Defending the IP of the US Semiconductor Industry

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Eldredge
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Needs US Government cooperation
Eldredge   2/27/2014 8:36:38 PM
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As a first step, wafer fabs should develop symbiotic partnerships with the US Government to ensure the sustainability of its capital investments.

In order to succeed, the semiconductor fab industry will have to convince the US government of the strategic importance in maintaining domestic financial and manufacturing control.

apek
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Re: Needs US Government cooperation
apek   2/27/2014 8:50:27 PM
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I agree Eldredge. That is whole purpose of my upcoming book "Sustaining Moore's Law: The Macroeconomics of US Microelectronics Industry". You can read the Synopsis here http://www.electronics.ca/macroeconomics-of-us-microelectronics-industry.html

Eldredge
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Re: Needs US Government cooperation
Eldredge   2/27/2014 9:11:19 PM
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Interesting - I'll take a look at the synopsis. I have been in the electronics manufacturing field for a long time, and also have some IP background.

Hailey Lynne McKeefry
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Re: Needs US Government cooperation
Hailey Lynne McKeefry   2/28/2014 1:03:12 PM
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@Eldredge and @Apek, and further, once you convince the government, there is still the gargantuan task of forging a path forward that is manageable and reasonable. Any thoughts on how that would happen?

apek
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Re: Needs US Government cooperation
apek   2/28/2014 1:29:29 PM
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@Hailey...Good thinking. World wide we are observing many countries investing in Semiconductors. Why? Because it is technology enabler..without hardware there cannot be any software growth. Also, Businesses who only look for their Micro-economic profits ignoring the Macroeconomic Losses are shooting into the their own feet. The whole Business Model of US Semiconductor Industry is failing both IDM and Fabless Model. I have an upcoming article to be published soon on Truthout.org about " The Transformation of US Semiconductor Industry". I have explained the unsustainable business model of this Industry from a Macroeconomic perspective. When today we say, US is giving away its economic Dominance to China, remember that we are discussing MACROECONOMICS. We need a Macroeconomic Model for the Industry that is sustainable and leads Industry to next level of Innovation and Financial Success. Also, Government does not have to run any deficits neither does it have to pay for unemployment expenses of laid off workers. I call for MASS CAPITALISM. It is only through Mass Capitalism can we have a true Free Market Enterprise. Such a system will also stop this Political Corruption in US Economy in form of campaign finance which is supressing the voices of ordinary Americans in US Democracy. The path is manageable and reasonable...I put a lot of thought to make sure that our Industry is able to not just sustain Moore's law's relentless progress but to also ensure that the benefits from tis relentless progress are enjoyed by all. There need to be some major reforms and also change in economic thinking of Industry professionals. The topics include managerial reform, trade reform, democratic reform, financial industry reform, monetary policy reform, etc. whcih are too enormous that became a 200 + pages book as I started working on this topic for best interest of our great industry.

prabhakar_deosthali
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prabhakar_deosthali   2/28/2014 4:35:07 AM
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As far as my observation goes, the way the US businesmen think is not the same as what the US govt thinks.

 

So while US govt is trying to make policies in favor of loacl manufactruing and employment to locals, The US business community sees profit in outsourcing the manufactruing to countries like China and hirng Indian software engineers  for IT related work.

 

So how the US govt is going to control the IP of the semiconductor industry if the business community does not co-operate?

 

 

TaimoorZ
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re:
TaimoorZ   2/28/2014 6:23:55 AM
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"So while US govt is trying to make policies in favor of loacl manufactruing and employment to locals, The US business community sees profit in outsourcing the manufactruing to countries like China and hirng Indian software engineers  for IT related work."

@prabhakar: I think that conflict between what's good for individual businesses versus what's good for the economy as a whole will always be there. You cannot force the busiinessmen to do something forcefully. The only way to make it work is to incentivize them to move back their operations from abroad. Sacrifice in the short run to gain long-term success.

apek
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re: Prabhakar
apek   2/28/2014 12:19:31 PM
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Hi Prabhakar,

                        That is where US semiconductor Industry and worldwide semiconductor Industry needs to understand Macroeconomics. All economics taught in business schools is Microeconomics. Macroeconomics is much more important than Microeconomics. The purpose of my upcoming book is to make semiconductor Industry professionals be aware and uinderstand Macroeconomics of the business.

With Best regards,

Apek

TaimoorZ
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Defending the IP
TaimoorZ   2/28/2014 6:24:24 AM
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I think a good way to get attention the impact on IP by outsourcing issue would be to pick up a number of cases in the past years where IP violation has taken place just because the parent company chose to move their manufacturing to China. This should also include figures about the financial impact. I think this will really end up catching a lot of attention.

apek
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Re: Defending the IP
apek   2/28/2014 12:17:17 PM
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TaimoorZ,

                      You are correct on that and I have put forth some resilient reforms that would defend IP of US semiconductor industry from counterfeiters in my upcoming book.

 

With Best regards,

Apek

Himanshugupta
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Semiconductor innovation is not dependent on US or single country
Himanshugupta   2/28/2014 7:13:24 AM
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Today's semiconductor FAB are clustered around Asia so i guess that there will be new innovation happening. As far as US is concerned and its semiconductor industry then US govenment is taking some steps to pull back some of the outsourcing in this industry but i donot think they will be able to pull back all of it. 

Let's take the GF case, the consortium was suppose to open FABs or invest in Middle East and US but they have postpone it. Companies all over the semiconductor domain are reducing their workforce. The new innovations like EUV are not working so what will US do with IPs if the overall industry is not progressing.

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   2/28/2014 12:11:16 PM
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Himanshu,

                     I have provided solutions to bring back manufacturing back into US in chapter "US Economic Boom to Economic Bust". However, as you read my upcoming book further you will notice that all present options to bring back manufacturing to US is going to not succeed without active co-operation of China. In the last chapter of my book, I have put forth the solution when China does not support US to reshore its manufacturing. 

I have received advice from economist Professor Batra and World authority of Bio-Medical engineering Professor Ghista in this book. I am sure you would like this read. It is not just engineering and economics but I ahve covered topics of Political affairs, International Affiars, Financial Affairs, Strategic thinking, Socio-economics, Supply Chain, Business Models and many more topics to interest the audience in my book. http://apekmulay.com/macro-economics-in-micro-electronics-industry/

Cheers,

Apek

Eldredge
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Re: Semiconductor innovation is not dependent on US or single country
Eldredge   2/28/2014 8:39:28 PM
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@Himanshugupta - Even if the US does pull back on some of it's outsourcing, I'm sure some IP has already been divulged. But like any other industry, I'm sure semiconductors have segments of the industry that are dong well, even if the total output is down.

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   2/28/2014 9:46:28 PM
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Not only has IP been compromised by sending manufacturing to Asia but now China also owns Trillions of USD in their Foregin Exchange reserves and it has got an indirect control over US Economy. Globalization has been a GREATest American Deception.

t.alex
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Re: Semiconductor innovation is not dependent on US or single country
t.alex   3/1/2014 9:02:22 AM
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In fact, it is not only manufacturing. Opening a support center or a design center will also pose some level of risk as well.

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   3/1/2014 10:24:03 AM
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You are right Alex. Vibrant Domestic economy is key to progress for any country. Shipping jobs and technology overseas to earn short term profits leads to long term losses due to depreciation of market value of any country's currency.

jack90
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Re: Semiconductor innovation is not dependent on US or single country
jack90   3/8/2014 1:42:34 AM
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The semiconductor commerce is the mass assortment of companies engaged in the intent further fiction of semiconductor machines. It formed circa, earlier the fiction of semiconductors became a possible custom.

business case study

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   3/10/2014 4:48:45 PM
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@Jack..i did not get that..could be rephrase in simple language?

nimantha.d
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Re: Semiconductor innovation is not dependent on US or single country
nimantha.d   3/11/2014 3:13:39 AM
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But isn't the situation improving ? It still has not got recovered fully but comparatively it is improving isn't it ? 

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   3/11/2014 4:23:24 PM
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@Nimantha

US economy never recovered post 2009 crash. Fed just printed Trillions of USD and most of it was pocketed by manufacturers such that they got 1 million USD to create 1 Job. If you think what I am saying is absurd, please read http://www.truth-out.org/news/item/14887-a-failure-analysis-of-the-us-economy

Eldredge
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Re: Semiconductor innovation is not dependent on US or single country
Eldredge   3/13/2014 8:25:43 PM
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@ apek - You also deplete the domestic skill base while simultaneously inventing in foreign skil base.

apek
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Re: Semiconductor innovation is not dependent on US or single country
apek   3/13/2014 11:29:33 PM
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Elridge...you are right on that. Domestic job losses cripples domestic economy and it eventualy also affects domestic currency.



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