The majority of joint federal-private sector projects known as CRADAs--Cooperative Research and Development Agreements--do not become especially controversial. But a pending CRADA on "extreme ultraviolet" (EUV) technology--a technique that may one day allow more finely detailed microchips than ever before--is turning into a spirited fight.
In something of a David and Goliath contest, San Jose-based Ultratech Stepper, a firm that makes equipment used to manufacture computer chips, is taking on chipmaking giant Intel Corp. over the structure of a consortium that would use federal research to develop the next generation of microchip-manufacturing techniques. Intel has invited several chipmaking rivals--including such Japanese firms as Canon and Nikon and European manufacturer ASM Lithography--to join a $250 million public-private venture that would advance existing lines of research in the Energy Department's national labs.
Intel and its allies say they are not sure (and don't care) what the original purpose of the federal EUV research was. But they consider it crucial to the future of their industry, and argue that the federal scientists working on the project would be out of work or reassigned to different projects if the Intel-led group did not fund further research.
In September, Ultratech Stepper's president and CEO, Arthur W. Zafiropoulo, came to Washington to lobby against the proposed consortium. Zafiropoulo argued that the agreement could eventually divert taxpayer-funded research to overseas firms. Intel, backed by the Semiconductor Industry Association and other trade groups, counters that its EUV proposal contains safeguards to keep intellectual property in the U.S., and adds that the current structure of the industry demands international cooperation.
Initially, Zafiropoulo was bolstered by an October letter from four concerned House members demanding additional information about the deal from Intel. "We have consistently said that we support the development of the technology as proposed by Intel, with one exception--the proposed ultimate transfer of the technology to companies offshore," said Ultrarech Stepper's Washington lobbyist, Richard B. Griffin, Jr. The company, which proposes an alternative alliance, "has to work with Intel--that's the subtle thing," says Griffin. "We want them to be part of our effort, and it's damn difficult to get that message out there."
In early November an Intel spokesman said a recent meeting between officials in the departments of Commerce, Defense and Energy bolstered the deal's chances. The company says the deal is likely to go through unless Congress takes an unexpectedly large role opposing it.
"As it had become more of a political issue, it was increasingly coming under pressure," the Intel spokesman said. "But I think that this thing is now moving back into the realm of R&D, which is where we'd like to see it."
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