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Chips and ChangeHow Crisis Reshapes the Semiconductor Industry$
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Clair Brown and Greg Linden

Print publication date: 2009

Print ISBN-13: 9780262013468

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262013468.001.0001

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Consumer Price Squeeze

Consumer Price Squeeze

Chapter:
(p.77) Crisis 4 Consumer Price Squeeze
Source:
Chips and Change
Author(s):

Clair Brown

Greg Linden

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262013468.003.0065

This chapter surveys the semiconductor market’s evolution toward consumer purchases of PCs, cell phones, game consoles, and mobile devices, and chronicles how that purchasing power moved from corporate- to consumer-based, spurred by the use of the internet. It was the internet, due to its broad appeal, that moved what were once separate markets into a whole, which is most evident in the way technologies overlap today, whereby cell phones and videogame consoles are seen as consumers of diverse forms of multimedia. The chapter then reveals the challenges which the consumer market poses to chip producers, namely that they are more price oriented, trendsetting, and fragmented than ever before. In conclusion, it is argued that the rise in consumerization of chip markets has placed a declining price pressure against the rising cost pressures, hence firms will have to find certain means through which to maintain their costs.

Keywords:   chip producers, consumer market, consumerization, chip markets, semiconductor market

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