The Semiconductor Market Dynamics

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The Semiconductor Market Dynamics
Jean-Philippe Dauvin Group Vice-President Chief
Economist
FISTERA, Montpellier, November 19, 2003
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The pyramid of progress shows the importance of
Microelectronics as key enabler for added-value
and jobs for the whole industry
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Challenge for European Microelectronics
Successfully compete in Mass Markets
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Microelectronics drives the progress in systems
through innovationand price decrease
Digital TV
Digital Camera
GAMES
PDA
Mobile Phone
DVD
STB
Auto
PC
Robot
CD
Radio
CTV
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Development of semiconductors market for
automotive
Relative growth
Semiconductors 450
Electronic Control Units 270
Automobile Cars Light Trucks 120
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The semiconductor market cycle
03 forecast -5
90 forecast 12
Trend
1985-2002 CAGR 12

• PC era starts

• Convergence era starts

01 forecast 30
Source WSTS
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Need for prospective

• What we know
• Technological road map
• Physical limits
• Cost
• Industry structure
• Business model change
• Competition
• Driving our companies in market cycles

• What we do not know
• Global macro economic and social trends
• Our customers needs
• Micro social behaviour
• Changes in consumption pattern
• Geopolitical trends
• Technological breakthrough in science

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