Components, and specially semiconductors (SCs), are, along with consumer and industrial electronics, informatics and telecommunications, an important integral part of the information technology industry. This paper deals with the Europen SC industry, and particularly with its structural features and future prospects. It also tries to point out the challenges that new entrants, such as South Korea, poses to the European industry, a topic which, unlike those dealing with mature competitors (the US or Japan), has not been yet extensively researched.
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