The Semiconductor Manufacturing Industry

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The Semiconductor Manufacturing Industry

The specific industry that will be referred to will be the

semiconductor manufacturing industry. This industry emerged after

World War II, first in the Boston area and then moved westwards into

California during the 1950s. Reasons for locating in such areas

include flat land, temperature, stable economy, steady government

scene, accessible to markets, available raw materials and high skilled

labour. Because the industry is high tech it has meant that these

factors are decreasing in importance and factors such as the

environment, government assistance and cleanliness are changing the

pattern of semiconductor manufacturer locations.

The semiconductor industry first emerged in the U.S.A, it spread from

the east coast to the west coast within a decade. Manufacturers would

locate near universities because it proved highly skilled labour and

thus it lead to creation of Silicon Valley, in Santa Clara,

California. Nearby Stanford University was the basis for the creation

of the area and because the university was supported by government

funded electronics research.

During the 1960s and 1970s Japan and some European countries, such as

UK and Germany, began to develop semiconductor industries. The success

of the Japanese firms such as NEC was overwhelming and by the 1980s

Japan had overtaken the United States to become the worlds leading

semiconductor producer.

Semiconductor manufacturers located in these areas for many reasons,

one of them was because of technological factors. The industry was

separated in location by the stages of production, the low cost

assembly production was often cre...

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...antage of this and expand within these countries. Another area

where by governments helped the industry was by establishing high

technology industrial parks to attract semiconductor manufacturers.

These areas are well serviced with suitable infrastructure and are

often near research facilities provided by universities.

Apart from economical and political factors, social and cultural

factors also influence the location of semiconductor manufactures. A

major factor why the research and design centers have often grown in

specific areas are because the region tends to have a university. An

example of this would be Silicon Valley near Stanford University, this

is because the universities provide the area with centers of

electrical engineering research, and they help to stimulate

development of semiconductor manufacturing.
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