A Study on the Competitive Dynamics and Strategic Alliances in the Global DRAM Industry
Date Issued
2006
Date
2006
Author(s)
Sheng, Yuan-Hsin
DOI
zh-TW
Abstract
Global DRAM industry has been emerged as an oligopoly structure which is dominated by 5 major players–Samsung, Micron, Hynix, Infineon and Elpida. To reduce their investment risks on technology development and fab., these dominant players engaged some sort of strategic alliance relationships with firms in Taiwan and China. Specifically, Taiwanese firms have made alliances with those IDMs (Integrated Device Manufacturers) in Germany, Korea and Japan to source DRAM design and process technologies. Among all DRAM players, Taiwanese firms are most aggressive firms continuously to build 12-inch fabs to produce commodity DRAM with a low cost strategy, which in turn leads to market share increases during the past year.
While Taiwan’s DRAM players are in the front line of market competition, Taiwanese companies did not own DRAM technology and most of the technology was licensed from IDM companies in U.S, Korea, Europe, and Japan through capacity exchanges. What supports Taiwanese companies to compete relies upon superior management skill and the capability to lower the manufacturing cost, which may not be a sustainable competitive advantage in the long run.
This thesis will first briefly introduce the DRAM product and its applications. Based on secondary information, we will further investigate the DRAM cycle, to explore the strategic alliances of each DRAM company. Finally, based on the total supply and demand, we will suggest the effect of strategic alliance for fab cluster among these firms to share the R&D expenses and to duplicate the manufacturing from reference sites and to analyze whether firms needs to build more new fab to fulfill the demand requirement. Implications of these analyses are also discussed.
Subjects
DRAM產業
競爭優勢
DRAM Industry
International Stretegic Alliance
Competitive Advantage.
Type
other
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