The Changing Semiconductor Landscape: IDMs in a Consolidating Industry

The changing semiconductor industry environment is leading to major disruptions in the business model in order to reconciliate increasing entry costs and market fragmentation. To be or not to be a pure integrated device manufacturer (IDM) or a pure fabless manufacturer is not the unique solution. Before the final consolidation, large semiconductor companies should build new organizations in which IDM, fabless, fablight sub-business models coexist through alliances and partnerships, in order to be adaptative, flexible and quick to execute.