Company and Industry Analysis

The chairman and the Chief Executive Officer of MAD is Mr.. Hector De J. Uric. It also is one of the major company product manufacturers in the IT industry in the world. In addition, the main computer product that MAD focus to develop and manufacture is the chip of computer. Many things that we are using every day may use the chip of MAD, for example, the digital televisions, the mobile phone or the DVD player. MAD have a strong competitor, Intel. Generally, the revenue, profit or market shares of Intel both are more than MAD.

However, MAD have an opportunity that has a bigger market share than Intel. It is because MAD have new major customer, Dell, and MAD have urged another big computer hardware producer called Amplifier Technologies Inc. (AT’) in United States. These two events help MAD earn more than before. 2. 2 Intel Intel Corporation (Intel) is one of the major companies in United States. If we point at the revenue, Intel is the largest semiconductor icemaker in the world. The chairman of Intel is Mr.. Craig R. Barrett. In addition, the Chief Executive Office and President is Mr..

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Paul S. Telling. Actually, Intel is divide by three parts, Hyper -Threading Technology (HTH Technology), Intel Fertilization Technology (Intel VT) and Intel Active Management Technology (Intel MAT). The products that Intel including are the chips, motherboards and other semiconductor products. Moreover, these three types of product only the main products that Intel focus on. Intel also makes the flash memory, chippies and the Internet product. In these ten years, the revenue of Intel is increasing smoothly and the Intel earning more from Asia Pacific market.

In the future, Intel will focus on the Asia Pacific market and develop the faster, cheaper, low energy chip to help customers have a better computer performance. 3. 0 Current situation 3. 1 United Stated Economy The situation of United Stated in last ten years is quite normal. The average inflation rate stay between 1. 6% to 3. 38%, and the growth of real GAP is more than 1%, except 2001, which growth rate of real GAP is 0. 8. The reason of the growth rate of real GAP is lower than normal is the bubble explodes influence the IT industry in United Stated, and this report will explain more in the industry part.

Hence, except year by year. In the future of five years, this report forecast that the United Stated economy will be stable. It is because there is a limit opportunity to have a large influence such as bubble explodes. 3. 2 Industry Semiconductor is one of the largest industries in world. And the manufacture leaders in semiconductor are Intel, Texas instruments, Satisfactoriness, Analog Devices and DVD Micro Devices etc. Also, it gathers up to 268 billion of market capitalization in Semiconductor- Broad Line, once an index that combine by all semiconductor issued company in America stock market. Http://biz. Yahoo. Com/ICC/830. HTML) Semiconductor industry has a worldwide market and highly mutual to other similar industry. For example, relate to computer industry, mobile industry or military. It is because most of the product required or component by chips. Therefore, semiconductor industry is comparative float by overall economic. Semiconductor industry carrying on well when the other relative industry running well. On the other hand, semiconductor industry will go worst when other relative industry in bad movement. And this will be explaining more in below.

Review in year 2000-2001 , there is bubble explodes in IT industry over the world. And it cases many of information technology companies bankrupt. This event seems no effect on semiconductor industry but it doesn’t. The recession of semiconductor was subsequently existed in year 2002. People forecasted 2002 was the year of great change in semiconductor industry and it is not simple that Just a cyclical industry decline. As we can see the net margin graph (page 11 Figure 4. 1. 3) in later show some semiconductor industry such as MAD and Intel have a poor result in 2002 compare with other years.

On the other hand, the industry was recovering from above incidence since 2004. Most companies have a successful result in a competitive environment. Lastly, overlook semiconductor market in the future. There are huge growing in sales of mobile phones and personal computers (PC’s). The strong demand for mobile phones and PC’s is helpful to stabilize average selling prices for semiconductors. On the other hand, Asia-pacific market has outperformed in the global average industry growth due to growing demand.

The demand of semiconductor products such as computers and consumer electronics in China and India is growing. Therefore, it is leading to escalating demand for semiconductor components, case growth in semiconductor industry. However, the great growing demand in Asia-pacific market sakes China becoming an increasingly important driver of the semiconductor market. Which meaning China now has it’s own semiconductor companies, and it will affect the competitive landscape for original equipment manufactures, original design manufactures and semiconductor suppliers.