A Study of the Business Model of Applying System-On-Chip Technology in Developing MultiMedia Storage Products

• Main Authors: David Hsieh (Hsieh Hung Chuan), 謝鴻泉
• Other Authors: Lee, Ji-REN
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/66495899547644212562

碩士 === 國立臺灣大學 === 國際企業學研究所 === 91 === This research is to analyze how system-on-chip (SoC) fabless IC design company can take advantage of the existing resources and core competence among various specialized firms in the value chain of electronics industry based on a strategy centered around virtual vertical integration with SIP firms, embedded software development companies, and system makers. Such a strategy is even more crucial as the PC industry has entered into an era of micro-profit and faced more challenge of chip design complexity, non-standard product definition, and innovative engineering requirements. By firstly conducting an analysis on the industry value chain, competence of specialized firms, and their structural problems, the present research suggests that it would be insufficient for most of Taiwanese companies in the PC industry food chain, who may have successfully built various core competencies, to be successful as they enter the emerging field of IA products. Besides, government policy on SoC mainly focuses on foundry OEM, SIP supply, and design service. In fact, in the IA or digital consumer field, SoC-design company will play a critical role and most of the innovation would rely on what SoC company will offer or create. As most of the IC design companies in Taiwan are small or medium in size, most of the companies would face the dilemma of resource shortfall when they migrate their technology from low-end 8 bit design to 32-bit SoC platform. Therefore, whether SoC companies can fully utilize and take advantage of the core competence of other specialized corporate in the industry as a complement resource via building up a virtual vertical integration strategic alliance would become a key successful factor. This research therefore postulates that, by building up the strategic partnership among SIP firms, embedded software development companies, and system makers, SoC design companies can not only crate competitive core competence to suffice what it lacks of, but also offer a solution improving partners’ business efficiency and add value to its value net partners. Moreover, through the liaison partnership, SoC companies would be able to help system makers create more power of channelmanagement, brand recognition, OEM relationship enhancement. Finally, this research proposed a potential business opportunity segmented as a market well fit the nature of Taiwan manufacturing companies and allocate the least engineering resource, to maximize the economy return by introducing product differentiation and segmentation tactics.