The semiconductor industry, which has evolved over around 65 years, witnessed the emergence of the Integrated Device Manufacturer (IDM) business model, followed by the introduction of the fabless and foundry models. These three models continue to coexist and interact today. Characterised by cyclicality, capital and technology intensity, and high economic volatility, the semiconductor industry is shaped by the complicated interactions among these business models, which form the competitive dynamics of the industry. Companies must adopt strategic
adaptations in response to these dynamics, further influencing their market performance. The relationship among competitive dynamics, strategic adaptations, and market performance is not a linear causal chain but a complex, mutually influential process. This study focuses on examining and comparing these concepts’ relationships within the IDM, fabless, and foundry business models...