The Research Of Development Strategy For Semiconductor Manufacturing International Corporation

This paper first gives a brief introduction SMIC, including the company’sdevelopment history and current issues and challenges.Followed by a SMIC’s strategic environmental analysis, from the political,economic, legal, policy and technical environment to conduct an externalenvironmental analysis of its (PEST analysis).Second, foundry industry, conducted a five-force model analysis,including the threat of a substitute for silicon chip manufacturing businessthreat to potential entrants, suppliers, bargaining power, the chip foundrycustomer’s bargaining power and existing competitors. Through the FiveForces analysis, a clear picture on behalf of the entire semiconductor industryenvironment.Again from SMIC’s financial, human resources, technology and R&Dcapabilities, productivity, customer and market resources to conduct itsinternal resources and capacity analysis.Fifth, we conducted a SWOT analysis of SMIC, SMIC pointed out thestrengths, weaknesses, opportunities and threats lie.According to SMIC’s external and internal analysis, this paper putforward the strategic positioning of SMIC’s competitive and selection isproposed to implement in the overall cost leadership strategy, local implementation of the differentiation strategy. Also pointed out thatimplementation of the strategy of the risk lies.In the final part of the implementation of the strategy put forward a four-point strategy for the implementation of a clear cost leadership strategycontent and implementation of two different elements.