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Chip Manufacturing Texas increasingly competes, not just with other states, but with countries like China and India, to attract high-tech research and development (R&D) and manufacturing investment.

TI recognizes this challenge and promotes policies that demonstrate strong government commitment to basic research, support a world-class work force skilled in math and science, and create an environment that welcomes private sector R&D investment.

As this year’s chairman of the Semiconductor Industry Association (SIA), TI President and CEO Rich Templeton is taking a lead in promoting these issues.

In his 2006 State of the Union address, President Bush announced the American Competitiveness Initiative (ACI), which includes doubling investment in basic research at the National Science Foundation (NSF), the National Institute for Standards and Technology (NIST), and the Department of Energy’s (DOE) Office of Science during the next 10 years.

The initiative also urges improved math and science education, immigration reform for highly skilled workers, and extension of the R&D tax credit. The Democratic Innovation Agenda, announced in fall 2005, contains similar measures and contemplates doubling investment in basic research over five years.

The proposed research investments will result in at least an additional $10 billion in annual research funding by the end of ten years. For 2007, Congress passed an appropriations bill containing a $585 million increase for scientific research at NSF, NIST and DOE. This outcome represents a victory because early indications held research funding flat for 2007.

TI’s Washington office played an active role in lobbying for these research increases to be included in the continuing resolution. Rich co-signed letters to Congress from SIA and the Task Force on the Future of American Innovation in support of the additional funding.

The president’s 2008 budget proposal contains $1.2 billion in combined new funding for NSF, NIST and DOE’s Office of Science. The NSF 2008 budget proposes $390 million for nanotechnology research.

Technician with WaferTexas is well positioned and should aggressively compete for this increased funding through the merit-based research programs of federal agencies. The University of Texas at Dallas (UTD) is doing some interesting work on plastic electronics to develop flexible displays the military can use as portable battle maps updated in real-time. Rice University has developed metallic nanoshells for cancer treatment that can be chemically attached to tumors and radiate without destroying the surrounding healthy tissue.

Federally funded basic research, especially at universities, continues to be important to TI. In 1958, when Jack Kilby invented the integrated circuit at TI, NASA and the Defense Department were some of his first supporters. DLP® technology was originally developed as part of a Defense Advanced Research Projects Agency (DARPA) program in the late 1970s to improve aircraft cockpit displays. Some recent TI engagements in university research include the world’s first bionic arm and work in artificial vision.

NSF and NIST funding are particularly key to the semiconductor industry’s Nanoelectronics Research Initiative (NRI). In 2005, six semiconductor companies – AMD, Freescale Semiconductor, IBM, Intel, Micron Technology and TI – established the NRI specifically to find additional options beyond the current 30-year-old Complementary Metal Oxide Semiconductor (CMOS) technology that underpins today's electronics.

The unique NRI model supplements NSF funding with industry and state government funds, and has created three regional multiuniversity centers, in California, New York and Texas to explore “beyond CMOS” technology.

The Texas center, the Southwest Academy of Nanoelectronics (SWAN), is headquartered at The University of Texas at Austin. SWAN involves researchers at numerous UT System institutions, including those in Arlington, Austin and Dallas, as well as Texas A&M University and Rice University. Arizona State University, the University of Maryland and the University of Notre Dame also participate in SWAN.

The goal is to make Texas a national leader in nanoelectronics research. Starting with the establishment of SWAN, the effort aims to attract top academic researchers who will develop and commercialize nanoelectronics materials and devices that promise to take the electronics industry beyond today's chip technologies. TI is the lead corporate investor in the effort, with a $5 million contribution.

Texas has a tremendous opportunity to be a global leader in research, particularly on nanotechnology. TI stands ready to work with the governor and the Legislature to ensure that our state succeeds in this effort.


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