Semiconductors are the unsung heroes of the technology world, working behind the scenes to power everything from toys and smartphones to cars and thermostats. In recent years, they have enabled breakthrough technologies, including artificial intelligence and machine learning, that have transformed how we live and work. Taking the digital revolution to the next level will require even more advanced chips with greater computational power and memory capacity.With the COVID-19 crisis disrupting supply chains and geopolitical tensions increasing, semiconductor companies have become more interested in achieving end-to-end design and manufacturing capabilities for leading-edge technology. Many governments share this interest and are attempting to support their local semiconductor markets. But new fabs and extensive R&D programs—essential for producing leading-edge technologies at high volumes—require billions in investment. A misstep in these areas, lax cost control, or lower-than-expected demand can severely decrease or even eliminate a company’s return on investment. Leading-edge chip design and manufacturing also require strong capabilities in research, supply chain, talent, and intellectual-property (IP) protection, as well as the ability to navigate government policies. While semiconductor companies may excel at some of these tasks, few have top capabilities across the board.Given the extended time frames required to build fab infrastructure and enhance workforce skills, semiconductor companies need a long-term strategy for achieving design and manufacturing excellence—one that considers construction issues, equipment costs, and the need to enhance internal capabilities. Here’s a road map for moving forward....