Industry Analysis & Industry Trends
The Global Semiconductor and Electronic Parts Manufacturing industry has a high level of volatility. The average semiconductor plant is short lived before it needs upgrading; domestic revenue competes with cheap imports that are favored by the strength of the US dollar; dramatic falls in selling unit prices occur often, while demand is very sensitive to the state of the IT and consumer industries. Despite this, industry revenue has grown and is expected to grow further, albeit at a slower pace... read more
This industry requires substantial amounts of capital investment. For every dollar spent on capital, the industry spends about $1.12 on labor. Also, the rate of technological change within the industry is high and increasing, therefore significant investment in capital is expected to continue.
However, capital intensity varies by product segment. Segments involving a relatively higher level of capital intensity include semiconductor and display panel fabrication, while activities involving a relatively lower levels of capital intensity include the manufacture of passive devices, printed circuit boards, flexible printed circuits and semiconductor assembly and testing operations... read more