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A Study of Business Model on IC Design Industry in TaiwanChen, Chien-hung 24 June 2004 (has links)
Abstract
The developing trend toward the integreation of many function in application market of semiconductor, makes the original business model of IC design industry to change. From open structure (named ¡§Wintel¡¨ structure) till today, what we can see it shows as transition stage. It will be end in the situation the all devices can interlink to each other. All of us don¡¦t know how long we will overcome this transition stage. But it really challenges the orginal business model of IC design industry. The business model of IC design industry changes along with the changing in product application market. In this study, we do analysis of IC design industry¡¦s business model by four dimensions¡Xmarket strategies, capabilities of technology, the types of organization, financial resources. We will discuss the differents between Taiwan and American IC design industry
In market strategy dimension, there are more and more difficults to distinguish between past strategy model including niche and volume strategies. Because the revolution of electronics application market, the better ways for Taiwan IC design industry to develop its market strategy are depending on capability focusing and the capture of market demend. When mentioning about the IC design skill, Taiwan IC design industry can choose several ways to cumulate its design capabilities according to the market strategy it chose.
About types of the organization, the combination of fabless and fabless is the trend. Also 1¡¦st tier IDM will be the key roles who dominate the future IC industry. More than all, fabless who belong to system assembly factory or fabless who belong to foundry will be the mainstream in the IC industry and in electronics application market, too. Depending on what kinds of organzation IC design companies chose, it will affect the ability when they rising money. These four factors interaction built the business model of the Taiwan IC design industry.
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