INDUSTRIAL ANALYSIS- ELECTRONIC INDUSTRY
SUBMITTED BY
DHANYA M
I SEMESTER MBA
SUBMITTED TO
JAYMOHAN NAIR
INSTITUTE OF COOPERATIVE MANAGEMENT
POOJAPPURA
Abstract
Electronics industry, the business of creating, designing, producing, and selling devices such as radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits electronics, science and technology based on and concerned with the controlled flow of electrons or other carriers of electric charge, especially in semiconductor devices. Advances in the field of electronics have played a key role in the development of other industries. This industry report uses industry definitions and concepts that underlie the U.S. government’s Standard Industrial Classification (SIC) system. The semiconductors are the fundamental building blocks for the electronics industry. It is due to petrochemicals that the electronic industry has grown by leaps and bounds in the previous decade. . An industry's competitiveness depends significantly on its ability to incorporate electronics. Companies in the electronics industry must confront severe challenges in order to remain competitive and innovative, and to provide shareholder value. Most electronics companies have committed themselves to eliminate the use of CFCs, which are considered a danger to the planet's ozone layer. The electronics market in India, at US$ 11.5 billion in 2004, will be the fastest - growing electronics market worldwide over the next several years India is also an exporter of a vast range of electronic components and products .
China, a new competency centre for the electronics industry. China is now the first world producer of a large number of mass-market electronic products that were for the most part already made in the Far East (cathode ray tube TVs, computers, optical disc players etc…). China attracts most of the production (Korea, Taiwan, Hong-Kong, Singapore, Malaysia, Indonesia, and the Philippines, not to mention Portugal and Ireland…).
Samsung electronics is a South Korean multinational corporation and the world's largest and leading electronics and information technology company. Today, it's a world-class leader that even Sony wants to emulate, judging from the joint venture it recently inked with the Korean company.
By the year 2020, electronic and electrical equipment manufacturers are forecast to employ 29,650 workers, an average annual growth rate (2000-2020) of 2.6 percent.
Chapter 1
1.1 Introduction
Electronics—with semiconductor devises and integrated circuitry—has revolutionized modern manufacturing and information systems. With its continuous stream of technological innovation, electronics has become the cornerstone of products, services, and processes that now pervade virtually every aspect of contemporary life. Indeed, it is difficult to think of a product or service in whose production or use has not been affected in some fashion by electronics. Numerous products and services—household appliances, motor vehicles, computers and office equipment, automated production processes, avionics, communications, complex weapons systems, and a myriad others—are wholly dependent upon electronics. Electronics industry, the business of creating, designing, producing, and selling devices such as radios, televisions, stereos, computers, semiconductors, transistors, and integrated circuits electronics, science and technology based on and concerned with the controlled flow of electrons or other carriers of electric charge, especially in semiconductor devices. It is one of the principal branches of electrical engineering .
Chapter 2
2.1 History
The industry traces its origins to the invention of the two-element electron tube (1904) by John Ambrose Flemming, and the three-element tube (1906) by Lee De Forest De Forest, Lee, 1873–1961, American inventor, b. Council Bluffs, Iowa, and grad. Yale, 1896. He was a pioneer in the development of wireless telegraphy, sound pictures, and television. These inventions led to the development of commercial radio in the 1920s, which boosted radio sales to $300 million by the end of the decade. In 1947, the electronics industry made another important advance when John Bardeen, Walter Brattain, and William Shockley invented the transistor transistor, three-terminal, solid-state electronic device used for amplification and switching. It is the solid-state analog to the triode electron tube; the transistor has replaced the electron tube for virtually all common applications.
Smaller, lighter, and more durable than the vacuum tubes that had been used in radios, transistors touched off a period of progressive miniaturization of electronic devices. Integrated circuits, which were developed in the 1950s, allowed the integration of several circuits into one circuit, and the introduction of analog devices in the 1960s vastly increased the amount of information that could be stored on a single silicon chip.
Other important sectors that have made great advances since the 1970s include laser and optical electronics, digital electronics, and microwave electronics. Advances in the field of electronics have also played a key role in the development of space technology and satellite communications; inaugurated a revolution in the computer industry that led to the introduction of the personal computer; resulted in the introduction of computer-guided robots in factories; produced systems for storing and transmitting data electronically; greatly expanded the market for popular music and culture; and, in the process, transformed life at home, the office, and the factory. Many of these innovations, such as the transistor, had their origins in military research, which needed increasingly complex electronic devices for modern high-tech warfare.
In the 1960s, the U.S. consumer electronics industry went into decline as manufacturers were unable to compete with the quality and pricing of foreign products, especially the electronic goods produced by Japanese companies such as Sony and Hitachi. By the 1980s, however, U.S. manufacturers became the world leaders in semiconductor development and assembly. In the 1990s semiconductors were essential components of personal computer (PC), small but powerful computer primarily used in an office or home without the need to be connected to a larger computer. PCs evolved after the development of the microprocessor made possible the hobby-computer movement of the late 1970s, when and most other electronic items (including cellular telephones, televisions, medical equipment, and "smart" appliances). While U.S. companies are still a major presence in the semiconductor industry (representing about 40% of world sales in 1998), the consumer items themselves are mostly made overseas. Worldwide electronic sales were nearly $700 billion in 1997.
Chapter 3
3.1 Scope and Definitions
This industry report uses industry definitions and concepts that underlie the U.S. government’s Standard Industrial Classification (SIC) system. In the SIC system, electronic and electrical equipment and components is a major industry, one of twenty such industries that form the manufacturing sector, entitled food and kindred products. According to the Standard Industrial Classification Manual, there are thirty-seven separate electronic and electrical equipment industries. Each of the approximately 17,200 electronic and electrical equipment plants operating in the United States in 1998 was placed in one of these thirty-seven industry subsectors, and their electronic and electrical equipment products were further divided into 101 well-defined electronic and electric equipment product classes.
Electronic and electrical equipment and components (SIC 36) is organized into the following eight major groups:
• Electric transmission and distribution equipment (SIC 361)—including transformers, power switches, circuit breakers and switchboards;
• Electrical industrial apparatus (SIC 362)—including motors and generators, carbon and graphite products, relays and industrial controls, and electrical industrial apparatus;
• Housing appliances (SIC 363)—including microwave and convection ovens, barbecues, freezers and refrigerators, dryers and washers, vacuum cleaners, electric housewares and fans;
• Electric lighting and wiring equipment (SIC 364)—including electric lamp bulbs and tubes, current- and noncurrent-carrying wiring devices, electric lighting fixtures, and vehicular lighting equipment;
• Household audio and video equipment and audio recordings (SIC 365)—including household audio and video equipment and audio tapes and disks;
• Communications equipment (SIC 366)—including telephone apparatus, and radio and television broadcasting equipment;
• Electronic components and accessories (SIC 367)—including electron tubes, printed circuit boards, semiconductors, electronic capacitors and resistors, coils and transformers, and inductors and connectors; and
• Miscellaneous electric machinery, equipment and supplies (SIC 369) —including batteries, electrical equipment for internal combustion engines, magnetic and optical recording media and high energy particle acceleration (e.g., laser) systems.
Chapter 4
4.1 Semiconductors
The lion’s share of U.S. and Washington employment and production in electronic and electrical equipment is found in electronic components and accessories. The semiconductors are the fundamental building blocks for the electronics industry. Numerous industries, such as computer, telecommunications, instruments, medical equipment, and transportation use these electronic component products. In 1998, 39 percent of total U.S. employment and production was in semiconductors and other components. For Washington, more than half of the state’s employment and production in electronic and electrical equipment was in semiconductors and other components. Technological innovation is the driving force behind this leading edge semiconductor industry. The history of the semiconductor industry during its forty years of existence is one of continuous technical progress that has the enhanced component performance and reliability, increased the variety of components, and increased component integration. A major factor in accelerating demand is the significant growth in applications. The importance of semiconductors derives not so much from its pervasive use as from the fact that technological progress in many of these end-use markets (e.g., computers telecommunications, industrial automated processes, instruments, military equipment) cannot be disassociated with semiconductor technology.
Chapter 5
5.1 Support from other industries
The electronic industry is supported by the supply of raw materials from the petrochemical industry, without which it may grind to a halt. The petrochemical industry is an aid to many of the end-use product industries. It is one of the major supplier of number of basic materials which is used by different other industries to manufacture their products. It has become one of the major sources of growth for the economy. The fastest growing sector is the IT and electronic industry sector. The hardware components serve as an important support to this stupendous growth. The growth of this sector heavily depends on the supply of various intermediary products. The electronic industry will not be able to perform without the components from the petrochemical industry. The intermediary products assure better electrical insulation and safety, feasibility in assembling, better design, and a superb capacity of data-storage, and reduction of mass of components.
It is due to petrochemicals that the electronic industry has grown by leaps and bounds in the previous decade. The progress in the communication technology is the result of the improvements in the hardware devices such as radios, television sets, telephones, computers, CD players, DVD players, digital cameras, mobile phones, laptops, palmtops, etc. The circuitry of every electronic device is its most vital element. The circuitry mainly consists of micro processors, integrated circuits, printed circuits, and connectors - all derived from base materials of petrochemical products. Even the assembly and the housings are made out of styrenic plastics. Many of the cleansers used for cleaning the contact pins and lenses of the optical drives are based on petrochemical products. CDs are made of a clear piece polycarbonate which is a type of a plastic made from benzene. The polycarbonate layer is imprinted with very minute - almost microscopic - protrusions which serve as exceedingly long spiral data tracks. The layer is covered with a thin aluminium covering and sprayed with a thin acrylic layer as protection. With the label printed on the acrylic layer, the CDs are packed into jewel boxes which are the transparent polystyrene plastic boxes in which CDs are sold. Then a thin acrylic layer is sprayed over the aluminium to protect it. The label is then printed onto the acrylic layer and the CD is placed into a polystyrene jewel box, the transparent, plastic boxes in which CDs are usually packaged.
5.2 Effect on other industries
Not only is electronics one of the world's fastest growing industries, but it has a major effect on other industries because the products it produces can increase productivity, change cost structures, and make possible new products and services. An industry's competitiveness depends significantly on its ability to incorporate electronics. Electronics have replaced mechanical and electro-mechanical parts in many goods such as telecommunications switching equipment, electric motor speed controls and automobile ignition and control systems.For instance, electronics accounted for about 3% of the cost of an automobile in 1988, and the increasing use of the components will make the cost proportionately more. Avionics, or aviation electronics, already makes up about 20% of the cost of a civilian aircraft, and this also is growing.
5.3 Field
Companies in the electronics industry must confront severe challenges in order to remain competitive and innovative, and to provide shareholder value. Leaders in this industry must immediately solve economic imperatives, optimizing, downsizing and realigning when necessary, and creating new business models for the future.
But what does the future hold in store? The electronics industry will become a horizontal one, with the consequent “breakdown” of the old proprietary and vertical company model into different levels, which may then be assembled in the most convenient way. Competitors will be ever more aggressive and the motto “innovate or perish” will be increasingly more fitting to the situation.
Components Engine can help companies in the electronics industry to develop innovative solutions.
5.4 Issues
Spare part problems in the electronics industry, differently from other industries, often requires preparing spare parts catalogs using, instead of classic exploded or assembly drawings, electrical diagrams or directly images of the electronic cards, on which will be selected the sought components. As in the other industry, there is a constant need to update the numbers and descriptions of the components replaced by the manufacturers. In fact, oftentimes users possess an electronic device whose spare parts on the market have been replaced by more recent versions.
5.5 Solutions and advantages
Drawings and electrical diagrams
Components Engine supports every kind of drawing or representation, enabling to create hot spots to select spare parts, both manually and automatically.
Updating replaced spare parts
Every component replaced with other versions or superseded by differently produced parts can be updated quickly and easily thanks to the tools offered by Components Engine, without losing track of the historical record of the changes made during the product’s life cycle. This capability assures better clarity to users (oftentimes, repair specialists) who usually order spare parts directly by code.
Catalogs distributed in CD form support periodic updates through the distribution of automatic update files.
5.6 Environmental Concerns
Although the electronics industry is generally thought of as a clean one, quite different from the "smokestack industries" that make up much of the manufacturing sector, it does raise some environmental concerns. One that has had considerable attention is the use of chlorofluorocarbons (CFCs) in the manufacture of circuit boards. Most electronics companies have committed themselves to eliminate the use of CFCs, which are considered a danger to the planet's ozone layer.
Chapter 6
6.1 Employment Details
Average covered wages for electronic and electrical equipment workers was $37,223 in 1998, about 10 percent above the state wide nonfarm average of $33,922. Electronic components employees, earned slightly less than the industry average at $35,009. The distribution of hourly wages for both electronic and electrical equipment and electronic components is similar to the state, with a pronounced disposition toward lower hourly wages. Nearly sixty percent of all workers in the electronic and electrical equipment industry earns less than $12 per hour, compared with all nonfarm workers in the state in which 46 percent earn between $6 and $12 per hour.
Chapter 7
7.1 China: Tomorrow’s leader in electronics?
The growth of electronics equipment production in China has been widely described as the most fundamental shift in the world electronics industry. Moreover, China is the main beneficiary of the 2001-2002 crisis as its share of the world electronics production grew from 10% in 2000 to 18% in 2003 at an amazing rate of 15.4% per year over the period, ensuring a solid business activity in difficult times for international players. This development is actively supported by the Chinese government, whose objective is to make the national electronics industry an independent and competitive activity, pulling the development of the country.
As growth of the electronics industry in more developed countries is picking up again, the question arises whether China is just a good business opportunity in difficult times, or a growing permanent threat to the established industrial base in Europe, the USA and elsewhere.
In reality the situation is more favourable. China’s strong growth offers long-term market opportunity for electronic OEMs worldwide. Developing production in China, both for the local market and for worldwide sales, affords an opportunity for investors. This should not be seen only as competition for production in other areas than China. Electronics production continues to grow in the other regions of the world, although slower, following the market.
7.2 China, a new competency centre for the electronics industry
China is now the first world producer of a large number of mass-market electronic products that were for the most part already made in the Far East (cathode ray tube TVs, computers, optical disc players etc…). China attracts most of the production (Korea, Taiwan, Hong-Kong, Singapore, Malaysia, Indonesia, and the Philippines, not to mention Portugal and Ireland…). What makes China specific is its huge and fast growing domestic market.
Equipment manufacturers locate their new production plants in China because this country is pulling the growth of the electronics industry worldwide. This concentration of fresh investment forms technology clusters and competency centres that increase the attractiveness of the area. Other regions with slower growing demand such as Europe or the USA already have a manufacturing base suited to the size of their local market. Production follows the market and Chinese products are more competitive because the new facilities in China are more productive.
The digitalisation of electronics greatly favoured the development of the Chinese electronics industry. Assembling digital blocks using the same basic digital technologies is much easier than assembling complex analogue circuits and systems. The convergence of electronic applications, technologies and products favours the development of wide range portfolios by the Chinese conglomerates.
While sourcing critical components abroad (Japan, Taiwan, but also Europe and the USA), China developed its manufacturing output through partnerships with international players and outsourcing services, mainly based on assembly work. Benefiting from technology transfers, the Chinese electronics industry is now moving towards independence and self-sufficiency by developing home-grown standards of future mass-market digital products (digital TV, high definition DVD, 3G mobile communications). The country already provides more engineers than the USA every year and R&D facilities are being built in China near production and technology clusters. As production followed the market, R&D has already started to follow production. Electronic component manufacturing is also developing fast to provide a comprehensive supply chain and support the growth of local production.
7.3 Main findings and new trends
whereas mass-market equipment production is developing very fast in China, professional electronic sectors have difficulties to acquire modern technologies. In particular, political movements such as the Cultural Revolution have disrupted the Chinese drive to develop an independent professional industrial base. China consequently heavily relies on foreign technology (mainly Russian) in professional sectors such as defence and aerospace. The strong domestic demand for those categories of equipment makes China an important export opportunity for the world leaders of the sector.
In mass-markets, the Chinese business environment is changing dramatically following the entry of China into the WTO in 2001. Although Chinese government protection allowed domestic players to capture a dominant share of their local market, it has also led to an unbalanced industrial structure where profitability was not the transfers and new investments, as other smaller countries did some decades ago main objective of local firms who now rely on exports to maintain their margins.
As Chinese equipment manufacturers go global (Lenovo (ex-Legend) partnership with the Olympic Committee, TCL-Thomson), a profound reorganization of the local industry will take place where technological independence will be the key to success for Chinese manufacturers. Maintaining a low-cost product strategy would require relocating production sites outside China to counter tariff barriers and anti-dumping procedures raised by major export markets.
On the other hand, entry barriers into the Chinese market have been lowered for international manufacturers wishing to develop their sales in China. Not only the regulations have been changed but the fast development of middle and high social class in China will facilitate the penetration of high-end goods into households. In the same way as Chinese companies will need the help of international manufacturers to develop their exports and familiarise themselves with other cultures and sales networks, foreign manufacturers will need domestic actors to develop their sales in China.
After a period of great disturbance, the coming years could be characterised by a more level playing field where the global electronics industry finds a new balance (that is, until India enters the game).
7.4 Methodology and scope
The survey begins with an overview of the Chinese global economy, putting China in perspective versus the world. Production and demand for mass-market and professional electronic equipment in China are then analysed from 2003 to 2008. The last part of the survey is dedicated to local Chinese manufacturers and contains a list of about 80 companies with their profiles.
Forecasts are based on units and prices wherever possible. Current exchange rates are used for past figures. 2004 and forecasts are provided at constant exchange rates (an average of the first 8 months of 2004). This tends to minimize the Chinese 2004 growth due to the fluctuation of the euro versus the yuan.On a yearly basis; DECISION publishes a survey covering the world electronics industry by regions (North America, Europe, China, Japan, Other Asia Pacific and Rest of the World), differentiating production versus the market in each region. The aim of this specific survey on Chinese electronics industry is to better understand the position and future evolution of Chinese domestic manufacturers versus foreign manufacturers on the Chinese market place.
Chapter 8
8.1 Electronics Market in India
The electronics market in India, at US$ 11.5 billion in 2004, will be the fastest - growing electronics market worldwide over the next several years. This market is expected to grow at a Compound Annual Growth Rate (CAGR) of 23% by 2010 to reach US$ 40 billion, the high - tech market research firm says. Though its total output will be far behind China's electronics market, worth US$271.97 billion in 2004, India's promising market bears watching. India's low manufacturing costs in skilled labour and raw materials, availability of engineering skills, and opportunity to meet demand in the populous Indian market, are driving its electronic market.
"Major challenges facing the Indian electronic manufacturing market are an infrastructure that needs to be improved at the earliest possibility, easing of foreign investment procedures, which is underway, and a restructured government tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariffs," says Bryan Wang, In-Stat analyst.
A recent report found the following:
-- The Indian electronics industry is driven mainly by the computer and computer component sectors.
-- About 25% of the Indian population lives below the poverty line, but a large and growing middle class of 320-340 million has disposable income for consumer goods.
-The main challenge for China's electronics industry is to keep up with technology trends.
India electronics manufacturing: can it catch china?
The following is the forecasts of India’s and china’s electronic industries, segmented by sector, through 2010, along with a look at some of the key players in these markets.
The electronic industry in India constitutes just 0.7 % of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and investments are flowing in to augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US$12 Billion in 2005. This is not a desirable situation and local manufacturing has to keep pace with growing local demand.
The output of the Electronic Hardware Industry in India is worth $11.6 Bn at present
The breakup of production in various segments the industry is as shown below:
India is also an exporter of a vast range of electronic components and products for the following segments -
• Display technologies
• Entertainment electronics
• Optical Storage devices
• Passive components
• Electromechanical components
• Telecom equipment
• Transmission & Signalling equipment
• Semiconductor designing
• Electronic Manufacturing Services (EMS)
Indian Electronics Industry Exports are given below
Electronics & IT Production (Calendar Year)
(Rs. crore)
Item 2002 2003 2004 2005 2006 2007*
Consumer Electronics 13,580 14,850 16,500 17,500 19,500 21,880
Industrial Electronics 5,400 5,980 8,300 8,600 10,100 11,560
Computers 4,180 6,600 8,680 10,500 12,500 15,500
Communication & Broadcast Eqpt. 4,800 5,150 4,770 6,300 9,200 13,150
Strategic Electronics 2,330 2,670 2,850 3,070 4,500 5,700
Components 6,510 7,450 8,700 8,530 8,600 9,320
Sub-Total 36,800 42,700 49,800 54,500 64,400 77,110
Software for Export 44,000 55,000 75,000 97,000 132,025 157,500
Domestic Software 12,000 15,500 20,500 27,000 35,150 44,730
Total 92,800 113,200 145,300 178,500 231,575 279,340
*Estimated
Electronics & IT Production (Financial Year)
(Rs. crore)
Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
Consumer Electronics 13,800 15,200 16,800 18,000 20,000 22,500
Industrial Electronics 5,550 6,100 8,300 8,800 10,400 11,950
Computers 4,250 6,800 8,800 10,800 12,800 16,400
Communication & Broadcast Eqpt. 4,800 5,350 4,800 7,000 9,500 14,350
Strategic Electronics 2,500 2,750 3,000 3,200 4,500 6,100
Components 6,600 7,600 8,800 8,800 8,800 9,500
Sub-Total 37,500 43,800 50,500 56,600 66,000 80,800
Software for Export 46,100 58,240 80,180 104,100 141,000 163,000
Domestic Software 13,400 16,250 21,740 29,600 37,000 47,300
Total 97,000 118,290 152,420 190,300 244,000 291,100
*Estimated
Electronics & IT Exports
(Rs. Crore)
Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08*
Consumer Electronics 750 825 1,150 2,000 1,500 1784
Industrial Electronics 1,400 1,515 1,500 2,300 3,000 3630
Computers 550 1,440 1,200 1,025 1,500 1928
Communication & Broadcasting Eqpt. 500 165 350 500 650 694
Components 2,400 3,755 3,800 3,800 5,850 6725
Sub-Total 5,600 7,700 8,000 9,625 12,500 12,700
Computer Software 46,100 58,240 80,180 104,100 141,000 163,000
Total 51,700 65,940 88,180 113,725 153,500 175,700
*Estimated
The government has identified electronics and IT hardware manufacturing as one of the thrust areas for development
The industry constitutes less than 1% of the global market. However, demand for these products is growing rapidly and investments are flowing in to augment manufacturing capacity.
a) India remains a major importer of electronic materials, components and finished equipment amounting to around $20 billion (Rs84,000 crore now) in 2007. The country imports electronic goods mainly from China
b) In the last four years, production of computers has grown at a compounded annual growth rate (CAGR) of 31%, the highest among the various electronic products in India. This has been followed by communication and broadcast equipment (25%), strategic electronics (20%) and industrial electronics (17%).
c) The consumer electronics segment, which has grown at a CAGR of 10% in the last five years, includes a wide range of products such as DVD, VCD/MP3 players, television sets and microwave ovens.
d) The growth in demand for telecom products has been high, with India adding two million mobile phone users every month, which is one of the main reasons for the growth in production of electronic goods. This growth is expected to continue over the next decade, too.
e) The government has identified electronics and IT hardware manufacturing as one of the thrust areas for development. A special incentive package scheme (SIPS) was announced in March 2007 to attract investments for semiconductor fabrication and other micro and nanotechnology manufacturing industries in India.
f) In the case of exports, the largest share was taken by electronic components, with 47% of total electronic exports. Exports of electronic components have grown at a CAGR of 25% in the last five years.
g) India’s main destination for electronic goods is the US.
Chapter 9
9.1 Samsung Electronics: the dominant player
Samsung electronics is a South Korean multinational corporation and the world's largest and leading electronics and information technology company. Today, it's a world-class leader that even Sony want to emulate, judging from the joint venture it recently inked with the Korean company. Samsung Electronics is the world's No. 1 memory chip manufacturer with 32 percent share of the world market and the leader in flash memory. It is the biggest manufacturer of liquid-crystal display panels with 23 percent share. Overall, it's the world's second largest semiconductor company behind Intel.
It is also the world's fastest growing brand. The company recently edged out Motorola to become the world's second largest cell phone maker with nearly 15 percent market share, ranking only behind Nokia. It is now a leader in flat-screen TVs.
Started as a maker of TVs and transistor radios in 1969, Samsung expanded into a vertically integrated company making everything from semiconductors to finished branded products. Lee Kun Hee, who took over the reins of the overall Samsung group The Samsung Group is South Korea's largest conglomerate (chaebol), composed of numerous businesses, including Samsung Electronics, the world's largest electronics company
from his father in 1987, and is credited with making the company a global leader in semiconductors, consumer electronics and telecommunications. Last year, even arch-rival Sony asked to team up with Samsung to build a seventh-generation LCD display plant in Korea.
Chapter 10
Conclusion
Electronic and electrical equipment has outperformed the state economy during the last quarter century. Employment in electronic and electrical equipment has risen at a robust 5.6 percent average annual pace since 1971, significantly greater than total nonfarm employment (3.2 percent). Domestic and foreign end-use markets for electronic and electrical equipment are expected to remain strong for the next twenty-five years. The Semiconductor Industry Association has forecast that between 1999 and 2001, global sales of semiconductors will increase between 17-19 percent a year. U.S.-based semiconductor manufacturers will slightly increase their share of the global market to one-third of the predicted $222 billion. The result of this bright outlook is continued expansion within the Washington electronic and electrical equipment. By the year 2020, electronic and electrical equipment manufacturers are forecast to employ 29,650 workers, an average annual growth rate (2000-2020) of 2.6 percent. For the electronic components subsector, employment is forecast to grow at an annual rate of 4.6 percent
