Joint Ventures Reduce the Risk of Major Capital Investments
APRIL 6, 2016
For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. The model can be a win-win as long as the two companies address different customer segments. This is especially relevant when overall demand is declining and chronic overcapacity looms but continual investment in new technology remains important and capacity investment is lumpy.