There is a strong and accelerating trend in the semiconductor industry toward system-level integration, that is, placing higher levels of the total system functionality on a single chip. Starting in the early 1990s, the widening availability of processor cores such as the ARM and MIPS microprocessors and the Oak DSP has made the first step to system-level integration a reality. Recently, MDL(merged DRAM with logic) has been commercially available due to advances in technology integrating memory and logic fabrication processes. The market of System LSI , being defined as the system-level integration chip, is being rapidly increased. The System LSI business would be very important for all semiconductor makers.
The business of System LSI requires the different strategy and capability from other semiconductors. Here the organization design for System LSI business is focused on. This study trys to find out the key success factors and the critical design parameters of organization for the System LSI business.
This study analyze the technology characteristics and market characteristics of System LSI, and compared it with other semiconductor families in terms of contingent prameters and design parameters of organization. The case study covers Intel, NEC and Samsung which are pursuing for different business strategies. Their strategies, core competence, and organizational characteristics are analyzed.
The organizational capability to leverage, strengthen, and diversify the core competence of organization is required for the System LSI business. In addition, the flexibility of organization is required to respond to the very rapidly changing and dynamic environment. The organization model of System LSI business is presented based on the organizational capability and flexibility.
The results of this study reveal some guidelines for the organization design of System LSI business as follows.
1. The structure of organization consists of platform product division, system LSI division, and functional division.
2. Platform product division and functional division provide the sources of necessary resource for System LSI.
3. The System LSI division should be divided on the specific application category.
4. Marketing function is important and must belong to System LSI division. 5. The leverage of internal resources is required through personnel move among divisions.
6. Strengthening internal network and external network is necessary by information technology.
7. Task forces and project teams are operated for each tasks.
