Semiconductor Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 684 semiconductor manufacturers in the US design and build a variety of semiconductor and related solid-state devices including integrated circuits, memory chips, microprocessors, diodes, transistors, and solar cells. Semiconductors are used in a wide range of products, but major categories include computers and electronic devices, machinery, appliances, transportation equipment, solar panels, and lighting equipment.
Rapid Technology Innovation
Semiconductor manufacturers spend significant amounts of cash on research and development to meet customer demand and stay ahead of competition.
Shrinking Nodes, Fewer Labs
The number of cutting-edge semiconductor manufacturers is shrinking as fewer firms have the financial resources needed to further miniaturize semiconductors.
Industry size & Structure
A typical semiconductor manufacturer operates out of a single location, employs 295 workers, and generates about $86 million annually.
- The semiconductor manufacturing industry consists of about 684 companies which employ about 202,000 workers and generate about $59 billion annually.
- Customer industries include manufacturers of computers and electronic devices, telecommunications equipment, machinery, appliances, transportation equipment, solar panels, and lighting equipment.
- The industry is highly concentrated with the 20 largest firms representing 78% of industry revenue.
- Large companies include Intel, Global Foundries, Cypress Semiconductor, IBM, and Texas Instruments.
Industry Forecast
Semiconductor Manufacturers Industry Growth
Recent Developments
Nov 5, 2024 - Strong Growth Expected To Continue
- Semiconductor market growth is expected to continue in 2025, with the World Semiconductor Trade Statistics (WSTS) forecasting a 12.5% expansion to reach an estimated valuation of $687 billion. Growth is expected to be driven by the memory and logic sectors, which are each on track to surpass $200 billion in 2025. The sectors are expected to see year-over-year growth of 25% and 10% respectively. “All other segments are anticipated to record single-digit growth rates,” the WSTS noted. All regions are poised for continued expansion, with the Americas and Asia-Pacific expected to maintain their double-digit growth.
- Semiconductor firms don’t have enough qualified workers to staff major new factories from Ohio to Arizona, according to Fortune. The Semiconductor Industry Association trade group estimates that the US is currently short roughly 67,000 skilled workers — or 58% of all new jobs that will be created by CHIPS Act investment by 2030 — due to a yearslong trend of outsourcing skilled chipmaking labor to Asia. Workforce is a really, really important potential bottleneck,” a Commerce Department official who agreed to an interview on the condition that they not be named told Fortune. “We have some of the world’s greatest talent in this country. But because we have dramatically reduced our footprint in semiconductor manufacturing over the past 35 years, we have lost a lot of those skills, and we need to reinvigorate that.”
- The US Department of Commerce announced restrictions on the sale of advanced artificial intelligence (AI) chips to China. Federal officials say that the new rules are intended to close loopholes that surfaced after restrictions on AI chip exports went into effect in 2022. The earlier restrictions banned the sale of the Nvidia H100, which is the processor of choice for US AI firms like OpenAI. Chinese companies were instead able to buy a slightly slowed-down version called the H800 or A800 that complies with US restrictions, primarily by slowing down an on-device connection speed, called an interconnect. The new rules will ban those chips as well, senior administration officials said. The restrictions could also affect chips sold by Intel and AMD. Other rules may affect the sale and export to China of semiconductor manufacturing equipment from companies such as Applied Materials, Lam and KLA. Some experts say that the restrictions cut off a big and growing market for AI semiconductors and could raise concerns that the Chinese government will retaliate economically against US firms doing business in the country.
- Semiconductor manufacturing industry employment decreased slightly while wages for nonsupervisory employees increased significantly during the first nine months of 2024, according to the US Bureau of Labor Statistics (BLS). Semiconductor manufacturers slightly decreased their prices during the first nine months of 2024, according to the BLS.
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