Electronics
The information technology supply chain is highly complex and often overlooked in today’s world of ever-expanding technological innovation. The typical consumer observes only the very end of the IT supply chain through consumer goods such as personal computers and cell phones. However, the IT supply chain begins with component and material suppliers. Between the beginning and the consumer products at the end fall the various types of component manufacturers, the original equipment manufacturers, and the distributors. Throughout each step in the process, value is added to the ultimate finished product. Whether through a pioneering technology process or an innovative supply chain system, a significant portion of the value generated is intangible. IIC, Inc. has offered its expert opinion in a number of assignments involving companies operating in various aspects of the IT supply chain, including manufacturers of semiconductors and distributors of IT and electronic components, computers, and software. We have utilized economic and financial models to value firms in these industries, to identify and value various intangible property, and to assist clients in understanding competitive strategy in these industries.
For example, we valued several foreign subsidiary corporations engaged in distribution of electronic components and computers. We analyzed industry trends and distribution margins as well as forecast data to develop our estimates of value. Given the highly cyclical nature of this industry, it was important to obtain accurate data on historical trends as well as future forecasts of sales and earnings to develop reliable measures of value.
IIC, Inc. personnel have worked on several studies relating to the micro-chip (semiconductor) industry. We analyzed the role that government policy and competitive strategy played in encouraging the growth and development of the industry in the 1970s. We also developed a production cost model to evaluate the efficiency of producing gallium arsenide semiconductor chips under a pilot program with the federal government. We have examined the role of standards on the rate of diffusion of new technologies in the semiconductor and semiconductor equipment industries. We have evaluated the productivity impacts of new technology in the semiconductor industry.