Most semiconductor companies have outsourced all or some of their wafer manufacturing to foundry services. This has a positive impact on free cashflow with a possible negative impact on gross margins. Outsourcing manufacturing is not unique to the semiconductor industry but particularly attractive because of the massive investments needed to participate in the technology race. All outsourcing comes with a loss of control of your supply chain and only time can tell if it is a good strategic choice for a semiconductor company.
If you want to be a memory company, you need factories. As memories are highly competitive and either extremly profitable or running at a loss it require a highly specialised business model. When times are good you invest, when times are bad – you wait.
You can see more free charts here
Is your Strategy based on anecdotes? Do you want opinions or data-driven insights? Semiconductor Business Intelligence follows the industry in detail. We update our customers with general or customised quarterly reports on companies, products and end-markets. All of our research is based on our proprietary data and analysis of top semiconductor companies and related markets. We create a quarterly Factbook for each product group, end markets and of each of the top 50 semiconductor companies at a fraction of the time and price your business intelligence team can compile it.
Need semiconductor insights? Buy our general reports here
Want free Insights: Sign up to our mailing list here
Need Semiconductor Consulting? Guidepoint
Connect to Claus Aasholm on LinkedIn