Semiconductor & Other Electronic Component Manufacturing Industry Profile

The US semiconductor and electronic component manufacturing industry consists of about 4,300 companies with combined annual revenue of about $100 billion. Large US companies include Intel, Texas Instruments, Micron Technology, and Advanced Micro Devices (AMD). The industry is highly concentrated: the 50 largest companies generate about 65 percent of revenue.

Worldwide semiconductor sales are about $300 billion a year, according to the Semiconductor Industry Association. Top manufacturers include Samsung Electronics of South Korea, Bosch Solar Energy of Germany, and Sharp Corporation of Japan. Asia/Pacific accounts for 54 percent of semiconductor sales, followed by the Americas (18 percent), Japan (16 percent), and Europe (12 percent).

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 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.

Exports and imports account for a large portion of industry volume. About 40 percent of US production is exported; imports also make up about 40 percent of the US market. The high value of electronic components and their low weight mean that transportation costs are almost insignificant.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include semiconductors (computer chips); printed circuit boards; and various components like electron tubes ...