The global semiconductor industry is expected to be a $260 billion market by 2009 and is dominated by Taiwan, South Korea, USA, and Japan. Despite experiencing a downfall in the semiconductor market, Japan is still major leader in the industry. The U.S. industry faces challenges to development by some forms of government regulation. The U.S. government regulates exports and certain uses of some types of semiconductors due to their potential dual use in military applications.
The semiconductor processing & device technologies industry features a number of distinct characteristics that position it uniquely in the economy and in the global competitive arena. These include a very high intensity of research and development (up to 20% of annual revenues) and the required level of capital expenditures in semiconductor plants or fabs (up to 25% of annual revenues).
The semiconductor industry is widely recognized as a key driver for economic growth in its role as a multiple lever and technology enabler for the whole electronics value chain. The industry enables the generation of some $1,200 billion in electronic systems business and $5,000 billion in services, representing close to 10% of world GDP.
The semiconductor processing & device technologies industry also demands a high degrees of flexibility and innovation in order to constantly adjust to the rapid pace of change in the market. Many products embedding semiconductor devices often have a very short life cycle. At the same time, the rate of constant price-performance improvement in the semiconductor industry is staggering. As a consequence, changes in the semiconductor market not only occur extremely rapidly but also anticipate changes in industries evolving at a slower pace. Yet another consequence of this rapid pace is that established market strongholds can be displaced all too quickly.
As the semiconductor industry markets continue to grow, new inventions and innovations will continue to occur. All of these developments point to increasing activity in the laws, business transactions, and disputes concerning IP in semiconductor processing & device technologies.
Strong patent rights are imperative to encourage investments in R&D and for commercialization of semiconductor processing & device technologies. Patent rights also encourage established manufacturers to invest in semiconductor processing & device technologies to improve existing product lines.
