Industry Analysis & Industry Trends
Electronic components are present in a wide range of products, from home appliances, computers and telephones to motor vehicles. They are also present in infrastructure, like payment systems and traffic lights, in medical equipment and industrial machinery. Innovations in electronic components have created many new and improved products. While the United Kingdom is a vibrant innovator in electronics, and semiconductors in particular, some major local companies have either chosen to license out their technology or outsource production, usually to manufacturers in low-cost countries.
The Electronic Component Manufacturing industry is expected to generate revenue of £2.06 billion in 2011-12, up 1.3% compared with 2010-11... purchase to read more
Industry Report - Industry Investment Chapter
The labour-to-capital ratio in this industry is estimated at 3.78:1, meaning that the average firm in this industry requires approximately £3.78 worth of labour for every £1 of capital (defined as depreciation). Capital intensity in the wafer foundry business is higher than the industry average.
As the rate of technological change within the industry is high and increasing, significant investment in capital items can be required.
A typical new semiconductor manufacturing facility costs at least US$3 billion and requires additional billions of dollars of investment in new equipment over the life of the facility. There are designers and developers of semiconductors that outsource wafer production to foundry companies and this strategy reduces capital requirements... purchase to read more