Location Selection for Fabless Firms

Niharika Jeena (), Meles Hagos (), Charles Sai (), Yuan Xu () and Zack Khalifa ()
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Niharika Jeena: Portland State University
Meles Hagos: Intel Corporation
Charles Sai: Fiserv
Yuan Xu: Chinaunicom
Zack Khalifa: Schlumberger

Chapter Chapter 3 in Technology Development, 2014, pp 43-70 from Springer

Abstract: Abstract Site selection for a fabless firm is a key problem for global semiconductor companies. The process of site selection for firms that are involved in research and development is influenced by many criteria. The model developed in this study highlights the most significant criteria that have an impact on the fabless site selection. Some important criteria include: Engineering Talent, Market Development, Policy, Cost, and Communications. In this study, these criteria used in an Hierarchical Decision Model (HDM), along with their associated sub-criteria to select the most attractive site from several potential sites. Candidate sites considered for a fabless semiconductor company were: San Jose, Portland, Hsinchu, Tokyo, Haifa, and Stockholm. A brief background on fabless firms worldwide with all the criteria and sub criteria is discussed. The pairwise comparison method was utilized to quantify expert opinions from the semiconductor industry on fabless site selection. Some data from the literature, such as data regarding engineering talent and market development, was extracted from various sources, normalized, and incorporated into the HDM model. The findings indicated that San Jose, Portland and Hsinchu are the most attractive locations for fabless firms.

Keywords: Venture Capital; Market Development; Semiconductor Industry; Skilled Professional; Location Selection (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:innchp:978-3-319-05651-7_3

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DOI: 10.1007/978-3-319-05651-7_3

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