Unique features of the industry include continuous growth but in a cyclical pattern with high volatility. While the current 20-year annual average growth of the semiconductor industry is on the order of 13%, this has been accompanied by equally above-average market volatility, which can lead to significant if not dramatic cyclical swings. This has required the need for high degrees of flexibility and innovation in order to constantly adjust to the rapid pace of change in the market as many products embedding semiconductor devices often have a very short life cycle.
At the same time, the rate of constant price-performance improvement in the semiconductor industry is staggering. As a consequence, changes in the semiconductor market not only occur extremely rapidly but also anticipate changes in industries evolving at a slower pace. The semiconductor industry is widely recognized as a key driver and technology enabler for the whole electronics value chain.
Prior to the 1980s, the semiconductor industry was vertically integrated. Semiconductor companies both designed and manufactured chips in their own facilities. In many cases, this included inventing new processes, refining and purifying source chemicals and silicon wafers, and even manufacturing equipment, like furnaces, lithography tools and etchers. These companies also carried out the assembly and testing of their chips. Over time, many of these functions were outsourced, such that today semiconductor manufacturers rely on a complex supply chain to provide wafers, high purity source chemicals, and processing equipment. Further, starting with LSI in 1969, the industry has seen the emergence of Fabless Semiconductor Companies that focus solely on chip design and rely on other companies to manufacture their designs. Initially, these other companies were integrated device manufacturers (IDMs), companies that also designed and manufactured their own products, and thus were often competitors of the Fabless companies. But, by the mid-1980's TSMC and UMC emerged as foundries, specializing solely in the manufacture of other companies' designs.
Intel is considering outsourcing some production to TSMC. It currently can only produce 10 nm semiconductors, while TSMC and Samsung can both produce 5 nm. GlobalFoundries, an American-headquartered firm, uses a 12 nm process for its most advanced chips due to the rapidly increasing development costs of smaller process nodes.
Manufacturers headquartered in the following places are the sales leaders in the pure-play foundry, IDM (integrated device manufacturing), fabless manufacturing and OSAT (outsourced semiconductor assembly and testing) sectors of the industry.
Manufacturers headquartered in the United States have fabrication plants across the world, including over 50% in the Americas, 39% in the Asia-Pacific region (including 9% in Japan), and 9% in Europe.
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Formerly Hyundai Electronics. /wiki/Hyundai_Electronics
Acquired Elpida Memory and Powerchip. /wiki/Elpida_Memory
Formerly Toshiba Memory. /wiki/Toshiba
Acquired Maxim Integrated. /wiki/Maxim_Integrated
Acquired Cypress Semiconductor. /wiki/Cypress_Semiconductor
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