ARC CEO: 'Impatient capital' hinders U.S. IC industry

By Dylan McGrath, Courtesy of EE Times
Oct 31 2006 (19:57 PM)

SANTA CLARA, Calif. — The semiconductor industry in the United States is challenged by "impatient capital" and an investment mindset focused on short term results, according to Carl Schlachte, president and CEO of ARC International.

Speaking to an audience of mostly journalists at his company's ConfigCon event here Tuesday (Oct. 31), Schlachte said a focus on rapid return on investment (ROI) that has developed in the U.S. over the past 10 years or so has created a difficult climate for players in the semiconductor industry, where profitability requires both significant capital and a long lead time. Spoiled by the explosive initial public offerings of the dot com heyday, today's investors expect immediate growth in quarterly earnings and big returns on a very short-term basis, Schlachte said.

"Nobody would invest in Intel if it were starting up today, because the return on investment would be too far out," Schlachte said.