Hi,
Now that so much data travels via light—i.e., is carried in glass fibers rather than by electrical current—one goal of semiconductor research is
to develop a silicon chip that can transmit and receive light signals directly, a development that mav one day lead to smaller, faster semiconductors.
1. Whenever we need to present the intent or the purpose (or the goal, as written in the sentence) of ant action, we use “to verb” form (infinitive). For example: Harry started this campaign to aware people of the ill effects of child labor.
In this sentence, the purpose of starting the campaign is “to aware” people of something. Hence, “to verb” form has been used to show the intent. Similarly, the goal of the semiconductor research is “to develop” a better silicon chip. Hence, the purpose has been correctly denoted in “to verb form” (to develop).
2. Use of “that” clause is correct here because it clearly modifies the preceding noun “a silicon chip”, giving additional information about that chip.
3. “a development that may one day lead to smaller, faster semiconductors” – the structure of this portion of the sentence is – noun (a development) + noun modifier (that may one day lead to smaller, faster semiconductors). Now, noun + noun modifiers are very versatile. They can either modify the closest noun phrase (appositive modifier) or they can modify the entire preceding clause (absolute modifier). Whether a noun + noun modifier will modify the preceding noun phrase or the preceding clause depends upon the context of the sentence. In this sentence it does not make sense for the noun + noun modifier to modify the closest noun phrase “light signals”. From the sentence itself, we know what the development is talking about. Hence, here the noun + noun modifier is functioning like the absolute modifier that correctly modifies the entire preceding clause. You may refer to the following link for more details and examples:
http://e-gmat.com/blogs/?p=5844. So, there is no error in this sentence. The sentence is correct as is.
POE:A. to develop a silicon chip that can transmit and receive light signals directly, a development that may one day lead: Correct as is.
B. to develop a silicon chip with the capability of transmitting and receiving light signals directly, which may one day lead: Incorrect.
i. Using “with the capability” with a non-living object is inappropriate. Consider these sentences:
a. Tom can jump real high. OR Tom has the capability to jump real high. (Both are correct.)
b. This paper can absorb a lot of water. (Not appropriate but in spoken English we hardly pay heed to such things and thus we assume that such expressions are fine in writing as well. However, this is not the case.).
c. This paper has the capability to hold a lot of water. (correct)
So in this choice, use of “with the capability” with non-living “a silicon chip” is not proper.
ii. With “the capability” we generally use “to verb” forms. For e.g., John has the capability/ability to move very heavy objects with his left hand. In this sentence “capability of transmitting…” is not idiomatic.
iii. Reference of “which” is not clear. Being a noun modifier, “which” should modify the closest noun. But that will not make sense here because per the context of the sentence, it is the development of the silicon chip that will lead to something. Hence, use of “which” is incorrect.
C. the development of a silicon chip that has the capability of transmitting and receiving light signals directly, a development maybe one day leading: Incorrect.
i. Use of “the development” fails to show the purpose of the research. Also, the way this choice has been written it seems to suggest that the research itself is the development that has already taken place.
ii. Same idiom errors (has the capability and capability of…) as in B.
iii. Verb-ing “leading” non-sensically refers to “one day”.
D. developing a silicon chip that can transmit and receive light signals directly, which may one day lead: Incorrect.
i. Use of “developing” fails to establish the purpose of the research.
ii. Same “which” clause reference error as in B.
E. developing a silicon chip with the ability to transmit and receive light signals directly, with this development maybe one day leading: Incorrect.
i. Use of “developing” fails to establish the purpose of the research.\
ii. “with this development maybe one day leading” is ungrammatical. Don’t even know what it is trying to convey.
1. Idioms must always be correctly worded.
2. Use “to verb” forms to show the purpose or the intent of an action.
3. Noun + noun modifier can either modify the closest noun phrase or the entire preceding clause, depending entirely upon the context of the sentence.
4. The reference of the relative pronouns must be clear.
Hope this helps.
Shraddha
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86% (01:14) correct 
