An Analysis of Managing Sustainable Competitiveness for Semiconductor Manufacturers

Innovative capability is considered inevitable for firms to sustain their competitiveness. In the recent rapidly changing global competition environment, the traditional integrated device manufacturer (IDM) model in semiconductor industry is facing the limitation of sustaining its profitability and competitiveness. IDM’s focusing both chip design and manufacturing for various application segments disperse its resources of innovating sustainable competiveness. This study develops an analysis framework with incorporating data envelopment analysis (DEA) approach to measure the efficiency through proper input and output variables setting. This framework aims at providing guidelines for developing firm’s business and technology strategies. We conducted a DEA analysis by collecting financial data from twenty-six leading semiconductor manufacturing companies, including twenty IDMs and six foundries. The results reveal that the foundry companies have higher competitive efficiency than those of IDMs. The empirical analysis suggests that adopting the asset-light business model may provide IDMs a better resource allocation and help the increase of relative efficiency scores

Essays on Capital Expenditure, Business Model, and Operating Performance in the Global Semiconductor Industry

This dissertation is comprised of three essays on operating performance in the global semiconductor industry, focusing on the impact of capital expenditure and business model.In the first chapter, I apply a panel data stochastic frontier approach to investigate the impacts of different business models in operating efficiencies in the global semiconductor industry. The efficiency scores are linked with the financial ratios and specified by cumulative probit distribution function, cumulative logit distribution function, and the Gumbel function respectively after disentangling the heterogeneity by the within transformation. The estimates by the nonlinear least squares technique indicate that the asset-light fabless companies have relatively higher efficiency scores among the different operating models in the global semiconductor industry. In the second chapter, I associate the semiparametric modified ordinary least squares approach by Simar et al. (2017) with the nonparametric shape constraint regression approach by Du et al. (2013) for performance evaluation in the semiconductor industry. Using panel data on 470 companies in the global semiconductor industry over 1999–2018, I compare technical efficiencies between the integrated device manufacturer business model and the fabless-foundry business model. The performance differences between the vertically integrated manufactures and the vertically specialized fabless and foundry firms are disentangled by the intensity of labor and capital in a very flexible format. The estimation results indicate that the capital intensive integrated device manufacturers taking the advantage of the economies of scale are operating more efficiently than the niche fabless companies in the global semiconductor industry. In the third chapter, I use a nonparametric production frontier approach to investigate the operating efficiency differences by the impacts of business model and capital expenditure in the global semiconductor industry. By using panel data on 470 companies in the global semiconductor industry over the 20 years 1999–2018, I compare the operating efficiencies between the integrated device manufacturers and the fabless and foundry firms. Handling the impact of capital expenditure as fixed input by directional distance estimator, I find that the fabless firms are operating less efficiently on average and that vertically integrated manufacturers dominate the semiconductor industry

Multi crteria decision making and its applications : a literature review

This paper presents current techniques used in Multi Criteria Decision Making (MCDM) and their applications. Two basic approaches for MCDM, namely Artificial Intelligence MCDM (AIMCDM) and Classical MCDM (CMCDM) are discussed and investigated. Recent articles from international journals related to MCDM are collected and analyzed to find which approach is more common than the other in MCDM. Also, which area these techniques are applied to. Those articles are appearing in journals for the year 2008 only. This paper provides evidence that currently, both AIMCDM and CMCDM are equally common in MCDM

Measuring the Relative Efficiency of IC Design Firms: A Directional Distance Functions and Meta-Frontier Approach

An alternative approach for evaluating the efficiency of integrated circuit (IC) design firms is presented in this paper. We took into account the differences between technology groups, containing one or more design firms, and input and output factors to prevent influences of scale (e.g., firm size). Specifically, we employed a directional distance function approach to data envelopment analysis in order to evaluate inefficiency scores and differences among groups based on input and output factors. We found the efficiency of Taiwan’s IC design firms to be dependent not only on firm size but also on R&D expenditure and patent revenue. Our findings suggest that these factors significantly influenced the technical efficiency of Taiwan IC design. Furthermore, by focusing on technology gaps, we offer some suggestions for the different groups based on group-frontier and meta-frontier analyses. Finally, using the results of these analyses, we extended the global results of this study, presenting ways to further improve their efficiency

Operational efficiency performance modelling of Malaysia manufacturing industry

This paper presents an alternative measurement performance system for public listed manufacturing based industry in Malaysia. An operational efficiency performance model for the production of each company was developed using the non-parametric approach, specifically the data envelopment analysis. The performance has been measured through the use of output-oriented based on CCR and BCC models.Data from 80 consumer and industrial product companies were used. The data consists of six inputs and two outputs obtained from financial statement for the year 2010.Experimental result was able to identify efficient and inefficient companies where half of the companies were considered almost efficient under the BCC model. However, only one third of the companies were near efficient when out orientation is performed under the CCR model

UTAUT2 Based Predictions of Factors Influencing the Technology Acceptance of Phablets by DNP

The smart mobile devices have emerged during the past decade and have become one of the most dominant consumer electronic products. Therefore, exploring and understanding the factors which can influence the acceptance of novel mobile technology have become the essential task for the vendors and distributors of mobile devices. The Phablets, integrated smart devices combining the functionality and characteristics of both tablet PCs and smart phones, have gradually become possible alternatives for smart phones. Therefore, predicting factors which can influence the acceptance of Phablets have become indispensable for designing, manufacturing, and marketing of such mobile devices. However, such predictions are not easy. Meanwhile, very few researches tried to study related issues. Consequently, the authors aim to explore and predict the intentions to use and use behaviors of Phablets. The second generation of the Unified Theory of Acceptance and Use of Technology (UTAUT2) is introduced as a theoretic basis. The Decision Making Trial and Evaluation Laboratory (DEMATEL) based Network Process (DNP) will be used to construct the analytic framework. In light of the analytic results, the causal relationships being derived by the DEMATEL demonstrate the direct influence of the habit on other dimensions. Also, based on the influence weights being derived, the use intention, hedonic motivation, and performance expectancy are the most important dimensions. The analytic results can serve as a basis for concept developments, marketing strategy definitions, and new product designs of the future Phablets. The proposed analytic framework can also be used for predicting and analyzing consumers’ preferences toward future mobile devices

Proceedings of USM-AUT International Conference 2012 Sustainable Economic Development: Policies and Strategies

This proceedings includes papers presented at the USM-AUT International Conference (UAIC 2012) carrying the theme “Sustainable Economic Development: Policies and Strategies”, held on 17-18 November 2012 at Bayview Beach Resort Penang Malaysia. This conference is jointly organized by the School of Social Sciences, Universiti Sains Malaysia (USM), Malaysia, and Faculty of Business and Law, Auckland University of Technology (AUT), New Zealand. We received a total of 167 papers from various institutions and organizations around the world where 82 papers were accepted for inclusion in this proceedings. The proceedings is compiled according to the three sub themes of the conference. It covers both theoretical and empirical works from the scholars globally. It is hoped that the collection of these conference papers will become a valuable reference to the conference participants, researchers, scholars, students, businesses and policy makers. The proceedings will be submitted to Thomson ISI for indexing