This study is a descriptive study on the globalization processes of fabrication production in a semiconductor manufacturing company focusing on fabrication capacity expansion processes. The objective of this study is to analyze the strategic pattern(type) of globalization in fabrication manufacturing of semiconductor. The scope of this study is confined to the area of memory fabrication manufacturing because the other area of industry such as microprocessor or ASIC has significantly different motives and economic principles in globalization.
There are three distinctive patterns of globalization in the semiconductor fabrication manufacturing. First, N(NEC)-type is pursuing the approach of "Foreign Direct Investment(FDI)" to overcome the various type of trade barriers, frictions, and local protectionism by forming a global portfolio of fabrication manufacturing. Second, T(Toshiba)-type is the pattern pursing "Efficiency" to sustain or enhance its global competitive position by concentrating its R&D and Manufacturing in its home country together with emphasizing "Joint Venture" and "Alliance" to minimize its invest risk in foreign countries. Third, S(Samsung)-type is the "Eclectic" pattern. This type is pursuing the benefits of N-type and T-type together to overcome the difficulties of follower by acquiring the technology and know-how through the learning/adaptation/innovation.
From this viewpoint, N-type can be interpreted that they have made a strategic choice to minimize the global business risk by forming a global portfolio of manufacturing with sacrificing a certain level of efficiency, and T-type can be interpreted that they have made a strategic choice to maximize the efficiency even though it would be exposed to the risk of losing certain portion of market share resulted from various type of protectionism. In case of S-type, they want to minimize the risk and to maximize the efficiency but they have some propensity emphasizing the risk management.
And there is a trade off relation between pursing the global portfolio of fabrication(N-type) and pursing the efficiency(T-type) because of unique characteristics of memory fabrication industry and global environment of the industry involving various kinds of trade frictions and government interference. Therefore, a memory fabrication manufacturers should decide the point where it would position its global manufacturing strategy in the trade off line and it depends on the strategic decision making which consider the internal resources of the firm and the external changes of business environment.
In conclusion, these patterns are changing from distinctive pattern to similar pattern pursing efficiency and risk management of business environment together, so there are little difference among 3 patterns. It means that they pursue the same target and the same method of globalization pattern in the fabrication manufacturing. To pursue the foreign investment and joint venture/alliance together is the changing direction of the globalization in the semiconductor fabrication manufacturing.
