International Competition and Cooperation

Alongside integrated circuit (IC) invention, IC chip design companies need to own not only EDA design tools but also fabrication line, testing tools, and packaging line. Such company is referred to as the integrated device manufacturer (IDM). This situation lasted into the late 1980s, and then the pure-play foundry enterprises and fabless IC design companies appeared into existence. As the foundry model appeared, the IC industry has entered a mature stage. At this stage, in order to realize the strategic intentions of enterprises, mergers and acquisitions (M&A) occur one after another. At present, each sector, IC design, manufacturing, packaging, and testing of global IC industry, is still in the process of integration. In the next few years, M&A in global semiconductor industry will continue to occur.