Overview

Growth in the electronics industry is driven by investment in infrastructure for new technology. State-of-the-art fabrication facilities that manufacture integrated circuits and flat panel displays can cost over a billion dollars to construct. For these facilities to be economically justifiable there must be immediate demand for the components that they produce. If the demand exists, then these factories generate profits that are used to finance the next generation of technology advancement.

Demand for new technology does not materialize, however, unless the new technology can add valuable functionality to the products in which it is employed. The rest of the infrastructure in which the technology is used must also be able to support the increased performance of the new technology. A high-definition TV monitor, for example, is useless without communications standards to enable transmission of programming, without processor technology capable of decoding high-definition signals in real time, and without high-definition programming to view on the monitor. Furthermore, none of these other support elements will be developed if there is not the expectation that the high-definition monitor will become affordable for a large number of customers at some point in the foreseeable future.

Often, chicken-and-egg situations develop, which slow the advancement of new product concepts and technologies. Manufacturers are reluctant to invest in new technology without a commitment from designers to use the technology. Designers are reluctant to use unproven technology because it may be too risky or expensive. Network infrastructure builders are reluctant to upgrade their networks with new services...