Industry Analysis & Industry Trends
Warning - high volatility!
Volatility in this industry occurs for varying reasons. 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
Starting a New Business
The major barriers to entry for this industry include the following: access to the latest technology and intellectual property; the level of investment, which can be significant; access to skilled employees; and the dominance of existing players.
Having access to the latest electronic technology can be essential given that technological changes occur frequently in this industry. The competitive nature of this industry can require significant investment in research and development, which is more comfortably defrayed over a larger revenue base. Additionally, industry participants often patent new technologies, which can create further barriers... read more