Semiconductor and Other Electronic Component Manufacturing in Canada Industry Market Research Report Now Available from IBISWorld

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Industry manufacturers, which are typically small- to mid-sized enterprises, will find it difficult to match the research and development (R&D) spending of multinational competitors. For these reasons, industry research firm IBISWorld has added a report on the Semiconductor and Other Electronic Component Manufacturing industry to its growing industry report collection.

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Although demand for downstream electronics is on the rise, inputs are being manufactured elsewhere.

The Semiconductor and Other Electronic Component Manufacturing industry produces a range of input devices that are necessary in the production of electronics, including circuits and memory chips. In the past five years, the industry has contracted due to the continued offshoring trend that has pervaded much of Canada's manufacturing sector. In addition, greater competition from US and East Asian manufacturers, which offer lower-priced products due to more competitive labour costs, have contributed to the industry's decline. “As such, although demand for downstream electronics is on the rise, the inputs are being manufactured elsewhere,” according to IBISWorld Industry Analyst Darryle Ulama. As a result, in the past five years, industry revenue is expected to decline at an annualized 5.1% to $2.5 billion, including an 8.0% decline in 2014.

The broader electronics value chain is highly globalized, with product design, raw material procurement and manufacturing segmented across facilities in different regions. “Moreover, consumer electronics have global demand, driven by falling prices and technology innovation,” says Ulama. Industry performance is thus dependent on trade trends such as the competiveness of exports and the extent of import penetration. In the five years to 2014, industry exports are expected to decline at an annualized 6.6% to $1.4 billion, as US and East Asian competitors outperform domestic manufacturers. Meanwhile, the value of industry imports is projected to increase at an annualized 1.3%, with strong double-digit gains in 2013 and 2014, pointing to the flood of imports that have supplanted operators.

Similar trends are expected during the five years to 2019. Industry manufacturers, which are typically small- to mid-sized enterprises, will find it difficult to match the research and development (R&D) spending of multinational competitors. As a result, industry exit and acquisition activity are anticipated during the next five years, further contributing to the industry's decline.

For more information, visit IBISWorld’s Semiconductor and Other Electronic Component Manufacturing in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures semiconductors and related devices and parts, including integrated circuits, memory chips, microprocessors, diodes, transistors and other optoelectronic devices. The industry also manufactures printed circuit boards.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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