Business Rules to Live By  in Semiconductors By Arun Kottolli
<ul><li>Rule 1 : Abide by Moore’s law else you are dead.  </li></ul><ul><li>Rule 2 : Be No.1 or 2  in your segment. No.1 m...
<ul><li>Rule 6 : Semiconductors have a global market requiring globally coordinated marketing and simultaneous product lau...
<ul><li>Rule 10 : Ability to handle cross-cultural issues, over come language barriers and deal with local government is a...
<ul><li>Rule 13 : Maintain a fab if your sales volumes can justify the latest manufacturing technology </li></ul><ul><li>R...
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Business Rules To Live By In Semiconductors

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Business Rules To Live By In Semiconductors

  1. 1. Business Rules to Live By in Semiconductors By Arun Kottolli
  2. 2. <ul><li>Rule 1 : Abide by Moore’s law else you are dead. </li></ul><ul><li>Rule 2 : Be No.1 or 2 in your segment. No.1 makes profits, No.2 survives on crumbs, the rest will die </li></ul><ul><li>Rule 3 : Build the best in class products every time, all the time. Else existing large market share is not guaranteed in future </li></ul><ul><li>Rule 4 : Delay in product releases hurts image, profitability and most importantly hurts relationships with customers. Product must be launched on time as announced </li></ul><ul><li>Rule 5 : Semiconductor business needs a global strategy </li></ul>
  3. 3. <ul><li>Rule 6 : Semiconductors have a global market requiring globally coordinated marketing and simultaneous product launch </li></ul><ul><li>Rule 7 : Market Demographics is changing. China and rest of Asia is now a leading market. </li></ul><ul><li>Rule 8 : Have sales and customer support offices in China, Malaysia, Singapore, Indonesia, S.Korea, Taiwan, India along with US, Japan & Europe </li></ul><ul><li>Rule 9 : Global markets need a reliable global distribution network to supply just in time for customers. A global scale supply chain management is critical </li></ul>
  4. 4. <ul><li>Rule 10 : Ability to handle cross-cultural issues, over come language barriers and deal with local government is a must in order to succeed in Asia </li></ul><ul><li>Rule 11 : Globally Distributed R&D speeds up innovation & development of new products </li></ul><ul><li>Rule 12 : Core Competencies have to be distributed across countries, centers of excellence has to be established and coordination & knowledge sharing between all units within the firm must be developed </li></ul>
  5. 5. <ul><li>Rule 13 : Maintain a fab if your sales volumes can justify the latest manufacturing technology </li></ul><ul><li>Rule 14 : Fabs must be the best in class to remain competitive, Else go fabless </li></ul><ul><li>Rule 15 : Die size affects bottom line in most segments </li></ul><ul><li>Rule 16 : Proprietarily designs will prevent profit erosion in the short run. In the long run, having the best performance designs is a must </li></ul>

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