Gartner Research

Semiconductor Industry 2010: Economies of Scale Rule

Published: 24 July 2000

ID: G0089638

Analyst(s): Bryan Lewis

Summary

The advent of single-chip systems is reshaping the competitive landscape of the semiconductor industry in ways that have not been seen since the advent of the microprocessor 20 years ago. The major change: As system functionality is consolidated increasingly onto single chips, only one or two big winners will emerge. Semiconductor suppliers are faced with two key issues that will determine their future: Do they have the economies of scale required to compete in large mature markets, and do they have the innovation required to compete in emerging markets? This Research Brief explores key industry dynamics that will shape the electronics industry and sheds light on the potential winners.

Table Of Contents
  • Single-Chip Systems Are Transforming the Semiconductor Industry
  • Economies of Scale Start to Rule
  • Emerging Markets Will Save Smaller Vendors
  • The Winners
  • Dataquest Perspective

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