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Spatial Economics Divergence And Convergence Essay

913 words - 4 pages

Semiconductor Industry - Presentation and Report Assignment

The semiconductor industry has becoming a dominant influence in our lives for the last four decades, often without us being aware of its existence. The industry is still really young and stems from the late 1940s and 1950s. The most fundamental development has been the increased miniaturization of the circuits used in producing chips, permitting the incorporation of electronic components into a vast range of products like mobile phones and home computers.


The main features of globalization of the industry

The production of circuits is highly complex because of a wide diversity of ...view middle of the document...

During the 1980s however, Japan overtook the US by focusing on the next generation of memory chips, creating political tensions between the two nations. By 1985 Japan was responsible for almost half the world total but the need for low production costs meant other country’s gained market value, like Korea and Taiwan. The United States recovered by shifting out of memory chips into more design-intensive devices.

The question whether your industry conforms to the picture outlined by Dicken in chapter 2: e.g.

which production regions/countries, which trade patterns, role FDI?

Like stated before the production of semiconductors can be divided between design and wafer production requiring massive capital and high-skilled labor and assembly and testing which require low skilled labor. This distinction can be seen on a global scale. Designing and wafer production is mainly located in the USA, while assembly and testing is done in Asia.

Semiconductor Industry - Presentation and Report Assignment , Part 2

The motives main firms in your industry have to operate internationally

Om te kunnen concurreren op de mondiale markt gaan bedrijven in de semiconductor industry fusies, acquisities en strategische samenwerkingen met elkaar aan. Strategische samenwerkingen zijn hierbij veel doordringender dan acquisities, omdat de kosten voor R&D, het enorme tempo van technologische vooruitgang en de escalerende kosten om nieuw kapitaal te installeren zorgen voor de aantrekkelijkheid van een strategische samenwerking. Zo zijn beijvoorbeeld Intel en British Telecom gaan samenwerken om draadloze applicaties te ontwikkelen en Sony, Toshiba en IBM om een nieuwe microprocessor te ontwikkelen.

The position of main firms in your industry in the production-circuit/network/value chain (how

much of the chain do they cover?)

Om deze vraag te kunnen beantwoorden is het eerst noodzakelijk om uit te zoeken...

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