Invited: Technology and economic outlook for solid-state electronics

There is an increasing concern today over the apparent narrowing of the technological lead of American semiconductor companies over their foreign competition, and about the profitability of the industry in the future. In assessing this subject, several questions should be posed and answers should be sought. Among them are: Is the technological lead narrowing, or will it do so in the future? Is the decrease in defense spending seriously affecting the rate of technological development? Are there other sources of R and D funds which the industry can use to accelerate developments? This paper addresses these topics.