Semiconductor & Other Electronic Component Manufacturing

Semiconductor & Other Electronic Component Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry make semiconductors (computer chips) and other components used in electronic devices. Major companies include Broadcom, Intel, Micron Technology, and Qualcomm (all based in the US), along with Samsung Electronics and SK Hynix (both based in South Korea), Taiwan Semiconductor Manufacturing Company (Taiwan), and Toshiba (Japan).

COMPETITIVE LANDSCAPE

The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful by producing standard parts at a low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The US industry is concentrated: the 50 largest companies generate about 65% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include data processing electronics (computer chips), printed circuit assemblies, and components such as electronic connectors. Microprocessors manufacturing account for over 20% of industry revenue, followed by printed circuit assembly manufacturing at about 20% and other electronic component manufacturing at about 10%. Electronic connector manufacturing, bare printed circuit board manufacturing, and capacitor and other inductor manufacturing each account for about 5%.