Publication

This working paper examines the influence of internet-based e-business applications on the trend toward increased vertical specialization in the global semiconductor industry. The authors argue that the internet appears to be accelerating vertical specialization. After outlining the structure of the global semiconductor industry and the forces supporting vertical specialization, the authors assess the role of e-business on product design, the manufacturing process and the emergence of online markets for equipment. The paper concludes that the need for industry-wide standards in e-business methods has been a significant impediment to the development of various internet-enabled markets.