19th October 2007

ST Economist’s view of tomorrow’s semiconductor industry

posted in Business, Forecasts |

An interesting and “down to basics” take on tomorrow’s semicon industry was provided by Jean-Philippe Dauvin,  chief economist emeritus at STMicroelectronics at SAME (Sophia Antipolis forum on Microelectronics).


He cited the development of low cost products, the consumerization of the market, the intensification of rivalries due to the number of competitors, the lack of strategic innovation from the semiconductor industry and the intensification of customers’ bargaining power as the reasons behind the low expected growth rate of 4.4 percent in 2010.

A statement that I especially liked in his reported address is “We are in a business that addresses the end-user, but we cannot understand the customer. Our obsession is silicon but the final customer cares about the usage not the fabs”.

This is so true. While it is essential for the industry to work on tools, fabs, methodologies etc., in our rush to new technos, we often lose sight of the basic tenet: Nobody actually wants we do – they want what it will do for them

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There are currently 2 responses to “ST Economist’s view of tomorrow’s semiconductor industry”

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  1. 1 On October 24th, 2007, Muruku said:

    I have the pleasure to include your blog as a must read on my blog. It would be great if you can reciprocate by linking back to my blog, which i think will mutually help us in reaching a wider audience with our information.

    Thanks for your understanding.

  2. 2 On November 25th, 2007, yashas bharadwaj said:

    hello everybody

    i am a graduate student in vlsi field and i was attending a seminar on low power vlsi technology by vojin oklobjiza of UTD and i heard him say while answering some questions that silicon is seriously saturated now and it would take some time before the next technology would emerge and he also hinted that “it aint happenin soon”. hope the (semiconductor) party doesnt come to an end so soon. god, where will i go for jobs then!!!! can anybody wildly speculate on the future of semiconductor industry….

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