5 Trends that will Shape the 1998 Electronics Industry

Staff -- Semiconductor International, 2/1/1998

Industry News

5 Trends that will Shape the 1998 Electronics Industry

Driven by a handful of powerful forces, growth in the U.S. electronics industry will far outpace growth in the economy in 1998, according to Electronic Business magazine. However, economic problems in Asia may cause problems for the industry as the year progresses. Based in Newton, Mass., Electronic Business is a sister publication of Semiconductor International and part of Reed Elsevier Business Information (REBI).

Electronic Business identified five major trends that will have a dramatic impact on the electronics industry -- including both component- and system-level companies -- in the coming year:

• The big question mark for the U.S. electronics industry is the fate of the Asian economies in 1998, in particular Korea, Japan and China. If problems persist, then the industry's health will suffer.
• Electronic commerce using the Internet will take hold in a big way in 1998 and will begin to transform how many companies, both large and small, conduct business.
• As semiconductors become more complex and move toward "systems-on-a-chip," semiconductor companies are redefining the way they do business. The process will accelerate in 1998.
• Despite its legal woes, Microsoft Corp. is introducing a raft of new products in 1998 for its three operating systems -- Windows NT, Windows 95/98 and Windows CE -- that will play a major role in spurring demand for hardware.
• The move to 300 mm wafers, smaller chip geometries and new process technologies will be a boon for semiconductor equipment vendors in 1998, as chip vendors begin investing in next-generation fabs.

"All five of these trends will have a profound influence on the course of business for the electronics industry in the coming year," said Bruce Rayner, editor-in-chief of Electronic Business. "Most indicators are pointing to a very healthy year for the industry, but the cloud over Asia could have serious consequences for U.S.-based electronics in coming months." PS

Semiconductor International / February 1998