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http://dx.doi.org/10.18374/IJSM-23-1.1
THE STRATEGIC ROLE OF SEMICONDUCTOR INDUSTRY
Alexander Mechitov, University of Montevallo, Montevallo, Alabama, U.S.A.
Michael J. Grainger, University of Montevallo, Montevallo, Alabama, U.S.A.
Helen Moshkovich, University of Montevallo, Montevallo, Alabama, U.S.A.
Published in
INTERNATIONAL JOURNAL OF STRATEGIC MANAGEMENT
Volume 23, Issue 1, p5-15, December 2023
ABSTRACT
The semiconductor industry that produces microchips plays an increasingly important role in today’s world economy. This industry is characterized by cutting-edge technological complexity and prohibitively high costs; both factors lead to the concentration of microchip production in a few major companies in a few countries. The combination of these factors and recent disruptions caused by the pandemic and trade wars underlined the strategic role of semiconductor production. The paper reviews the basics of microchip fabrication, the types of companies in the semiconductor business, the market share of main companies, and the main countries in chip production. The authors emphasize the role of microchips in defense industries and the necessity for national sovereignty in this area. Special attention is paid to the current technological race for supremacy in the semiconductor industry and to numerous national programs to help national companies in bringing inshore chip design and manufacturing expertise.
Keywords
semiconductor industry, microchips, chip fabrication, chip shortage, strategic technology
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