1. Five Keys to Niche MarketFive Keys to Niche Market
inin
SEMI IndustrySEMI Industry
by James Chu
2. by James Chu
Backgrounder
‧ In highly consolidated industry like semiconductor manufacturing
capital tool, it is more difficult to make business profitable even the
technology is already outstanding. It is even more so if you are not
the No. 1 in your market segment.
‧ From the end users I engaged within Asia, very often, I heard the cry
over those under served or un-served area of market that lack of
attention. Some of them could be niche for those non-No.1 player,
which struggle to stay in the market. Some of them, could be the
inflection point of industry which hatch next business star .
‧ This few slides is experience sharing from SEMI industry that I
served more than a decade. Some case that may be usable to your
current business situation or later.
3. by James Chu
IT IS NOT THE SIZE OF DOG IN THE FIGHT,IT IS NOT THE SIZE OF DOG IN THE FIGHT,
IT IS THE SIZE OF FIGHT IN THE DOG.IT IS THE SIZE OF FIGHT IN THE DOG.
4. by James Chu
5 Keys to Niche Market
1. Niche market is around the CORNER
2. Opportunity has a WINDOW
3. Business PROFITABILITY is king
4. Build strategy around COMPETENCY
5. Earn the profit only by LEAST EFFORT
5. by James Chu
Niche Market is Around the Corner
Served
Available
Market
Niche
Market
Total Available Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Unknown
Market
Unknown
Market
6. by James Chu
, … And it is function of time f(t)
Served
Available
Market
Niche
Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Served
Available
Market
Niche
Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Served
Available
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
ServedAvailable
Market
Niche
Market
ServedAvailable
Market
ServedAvailable
Market
ServedAvailable
Market
ServedAvailable
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Niche
Market
Obsoleted
Service Obsoleted
Service
Obsoleted
Service
Obsoleted
Service
Obsoleted
Service
Market Economy
7. by James Chu
See the market from consumer eyes and feels
Business
Opportunity
(Profitability)
Technology
Roadmap
Process
Cost
Product
Competitivity
Operation
Efficiency
8. by James Chu
Foresee Consumer NEXT Investment Spectrum
Tech Route
Scenario 1
Tech Route
Scenario 2
Tech Route
Scenario 3
Process Tool Type
Cost
Litho
Etch
CMP
PVD/CVD
Clean/ wet etch
Metrology
Supportive
Your Niches
Shopping List
9. by James Chu
Opportunity has a window
Risk
Production
Pilot
Production
Volume
Production
Hands offPilot RD start
Phase
in
Phase
out
time
Activity
RD Cycle
Production
Ramp
Volume
Production
time
Activity
RD Cycle
Production
Ramp
Volume
Production
RD Cycle
Production Ramp
Technical marketing window in market life cycle
Window
Of
Niche Market
10. by James Chu
Business Profitability is King
‧ Application technology proven
‧ Manufacturing efficiency proven
‧ Sustainability proven
– Service & Support
– Business partnership
Time in market
ProductUnitmargin Accumulated
Revenue
Appliance
IC
Capital tool
JDP
Opportunity
Partnership
(Business)
Profitable
Business
Profit Margin
Latter is Bitter for Product Profit Margin
11. by James Chu
Build strategy around competency
Run alone
Be Sure
you
are
SEXY
enough
Race in crowd
Be Sure
you
are
AGILE
enough
Dance on stage
Be Sure
you
are
SHINE
enough
1. Do what you are good at.
2. Select games to make your win.
12. by James Chu
Overall business Vision
- From side track to main track
1. If top tier market is concrete occupied, go get second tier or third.
Get application and user success proven
2. Move closer into the inner orbit (track) of major consumer.
Key market (buyer)
Business relationship orbit (track)
13. by James Chu
Summary
1. Niche market is around the corner find it
2. Opportunity has a window check it
3. Business profitability is king keep it
4. Build strategy around competency do it
5. Earn the profit only by least effort
grow on it