Ardentec Corporation is a specialist in “wafer probing,” highly specialized niche sandwiched between the “front-end” and “back-end” semiconductor manufacturing. Because the semiconductor industry uses modular processes and standard containers for the exchange of work in progress, it has become a very flat structure where specialists as Ardentec can carve unique market opportunities are less attractive to manufacturers integrated . The company has grown rapidly, but as you begin to occupy a significant portion of the total available market, the founders are faced with the challenge of how to maintain growth. They have a greater vertical integration in the back-end, or should try to make acquisitions in adjacent markets? The case is intended to be used in conjunction with the technical note “horizontal specialization and modularity of the semiconductor industry” (608-001).
Source: Harvard Business School
Release: Aug 25, 2008. Prod #: 609026-PDF-ENG
System on Chip 2008: Case Settlement Corporation Ardentec