Vertical disintegration in the semiconductor industry

Summary form only given. In recent years, the semiconductor industry has seen a dramatic acceleration in the rate of entry for new firms. In this paper, the authors hypothesize that a determinant of new venture success is the nature of the relationship between the design firm and the foundry. They also hypothesize that one of the critical assets that supports contractual relationships between design firm and foundry is the existence of an Asian connection within the design company. They also examine how the composition of the design firm founders influences the governance form and patterns of relationships between US design firms and Asian foundries