Samsung Electronics - Competitors

Samsung Electronics Competition

Now Viewing Samsung Electronics's competition in: Electronic Components & Semiconductor Manufacture (primary)

Recent Developments

Exports Increasing - US exports of semiconductors and other electronic components rose 6.1 percent in the first four months of 2008 compared to the same period in 2007. Exports to four of the top five destinations for US-made semiconductors and electronic components also rose. Exports to China, the top destination, rose 10.7 percent.

Industry Consolidation Expected - Changes in chip manufacturing methods will force many electronic components and semiconductor manufacturers to consolidate and some will go out of business, according to Intel. Companies must invest about $1 billion a year in their manufacturing facilities to remain competitive; expected changes in manufacturing methods between 2010 and 2015 will be too expensive for many companies. Intel expects electronics components and semiconductor prices to rise as the number of manufacturers declines.

Rising Transportation Costs may Reduce Imports - The rising price of oil is beginning to offset cost advantages of countries like China, due to higher transportation costs. The cost to ship a container from port cities in China to New York has risen from $3,000 to $8,000, according to ABC News. Electronic components and semiconductor manufacturers with production facilities in the US are likely to benefit.

Competitive Landscape

The industry depends highly on demand from the computer industry and makers of telecommunications products like cell phones, which can vary sharply from year to year. Companies can be successful producing standard parts at low cost or by producing highly specialized components. Small companies can compete effectively with large ones by producing specialized products or developing new applications. Technological expertise is extremely important. The industry is highly automated: average annual revenue per employee is about $250,000.

Full Industry Overview For Electronic Components & Semiconductor Manufacture

Electronic Components & Semiconductor Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

Domestic demand for US electronic components, a major driver for electronic component wholesaling, is forecast to grow at an annual compounded rate of 3.7 percent between 2007 and 2012.

Electronic Components Demand Growth Peaks

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.