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Microchip Research Center Created

A research center has been set up in this Far Eastern country to develop advanced microchip production technology. The center, which will start out with about US $14 million, will help the country develop its chip industry without always depending on imported technology.

The center will make use of its research skills and facilities to develop new technology for domestic chip plants. The advent of the center will possibly free the country from the situation that it is always buying almost-outdated technologies from other countries, said the country’s flagship chipmaker.1 Currently, chip plants in this country are in a passive situation because many foreign governments don’t allow them to import the most advanced technologies, fearing they will be used for military purposes. Moreover, the high licensing fees they have to pay to technology providers are also an important reason for their decision of self-reliance2.

As mainstream chip production technology shifts from one generation to the next every three to five years3, plants with new technology can make more powerful chips at lower costs, while4 plants with outdated equipment, which often cost billions of dollars to build, will be marginalized by the maker.

More than 10 chip plants are being built, each costing millions of US dollars.5 The majority of that money goes to overseas equipment vendors and technology owners — mainly from Japan and Singapore.

Should the new center play a major role in improving the situation in the industry,6 the country admits the US $14 million investment is still rather small. This country is developing comprehensive technologies. Most of the investment will be spent on setting alliances with technology and intellectual property7 owners.

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