Short circuit: International competition and import penetration will reduce revenue and limit growth

Over the past five years, this industry has expanded despite continued offshoring and greater competition from US and East Asian manufacturers, which offer lower-priced products due to more competitive labour costs. The primary catalyst for industry expansion has been robust demand for industry products both domestically and abroad as well as an increase in third-party manufacturing facilities. Consequently, over the five years to 2018, industry revenue is expected to rise. Similar trends are expected over the five years to 2023, although with much more subdued expansion. Industry manufacturers, which are typically small- to mid-sized enterprises, will find it difficult to match the research and development (R&D) spending of multinational competitors...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
4.0%
Forecast Growth 18-23
Profit
Employment
14,049
Businesses
493
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry performance depends on trade trends, such as the competitiveness of exports and the extent of import penetration
  • Lower R&D has compromised the industry’s ability to compete globally
  • In an effort to remain relevant and competitive, some industry operators will invest in R&D
  • Industry Report - Industry SWOT Analysis Chapter

    The Semiconductor and Other Electronic Component Manufacturing industry in Canada is in the mature stage of its life cycle, characterized by slow growth rates, market acceptance, industry consolidation and a reliance on broader macroeconomic health for its expansion. Over the 10 years to 2023, the industry’s value added (IVA), a measure of its contribution to the overall economy, is projected to grow at an annualized rate of 2.3%. By comparison, Canadian GDP is expected to grow at an annualized rate of 1.9% during the same period. IVA growth that runs parallel to GDP expansion is the chief characteristic that situates an industry in maturity. Fur...purchase to read more.

    Additional Insights for the Semiconductor & Other Electronic Component Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Semiconductor & Other Electronic Component Manufacturing Industry are

  • Access to highly skilled workforce
  • Having contacts within key markets
  • Ready access to investment funding
  • IBISWorld analysts also discuss how external factors such as Number of fixed broadband connections and Private investment in computers and software in the Semiconductor & Other Electronic Component Manufacturing industry impact industry performance..

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    What's in this report

    What is the Semiconductor & Other Electronic Component Manufacturing Industry?

    This industry manufactures semiconductors and related devices and parts, including integrated circuits, memory chips, microprocessors, diodes, transistors and other optoelectronic devices. The industry also manufactures printed circuit boards.

    Industry Products
  • Integrated circuits
  • Semiconductor devices and parts
  • Bare printed circuit boards
  • Printed circuit assemblies
  • Electric connectors and inductors
  • All other electronic components
  • Industry Activities
  • Manufacturing diodes
  • Manufacturing fuel cells and solid-state devices
  • Manufacturing integrated microcircuits
  • Manufacturing semiconductor devices
  • Manufacturing semiconductor memory chips
  • Manufacturing silicon wafer
  • Manufacturing printed circuit boards and PCB assemblies
  • Manufacturing connectors
  • Manufacturing computer and coaxial cable
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of fixed broadband connections
  • Private investment in computers and software
  • Canadian-dollar effective exchange rate index
  • Research and development expenditure
  • Number of mobile telephone subscriptions

  • Current Performance
  • Offshoring and competition
  • Lagging competitiveness and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • US resurgence
  • Trade
  • Industry structure
  • Table: Semiconductor & Other Electronic Component Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Semiconductor & Other Electronic Component Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing In Canada
  • Navigational Instrument Manufacturing in Canada
  • Wireless Telecommunications Carriers in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Chemical Product Manufacturing in Canada
  • Semiconductor Machinery Manufacturing in Canada

  • Products & Services
  • Integrated circuits
  • Printed circuit assemblies
  • Semiconductor devices and parts
  • All other electronic components
  • Electric connectors and inductors
  • Bare printed circuit boards
  • Chart: Semiconductor & Other Electronic Component Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Prices and performance
  • Technological changes and product innovation
  • Lifespan
  • Research and development expenditure

  • Major Markets
  • Exports
  • Communications
  • PC/Computer
  • Other consumer goods
  • Industrial/government
  • Automotive
  • Chart: Major Market Segmentation for the Semiconductor & Other Electronic Component Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Semiconductor & Other Electronic Component Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Semiconductor & Other Electronic Component Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Semiconductor & Other Electronic Component Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Semiconductor & Other Electronic Component Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of semiconductors and electronic components (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Passive Electronic Component
  • A component used to store, filter or regulate electric energy, including capacitors, resistors and varistors, and that does not require power to operate.
  • Fabless
  • Industry slang used to describe a company that does not own foundries for the production of wafers from which their integrated circuits are made.
  • Integrated Circuit
  • A miniaturized electronic circuit, consisting of semiconductor and passive components, manufactured in the surface of a thin substrate of semiconductor material.
  • Printed Circuit Board (Pcb)
  • An electrically insulated board onto which electrical components are assembled and wired together.
  • Solid-State Drive (Ssd)
  • A data storage device that uses flash memory instead of magnetic and moving parts to read and write data.
  • System On A Chip (Soc)
  • An integrated circuit that combines all components of an electronic system into a single chip.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Semiconductor & Other Electronic Component Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Semiconductor & Other Electronic Component Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Semiconductor & Other Electronic Component Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Semiconductor & Other Electronic Component Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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