An Opportunity Assessment for a New Business Model in the Semiconductor Industry

The report presents an opportunity assessment for the business model of the Semiconductor Consulting Services Provider (SCSP) within the semiconductor industry. This assessment justifies the business needs for this model by examining the evolution of the semiconductor industry to date. The value proposition of this model is discussed based on its cost advantages relative to existing operating models within the industry. The two dominant operating models in the semiconductor industry, namely, Integrated Device Manufacturer (IDM) and Fabless Semiconductor Manufacturer (FSM), are presented. The relevance and appeal of the SCSP business model to IDM and FSM is discussed. Industry experts further provided their input in this study regarding the attractiveness of the SCSP model to fill the gap in the semiconductor industry. This report concludes that SCSP is a viable business model and that the SCSP market will grow in revenue. As a new entrant, SCSP companies should begin by strategically focusing on FSM startups‟ manufacturing and operations outsourcing, followed by existing FSM companies and finally IDM companies.