Mindset of a Conglomerate
Most companie active in the semiconductor market are highly specialised and design, manufacture and sell nothing else but semiconductors. A few companies have a semiconductor division as one of many activities. In the semiconductor market, these conglomerates typically have their roots in the Japanese Keiretsu or in the Korean Chaebol structure where industrial activities are interwoven and built around a family and a bank. Often, a large proportion of the semiconductor production of conglomerates does not enter the market but is part of an internal transation between group companies. From a business intelligence perspective conglomerates need to be treated differently from pureplay semiconductor companies as their decisions can be driven by events in other markets. As an example, Toshiba is only divesting its memory division as a result of losses in its nuclear division. Another reason we treat conglomerates specially is the lack of data as a division is not required to report anything.