ABSTRACT

This chapter looks at the value chain coordination of virtual vertical integration of these global partnerships through IBC formation through the cases of global leaders Qualcomm, eSilicon and Taiwan Semiconductor Manufacturing (TSMC), not only to promote the companys innovation activities. It provides new value for customer's innovations within the horizontal structure of these corporations manufacturing businesses. The chapter also describes hybrid innovation in Fujitsu as a New IDM company in Japan through collaborative strategies. The American company Qualcomms main businesses are wireless communications technology R&D such as Code Division Multiple Access (CDMA), semiconductor and software development, sales and licensing. TSMCs corporate vision is to be the biggest company providing the most advanced foundry service to fabless companies and vertically integrated device makers (IDMs). Japanese IDM companies are also beginning to change their traditional business models in response to the miniaturization of semiconductor processes. Fundamental to the creation of virtual IDMs is the formation of dynamic IBC's and boundary networks.