Question

In: Operations Management

What factors determine success in the semiconductor industry?

What factors determine success in the semiconductor industry?

Solutions

Expert Solution

Every industry has different factors that determine the success of the companies as well as the entire industry. in the case of the semiconductor industry, let us look at some of the factors which can help find determining the success of the industry:

Sales - A pretty obvious factor because any industry cannot survive on low sales or decreasing sales. Therefore, a rise in the sales of the products in the industry is directly proportional to the growth of the industry as a whole.

Expanding workforce - Companies hire newer staff members only when their capacity has increased or the existing workload is not capable to perform the increasing requirements of the operations. This leads the company to hire an additional workforce. Therefore, the job growth rate in the industry is a factor that helps in determining its success in the semiconductor industry.

Investment - A steady investment flow into the industry to pave the way for research and development is a direct testimonial for the demand for the industry's products. This helps in determining the success of the industry too.


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