The Status Of Consumer Electronics Market

The consumer electronics market has gotten out of the economic crisis, which has large growing potential, and this situation also brings the manufacturers of semiconductors new challenges and opportunities. The consumer electronics market continues to recover; the sales will reach 259 billion US dollars in this year. What is more, this market will keep the growth in the future years.

The products with high value and large quantity, such as the liquid crystal television and players, play an important role on the development of consumer electronics market. The multifunctional chips and other semiconductors are the key of these hot electronic products. Companies are trying to offer the semiconductor chips to the manufacturers of electronic products; therefore, the competition becomes fierce. If a design order is earned by the company, it will have more than one hundred million profits. The companies, which are engaged in the study of ASSP and specific integrated circuit, will gain more profits, because these components are hard to be made and replaced.

The cost to develop the specific chip is becoming higher and higher, which increases from ten million US dollars to twenty million US dollars. Only the big manufacturers are able to afford this development cost, therefore, the small factories will be stroked out. Whether to produce the chips with old techniques or withdraw from the market is a choice for the small companies. Therefore, the experts predict that the strong integration of this industry will happen within five years. Besides, the dispersed market also makes the competition fiercer.

In order to be success in the market of consumer electronic, the manufacturers must keep the cost to design and produce balance. For the chip with large quantity, the low cost of production offsets the high cost of design, but the small factories will miss the next generation of the products because of the high cost of design. The related integrated circuit is SOT263 .