Abstract : This report represents the findings of the Defense Microelectronics Technology Base Program. It summarizes the current status of the domestic semiconductor industry and presents recommendations regarding DoD's role in supporting microelectronics manufacturing, including DoD's approach to and involvement in SEMATECH, an industry consortium to address competitive manufacturing technology. Emphasis is placed on assessing alternatives in lithography technology as a key element in reaching competitive manufacturing capabilities. The report recommends that a national-level effort be mounted on a range of advanced lithography approaches (not exclusively x-ray) and the related mask technology. Specific suggestions are made regarding the direction of SEMATECH and a coherent program within DoD for supporting and promoting microelectronics technology in conjunction with involvement in SEMATECH is recommended. The report covers developments through April 1988, prior to establishment of the DoD-SEMATECH Memorandum of Understanding.