The origins of the tools suppliers in the semiconductor industry

Unni Pillai ()

Business History, 2023, vol. 65, issue 6, 959-982

Abstract: Technological progress in semiconductor chips plays a central role in enabling the Information Technology revolution. Continual technological progress in semiconductor chips, which has become popular under the name of Moore’s Law, reduces the cost of storing and processing information. While the role of the semiconductor chip manufacturing companies in driving Moore’s Law is well known, less attention has been given to the equally important role played by upstream suppliers who produce the tools that are necessary to make the chips. In the early stages of the industry, the chip manufacturers made their own tools in-house. Using data at the initial stages of the industry and a wealth of publicly available information from interviews with industry pioneers conducted as part of oral history projects, this article examines how (i) market size (ii) heterogeneity in firm capabilities (iii) geographic proximity to manufacturing clusters, influenced the emergence of these semiconductor tools suppliers.

Date: 2023
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DOI: 10.1080/00076791.2020.1844666

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