Strategic alliances in the United States microelectronics industry

High risk/reward business scenarios have commonly been associated with strategic alliances. Profitable ventures that do not adjust to changing climates—whether market shifts, technology advances, legal or governmental involvement or other fundamental change, rapidly succumb to more facile competition.; This paper will look at strategic alliance models for the microelectronics (semiconductor integrated circuits and multi-chip boards containing integrated circuits) industry through historical trends and by a detailed case study of an exemplar Application Specific Integrated Circuit (ASIC) manufacturer through two generational metamorphoses. The focus of this paper will be a showing of how a microelectronics company responds to an upcoming business paradigm shift and what issues must be considered in meeting the strategic alliance portion of transition to take advantage of the changing environment.; Initial consideration will be given to defining strategic alliances and the process of their development in the corporate structure. A process is shown from consideration of corporate assets and potential candidates through internal and external alliance control mechanisms. Some exemplar alliances are also discussed.; Characterization of the microelectronics industry follows both with a general technical, marketing and productization review as well as a more detailed historical analysis of an exemplar microelectronics corporation. Focus on the exemplar case study is the recognition of their need for a specific strategic paradigm shift towards increased reliance and expansion of strategic alliance models and the results achieved with the new model. Associated with the analysis is an introductory review of changing contract document focus attendant the new model, with examples.; Finally, some general trends in microelectronics strategic alliances are forecast. Noting both increased reliance and substantial shift of focus the newer alliance models are generally reviewed.