Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News | Technology News

 

Semiconductors - A Crazy Industry

Feb 11 2014, 6:58pm CST | by

11 Updates
Semiconductors - A Crazy Industry
 
 

YouTube Videos Comments

Full Story

Semiconductors - A Crazy Industry

The global semiconductor industry exceeded $300 billion in sales for the first time ever in 2013, spurred by consistent, steady growth across nearly all regions and product categories.

Last year’s semiconductor revenues came to $305.6 billion, an increase of 4.8% over 2012′s total of $291.6 billion.

From a long-term historical perspective the way this industry works is absolutely astounding.

The semiconductor industry is unique, unlike anything else in the history of the world.  For half a century this business has been running and churning every year, year after year, devouring significant bank-loads of capital, and, in return, delivering huge gains in performance, productivity, and cost-effectiveness.  The performance gains provided by semiconductors are unheard of in any other industry, increasing by roughly 25-30% per year.

But this industry’s financial returns are completely offset by steep price declines.  Users keep getting more and more performance, but in the end, they pay about the same amount every year no matter how much performance increases.

Industry revenues in 2000 peaked at $204B, driven by the dot.com boom and a resultant shortage.  Thirteen years later the industry has grown to $306 billion in revenues  for a CAGR of about 3.2%/year.

Out of the 25-30% in benefits that the semiconductor market provides the world, it gets to keep, for its share, about 3.2% which shows up as revenue growth.  The rest of the benefits end up in the pockets of downstream users, end consumers and system makers who are more adept at capturing the benefits they create, and sometimes it it flows through to their customers.

In fact, the semiconductor industry’s $306 billion in 2013 revenues probably paid for 20-30 times the functionality of the $204 billion worth of semiconductors sold in 2000.

Is this trend ready to slow down?  I seriously doubt it.  Not yet, anyway…

Thanks to Lane Mason for his insights on this post.

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update

Update: 11

HP's Machine and IBM's $3bn R&D splash – aka how to survive Google

Source: The Register Hardware

Failure to crack next-gen semiconductors threatens to set back humanity Comment  IBM and HP are trying to invent their way out of severe problems th ...
Source: The Register Hardware   Full article at: The Register Hardware Jul 23 2014, 6:02am CDT
 


Advertisement


Update: 10

First ab initio method for characterizing hot carriers

Source: Nanowerk Nanotechnology Spotlight

Researchers have developed the first ab initio method for characterizing the properties of 'hot carriers' in semiconductors. This should help clear a major road block to the de ...
Source: Nanowerk Nanotechnology Spotlight   Full article at: Nanowerk Nanotechnology Spotlight Jul 17 2014, 11:44am CDT
 

More From the Web

Update: 9

High-tech investment expected to create 500 jobs in Rochester

Source: Business First of Buffalo

New York state is embarking on a $500 million public-private partnership that is expected to create some 500 jobs in Rochester. The New York Power Electronics Manufacturing Consortium launch in Rochester will be led by SEMATECH and IBM and will focus on the development and manufacture of the next generation of materials used on semiconductors. “This partnership in Rochester will continue the success of the nanotechn ...
Source: Business First of Buffalo   Full article at: Business First of Buffalo Jul 16 2014, 2:07pm CDT
 

Update: 7

Of catalysts and chirality: Highly-selective growth of structure-specific single-walled carbon nanotubes

Source: PhysOrg.com

(Phys.org) —Carbon – the chemical basis of all known life and an element known as far back as the 8th century BC – exists in a range of forms, or allotropes, with remarkably diverse properties. (Diamond, for example, is transparent and extremely hard tetrahedral lattice that conducts electricity poorly but is an excellent thermal conductor. Graphite, on the other hand – a moderate electrical conductor – is a soft, black, flaky solid formed from sheets of flat hexagon ...
Source: PhysOrg.com   Full article at: PhysOrg.com Jul 16 2014, 11:00am CDT
 

Update: 6

Intel third-quarter sales forecast tops estimates

Source: Salt Lake Tribune

San Francisco - Intel Corp., the world’s biggest maker of semiconductors, forecast third-quarter sales that topped some analysts’ predictions, fueling optimism for a stronger rebound in the personal-computer market. Revenue in the current period will be $14.4 billion, plus or minus $500 million, the Santa Clara, Calif.-based company said Tuesday in a statement. Analysts on average estimated sales of $14.1 billion, according to data compiled by Bloomberg ...
Source: Salt Lake Tribune   Full article at: Salt Lake Tribune Jul 15 2014, 7:36pm CDT
 

Update: 5

EE Times Silicon 60: Hot Startups to Watch

Source: EE Times

Thirty-eight new companies join version 15.1 of our list of 60 emerging startups. Newcomers range from IP cores and materials to power semiconductors, MEMS, sensors, and Internet of ...
Source: EE Times   Full article at: EE Times Jul 15 2014, 10:15am CDT
 

Update: 4

Manipulating magnetic field effects in organic semiconductors

Source: PhysOrg.com

Changing the polarity of the magnetic field response of a material one thousandth the width of a human hair may seem like the stuff of science fiction, but that's exactly ...
Source: PhysOrg.com   Full article at: PhysOrg.com Jul 11 2014, 8:50am CDT
 

Update: 3

Apple's iPhone and game consoles to prop up chip industry in 2014

Source: Mac World

Apple fans may not be the only ones waiting for a new iPhone later this year—semiconductor industry revenue will get a boost from it too, according to Gartner. The iPhone release will spark semiconductor demand, Gartner said in a statement. Based on growing demand for the iPhone and other hardware, the research firm is projecting semiconductor revenue to be US$336 billion this year, growing 6.7 percent compared to 2013, outpacing the previous forecast of 5.4 percent made in the first qua ...
Source: Mac World   Full article at: Mac World Jul 10 2014, 12:10pm CDT
 

Update: 2

Manipulating magnetic field effects in organic semiconductors

Source: Nanowerk Nanotechnology Spotlight

Researchers have have found a way to change the magnetoresistance of a thin (100 nm) organic semiconducting material by pairing it with an even thinner layer - a self-assembled monolayer - to alter its characteristics. By demonstrating that this kind of fine tuning is both straightforward and repeatable, the researchers have opened up an unprecedented level of control over materials that hold huge promise for next-generation technolog ...
Source: Nanowerk Nanotechnology Spotlight   Full article at: Nanowerk Nanotechnology Spotlight Jul 10 2014, 8:26am CDT
 

Update: 1

Reuters Top 10 Innovations for 2025

Source: Small Business Labs

Reuters Science Watch has released a set of predictions on the the landscape of science and technology in 2025 by examing global patent data and scientific literature. This was done by data mining the Reuters Web of Science service. This is an integrated database of curated content that includes cross disciplinary scientific data, books, journals, proceedings and patent information.   According to Reuters, several of the key forecasts include: Solar is Largest Source of Energy ...
Source: Small Business Labs   Full article at: Small Business Labs Jul 10 2014, 3:00am CDT
 

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Bill Belichick Praises Ty Law
Bill Belichick Praises Ty Law
New England Patriots head coach Bill Belichick is all praises former Patriots cornerback Ty Law, who will enter the team Hall of Fame on Aug. 1.
 
 
Sharknado 2: Death, Cameos, and Twitter
Sharknado 2: Death, Cameos, and Twitter
Sharknado raked in nearly a billion conversations and mentions on Twitter-in part because celebrities showed up everywhere.
 
 
Jada Pinkett Smith Opens Up About Her Marriage
Jada Pinkett Smith Opens Up About Her Marriage
The Actress Also Talks About Her New Role in This Falls "Gotham" TV Show.
 
 
Trending Now: Allison Williams, Sharknado 2 and Kate Upton
Trending Now: Allison Williams, Sharknado 2 and Kate Upton
Find below the top 3 trending news stories to start your day.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.