Semiconductor devices such as diodes, transistors and integrated circuits can be found everywhere in our daily lives, in cell phones, televisions, automobiles, washing machines and computers. We have come to rely on them and increasingly have come to expect higher performance at lower cost.

Personal computers clearly illustrate this trend. Anyone who wants to replace a three to five year old computer finds that the trade-in value of his or her computer is surprisingly low. On the bright side, one finds that the complexity and performance of the today’s personal computers vastly exceeds that of one’s old computer and that for about the same purchase price, adjusted for inflation.

While this economic reality reflects the massive growth of the industry, it is hard to even imagine a similar growth in any other industry. For instance, in the automobile industry, no one would even expect a five times faster car with a five times larger capacity at the same price when comparing to what was offered five years ago. Nevertheless, when it comes to personal computers, such expectations are very realistic.

The essential fact which has driven the successful growth of the computer industry is that through industrial skill and technological advances one manages to make smaller and smaller transistors. These devices deliver year after year better performance while consuming less power and because of their smaller size they can also be manufactured in larger quantities and at a lower cost per device.

The spectacular growth of the industry as measured in gross sales per year is presented in Figure I.1.

Figure I.1:

Total US annual electronics and Integrated Circuits sales.

Shown are the sales of electronics and sales of integrated circuits in the United States. Sales of electronics has since the 50’s grown at a steady pace, increasing tenfold every 25 years, recently reaching one trillion US$ and becoming a significant fraction of the US gross national product (about 10 trillion US$ in 2000). The sales of integrated circuits is about one tenth of all electronics equipment sales, passing 100 billion US$ in 2000.

The broader impact of this industry can be gauged by the number of other industries that increasingly rely on the advances in integrated circuits. These include a significant number of major industries such as transportation, defense, avionics and space, industrial electronics, wireless and other forms of communication, consumer electronics and the biggest of them all, computers and peripherals equipment. Most people can probably best relate to the advances in consumer electronics where continuously new and better HDTVs, cell phones, laptops and desktops, digital cameras and GPS units reach the market.