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119 Monthly Lab. Rev. 6 (1996)
Semiconductors: The Building Block of the Information Revolution

handle is hein.journals/month119 and id is 668 raw text is: Coptr an Se0m0 c0 0 Semiconductors: the building blocks of the information revolution Driven by advances in technology and an ever-growing demand, job growth and earnings in the semiconductor industry are above those of manufacturing as a whole he U. S. semiconductor industry is re- nowned for its record of technological breakthroughs. These advances have in- creased the speed and capabilities of computer chips and led to employment growth in the in- dustry that runs against the grain of recent U. S. manufacturing history. On the demand side, this feat has been sustained by an apparently insa- tiable worldwide demand for what is the enabling technology of computers, telecommunications equipment, and consumer electronic products. In- deed, semiconductor companies produce the very building blocks of the information revolution. Semiconductor producers are also engaged in a costly, worldwide race of technology develop- ment evident in the continuous flow of advanced products, high research and development (R&D) expenditures, and expensive fabrication facilities. This has required a growing, highly trained work force, with hourly earnings substantially above the average in manufacturing. In 1995, the in- dustry employed 236,000 workers, 10 percent more than in 1993. Interaction between technology and employ- ment in semiconductor manufacturing affect worker productivity, offshore employment, tech- nology diffusion, and R&D employment. Follow- ing a background section, the discussion covers three major topics: the organization of the indus- try (including a geographic profile of production and employment), employment and trade, and manufacturing technology and labor (including the economics of chip assembly and the cost structure of the industry). The final section con- trasts a recent slowdown in the semiconductor market with the positive long-term outlook based on industry expansion plans. What are semiconductors? Semiconductor devices are the basic functional components of computers and other electronic products. They are based on materials, such as silicon, that conduct electricity with less facility than perfect conductors; small changes in their physical structure often induce significant changes in their electrical properties. This makes these materials extremely versatile because their electrical properties can then be customized to create new applications or improve performance. The industry's products include discrete semi- conductors and integrated circuits. Discrete semi- conductors are semiconductors with a single com- ponent like a transistor. These products are used as components in electronic circuits.' Integrated circuits (IC), or computer chips, are pieces of sili- con wafers that incorporate complex electronic circuits. They can contain millions of transistors and other components. In terms of shipments, the major products are ic's, including microproces- sors and memory chips. These products are avail- able at several levels of integration: from chip sets to computer motherboards and modules. Microprocessors function as the central pro- cessing unit of a computer. They vary in speed and the ability to do a variety of logical and math- ematical functions. These features are determined primarily by the number of transistors per chip. 6 Monthly Labor Review August 1996 Francisco A. Mods Francisco A. Moris Is an economist in the Division of Monthly Industry Employment Statistics, Bureau of Labor Statistics.

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