Affordability concerns in advanced semiconductor manufacturing: the nature of industrial linkage

Does an affordability problem loom in the semiconductor industry? If so, the frantic pace of technical advance may threaten to become the bane of-rather than a boon to-the continuing development of the semiconductor industry. For this reason, semiconductor manufacturing may not be far from a kind of industrial divide that could set in motion a series of paradigm shifts capable of powerfully restructuring industry fundamentals. This paper presents the results of data developed for a case study pair in order to detect any evidence of such an affordability barrier to technical advance. A sequence of analyses that follows seeks to illustrate how the competitive performances of semiconductor manufacturers can be influenced by the performances of their suppliers as financial exigencies are passed forward and backward