market value, among the top ten technology companies in the world are Apple, Amazon, Microsoft, Google, Facebook, Netflix and eBay+PayPal. Provides a complete ecosystem of terminal applications, brands and software for the US semiconductor industry.
Lin Jianhong, a research manager at Jibang Consulting and Industrial Research Institute, pointed out to 21st Century Business Herald reporter that the long-term accumulation of basic science and technology is one of the main factors that ensure that the US semiconductor industry has long occupied a leading position.
'Microsoft and Intel occupy the PC market. Google's Android and Apple's iOS lead the smart phone. On the manufacturing side, there are Intel and some powerful scientific research units that are driving the equipment and materials manufacturers, while the external funds are supporting Innovative environment. ' He said.
The Governor of the China-Canada Semiconductor Association (CASPA) also pointed out that many of the pioneers in the early development of the semiconductor industry in the United States were European immigrants of the first generation. 'After World War II, many very good scientists came to the United States to look for opportunities.' She said. 'Father of transistors' Shockley was born in England and moved to California.
In Lin Jianhong's view, the semiconductor industry is only a part of the science and technology industry. The United States has a perfect system of scientific research and innovation and attracts talents from all over the world. This is crucial for maintaining a leading position in the scientific research field.
Active government intervention: R&D support, policy guidelines
In the early days of the growth of the integrated circuit industry, the U.S. government has played an important role in it. As early as before World War II, the U.S. military had a tradition of funding scientific research for R&D in aircraft, radar, and nuclear industries.
The National Science Foundation (NSF) provides approximately US$7 billion in support each year to support basic physical science and mathematics research in universities. The National Institutes of Health (NIH) funds basic medical research. The Defense Advanced Research Projects Agency (DARPA) ) It provides support for companies with military potential research, such as computer networks and Internet projects. 'Taylor pointed out that the three institutions have played an important supporting role in the semiconductor industry base.
Nguyen Ying pointed out that the U.S. government’s most direct promotion of the semiconductor industry, in addition to providing financial support for R&D, also played an important buyer role. National defense and aerospace research provided a huge market and application scenario for the semiconductor industry.
Professor John Orton, a University of Nottingham professor, also pointed out in his book that during most of the time when the transistor was born, the industry survived with the support of the military, laying the foundation for the future IC industry.
With respect to policy guidelines, the U.S. government has only taken a number of actions in recent years. In 2015, the U.S. launched the Congress Semiconductor Seminar to specifically study semiconductor industry policies. Subsequently, the U.S. Congress Research Service Center and the President’s S&T Advisory Committee were successively in 2016. , In 2017, two guideline reports were issued on "U.S. Semiconductor Manufacturing: Industry Trends, International Competition and Federal Policy" and "Continuously Consolidating the U.S. Semiconductor Industry Leadership Position."
Sravan Kundojjala, deputy director of Research Analytics for mobile phone component technology, told 21st Century Business Herald reporter that the semiconductor industry has now become an industry that the US government has 'tightly protected'. In recent years, the U.S. government has blocked many foreign investor acquisitions. Attempt. The US government sees 5G and AI as the core areas of the semiconductor industry and wants to maintain its leadership.
In March 2018, CFIUS also urgently required Qualcom to postpone the shareholders’ meeting before the Qualcomm shareholders’ meeting to intervene in Broadcom’s hostile takeover of Qualcomm. A subsequent CFIUS letter showed that it was worried that the acquisition would weaken Qualcomm. As a result, Qualcomm loses its advantage at the crucial moment of the development of the 5G standard.
'However, almost all of the US semiconductor companies are currently in the global layout, and more importantly, they also have business contacts with China. 'Kundojjala said, 'Most of the U.S. companies' success depends more on successful products and marketing strategy. '
Frequent flow of talent, industry blossoms everywhere
Recalling the history of semiconductor companies in the United States, an interesting finding is that emerging companies are often able to rise rapidly and promote the semiconductor industry's progress in the field of technology. In John Orton's view, this is linked to another major feature of the US technology industry: Talent Frequent flow between different companies.
According to a survey released by the public welfare organization Endeavor in 2014, there are currently 92 U.S. listed companies with 'Sontong Gene', including Apple, Google, Oracle, Facebook, and Tesla. The technology companies also include Intel, AMD, Applied Materials, SanDisk, Nvidia and Xilinx and other important semiconductor manufacturers, as well as semiconductor equipment companies such as KLA-Tencor and Lam Research. Endeavor said that if out of the limitations of listed companies, traceable There are as many as 2,000 companies that have joined the eight Fairchild Co-founders.
Orton believes that the story of the 'eight renegades' determines a culture in which thousands of imitators ensure that professional knowledge and technology can quickly spread in the industry. This is very different from the relatively stable environment in Europe and Japan.
Emerging companies promote technological innovation is an important manifestation of the vitality of the semiconductor industry in the United States, this feature has been passed on. In the 1980s and 1990s, another group of emerging US manufacturers took advantage of the Fabless model and the information age (Internet and mobile networks Emerging) The advent of the wind, in the rapid rise of the United States for the semiconductor industry to open up a new territory, Qualcomm and British Weida is one of the most typical representatives.
'For us, the Fabless model has proved to be very successful. 'A spokesman for Qualcomm said in an interview with 21st Century Business Herald reporter on June 1. 'This allows us to not invest in equipment, etc. Flexible focus on more core, basic R&D aspects, and let manufacturers who are more willing and good at chip production engage in production.
Nowadays, in the field of 5G, AI, Internet of Things and other emerging frontier technologies, US manufacturers are still at the forefront. Kundojjala believes that many US semiconductor manufacturers, including Intel, Qualcomm, Nvidia, Broadcom, Micron, AMD and Xilinx, In this round of opportunities are actively laid out.
'For example, Nvidia's GPU manufacturer has refocused its business model mainly for individual customers into areas such as AI, autopilot and data center. 'He introduced, 'Qualcomm's leader in the baseband market, also Efforts are being made to extend its success on 4G to 5G, and to invest in AI, VR and AR related technologies.
'5G is opening a door for all other related industries.' A Qualcomm spokesperson said, 'In the past, mobile operators, mobile phone manufacturers, and semiconductor manufacturers have defined 3G and 4G capabilities. 5G is in need of many industries. Participate in, inform us of their needs, and define 5G functionality together.
However, although the United States is the closest country in the world with a full semiconductor industry chain, US companies are still absent in the field of lithography, and the main DRAM production plants are not in the United States. 'There is no single country with a complete supply chain.' Lin Jianhong said, 'The semiconductor industry has a high degree of professional division of labor, but it has highly centralized characteristics in all subsystems.'
In Taylor’s view, the talent pool is an important factor in keeping the leading position of the semiconductor industry in the United States. Especially the United States emphasizes education in the fields of basic science, technology, engineering, and mathematics. However, Henry pointed out that the United States currently faces a challenge at the talent level. : Compared with the semiconductor industry with a long training period, the emerging Internet, software and other fields seem to be more attractive both in the talent training period and the income level.