Transcription of Profitability in the Semiconductor Industry
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Profitability in the Semiconductor Industry
11 Profitability in theSemiconductor IndustryThe Profitability of firms in the semiconduc-tor Industry depends on a vast array of vari-ables from manufacturing costs to namerecognition. Throughout the electronicsinfrastructure the rules are changing asglobal competition intensifies, product life-cycles shorten, and technology a result, the management of humanresources and compensation approacheschange, time-to market becomes more criti-cal, and business strategies are being re-eval-uated. Despite the incredible profits of mostsemiconductor companies between 1993 and1996, Industry over-capacity in 1996 forcedcompany restructuring and workforcereductions, especially among semiconductorequipment recent years, investors have become veryattracted to high technology firms and thestock market is influencing the way compa-nies are doing business.
Profitability in the Semiconductor Industry 1-2 INTEGRATED CIRCUITENGINEERING CORPORATION From year to year, the health of the semicon-ductor industry as a whole is indicated by its
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