Chris Edwards: December 2006 Archives

For years, the semiconductor industry has been under threat of consolidation as companies try to build enough scale to let them fund successive generations of high-integration devices. But the consolidation has failed to happen, much to the bemusement of analysts and other observers. It remains a process that is about to happen.
Wolfgang Ziebart, president of German chipmaker Infineon Technologies, pointed out at the recent Electronica trade show that the process is not likely to be a repeat of what happened in industries such as aluminium and steel. Instead specialists will form that dominate niches but are barely heard of outside their chosen markets. Weaker players will retreat from niches that they cannot control or influence rather than face price wars at the bottom of the market.