Application-oriented technology valuation: examples from the semiconductor industry

An application-oriented methodology using tear-down analysis and strategic evaluation is presented to prioritize technologies for investment. Technologies are prioritized by an assessment of their market attractiveness and organization’s competitive position. Successful applications of the methodology to a few leading semiconductor foundry companies have proved its usefulness. This methodology can be applied to the major semiconductor companies along the supply chain of the semiconductor industry. Though specialized for the semiconductor industry, many aspects of this methodology can be generalized for other industries that exhibit a technological flow driven by product applications.