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Business Model Innovation in China’s Semiconductor Industry: A Pathway to Technological Breakthrough.
- Source :
- Frontiers of Business Research in China; Dec2023, Vol. 17 Issue 4, p467-497, 31p
- Publication Year :
- 2023
-
Abstract
- In the face of intense global competition, the Chinese semiconductor industry grapples with unprecedented challenges. Addressing the issue of “bottleneck technology” has become a paramount concern among experts from various domains in China. However, the trajectory of the global semiconductor sector is inexorably linked to the innovation of its business models and adherence to the tenets of technological evolution. It can be posited that, without business model innovation, Moore’s Law would cease to exist. In the semiconductor arena, where the first-mover advantage wields immense influence, exclusive focus on “technological breakthroughs” from a technical standpoint would invariably constrict itself within existing technological paradigms, leaving it susceptible to external control. This paper undertakes an in-depth examination of pivotal case studies, particularly that of TSMC and Samsung, two enterprises which transcended their latecomer status and shattered the “glass ceiling” by embracing “business model innovations.” Through a comprehensive analysis, it introduces and delineates two distinctive avenues of business model innovation: paper “reconstruction of the division of labor system” and “mismatched demand.” Subsequently, the research investigates two more cases, SiEn Integrated Circuits Co., Ltd. and Changguang Group, exploring specific business model innovation paths, “innovation consortium” and “differentiated demand,” pertinent to latecomer semiconductor companies operating in China. Drawing from these insights and considering the current international competitive landscape and the ramifications of the COVID-19 pandemic, this paper culminates in the synthesis of eight breakthrough trajectories for latecomer semiconductor firms. These pathways are examined through the lenses of technology paradigms (traditional and emerging), market contexts (globalized and deglobalized), and various types of business model innovation (original and secondary). Furthermore, this research offers a comprehensive analysis and discussion concerning the resources, capabilities, and strategies, with the ultimate objective of shedding light on the potential “breakthrough” avenue for China’s semiconductor industry. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 16737326
- Volume :
- 17
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Frontiers of Business Research in China
- Publication Type :
- Academic Journal
- Accession number :
- 175274129
- Full Text :
- https://doi.org/10.3868/s070-008-023-0030-3