mon polariton (SPP), sort of a hybrid between electrons and photons. These SPPs are formed in the region between a metal surface and a dielectric surface, commonly found (indeed, designed into) chipsets. These SPPs can be manipulated in 2D space. The result is that etched wafers can now be built that move pho- tons but that are as small as those used for electrons-that is, along the lines of traditional semiconductor designs. And while this technology is nascent, it will mature and become a part of the technological pantheon among component manufacturers. Component Industry Challenges Component manufacturers face major challenges in the months ahead. The downturn in the greater telecommunications industry resulted in massive revenue reduction, which in turn caused a buy-down of the Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website. Telecom Market Segments Chapter 8 number of manufacturers in the sector, particularly among those focused on building components for the much-anticipated, never-ending optical core transport buildout. In fact, 2002 was the first year in history in which the United States failed to be the largest market for semiconduc- tors. Nevertheless, certain applications continue to drive sales among component manufacturers. Mobile phones, for example, drive 30 percent of global component sales and China consumes 25 percent of all mobile output. Other drivers, mentioned earlier, include automotive, display technology, wireless, and nanotechnology. Another challenge is the ongoing commoditization (if that's a word) of the component industry. There are quite a few similarities between the histories of the American steel and component industries; it is worth a brief side trip. Steel VS. Silicon: Parallel Stories The steel industry has its roots in the iron industry, which started in North America as early as 1621 in Jamestown, Virgi