LATEST TRACKING THE TECH SECTOR ARTICLE:
Capturing the Fast-Moving Semiconductor Industry
May 17, 2014
The technology sector, especially the semiconductor industry, is extremely fast-paced. Over the past 20 years, we have witnessed exponential advancements in computing power that can be mostly attributed to the development of semiconductors. The tremendous growth in semiconductor computing power has followed Moore’s Law. For those who are not familiar with Moore’s Law, Gordon Moore, one of the founders of Intel, famously said that the number of transistors that can fit onto a single chip doubles roughly every two years, resulting in both faster performance and lower cost. This rapid exponential pace of technology improvement allows numerous industries in the technology sector to offer ever-smaller and more powerful gadgets at ever-lower prices every year.
In this installment of Tracking the Tech Sector, we delve into the semiconductor industry and discuss some general trends. The innovation that is the basis of the semiconductor industry prompts continual improvement in numerous other industries in the technology sector, and this characteristic makes it the natural industry to begin the Tracking the Tech Sector series with. Beyond discussing the general trends and outlook of the semiconductor industry, I also take a close look at two market leaders in the industry—Broadcom Corp. (BRCM) and Texas Instruments Inc. (TXN). These companies are discussed using data elements that are uniquely important to companies not only in the technology sector, but also specifically in the semiconductor industry.