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Have the Foresight

Christo Jacob
Wednesday, February 5, 2014
Christo Jacob
It is always noted that the semiconductor industry has displayed a predictable pattern for the past 15 years with regards to Fab equipment spending - following two years of negative growth, and two subsequent years of positive growth. According to the SEMI World Fab Forecast, in 2012 and 2013 the Fab equipment market contracted, while the next two years – 2014 and 2015, are expected to be positive.
The impetus for the semiconductor industry’s revenue growth is usually followed by more equipment spending, with revenue and capex typically riding the same rollercoaster. Apart from this trend, the broadening applications market for semiconductor industry revenue growth over the next three years is signaling a sense of relief and reduced dependence on the three historically most important applications -wireless handsets/communications, consumer electronics and computing.

It is said that "Foresight will protect you. Understanding will guard you." In the current economy while the industry is witnessing a decline in the importance of computing in semiconductor industry, companies that have the foresight to identify and invest in emerging application markets such as automotive and medical, as well as devices that enable the emerging internet of things, will be well-positioned to enjoy competitive advantages.
The future will see electric cars conquering the road, powered by eco-friendly energy from sun, wind and water thus pushing the smart chip cards get smarter. This incredible growth is driving new dynamics and pushing the industry to the new technology node each year and opening up opportunities for new entrants.

Though there are several players in the market providing these semiconductor products and services, the challenge for the CIO is to find the best fit for their enterprise. This issue siliconindia has identified "10 Most Promising Semiconductor Companies in India." These companies are not only good in having the foresight to identify the markets but also understand the real need of CIOs.

Please do let us know what you think.


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