A Study on the Business Model & Competitive Strategy of Taiwan Semiconductor Intellectual Property Industry
Date Issued
2004
Date
2004
Author(s)
Liang, Ming-Cheng
DOI
zh-TW
Abstract
This thesis is to discuss the Business Model and Competitive Strategy on Taiwan Semiconductor Intellectual Property Industry. Michael Porter’s Five Forces Framework of Industry Competition, Industrial Value Chain and the Key Success Factor (KSF) analysis methods are referred for the study.
While investigating the complicated competition environment in Taiwan Semiconductor IP Industry, the competitors are inclusive of Electrical Design Automation (EDA) Tool Providers, SIP Design, ASIC Design & Service, Layout, Fabless IC Design, Wafer Foundry and Assembly & Testing.
The “Disintegration Strategy” has become the trend for the expertise need in the industry chain; however, the companies are pursuing continuous growth throughout Vertical Integration by Strategic Alliance, Licensing, or Merge & Acquisition strategy.
This thesis is to study the SIP industry business model and competitive strategy from the competition and cooperation (Copetition) among the SIP companies in Taiwan Semiconductor Industry, trying to analyze and figure out the competitive advantages and critical success factors of SIP companies. The scope is to focus on SIP industry in Taiwan.
Two methods are referred to proceed the study, one is to survey industry by applying questionnaires, and the other one is to perform an in-depth interview to the company management of in SIP industry in Taiwan.
The questionnaire is following Michael Porter’s Five Forces Framework to analyze the intensity of competition among suppliers (EDA Tool Providers and Wafer Foundry Houses), Buyers (Fabless IC Design & System Houses), Substitutes (FPGA & ASSP Providers) and New Entrants. On the other hand, the in-depth interview will be performed by the method of Value Chain to analyze the success case to the top one SIP Design Service Company in Taiwan -----Faraday Technology Corporation.
The result of study reveals that most of SIP Companies in Taiwan are about small capital size as low as NT$300M, however, the company numbers are relatively as many as 20 and more.
Due to the strong competition, the SIP companies in Taiwan tend to be the big one, becomes bigger and stronger. However, the SIP companies are lacking of bargaining power to the wafer foundry houses, therefore, the best strategy is to closely cooperate with them. For the limited design resources in SIP companies who tend to grasp the Unique or Star IP by licensing from IP providers to support the customers, Fabless IC Design Houses and System Houses, and not directly compete with them.
The conclusion of this study is that the SIP companies should focus on ASIC & SoC Design Service as the major business and extend to strengthen the IP design capability to support the ASIC Design business, to maintain and develop the close relationship with both foundry house and system house to achieve the System Application Oriented design service strategy. To create the SIP add-on value, the SIP Companies should participate the SIP Plat-Form Based Design Association、 IP Mall and Strategic Alliance with IP Providers to enable the companies to support international customers by providing Turn Key & Complete Solutions.
Keywords: SIP Industry、 Competitive Strategy、 Value Chain、 Key Success Factor、 Disintegration、 Vertical Integration、 Strategic Alliance、 Co-petition、 Competitive Advantages、 Five Force Framework、 Competition Intensity、 Turn Key Solutions.
Subjects
競爭優勢
價值鏈
競合關係
策略聯盟
競爭強度
統包服務
五力分析
垂直整合
關鍵成它]素
矽智財
競爭策略
Co-petition
Competitive Advantage
Key Success Factor
Competition Intensity
Turn Key Solution
Vertical Integration
Competitive Strategy
Value Chain
SIP Industry
Five Force Framework
Strategic Alliance
Type
thesis
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