Success Strategies for Foundry Industry through the Analysis of Business Models

MasterThis Article asked how the domestic semiconductor companies can success in the global foundry industry. Especially this paper focus on business models which are related to the strategy and tactic. Based on the definition of the business model, customer value and customer needs are key components. So first of all this paper tried to find out what these components are and suggested some answers. For the foundry industry, customers need high Quality (Technology) and lower Price products on Time (Time to Volume) and they need also good Service. These are based-factors in the foundry industry. Leading companies always think about these based-factors and differentiate their strategies from others by using them. But the global foundry industry market is getting saturated, so these strategies are similar each others. So foundry companies need to change their strategy. The business model is the key point to compete other players.So this paper suggested 2 ways to compete in the global foundry industry through the analysis of (TSMC’s and Globalfoundries’) business models. The first thing is finding some momentum factors to reinforce their virtuous cycle of the business model. The second thing is finding new choice and making new business model to make the blue ocean market. Theses 2 ways are all make sense. But sometimes these things are useless. It depends on the market situation and the core competence of them. So the (domestic foundry company’s) CEO has to decide which way is better to make virtuous cycles in the business model by analyzing their in & out situation