The state of the U.S. electronics industry in 1996 shows significant optimism in contrast with the 1980s and early 1990s, when concern over the threat of unfair foreign competition, especially from Japan, alarmed the industry. There is a renewed confidence throughout many sectors of the industry. Computer sales in 1995 were strong compared with 1994. In the semiconductor sector, where competition from Japan was particularly felt, U.S. companies have surged back at the cost of their Japanese and European competition. The consumer electronics sector is showing a very, healthy rate of growth. The U.S. continues to dominate the global software industry. The U.S. defense sector is an ever smaller portion of output. Consolidation leaves the firms remaining in the defense sector in a strong position, but concerns exist over national security implications of sole source suppliers and diminishing sources for dated equipment.
ICAF Industry Studies 1996