Smart technology moves up the supply chain

The mainstream business press is reporting that Asian financial markets are on the rebound as a consequence of news that the U.S. will avoid a default on its debt obligations. This was not the only story to celebrate this week, however.

By ·

The mainstream business press is reporting that Asian financial markets are on the rebound as a consequence of news that the U.S. will avoid a default on its debt obligations. This was not the only story to celebrate this week, however. “Smart technology” is forecasted to drive demand for new products in the supply chain, thereby impacting a whole range of transport and logistical services.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that worldwide sales of semiconductors were $24.7 billion for the month of June 2011, a 1.5 percent decrease from the prior month when sales were $25 billion and 0.5 percent decrease from a year ago. Sales in the second quarter were down 2 percent compared to the prior quarter. All monthly sales numbers represent a three-month moving average.

“Despite this month’s modest contraction in sales, the industry saw a 3.7 percent increase in the first half of 2011 sales compared to the same period last year which saw record breaking growth,” said Brian Toohey, president, Semiconductor Industry Association. “Overall semiconductor sales are on track with growth projections of 5.4 percent growth for 2011.”

Gains in the corporate PC refresh cycle, smartphone demand and the subsequent increased investment in IT infrastructure, as well as growing markets in China, were offset by slower consumer demand in June sales. As expected, all regions experienced growth, year to date over last year, except Japan, as the region continues to recover from the effects of the natural disaster earlier this year. Additionally, semiconductor content will continue to increase across all sectors of end-use products especially in the automotive sector.

“The semiconductor industry should be encouraged by the U.S. Administration’s announcement on Friday of increased fuel economy standards and the effort to include more green and smart technology in vehicles,” said Toohey.

We agree with the SIA that these standards will present additional opportunities for growth in the semiconductor industry, and while the implementation is years away, it is an indicator of the increasing demand for smart technology and the innovations enabled by U.S.-made microchips in the supply chain.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Making TMS an Enterprise Priority
To get the most out of a TMS investment, numerous parties across the organization should lend their expertise.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...