Dilemmas on the horizon
There may be (multidimensional) problems in the offing. Louise Joselyn reports from Sophia Antipolis.
In his keynote address to this year’s Sophia Antipolis Microelectronics Forum (SAME), Jean-Philippe Dauvin – STMicroelectronics’ chief economist emeritus and long time industry watcher – saw a business in transition, with the key issues of globalisation, consumerisation and consolidation in the past and only ‘dilemmas’ ahead. “Growth rates are down to 6%, making semiconductors a mature industry,” he said. “But there has not been enough consolidation; we have too many companies chasing too little growth.” Growth is slowing due to price erosion, driven by consumer pressure, and the lack of strategic innovation in recent years.
