Microchips Are Everywhere

WHY IS THIS IMPORTANT? There may be no better testament to the fact that we have passed from a mechanized, industrial era into a new, digital era than the proliferation of semiconductor technology-the combination of integrated circuits (chips) and other discrete components found on circuit boards in everything from desktop computers to phones, cars, kitchen appliances, medical devices, and even roads.

THE TREND: The world's appetite for semiconductors has been growing dramatically, and the trend (despite recent market weakness) is expected to continue. In 1984, worldwide shipments of semiconductors totaled 88 billion units, and by 1997 world shipments were close to 260 billion units-nearly a 200 percent increase. By 2003, the number is expected to pass the 400 billion unit mark.

From 1982 to 1996, the world semiconductor market has grown from a $20 billion market into well over a $100 billion market in constant 1992 dollars. In the same period in the United States, semiconductor sales as a percentage of GDP rose from less than 0.2 percent to as high as 0.65 percent, all while dropping in price.

THE DATA:

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Index Home | Introduction
SECTION I | SECTION II | SECTION III
Productivity Paradox | Knowledge Economy
Nine Myths | Data Sources | Endnotes | The Authors

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