AMERICA'S FUTURE AS A WORLD ECONOMIC POWER LARGELY RESTS IN ITS ABILITY TO MAINTAIN AND REVITALIZE INDUSTRIAL LEADERSHIP, PARTICULARLY IN THE SEMICONDUCTOR INDUSTRY. THIS PAPER OUTLINES A THREE-PHASE PROGRAM DESIGNED TO ACHIEVE PARITY WITH JAPAN AND OVERTAKE HER IN SEMICONDUCTOR TECHNOLOGY. THE EFFORT INCLUDES EQUIPMENT IMPROVEMENT PROGRAMS AND JOINT DEVELOPMENT PROJECTS TO REFINE AND CREATE LEADING-EDGE TOOLS. A CONSORTIUM IS DEVELOPING A HIGHLY ADAPTABLE CIM SYSTEM AIMED AT TRIMMING PRODUCTION COSTS. THROUGH THESE AND SIMILAR EFFORTS, THE U.S. SEMICONDUCTOR INDUSTRY AND ITS MANUFACTURING ECONOMY WILL BECOME MORE COMPETITIVE.