Profitability of Semiconductor Firms: Dependence of Revenue, a Number of Product Lineup, and Business Model -Analysis of Panel Data of Worldwide 58 Semiconductor Firms In 2001-2013-

Masao Nakaya (), Fumiaki Nakamura () and Koichi Nakagawa ()
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Masao Nakaya: Graduate School of Economics, Osaka University
Fumiaki Nakamura: Graduate School of Economics, Osaka University
Koichi Nakagawa: Graduate School of Economics, Osaka University

No 17-04, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study investigates the determinants of the operating income of the semiconductor industry using the panel data of 58 world semiconductor firms in 2001-2013. The semiconductor industry still continue to expand and is a great influence on the society, improving in economical efficiency and performance of transistors at the same time, and semiconductor products go further in the direction of increasing complexity and diversity. However, market volume of semiconductor has high volatility, operating income concentrated in top firms of revenue. This study aims to become fundamental in the semiconductor industry to deal with Economics and Management Sciences Research, and indicates the determinant of operating income of semiconductor firms, using information about financial data and statistical analysis. Generally speaking, it is indicates that raising revenue makes an operating income increase. However, raising revenue by broaden product lineup causes reducing operating income conversely. In recent years Fabless-Foundry business model is praised in the semiconductor industry. A remarkable progress of Fabless firms occurs in a few product groups. After statistical analysis, a significant difference which Fabless-Foundry model is superior to IDM model cannot recognized in most other product groups.

Keywords: Semiconductor; Profitability; Business Model; Product Lineup; Panel Data Analysis (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2017-04
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