“CHIPS WITH

EVERYTHING”
SEMICONDUCTOR
INDUSTRY
Group members :

Chewang Gyelstshen
Mahendra Pradhan
Mawuli Doe
Niyongabo Patrick

03/30/11 Semiconductor Industry Analysis 1

Semiconductors


 Products that use semiconductors?


 Development of a transistor - another great
invention in the history of the Information
world

 Invisible part of the technology that drives
the modern world today

03/30/11 Semiconductor Industry Analysis 2

 Faster
SEMI -
CONDUCTOR

Smaller
Cheaper
03/30/11 Semiconductor Industry Analysis 3
Transistor - Size & time

smaller
Source: Journal of Telecommunications and Information Technology, 2010
03/30/11 Semiconductor Industry Analysis 4
Transistors & time

faster
Source: Journal of Telecommunications and Information Technology, 2010

03/30/11 Semiconductor Industry Analysis 5

Transistors – Production & Price

cheaper
Source: Journal of Telecommunications and Information Technology, 2010

03/30/11 Semiconductor Industry Analysis 6

Corporate Model

Source: Contact Korea, 2010

03/30/11 Semiconductor Industry Analysis 7
Evolution of industries by
countries

03/30/11 Semiconductor Industry Analysis 8

Patterns of Consumption

Sharp decline in the

prices

Technological
developments and

Fierce price
competition between
producers

03/30/11 Semiconductor Industry Analysis 9

Semiconductor market by region

03/30/11 Semiconductor Industry Analysis 10

Global Revenue by region

Source: OECD data, based on World

Semiconductor Trade Statistics (WSTS)
03/30/11 Semiconductor Industry Analysis 11
Sales according to application

Source: SIA, PwC Analysis

03/30/11 Semiconductor Industry Analysis 12

Sales according to components

Source: SIA, PwC Analysis

03/30/11 Semiconductor Industry Analysis 13

Sources of value and destruction

Reasons:

Cyclicality

Rising R&D
costs

Rising capital
costs

Source: McKinsey & Company

database
03/30/11 Semiconductor Industry Analysis 14
Conclusion
 Rapid technological change, high capital
costs and continual price declines
 Substantial Research and Development
Costs
 Innovation of chip design and using of cutting
edge technology
 Energy saving components
 Organize process and produce new chips
faster and smoothly
 Emerging markets – China and India

03/30/11 Semiconductor Industry Analysis 15

03/30/11 Semiconductor Industry Analysis 16