Business outlook: Design work stations, silicon foundries, and a DOD communications network presage a fundamental alteration of the semiconductor industry

The semiconductor industry is about to undergo sweeping change. The development in the last few years of relatively inexpensive IC-design work stations and the emergence of silicon foundries-a new kind of company devoted to making chips fast-are expected to alter drastically the traditional roles of the semiconductor supplier and hardware maker. Burgeoning demand for the design and fabrication of chips in one month is expected. With the recent opening to the commercial world of ARPAnet, a communications network run by the U.S. Defense Department, the basic ingredients to realize the one-month chip are now in place: speedy design, with the aid of both work stations and ARPAnet, and fast fabrication at specialized foundries.