|Last Quarterly Update:||12/19/2016|
|SIC Codes:||3671, 3672, 3674, 3675, 3676, 3677, 3678, 3679|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry make semiconductors (computer chips) and other components used in electronic devices. Major companies include Intel, Micron Technology, and Texas Instruments (all based in the US), along with Samsung Electronics (South Korea), Sharp Corporation (Japan), and Flextronics International (Singapore).
Global semiconductor sales are about $335 billion a year, according to World Semiconductor Trade Statistics. The Asia/Pacific region accounts for about 60% of semiconductor sales, followed by the Americas (20%), Japan (10%), and Europe (10%).
The US semiconductor and electronic component manufacturing industry consists of about 4,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $90 billion.
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 producing standard parts at 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 60% of revenue.
US makers of semiconductors and other electronic components face competition from producers in other countries; at the same time, many US producers enjoy strong international sales. About 70% of US production is exported; imports make up about 75% of the US market. The high value and low ...
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