Digital Angel Competition
Now Viewing Digital Angel's competition in: Electronic Components & Semiconductor Manufacture (primary)
Recent Developments
Industry Growth Foreseen in 2010 - Semiconductor industry revenue is expected to rise 17 percent in 2010, according to estimates from market research firm Databeans. The optimistic outlook comes in spite of the industry's 3 percent decline in 2008 and a predicted 17 percent decline in 2009, as experts suggest semiconductor manufacturers will recover more quickly than they did during the early 2000s recession. Lower consumer spending on electronic devices that use semiconductors is blamed for the current downturn.
Buying from Top OEMs Vital - The 10 largest original equipment manufacturers (OEMs) used about $92 billion worth of semiconductors, or about one-third of the market, in 2008, according to research firm Gartner. Computer hardware giant HP led with $16.5 billion in semiconductor purchases, or about 6 percent of industry revenue. Data processing and communications electronics top the list of applications, accounting for nearly three-quarters of semiconductors purchased by leading OEMs.
Technology Salaries Increasing - Overall technology industry salaries are on the rise, an indication that electronic components and semiconductor production may be strengthening. Salaries grew 4.6 percent in 2008, and unemployment for the tech sector that year was half the national average. Worries abound, however: some 22 percent of tech workers are concerned over keeping their skills up to date, and 20 percent fear losing their jobs, according to tech career site Dice.com.
Competitive Landscape
The industry depends highly on demand from the computer industry and makers of telecommunications products such as cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about $300,000.
Full Industry Overview For Electronic Components & Semiconductor Manufacture
Electronic Components & Semiconductor Manufacture Industry Forecast
from Hoover's/D&B subsidiary First Research
The value of US electronic components manufacturing output is forecast to grow at an annual compounded rate of 4 percent between 2008 and 2013. Data Sourced: December 2008
Electronic Components Growth Strengthens and Levels
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Industry Growth Rating
The First Research Industry Growth Rating reflects the expected industry growth relative to other industries, based on INFORUM's forecasted average annual growth for the combined years of 2009 and 2010.
- Demand: Tied to demand for electronics
- High fixed costs
- Risk: Slow economy cuts computer sales
Industries Where Digital Angel Competes
- Electronics
- Semiconductors
- Communications Chips (primary)
- Semiconductors
- Consumer Services
- Telecommunications Services
- Cable & Satellite Services