The United States Department of Defense (DOD) uses microelectronics in nearly all of its critical systems. Since the beginning of the industry, semiconductor technologies have not only provided strategic advantages for national security, but have also transformed daily life. The wide ranging transformative power of microelectronics has caused the microelectronics business to grow from a niche industry supporting the DOD into the massive global semiconductor industry we know today. As it has grown, the semiconductor industry has changed in ways that have made it difficult for the DOD to access state-of-the-art (SOTA) technologies needed for its systems.There are fundamental differences today in the business models of commercial microelectronics manufacturers, who want high volumes and short lifetimes, and the DOD that needs low volumes for very long lifetimes. Where the DOD was once the main customer of the semiconductor industry, it now takes a backseat to the global commercial market that purchases the overwhelming majority of today’s electronics. In the eyes of microelectronics manufacturers, the DOD is a minor customer with unusual needs and inconvenient methods for doing business. This leads to access challenges for the DOD in getting the parts they need. Moreover, given the global nature of the worldwide microelectronics supply chain, the DOD also faces security concerns with respect to counterfeit parts, malicious alterations, etc.
The DOD needs a comprehensive strategy for assured access to secure microelectronics to meet its needs now and in the long term. A key way to assure availability and access to needed microelectronics is for most segments of the semiconductor industry and R&D ecosystem to have strong domestic representation. A strong domestic supply chain eliminates the DOD’s reliance on components that are produced in or pass through foreign nations. As the industry rapidly evolves, it is important to understand weaknesses and vulnerabilities in the domestic US semiconductor industry and R&D ecosystem, and to develop strategies to address them.
The Potomac Institute conducted a six-month study to examine the domestic semiconductor R&D ecosystem with the goals of identifying key vulnerabilities, or gaps, that prevent effective technology transition to domestic commercialproduction capabilities, and make recommendations to close those gaps. The Potomac Institute also examined what factors impede the DOD’s ability to effectively transition technologies and promising innovations to commercialindustry. These recommendations are aimed at helping the DOD ensure access to key microelectronics research capabilities.