Analysis: Global Semiconductor Industry

Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as

From pioneering in memory DRAM semicon to exiting the low-margin DRAM market – Intel was primarily a Memory semicon manufacturer before it entered microprocessors in 1980s. Its added value in the memory industry in 1970s was very high because of its advances in MOS process to produce DRAM. However, with increase in competition and the advancement of Japanese conglomerates in the memory industry Intel was forced to play a chasing game to improve performance and reduce costs. In the mid-1980s, Intel’s market share in the core memory business was <1%, however it was continuing to invest in this domain. They finally exited the DRAM market, which was more of a cash burner with low-margins.

Strong market position: One can see that Texas Instruments is generally considered a pioneer and forerunner in the technology and innovations of semiconductor products, such as: defense, metallurgical and digital products. Texas Instruments Inc. has a 29% revenue share amongst the Top-Ten analog IC companies. Moreover, a preponderance of the mobile phones sold globally contain computer models as well as other automotive systems

The semiconductor market in business communication is expected to have a compound average growth rate of almost 18% over the next five years. Our current market share within this segment is slightly more than 7%, and management wants to see the share of the market double by the end of the century. Figure 1 represents the projected growth of the semiconductor market in business communication and Mitel Semiconductor over the next five years.

Mitel Semiconductors Mitel Semiconductors is a division of Mitel Corporation. The semiconductors division focuses on the business communications segment of the overall semiconductor market. The segment is relatively small when compared to the semiconductor market as a whole but the segment is experiencing high levels of growth over the next five years. Currently Mitel Semiconductors holds 7% of the business communications segment and management would like to see market share double in the next five to six years. Mitel Semiconductors is quickly approaching full capacity at its Bromont Foundry that performs the

computer hardware sector. The company has a high brand value in the market due to its cost

Foxconn Technology Group, a subsidy of the Hon Hai Precision Industries Ltd. is one of the world's largest electronics manufacturers. It ranks 112th

In  the  next  section  we  will  analyze  the  level  of  competition  within  memory  industry  based  on  Porter’s   model, Samsung's competitive advantage and its sustainability considering the current market situation.  3. Analysis:  Considering  Porter’s  model  as  a  framework  to  analyze  the  level  of  competition  within  DRAM  memory  business,  the  threat  of   new   entrant  is  high  compared  to  the  threat  of  substitutes  and  established  rivals in horizontal competition.  If  we  look  at  rivalry within  the DRAM industry between established  players,  Samsung  has  a clear  advantage  over  its  competitors.  Samsung  is  the   market  leader  in  DRAM  memory  business. It  has  a wide  range of products and its products has a higher brand value.  Threat  of  new  entrants  is  high  as  Chinese  competitors  have  easier  access  to  large  pool  of  local  engineering talent and have a growing market  for these DRAM chips. The  government is also  providing all  sorts  of  assistance, like subsidized  land, for  the initial setup. Samsung has several options to  deter  the entry  of  new  Chinese  competitors.  One  option  Samsung  have  is  to  continue  to  explore  and  increase  market  shares  of  flash  memory  markets  which  is  a  new  and  growing  market.  Samsung  can  also  take  advantage  by  lowering  the  price  of  DRAM  chips.   This  would  force   a  price  war  and  drive new

The Semiconductor Manufacturing Industry The specific industry that will be referred to will be the semiconductor manufacturing industry. This industry emerged after World War II, first in the Boston area and then moved westwards into California during the 1950s. Reasons for locating in such areas include flat land, temperature, stable economy, steady government scene, accessible to markets, available raw materials and high skilled labour. Because the industry is high tech it has meant that these factors are decreasing in importance and factors such as the environment, government assistance and cleanliness are changing the pattern of semiconductor manufacturer locations.

highly fragmented with at least 20 major manufacturers in each technology segment. Because of the

As we all known, Sony and Matsushita are two of the largest consumer electronic makers in Japan or even in the world. And in this reading, it points out the different strategies Sony and Matsushita use when they were facing the fierce competition in China ----- Matushita was accelerating its pace on stretching the supply chain in China while Sony unexpectedly decided to shift some of its manufacturing business in China back to Japan. In this article, I will discuss the reasons that lead them to make different decision as well as analysize the advantages and the disadvantages of their decision.

The Chinese are an emerging economy that has taken over the world's production in recent years. In fact China is now considered to be the world's factory, as all the major players in the world outsource all or some of their manufacturing activities to the country. All this would not have been possible without the help of technology and with the state of globalization being such, that logistics and distances are becoming shorter and shorter.

According to the report released by IESA (Indian Electronics & Semiconductor Association) it is quite striking that the electronics product market in India is set to grow from $44 billion to $64 billion yet we still heavily rely on imports for the top 4 components needed to manufacture a smartphone (Memory, Display Units & Glass, SoC & Camera). Adding to the above India itself has no base/factory for manufacture of SoC’s (System on Chip).

6.8 2009-2013 Global And China Thick-film Hybrid Integrated Circuits Consumption Market Share By Application 6.9 2009-2013 Global And China Thick-film Hybrid Integrated Circuits Production Market Share By Us Eu China Japan Etc Regions 6.10 2009-2013 Global And China Thick-film Hybrid Integrated Circuits Demand Overview 6.11 2009-2013 Global And China Thick-film Hybrid Integrated Circuits Supply Demand And Shortage 6.12 2009-2013 China Thick-film Hybrid Integrated Circuits Import Export Consumption 6.13 2009-2013 Global And China Thick-film Hybrid Integrated Circuits Cost Price Production Value Gross Margin

In the component market, integrated circuit technology is threat of new entrants. The growth of integrated circuit technology makes existing component market shrink. EPD has taken aggressive moves to protect its market share from competitors and new entrants. Therefore, in existing market, EPD needs a cost reduction effort more and change their business model into low-margin high-volume business. It means that they should change their evaluation system; the plant should maintain 40% of gross margin. Additionally, they need to introduce new products into market to acquire new source of revenue. EPD has not built the clear strategies and shared them with employees.