The Study Of Business Model Adjustment Of Fabless IC Design Company

The developing trend toward the integration of many function inapplication market of semiconductor, makes the original business model ofIC design industry to change. From open structure (named Wintel structure)till today, what we can see it shows as transition stage. It will be end in thesituation the all devices can interlink to each other. All of us don’t know howlong we will overcome this transition stage. But it really challenges s theoriginal business model of IC design industry. The business model of ICdesign industry changes along with the changing in product applicationmarket. In this study, we do analysis of IC design industry’s business modelby four dimensions market strategies, capabilities of technology, the typesof organization, financial resources. We will discuss the different betweenTaiwan and American IC design industryIn market strategy dimension, volume strategy is a good way for openstructure market and niche strategy for close structure market. Because the revolution of electronics application market, the better ways to developmarket strategy are depending on capability focusing and the capture ofmarket demand. When mentioning about the IC design skill, several ways canbeen choose to cumulate design capabilities according to the market strategyit chose.About types of the organization, the combination of fabless and fabless isthe trend. Also Virtual IDM will be the key roles who dominate the future ICindustry. More than all, fabless who belong to system assembly factory orfabless who belong to foundry will be the mainstream in the IC industry andin electronics application market, too. Depending on what kinds oforganzation IC design companies chose, it will affect the ability when theyrising money. These four factors interaction built the business model of theChina IC design industry.