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Semiconductor industry watcher discredits 'myths'

Posted: 23 Dec 2010     Print Version  Bookmark and Share

Keywords:industry trends  boom-bust cycle  semiconductor  ASP 

The model is under stress at the top over issues of the security of wafer supply and at the bottom from the cost of IC design and a lack of product and exit strategies.

Penn's point here is it not about the model; it is about the execution.

Myth 6: The 21 century business model of focus not breadth

Penn characterizes the current business wisdom thus: become specialised; go fab-lite; merge with each other; narrow scope of R&D; cull the product line; outsource everything.

"These premises are pure conjecture with no historical precedent and are fundamentally flawed BUT they conveniently fit with short-term corporate ambitions." In short the bean counters and managers have taken over from the visionary entrepreneurs and technology types.

- Peter Clarke
EE Times

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