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Semiconductor industry: Reasons of slowdown and its future.
A study
Semiconductor industry: Reasons of slowdown and its future.
A study
INTRODUCTION
The semiconductor industry lives - and dies - by simple creed: smaller, faster and cheaper. The benefit of being tiny is pretty simple: finer lines mean more transistors can be packed onto the same chip. The more transistors on a chip, the faster it can do its work. Thanks in large part to fierce competition and to new technologies that lower the cost of production per chip, within a matter of months, the price of a new chip can fall 50%.
As a result, there is constant pressure on chipmakers to come up with something better and even cheaper than what redefined state-of-the-art only few months before. Chips makers must constantly go back to the drawing board to come up with superior goods. Even in a down market, weak sales are seen as no excuse for not coming up with better products to whet the appetites of customers who will eventually need to upgrade their computing and electronic devices.
Traditionally, semiconductor companies controlled the entire production process, from design to manufacture. Yet many chip makers are now delegating more and more production to others in the industry. Foundry companies, whose sole business is manufacturing, have recently come to the fore, providing attractive outsourcing options. In addition to foundries, the ranks of increasingly specialized designers and chip testers are starting to swell. Chip companies are emerging leaner and more efficient. Chip production now resembles a gourmet restaurant kitchen, where chefs line up to add just the right spice to the mix.
II. WHAT ARE SEMICONDUCTORS
A semiconductor is a material that has an electrical conductivity between that of a conductor and an insulator, that is, generally in the range 103 Siemens/cm to 10−8 S/cm. Devices made from semiconductor