Industry Analysis & Industry Trends
The Global Semiconductor and Electronic Parts Manufacturing industry is expected to increase during the five years to 2016, as consumers continue completing purchases they had postponed during the financial crisis. In addition, there has been an increase in unit sales volumes of industry components, driven by the proliferation of new technology. Looking forward, industry revenue is forecast to increase, stimulated by falling selling prices, continued advances in technology and the growing use of electronics in various products. However, the convergence of some mobile devices, high competition and downward pressure on prices of downstream devices will threaten profitability... read more
The factors affecting the location of a semiconductor and electrical component manufacturer include the following: the cost of production, which is impacted by labor rates and exchange rates, the levels of capital intensity and technology involved in manufacturing, proximity to suppliers and customers, government support for electronic component manufacturers (such as tax breaks, depreciation concessions and grants) and historical factors (such as where major players have established their head office, and links with countries that are major sources of demand).
There has been a shift of electronic component production capacity from high labor-cost to low labor-cost countries... read more