SEMICONDUCTOR

BA401 Case Study 1_4

MaTRIx

SWOT ANALYSIS

S

T

W

o

Breakthrough technology

Collective experiencesTime & Resource

Budget

Popularity

Great growing market

Channel via World-brand

Unawareness brand

Low Cost

Technology : Breakthrough technology

Matrix Semiconductor

Product : Combining new value with backward compatibility

Partnership : Coming to market with established leaders

Market : Large, High growth Consumer Applications

Skycrapers, Not Shopping Mall – 3D Chips

Technology

Vertical Stacking up

Technology

A Prototype with no new Atoms

A Revolution in the Making Chip

OM

No new material

Chemical-Mechanical

LCD TV

Builing transistors on top of a surface other than the pure surface of a silicon wafer.

Technology

1

3

2

TECHNOLOGY DRIVING UP

$1.00

$0.10

$0.01Fixed Disk Removable Disk

Matrix 3-D

Flash

Other

SRAM

DRAM

Market Opportunity

$XX Billion-Dollar Opportunity

10 Times less Cost per chip

Idea for providing storage the portable consumer electronic

market

Market Opportunity

New Market

A GLORIOUS TEAMWORK

15x15 floor room

A Very experienced and bright engineers

Collaborating

Brainstorming

Team interaction

Great atmosphere

Human Resources

TRANSFORMING TECHNOLOGY INTO MARKETABLE PRODUCT

The strategic decision to transformits technology into marketableProduct. Due to Budget , Manufacturing and Human Resources

Patent To protect its multiple generation of its product and to ultimately

protect their play.

Market Opportunity

BUILDING A MULTI-DIMENSION STRATEGY

Late debut of prototype in mid 1999

Matrix doesn’t raise fund but they are base on their collective experiences to make their product technology into cohesive strategy that would resonate their investors and customers. (Budget)

Maximize opportunities and Minimize Risk

Problem encountering

OTP (ONE TIME PROGRAMMABLE)

Innovation

Advantage Disadvantage

Less technical for competitive advantage

Uncertain market size and opportunity

Less Direction in competition

Could be read over 100 years

Without unlimited Usage

Positioned as consumable product

READ / WRITE

Advantage Disadvantage

More attractive due to a comparison with Flash

Limited Market Risks

Unpredictable for the first blueprint

No time and resources

Innovation

NICHE MARKET

Competitor # Core position Market Potential Competitor Product

80% Market Share are from Toshiba, Sandisk,Samsung and Hitachi

Our core proposition of lower cost bits, high density

This market is expected for greatest growth

Expensive and too small space

Initial Market

Digital camera market (OTP)

Accesability

Price War

$1.4 billion expected in 2000

Demand for greater storage

Upload on Website

Video Game (OTP)

Brand or not to brand

Brand or not to brand

To Brand Pull strategy

Brand or not to brand

Not to Brand

World Brand

Channel

Awareness

Business model Decision

Brand or not

Patent

Fab Facility

Fabless model

Corporate Strategy

Business model in next 5 years

Long term plan 1999-2004

New innovation in Read/Write Market

Growth Strategy

Concentration Growth Strategy

Horizontal Integration

Cross market

Corporate Strategy

Long term plan 1999-2004

OTP Manufacturer

Business model in next 5 years

Growth Strategy

Concentration Growth Strategy

Vertical Integration

Fabless to be manufacturer

Q & A