Comparative Analysis of IDM, Fabless, and Foundry Business Models in the Semiconductor Industry

From Competitive Dynamics and Strategic Adaptations to its Market Performance

Master thesis (2024)

Authors

Z. Wu Technology, Policy and Management

Contributors

Z. Roosenboom-Kwee Economics of Technology and Innovation - TPM (mentor)
J. Gartner Delft Centre for Entrepreneurship (graduation committee member)
Faculty
Technology, Policy and Management
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Published Date

27-08-2024

Language

English

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Faculty

Technology, Policy and Management

Abstract

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...