Keeping Up With The ‘Crazy’ Semiconductor Industry

Analysts may call the semiconductor industry “crazy,” but it’s the good kind of crazy: Worldwide sales of semiconductors reached a whopping $84 billion during the second quarter of 2015 alone, according to the Semiconductor Industry Association (SIA). SIA also reported that the sales pace of 2015 was ahead of 2014 at that time. A recent report from Design & Reuse says, “Year-to-date sales during the first half of 2015 were 3.9 percent higher than they were at the same point in 2014.”

The semiconductor industry is known to be dynamic and volatile (and, yes, a little “crazy” at times). An article on Forbes.com written by Jim Handy, an industry analyst, is, in fact, titled “Semiconductors – A Crazy Industry.” In the article, Handy said, “From a long-term historical perspective, the way this industry works is astounding. The semiconductor industry is unique, unlike anything else in the history of the world.” He continued to say that the industry’s financial returns are “completely offset by steep price declines. Users keep getting more and more performance, but in the end, they pay about the same amount every year, no matter how much performance increases.” Handy added that the semiconductor industry’s 2013 revenues – which topped $306 billion – “probably paid for 20-30 times the functionality of the $204 billion worth of semiconductors sold in 2000.”

These numbers are big, and they may seem “overwhelming” or “crazy” to anyone not familiar and experienced working with the semiconductor industry. But, as a full-service custom manufacturer of metal prototypes and products, Red River Precision has worked with several companies from the semiconductor industry.

Our experience refurbishing equipment and components for the semiconductor industry has had us manufacturing new parts or replacement parts to vamp up machines and bring them to newer standards. Working with the “crazy” semiconductor industry is something that we enjoy doing here at Red River Precision, and we welcome the opportunity, every chance we get!

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