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Technology Stocks : Kulicke and Soffa

KLIC 39.55

-0.4%

Oct 30 3:59 PM EDT

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From: Ian@SI	5/10/2006 6:49:31 PM
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Scott talks... Industry disconnects threaten innovation, exec says Jonathan Hopfner EE Times (05/10/2006 11:10 AM EDT) SINGAPORE — Kulicke & Soffa Chairman and CEO Scott Kulicke told a conference here Wednesday (May 10) that moves to outsource operations to Asia and the slow disappearance of vertically integrated manufacturers may "reduce [the industry's] ability to stay on the Moore's Law curve." Kulicke told the Semicon Singapore 2006 conference that outsourcing functions like assembly, packaging or manufacturing will "run down" the technology infrastructure of many companies, hampering their ability to develop cutting-edge products. He said the increasing separation of packaging engineers from OEMs presented a "barrier to innovation." "Assembly and packaging technology developments don't usually affect the electronic functionality of a chip—they mostly benefit [OEMs] and allow them to create new and innovative products. That's why there's so much innovation from vertically integrated companies," Kulicke said. As more companies go fabless, "Foundries won't be able to afford the R&D bill," he warned. Kulicke said he was "worried about disconnects in the [industry] infrastructure" and called for more collaboration among front- and back-end players. To support the next generation of chips, "convergence between fabs and assembly [companies] is needed," he said.

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