The Research of Business Model of Wafer Fabrication Equipment Suppliers
Date Issued
2007
Date
2007
Author(s)
Chien, Ann
DOI
en-US
Abstract
This research mainly studies on business model evolution of semiconductor equipment suppliers. Semiconductor equipments can be divided with two categories: front end and back end. The main buyers of front end equipment are IDMs, foundries and DRAM houses; and the buyers of back end equipment are assembly and testing companies. This research focuses on business model of front end equipments.
Around 75% capital investment of semiconductor manufacturers spend on the front end equipments, so the cap-ex of semiconductor manufacturers are close relate to revenue of semiconductor capital equipment suppliers. The investment of semiconductor manufacturers is dependent on the demand, whereas the demand depends on the overall demand of electronics industry. The demand of electronics industry includes personal computers and consumer products etc. Due to the electronics industry business is cyclical, the demand will percolate up the industry value chain to semiconductor manufacturers. The fab utilization rate is the supply index of semiconductor. However, the increase production capacity need about one year. Frequently, semiconductor manufacturers sense the demand to increase capacity, the demand has been diminished once the capacity is established. Overcapacity has been a serious problem to semiconductor manufacturers and capital equipment suppliers, especially after the internet bubble burst. The formation of global alliance and merge and acquisition change the business environment of semiconductor industry.
The traditional business model of capital equipment suppliers is to react to the demand of semiconductor manufacturers. As overcapacity happened, the production capacity and manufacturing personnel were the financial burdening of capital equipment suppliers. Therefore, capital equipment suppliers started thinking of new business model. They started outsourcing their non-core business and focus their resource on core business. At the same time, capital equipment suppliers enhanced service business because of maturation of industry.
Semiconductor industry is a capital and knowledge focus industry. The more mature the industry, the more importance the overall service business. The value of capital equipment suppliers rely on supporting of the best practice and best know method. Therefore, knowledge management will become another important core competency.
Subjects
晶片設備供應商
商業模式
整合元件晶圓廠
晶圓代工廠
資本支出
成長期
成熟期
產能利用率
外包
非核心事業
知識管理
核心競爭力
Semiconductor equipment supplier
Business model
IDMs
Foundry
Cap-ex
Growth stage
Mature stage
Utilization rate
Outsourcing
Non-core business
Knowledge management
core competency
Type
other
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