The Impact of concentration in the Global Electronics Supply Chain

An article in the Economist (Oct 8, 2011) describes how concentration of manufacturing by Taiwanese firms has enabled price decreases and feature increases faster than chip prices. At HTC, new product development time has dropped by six months compared to two years ago. NVIDIA has seen potential demand for its $ 20 chips go from $ 4 billion in PCs to $ 40 billion in smartphones.  Multicore chips have enabled energy savings by swiching ff, while flas memory technology has enabled increased storage.  As the increased incorporation of the cloud becomes widespread, what is the future mix of  software and hardware that we should expect ? Will the separation of design and software development in Silicon valley and production in Taiwan remain the dominant supply chain configuration in this industry ? At what point will manufacturers, like HTC, become proficient enough to develop their own closed configurations (like Apple) ?

About aviyer2010

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