Abstract
In the global IC industry, business models have evolved into design foundry models and manufacturing foundry service models over the past twenty years. The concept of system-on-a-chip (SoC) refers to integrating all components of a computer or other electronic system in a single integrated circuit (IC). Due to the increasing complexities of SoC devices, it is impossible for one IC design house to have the state-of-the-art expertise required to make all the hardware and software components required for an SoC. Based on SoC needs for intellectual property (IP) reuse and design reuse, this study analyzes a new open business model, called design foundry. Design houses must use a design foundry, an innovation intermediary, to combine their internally generated IPs with IPs acquired externally. This paper uses the SoC design foundry as a case to examine the evolution, SoC problems, and the core value of innovation intermediaries in the whole IC industry. Further, it demonstrates how design foundries create ecological benefits by teaming up with suppliers and customers in the IC industry. This research is the first known study to explore the emerging service gaps, value creation, and value capture processes created by an SoC design foundry. Key words: Open business models, open innovation, design foundry, innovation intermediary, system-on-a-chip (SoC), integrated circuit (IC) Industry.
Highlights
Embracing the trend of globalization, changes in make-or-break rules are accelerating in the global market
In the global integrated circuit (IC) industry, business models have evolved into design foundry models and manufacturing foundry service models over the past twenty years
Due to the increasing complexities of SoC devices, it is impossible for one IC design house to have the state-of-the-art expertise required to make all the hardware and software components required for an SoC
Summary
Embracing the trend of globalization, changes in make-or-break rules are accelerating in the global market. Open business models integrate value chain activities into various products or services. Open business models have emerged as the new key to survival, transcending geographical boundaries, accelerating the speed of product life cycles, and resolving the lack of resources. Firms that adopt the classical closed business model are responsible for the product concept, product design, product manufacturing, product marketing, and post-sale services. Firms with open business models only participate in the highest degree of competitiveness and earn the maximum company’s profit. Through the division of work and integration at the global level, consumers will be able to gain the maximum benefits, while the most competitive firms in each section of the value chain benefit from the dramatic increase in their economies of scale and increased profit
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
