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 more affordable 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 in the five years to 2014 and is expected to grow further over the next five years... 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