Title :
New business models for standard and ASIC products in the semiconductor industry-competing on cost and time-to-market
Author :
Akella, R. ; Gillespie, J. ; Kim, Bumki
Author_Institution :
Dept. of Eng.-Econ. Syst. & Oper. Res., Stanford Univ., CA
Abstract :
Many semiconductor companies in the ASIC business struggle with the new competitive environment, which requires better and better operational performance. We detail ways of improving their current business model in order to become more responsive to customer orders and more profitable at the same time. Based on a study of customer order change behaviour, we motivate why these companies should base their business and operations on unit volume and not on the degree of standardization of their products. Furthermore, we suggest new contract schemes and introduce the concept of delayed product differentiation
Keywords :
application specific integrated circuits; costing; integrated circuit design; integrated circuit manufacture; manufacturing resources planning; ASIC business; ASIC products; business models; competitive environment; contract schemes; cost competitiveness; customer order change behaviour; customer orders; delayed product differentiation; operational performance; product standardization; semiconductor companies; semiconductor industry; standard IC products; time-to-market competitiveness; unit volume business basis; Application specific integrated circuits; Artificial intelligence; Companies; Contracts; Costs; Delay; Electronics industry; Large scale integration; Production; Time to market;
Conference_Titel :
Advanced Semiconductor Manufacturing Conference and Workshop, 1998. 1998 IEEE/SEMI
Conference_Location :
Boston, MA
Print_ISBN :
0-7803-4380-8
DOI :
10.1109/ASMC.1998.731552