Differences of Integrated Circuit Industry from Other Industries

Published:2011/3/28 3:11:00 Author:Amy From:SeekIC

As a matter of fact, a lot of people are not very clear about integrated circuit industry even having many misunderstandings on investment and management. According to research, the differences of integrated circuit industry from others can be list as following aspects.

First, the products are invisible. Integrated circuit is a kind of microelectronic industry and unfamiliar to us. What’s more, the product is hard to display, so microscope is necessary when we want to observe but even that, if we are not trained, it is still not easy to have a clear idea for the industry.

Secondly, it is complicated in manufacturing and high technology in need. Integrated circuit is the most typical high-tech industry which applies extreme complex technology with more than hundreds of steps to manufacture. Much basic knowledge like physics, chemistry and other derivative subjects is involved in almost every step. With regard to product construction, its thickness, width and depth is only hundreds or even dozens nm which is in high accuracy. What’s more, technicians are required to be more sophisticated and multivariant.

Thirdly, it has positive feedback between manufacturing devices and products. Although integrated circuit industry is mature in technology and production procedure but for more than 40 years, the technology still updated every 2 or one half years which was faster than any other industries. The most important reason is positive feedback existed between manufacturing devices and products. In other words, the new integrated circuit product can promote the manufacturing facilities more advanced and more advanced facilities produce more advanced products which continue to promote the more advanced facilities.

Fourthly, it has higher added value and lower turnover rate of funds. Integrated circuit industry has longer production process and more complex procedure as compared to traditional assembly industry. Therefore, the processing added value is much higher than material and labor force cost when compared to the traditional industry. The rate of added value almost up to 50% to 70% of whole production cost. As a result, the rate of capital turnover is much lower.

The difference of cost construction must result in different management. It is a crucial reason why traditional managers hard to understand this industry. Only having a clear idea of traits of the industry can we make progress in the integrated circuit industry. The related integrated circuit is KDS193.

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