Semiconductors Are the New Oil: Implications for the Industry
Nearly since its industrial beginnings, oil and access to it has been considered a sovereign strategic asset. This, and the highly capital-intensive nature of oil production, has informed the way operators in the value chain manage the forces affecting their business. A keen sense of geopolitics, strong governmental relations, a focus on cyclical economics and specialization in long-term capital planning have been a collective skillset well-developed among industry leaders, in addition to the core work of exploration, extraction and marketing. We interpret the national strategic importance semiconductor technologies have achieved and their progressive capital intensity combine to create an evolved set of management challenges for the industry, very much like those the oil business has been facing for a century.
BIOGRAPHY
Dean Ramos is the global macro economist in the Corporate Strategy and Market Intelligence Group at Applied Materials. In this role he produces forecasts and actionable assessments across a range of time frames used by the firm’s decision makers to produce strategies that drive superior returns on the company’s capital. He is particularly focused on technology shifts, geopolitics, competitive scenarios, and business cycle forecasting.
Prior to joining Applied, Dean spent nearly two decades as a senior fund manager and sector head for technology investments on a $20 billion global equity platform at Columbia Threadneedle Investments. In addition to his experience as a professional investor, he was a Managing Director in equity research and head of Financial Planning and Analysis in the investment banking industry. He holds the Chartered Financial Analyst designation and is an Adjunct Professor lecturing in Applied Finance in the graduate school at Hamline University in St. Paul, Minnesota.