34 5. MACROECONOMIC CYCLES AND BUSINESS MODELS
is business model would make contributions to completely automate production of semi-
conductor chips from the beginning to the end, which is often referred to as “lights-out-fab.” Such
a business model would not only lead the fabless semiconductor industry to its next level of in-
novation and financial success, but would also act as a model for other sectors in the economy,
leading to a vibrant growth of both regional and national economies.
5.7 CONCLUSION
When the semiconductor industry transitions to the three-tier fabless-foundry business model
for sustainable progress of Moore’s Law on the economic front, this model would also eliminate
any problems of unemployment created due to macroeconomic cycles. e absence of a middle
industrial tier in the present economy means that there is no premonition of change happening at
a macroeconomic level, resulting in overproduction of electronics followed by layoffs due to poor
consumer demand.
So far, the U.S. semiconductor industry has not been able to solve the problem of unem-
ployment. Meanwhile, a microelectronics revolution has achieved two–four times the relative im-
pact on the U.S. economy compared to the impact of the steam engine revolution almost 250 years
ago. If the global semiconductor industry does not transition to a three-tier fabless foundry busi-
ness model, the profitability from the progress of Moore’s Law would get stalled due to poor
consumer demand and, based on the macroeconomic cycles, the U.S. economy would take nearly
14 long years to come out of its economic depression, due to a growing gap between wages and
productivity.
5.8 REFERENCES
[1] Mulay, Apek, Mass Capitalism: A Blueprint for Economic Revival, Book Publishers Net-
work, Bothell, WA, 2014.
[2] Mulay, Apek, “e Causes of Economic Depressions,” LinkedIn, May 6, 2014.
https://www.linkedin.com/pulse/20140506053708--11893233-the-causes-
of-economic-depressions
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