4 days ago
- Business
- Wall Street Journal
Semiconductor Subsidies? Tried and Failed
I was the CEO of Cypress Semiconductor, a chip company founded in 1982 that peaked in 2018 at $2.8 billion in revenue and 5,846 employees. In 2020 German chip maker Infineon acquired us for $10 billion.
In 1987, the Semiconductor Industry Association decided that our industry needed to get on what I call welfare. The association lobbied Washington to fund a consortium called Sematech, grant it exemptions from antitrust laws, and fund a silicon-wafer fabrication plant. This was needed, the association said, because Japanese companies were about to wipe out the American semiconductor industry. As a chip company CEO, I never worried about getting wiped out, but I worried daily about rival memory chips from Hitachi, Toshiba, Mitsubishi and Fujitsu. That healthy competition made our company stronger, and in 2015 Cypress acquired Fujitsu's microcontroller team.
