Increasing semiconductor manufacturing's strategic value to a firm

Manufacturing firms in many North American industries are struggling with whether to continue to produce major components for their systems or end-products. In some instances, the suppliers of these very components are also dealing with whether to produce them or merely design them. Large end-product firms and some semiconductor merchants, for example, are calling into question the internal fabrication of chips. This paper examines what can be done to increase the strategic value of an internal chip facility. It discusses six specific activities many of which focus on better satisfying the needs of a fabricator's internal or external customers. By taking the initiative in implementing these activities fabrication management will have identified a seventh way to add value. The recommendations made here also have general implications for firms that produce major components other than semiconductors, and for companies supplied with these components by strategic partners.<
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