Operationalizing excellence on a strategic business unit: A strategic management plan for AMKOR Technology Philippines

• Main Author: Palaganas, Jerome
• Format: text
• Language: English
• Published: Animo Repository 2001
• Subjects: Semiconductor industry > Philippines; Amkor Technology Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3934
• Institution: De La Salle University

The year 1999 was a promising and challenging year for the semiconductor industry. The increasing demand, growing faster than expected rates, for Integrated Circuit or IC product has open a lot of opportunities to the industry market - making IC outsourcing or subcontracting packaging business favorable due to the following factors: (1) Increasing IC packaging and test complexity (2) Semiconductor companies focusing on core competencies (3) Large capital investments required for the capitalization of water fabrication, assembly (packaging) and test (4) Accelerating time-to-market requirements (5) Growth of fabless semiconductor companies by as much as 28%. With the industry trend, outsourcing of packaging and test has become lucrative business, which accounts to 20% of the worldwide semiconductor packaging and test operations. This industry segment is projected to increase at a faster rate than the overall growth of the semiconductor business based on industry analysis. Given the external and internal environment analyses, as outlined in the paper, Amkor Technology Philippines (ATP) faces the following issues: (1) With the market and economic conditions outlined, how can ATP stay on top of competition in the IC subcontracting packaging industry business? (2) How would the company sustain and keep its best people especially in the technical staff units? In response to these, ATP exerts relentless efforts in achieving Total Customer Satisfaction. Critical success factors for the customers are pursued to gain trust and confidence, building long lasting relationship and future business with them. The pursuit of ATP main strategies, based on external and internal analyses made, will assure the company of sustained industry leadership. The main strategies of ATP are as follows: (1) The plant expansion, to take advantage of the industry growth (2) New product enhancement and development, to exploit new market applications preferences (3) Selective partnership, to achieve supplier quality improvement (4) Hiring policy redesign, to ensure continuous and enhanced service from its main assets, its people Supported by the functional strategies defined, especially operational excellence in manufacturing operations, make it viable for the company to experience continued growth and profitability as well as achieving its vision of being "the company of choice, worthy of trust" to its customers.