Chapter 5. Business and Markets

In this chapter...

• Worldwide Production of Semiconductors

• Worldwide Consumption of Semiconductors

• Military Electronics

• The Business of Making Semiconductors

Processed silicon is more valuable than gold, ounce for ounce.

The gross national product of the United States was $9.2 trillion in 2000; semiconductors accounted for $204 billion, or about 2.2 percent of that total. Semiconductor manufacturing is a bigger part of the U.S. economy than mining, communications, utilities, or agriculture, forestry, and fishing. The U.S. Bureau of Labor Statistics says 284,000 Americans are directly employed in the semiconductor industry; 52,000 of those are semiconductor processors, or people in the so-called “bunny suits.”

The top 10 U.S. airlines put together made only half as much money as semiconductor makers. Intel and Texas Instruments sold more than Coca-Cola and Pepsi. Every one of the 15 corporations receiving the most patents in 2000 was in the semiconductor or computer business. San Jose, California—the capital of Silicon Valley—led the nation in highest average annual salary in 2000, outdistancing the second-ranked city (San Francisco) by a hefty 28 percent margin. Most important, the average Nintendo game has more computer power than NASA had for its moon landings.