Linking manufacturing acquisition strategies with firm success: evidence from the semiconductor silicon industry

The purpose of this paper is to describe the different manufacturing acquisition strategies adopted by firms in the semiconductor silicon industry and to highlight potential strengths and weaknesses of these strategies. The industry leaders have followed different approaches for the development of their manufacturing capabilities. Some firms developed new production technology internally, others added "living" technology by acquiring existing firms, or through joint ventures. Other firms improved technological capabilities by adding "static" technology through the purchase of licensees, processes, or equipment. Preliminary evidence suggests that successful firms increased technological capabilities through all three avenues mentioned above. The evidence also suggests a link between the core capabilities perspective on strategy and the technological acquisition strategy utilized by the successful firms.