The Success Of The Electronic Components And Semiconductors Manufacturing Industries In USA
The United States of America has the largest number of the electronic components and semiconductor manufacturing industrial units in the world. There are more than five thousand companies in the country with total combined annual revenue of about 150 Billion US Dollars every year. Micron Technology, Intel, Advanced Micro Devices (AMD) and the Texas Instruments are the largest industries to be reckoned with, in the world. The electronic components and semiconductor manufacturing industry has become very concentrated in the USA and the largest fifty companies generate more than 70 percent of the total revenue. This industry is highly dependent on the computer industry and makers of the telecommunications products such as mobile phones, computers, laptops, modems and other electronic items. As the demands may vary from year to year, so also the production of the components may also vary in accordance with the demands. The big companies have become successful by producing parts at low cost or by producing components which are highly specialized in nature. The small companies also produce specialized products and new applications and are fiercely competitive. For success in the industry most firms and companies hire highly qualified technical experts in the field and also implement the latest advances made in the field of production, modernization and atomization of the products. The employees in the industry are some of the most highly paid personnel’s in the country. Some of the important and major products produced by the units include printed circuit boards, computer chips and various other components like electron tubes and electronic connectors. It has been estimated that semiconductors account for more than 60 percent of the industry revenue and circuit boards for 25 percent in the United States. There are more than 15,000 wholesale distribution outlets of electronic parts and equipments in the United States which generate revenue of about 140 billion US Dollars every year. Some of the large companies in this field are the Arrow Electronics and the Avnet. Most distributors in the country have about 20 employees on the average and have an annual sale of about 10 million US Dollars per annum. In view of the high demand of the components in the country and as well as the industrialization and advancement made in the field of computer science and telecommunication industry in the developing countries of the world, the electronic component and semiconductor manufacturing industry in the US is rapidly growing and capturing the market in the international field. The 50 largest companies of the country hold more than 65 percent stake in the market. The overall demand of electronic components and semiconductors is largely dependent on the business and consumer purchases of computers and telecommunications items and equipments. Therefore the profits of most of the companies depend largely on the business volume and correct merchandising, stocking the products which are in high demand by the consumers. The larger firms have greater advantage in this respect as they have greater capacity in producing, buying and stocking the products. The larger firms have also more efficient management and supply system and the ability to meet the large customer orders not only in the US but from the international market as well. Smaller companies compete by offering specialized products or through prompt and efficient service to their customers.
