Powerchip Semiconductor Corporation has a horizontal structure of the company in the industry, mainly organized vertically. At the time, she was successful in new markets in the current down market its strategic rationale was tested. In capital-intensive manufacturer of memory DRAM, which were to license his design from abroad, it has been able to compete with large vertically integrated companies that control the entire value chain? As the same approach as compared to its partner Elpida? Powerchip and Elpida may together form a "virtual integrated device manufacturers?" The case examines some of the unique characteristics of DRAM industry in which manufacturers use large scale to compete on cost in the production of standardized products.
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by Willy Shih, Chen-fu, Venkat Kuppuswamy, Yen-Liang Koai Source: Harvard Business School 24 pages. Publication Date: March 12, 2009. Prod. #: 609063-PDF-ENG