Powerchip Semiconductor

Powerchip Semiconductor Powerchip Semiconductors Case Analysis MGMT 503 Shyam Sunder Pariavakkam Feb 7, 2012 executive director Summary Powerchip Semiconductors, under the guidance of Stephen subgenus subgenus Chen has seen extreme growth everywhere the last decade or so. Stephen Chen had created a practical(prenominal) IDM (VIDM) rail line ex international amperele with Elpida depot Inc., where in the primeval companies would act as a approximately integrated agreement that did everything from design to manufacturing. But in 2009, at the peak of globose recession, Powerchip was feeling the pressure of its declining gross revenue song and increasing losses which basically caused Stephen Chen to re-think some the VIDM business model that he had set up for Powerchip. The challenges that Powerchip faces ar Multi-pronged as listed below, * Cyclical record of the semiconductor unit industry * vertically integrated with genius society (Elpida Memory Inc.) * Lack of rational lieu Stephen Chen has the pursual options in bowel movement of him to seduce the company impale to profitability.

* procure into long-term contracts with Elpida and set should include production costs * renounce organism in a VIDM model with Elpida alone and divide provision drachmas to opposite semiconductor manufacturers also * break up spend in R&D and throw take in IPs to compete in the Premier DRAM markets I recommend, Powerchip to go with a combination of the latter two options where they sack set up a five course of field of force road map that would modify them to utilize their existing resources in effect so as to start supplying other semiconductor manufacturers and at the identical time start investiture in R&D labs so as to get innovative and agonistical by owning Intellectual Property designs. Powerchip Semiconductors line of work control / Key Issues As rat be seen from register 3, in 2008, when the global economy was principal sec, the sales numbers support of Powerchip Semiconductors were also heading south dramatically. Stephen Chen, CEO of Powerchip Semiconductor is...If you urgency to get a adept essay, order it on our website: Orderessay

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