A Look At The Semiconductor Industry

Semiconductors are perhaps the most important components of modern electronics. Without them, virtually none of the items we use every day would function in the same way. As the name implies, semiconductors combine properties of a conductor and insulator in a single material. Among other things, this makes today’s small, sophisticated microchips possible.

The Origin of the Modern Semiconductor and Transistor

Today, semiconductors are present in virtually all electronics. They remain the backbone of the modern computing industry. Although materials science is now evolving to the point where new synthetic materials might replace common semiconductors, even cutting edge research uses conventional semiconductors as a jumping off point. They are that important!

The history of semiconductors begins all the way back in 1873 with English engineer Willoughby Smith, who was first to discover selenium’s photoconductive properties. With this, he pioneered the earliest research into semiconductors. However, it was nearly a century later before they began to appear in the commercial products where they are now so well-represented.

In 1956, the Nobel Prize in Physics was shared by three researchers at Bell Labs who developed important insights into the practical uses of the semiconductor, creating the first transistors. The transistor, of course, is a specialized semiconductor device capable of amplifying and rectifying signals: It served as the backbone of tremendous growth in communications technology.

The advent of the modern semiconductor was a technological leap forward for the world. Today, U.S. semiconductor companies are the most prominent, representing 51% of global market share. The semiconductor industry is one of the most dynamic forces in America’s high-tech economy.

Just how has it become so influential worldwide?

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Semiconductors: A U.S. Economic Powerhouse

The semiconductor industry is a true American success story. According to the Semiconductor Industry Association, the U.S. semiconductor industry faced just one period of difficulty: The years 1982-1988, when share declined 19% in the face of stiff Asian competition. Today’s unsurpassed position was the result of technological innovation and streamlined regulations.

Since semiconductors are essential to computer equipment, the exponential growth in computer hardware over the last three decades has helped buoy the semiconductor industry. The SIA research linked above indicates that, in 2014, semiconductors were the #3 manufactured export in the United States, valued at $43 billion for the year – behind only aircraft and automobiles.

Imagining the Future of Semiconductors

Continuing technological innovation demands that semiconductors, transistors, and integrated circuits as a whole be produced on ever-smaller scales. Nanotechnology may be the #1 driver of semiconductor evolution in the next decade. Innovative public-private research partnerships are also predicted to play a role. Whatever the case, semiconductors will continue to be a truly essential part of the technological world we live in.