||The semiconductor components are the base of electronic products connected with electricity, which is also the core parts in electronics industry and can be applied on any electric products. The upstream was composed by Microcontroller IC、Logic IC、Memory IC、Passive components and other IC manufactures While downstream includes computer, telecommunication, information and consumer electronics manufactures. Nowadays, the Semiconductor distributors not only delicate in selling and procuring activities, but actively provide the professional value-added services to their up and downstream vendors (such as product design concept and integration) and properly coordinate the demand and supply in the competitive market. In this specific production and distribution structure, the semiconductor distributors develop a harmonious relationship with their upstream supplier and downstream product manufacture and play an important role in communication and coordination in the|
highly competitive semiconductor industry.
There’s no doubt that semiconductor distributor plays an extremely critical role in the present industry. They’ve radically changed from making profit of buying -selling activities into assisting their clients on business expansion, technical support, financing and coordination between supply and demand of stock. In short, it has
became a non-negligible aspect in the semiconductor supply chain.
Nevertheless, new competitors have been sprung up like mushrooms into this industry by providing highly creative and differential services. Though the revenue increased, the cost was soaring as well, which offset the increase of profit and lead to higher degree of financial leverage. The situation will be getting worse with the higher employee turnover rate and cause thorny operational problems, this vicious circle even results in the prosperity of alliance and M&A activities, and it’s inevitable has promoted
semiconductor industry to be the situation that the bigger the stronger.
This study takes an example of the semiconductor distributor (Company Z) who was the agent of Japanese famous brand and consumer electronics for a long period of time. This paper not only explores how the case company could transform from an electric channel into an entrepreneur delivering completed product design proposals, but the transformation of their strategic planning, supply chain modification, transforming opportunities and their strength and weakness in present. We also address our suggestion in order to help the case company. Through the competitive strategy and semiconductor industry analysis, we will to get a better understanding in our current domestic semiconductor distributor industry and their future development.
The study develops the industrial developing strategic analysis and competitive advantage by investigating the external environment and industry condition. The structure was composed by the theoretical literature, five forces model and SWOT diagram to understand the strength, weakness, opportunity and threat of Taiwanese semiconductor distributor industry. Moreover, this paper also investigates the
company’s advantage by analyzing its internal resources.
We also summarize the collected data for supporting our theory. The most privileged semiconductor distributors in this industry were chosen as our case company (Company Z) by examining their business strategies. Finally, the conclusion and suggestion will be sum up at the end of this paper for the case for reference.