If Detroit goes bankrupt, then the semiconductor industry goes bankrupt

In this election session, we have been inundated with numbers, percentages, statistics, plans, promises, mud-slinging, accurate and inaccurate data. One of the most discussed topics is the economy and what industries can bring the country out of the longest recessions in American history.

During the campaign stump, I have heard the concept of allowing certain industries to fail in order to have another industry succeed. To me this sounds like a “do or die” scenario…more like “dog eat dog” world. Using my common sense, it seemed apparent that one industry might contribute to several other industries. To eliminate a particular industry would be detrimental to numerous sub-contractors and other surrounding companies.

For example, 2008 and 2012 Presidential Candidate Mitt Romney stated to let Detroit go bankrupt. (See full length article here: http://www.nytimes.com/2008/11/19/opinion/19romney.html?_r=0) I thought that that suggestion was a bit drastic. My thoughts immediately focused on how many states, car part manufacturers and other non car-related industries would be affected by letting Detroit go bankrupt.  If Detroit goes under then Ohio, Indiana, Illinois, North Carolina, Tennessee, Alabama, and New York would immediately go under. (These are just a few states that have car-manufacturing plants.) The entire United States has car part plants that contribute to the car industry. Even more, Toyota, a Japanese car manufacturing company, buys it parts from U. S. automakers.

Not only does the car manufacturing industry rely on car parts, it relies on the components within the dashboard, hood, seats and trunk. The benefit of getting in your car and turning it on is attributed to electronics. Some of you can start your car remotely, all because of a chip designed into your keyless remote. To be honest, a car is not a car without a seat warmer. How do you think that the heat or air works in your car? No it is not magic, it is electronics. Electronics is composed of wires, diodes, resistors, inductors, capacitors and semiconductors, to say the least.

What industry knows how to put all of the electronics together? Electrical, Computer and Design Engineers. What industry does the architecture of a car? That’s right…Automotive, Mechanical and Manufacturing Engineers. What industry controls the amount of emissions being output from the cars into the air we breathe? You’ve guessed it, the Environmental Protection Agency (EPA). Who does the EPA hire? I’ll tell you. The EPA hires Environmental and Industrial Engineers, to say the least.

On an upside, today, the Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, announced that the U.S. semiconductor industry now employs almost a quarter of a million workers and added jobs three times faster than the rest of the U.S. economy, according to an analysis of government data. Total direct U.S. semiconductor employment is estimated at 244,800.

In a press release, available at www.sia-online.org, SIA boasts that in 2011, total employment for all U.S. electronic component manufacturing industries, including semiconductors, was 383,513. Of this total, semiconductor-manufacturing employment totaled 188,358, or 49 %, by far the largest share of all U.S. electronic component-manufacturing industries.

Semiconductors are not only used in cars they are used in computers and other devices as well. However, if you have a radio in your car, then you have a semiconductor in your car. If you have GPS in your car, then you have a semiconductor in your car. If you can turn your car on, you have a semiconductor in your car. Semiconductors are used throughout the whole car. It is used in batteries, alternators, and the heating and air units. The growth in the auto-industry has a direct effect in the growth in the semiconductor industry.


I like to eat. I am quite sure that you do as well. The U.S. is where I live and eat. To keep Detroit alive, I went out and bought an American made car. I supported the semiconductor industry by purchasing a 2012 Buick Regal. Yes, I supported Detroit because I live in Ohio. Here in Ohio there are General Motor plants that need my support. A couple of weeks ago I took a relative to purchase a 2012 Buick Regal. In a few more weeks, I will take another relative to buy a 2013 Buick Regal. The beat goes on!

This is my opinion about the importance of Detroit and job growth in different industries outside of the auto industry. Detroit’s main contribution to the semiconductor industry has provided an economic upturn for our country.

Detroit, actually, holds this country together economically. Allowing Detroit to go bankrupt is allowing the country to go bankrupt.

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