This thesis set out to investigate the underlying competitive dynamics in the global semiconductor industry and how these competitive dynamics shape the structure and strategies employed by the participants within that industry. The competitive dynamics were explored using four separate headings; technological, customer preference, industry structure and business cycle dynamics.Combining the results of the interviews and survey with the analysis of the secondary source material shed light on how the semiconductor industry is evolving in response to the increasing costs of developing the latest manufacturing facilities and how this is affecting the business structures that companies are choosing to adopt. Similarly the analyses pointed to the industry having recently entered the maturity stage and the thesis examined some of the issues surrounding this, including the increased likelihood of consolidation within the industry as well as the increasing importance of efficiency as a complement to product innovation. The thesis concludes with a summary of the findings and suggestions to companies operating in the semiconductor industry in Ireland