The Electronics Industries springboard: transistor 1948 significance: provider of components.
-
date post
21-Dec-2015 -
Category
Documents
-
view
223 -
download
0
Transcript of The Electronics Industries springboard: transistor 1948 significance: provider of components.
![Page 1: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/1.jpg)
•The Electronics Industries
• springboard: transistor 1948• significance: provider of
components
![Page 2: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/2.jpg)
•Electronic Production System
Dicken’s focus
![Page 3: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/3.jpg)
Global trendsActive components
• production was initially dominated by USA
• 1980s: Japan overtook USA• 1990s: U.S. producers have
rebounded
![Page 4: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/4.jpg)
World production of active components, 1996
26% 11%37%
9%
![Page 5: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/5.jpg)
Trade balances in active components, 1994,
$billionsRegion Exports Imports balance
USA 18 27 -9
Japan 25 7 +18
W. Europe 19 29 -10
S. Korea 11 3 +8
Asian NIEs* 37 32 +5*Hong Kong, Taiwan, Thailand, Malaysia, Philippines, Singapore
![Page 6: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/6.jpg)
World production of consumer electronics
• more dispersed • role of East and SE Asian NIEs is
more pronounced
![Page 7: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/7.jpg)
World productionConsumer electronics
![Page 8: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/8.jpg)
Trade balances in consumer electronics,
$billionsCountry Exports Imports Balance
USA 4 19 -15
Japan 17 3 +14
Asian NIEs 32 15 +17
![Page 9: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/9.jpg)
The demand factor-semiconductors
• Demand is derived. Depends on demand growth for products in which they are embedded
• spectacular demand growth. Significance of personal computer
• role of spectacular price decline
• subject to fluctuation---> supply gluts and shortages
• segmentation of demand
![Page 10: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/10.jpg)
The demand factor--consumer electronics
• Final demand products for which demand is income-elastic
• demand depends on life-cycle stage
![Page 11: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/11.jpg)
Role of governments--semiconductors
• Rationale for intervention???
• How to gain access?– Build indigenous production capacity
– attract foreign firms
– buy on open market and concentrate on developing end uses
![Page 12: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/12.jpg)
• U.S. – initially used defense/aerospace demand to
develop indigenous production– more recently has shifted to reducing Japanese
dumping
• Japan– encourage growth of industrial & consumer
applications– protect domestic industry– coordinate collaborative efforts
• Europe--collaborative efforts
![Page 13: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/13.jpg)
Role of governments--consumer electronics
• Primarily defensive in response to import penetration
![Page 14: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/14.jpg)
Production Costs, Technological Change &
Corporate Strategies--semiconductors--
![Page 15: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/15.jpg)
I. Industrial concentration trends
• Initially fragmented. Entry was relatively easy
• Steep recent increases in cost of entry due to pressures to:– pack more circuits on a single chip
– improve yields
• result is industrial concentration
![Page 16: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/16.jpg)
II. Trends in producer types
• Vertically integrated captive producers- manufacture for in-house use. IBM, GM
• merchant producers. For sale to other firms. Intel, Motorola
• hybrids. Most Japanese and European producers
• trend is toward greater vertical integration
![Page 17: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/17.jpg)
III. Mergers and acquisitions
• 1970s and 1980s
• followed by international strategic alliances
• Why? Rapid pace of technological change & high costs of installing new capacity.
![Page 18: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/18.jpg)
IV. Multiple stages to production process
Design of semiconductors
Prod’n of silicon crystal
Wafer fabrication
Testing
Assembly & packaging
Final testing & shipping
Requirements for
scientific, technical &
engineering personnel
Requirements for
cheap, low-skilled labor
![Page 19: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/19.jpg)
Result: Offshore production
• Which stages? those most attracted by cheap labor.
• American firms pioneered. Hong Kong 1962.
• Japanese firms accelerate offshoring in 1980s. Why? Appreciation of value of yen.
![Page 20: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/20.jpg)
Changing structure of East and SE Asian production
Semiconductor Imports into the U.S.
1. Geographic changes
![Page 21: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/21.jpg)
Factors
• Labor cost increases in South Korea, Taiwan, Hong Kong, Singapore
• Gov’t policy changes in Malaysia and Philippines
![Page 22: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/22.jpg)
2. Emergence of higher skill stages of production--factors
• Hong Kong--wafer fabrication with Chinese support
• Korea--backward integration of consumer electronics producers
• Taiwan--gov’t sponsored research organization
• U.S. plants add functions like testing with more local sales
![Page 23: The Electronics Industries springboard: transistor 1948 significance: provider of components.](https://reader036.fdocuments.us/reader036/viewer/2022081508/56649d635503460f94a4690c/html5/thumbnails/23.jpg)
Result--hierarchical organization within the region