2. The Semiconductor and
Microprocessor Industry in 2005
226 billion in revenue worldwide.
The industry was expected to hit over $300
billion by 2008
Intel, Renesas Technology, Samsung and
Texas Instruments
market had been historically dominated by
Intel, which held a market share in excess of
80%.
3. Brief history
Founded in Mountain View, California in 1968
by Robert Noyce and Gordon Moore
first commercially available dynamic random
access memory (DRAM) chip in 1970.
2005 Barrett became chairman of the board
and Paul Ottelini was named CEO.
Intel supplied about 80% of the central
processing units (CPUs) used in PCs,
workstations and servers
4. Problem statement
Finding a suitable location for next AT factory
considering the Cost,work force and customer
satisfection.
The new facility would be Intel’s largest AT
plant to date, doubling the size of any existing
AT plant and providing the company with more
efficient capacity.
5. Criteria to choose location
local infrastructure costs (power, water, labor)
transportation cost
security and environmental conditions
Government Policies
6. External point of view
Situations in the countries under consideration
(China,India,Vietnam)
Competitior's point of view.
1.Samsung
2.Advanced Micro Devices(AMD)
3.TSMC
4.Texas Instruments
7. 1.Nearly all worldwide
semiconductor market growth in
2005 was due to new electronics
systems production occurring in
China.
2.Demand in China for
semiconductors was responsible
for 90 percent of total worldwide
market growth.
3.36 of the top 70 suppliers to
the worldwide semiconductor
market had below-average
shares of the Chinese market in
2005.
Why China ?
8.
9.
10.
11. Samsung
Merchant market
component sales 35% of
Samsung Electronics’
total revenue.This
contrasts with Intel,
which generates virtually
all its revenue from
merchant market
component
Intel currently gets 93%
of its revenue ($49.4-
billion in 2012) from
microprocessors and
other logic devices. By
comparison, Samsung
12. 1.In 2003 AMD had a large
and successful flash
memory business
2.Was facing aggressive
microprocessor competition
from Intel
3.After dotcom burst AMD
spun-off its flash memory
business
Advanced Micro Devices
13. AMD's Strategy
AMD Adopted fabless strategy to survive in business and tied with
TSMC ( world's larges dedicated independent semiconductor foundry).
16.
The economy was one of
the fastest growing in the
region, with annual growth
of about 7%.
A untapped Market for
semiconductor industry.
Factory wages were about
$60 to $80 a month, less
than in China.
Why Vietnam ?
18. Texas Instruments
Texas Instruments’s $1 billion
assembly plant in the
Philippines
Reasons :
1.To avoid direct contest with
Intel
2.Constantly rising land
prizes in China
3.Comparatively low labour
cost in Philippines
19. Conclusion
All the advantages and disadvantages of the
location has been studied from an external
and internal point of view.
Finally intel established AT plant in Vietnam:
Ho Chi Minh City