five keys to niche market in semi industry jchu

Five Keys to Niche Market Five Keys to Niche Market inin

SEMI IndustrySEMI Industry

by James Chu

by James Chu

Backgrounder

‧ In highly consolidated industry like semiconductor manufacturingcapital tool, it is more difficult to make business profitable even the technology is already outstanding. It is even more so if you are not the No. 1 in your market segment.

‧ From the end users I engaged within Asia, very often, I heard the cry over those under served or un-served area of market that lack of attention. Some of them could be niche for those non-No.1 player, which struggle to stay in the market. Some of them, could be theinflection point of industry which hatch next business star .

‧ This few slides is experience sharing from SEMI industry that I served more than a decade. Some case that may be usable to your current business situation or later.

by James Chu

IT IS NOT THE SIZE OF DOG IN THE FIGHT, IT IS NOT THE SIZE OF DOG IN THE FIGHT, IT IS THE SIZE OF FIGHT IN THE DOG.IT IS THE SIZE OF FIGHT IN THE DOG.

by James Chu

5 Keys to Niche Market

1. Niche market is around the CORNER

2. Opportunity has a WINDOW

3. Business PROFITABILITY is king

4. Build strategy around COMPETENCY

5. Earn the profit only by LEAST EFFORT

by James Chu

Niche Market is Around the Corner

Served AvailableMarket

NicheMarket

Total Available Market





NicheMarketNiche

Market

NicheMarket

NicheMarket

NicheMarket

NicheMarket

NicheMarket

UnknownMarket

UnknownMarket

by James Chu

, … And it is function of time f(t)


NicheMarket





NicheMarket

NicheMarket

NicheMarket

NicheMarket

NicheMarket

NicheMarket

NicheMarket

Served

Available

Market

Niche

Market

Served

Available

Market

Served

Available

Market

Served

Available

Market

Served

Available

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Served AvailableM

arket

Niche

Market

Served AvailableM

arketServed AvailableM

arketServed

AvailableM

arket

Served AvailableM

arket

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

Niche

Market

ObsoletedService Obsoleted

ServiceObsoleted

ServiceObsoleted

Service

ObsoletedService

Market Economy

by James Chu

See the market from consumer eyes and feels

Business Opportunity(Profitability)

TechnologyRoadmap

Process Cost

ProductCompetitivity

OperationEfficiency

by James Chu

Foresee Consumer NEXT Investment Spectrum

Tech RouteScenario 1



Process Tool Type

Cos

t

LithoEtchCMPPVD/CVDClean/ wet etchMetrologySupportiveYour Niches

Shopping List

by James Chu

Opportunity has a window

Risk Production

PilotProduction

Volume Production

Hands offPilot RD start

Phase in

Phase out

time

Act

ivity RD Cycle

Production Ramp

Volume Production

time

Act

ivity RD Cycle

Production Ramp

Volume Production

RD CycleProduction Ramp

Technical marketing window in market life cycle

WindowOf

Niche Market

by James Chu

Business Profitability is King

‧ Application technology proven‧ Manufacturing efficiency proven‧ Sustainability proven

– Service & Support– Business partnership

Time in market

Pro

duct

Uni

t mar

gin Accumulated

RevenueAppliance

IC

Capital tool

JDP Opportunity

Partnership(Business)

ProfitableBusiness

Profit Margin

Latter is Bitter for Product Profit Margin

by James Chu

Build strategy around competency

Run alone

Be Sure you are

SEXYenough

Race in crowd

Be Sure you are

AGILEenough

Dance on stage

Be Sure you are

SHINEenough

1. Do what you are good at.2. Select games to make your win.

by James Chu

Overall business Vision- From side track to main track

1. If top tier market is concrete occupied, go get second tier or third. Get application and user success proven

2. Move closer into the inner orbit (track) of major consumer.

Key market (buyer)Business relationship orbit (track)

by James Chu

Summary

1. Niche market is around the corner find it2. Opportunity has a window check it3. Business profitability is king keep it4. Build strategy around competency do it5. Earn the profit only by least effort grow on it