16 May '13, 1pm

Supply Chain's Unintended Industry Impact | | #supplychain

SAN JOSE, Calif. -- The semiconductor industry's in a funk, and the success of the supply chain has a lot to do with it. At least that's what Steve Sanghi, CEO of Microchip , thinks. "The industry has an enormous challenge and I don't think industry knows how to cope with (it)," he said in an interview here at Design West, recently. Here's his thought process: The semiconductor industry's growth has slowed from 15 to 17 percent per year to 4 to 5 percent. Customers insist on an 8 percent price reduction each year, and employees want raises while materials costs rise each year. "Most CEOs would still price their parts for the future, believing they'll make it up in volume next year. When you go into the next year, there's more competition and they price it again for the year after," Sanghi said. But volume has "dramatically slowed," he added, and US companies are losing mon...

Full article: http://www.ebnonline.com/author.asp?section_id=2981&doc_i...

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