Case Background

Semiconductor Industry

Todays semiconductor technology allows billions of transistors to be packed into a thumb-sized microprocessor to provide advanced computing functions that improve many aspects of our life. The making of a microprocessor goes through several stages; and each can function as a business:

i. Integrated Circuit (IC) design: An IC designer develops an electronic circuit and uses a software to convert the circuit into layers of overlapping path patterns of different semiconductor materials. ii. Fabrication of the IC: A fabrication company uses a machine to project the IC patterns with ultra-violate (UV) light onto a silicon disc. This is followed by several chemical processes to deposit different semiconductor materials onto the disc to form the IC. The tiny patterns are measured in nanometer (nm). Smaller width permits more powerful IC.

Other stages are IC packaging and testing.

Traditionally, semiconductor companies operate all stages in-house. However, due to the increased complexities of technologies, specialised companies emerged to focus on each stage. These companies include:

i. IC Designers: These companies are innovative at designing IC for various applications. Some of them are located at Science Park in Singapore. They do not want to or are unable to invest in expensive IC fabrication plants. Hence, they subcontract the fabrication to semiconductor plants. ii. Semiconductor fabrication plants: This industry is capital and knowledge intensive. Currently the worlds leading semiconductor fabrication company is CMST which is the only company capable of fabricating ICs with the 7nm process. CMSTs closest competitor can only work on 14nm process. CMST is currently developing the 5nm process for the next generation of advanced IC.

Mobile Communication Industry

Human life has been immensely transformed by the development of Telecommunication Technology through the wide-spread deployments of 4G mobile technology that enables the ubiquitous eCommerce and online conferencing. However, newer applications, such as Driverless Car System need a faster and more advanced 5G mobile technology. Although there is no official 5G standard being adopted, there are several variants of 5G mobile technology trials being conducted in different countries.

WeSing Technology (WST)

WeSing Technologies (WST) was founded in Singapore in 1990. WSTs vision is to bring fast digital connectivity to every person, home and organisation so as to achieve an interconnected and intelligent society. With thirty years of hard work, WST has become a world-leading ICT company. It has three main arms: i. WST Telecom arm which develops and deploys mobile base stations for telecommunication service providers. ii. WST Corporate arm which provides network equipment to large corporations, and iii. WST Consumer arm which provides terminal devices, such as smartphones and computers, to consumers. WST has invested heavily in the development of ICT technology and has successfully filed many patents based on 5G technology. Its Telecom arm is working with several telecommunication service providers to conduct local 5G mobile trials. WST has formed an IC Design Department to design its own microprocessors. One of the designs is named the Lion 9X0 chip. WSTs Consumer arm has launched a series of MX0 high-end smartphones. Its M20 smartphone, based on the Lion 920 chip, launched three months ago was well received in Asia. WST plans to launch the M20 smartphone in Europe soon and hopes to replicate the success of the previous M10 smartphone there. The Lion 920 chip is fabricated by CMST using the 7nm processes. WST has also newly developed the M30 smartphone, based on an advanced Lion 930 chip with 5G mobile capability, is targeted to be launched in December 2021. Ideally the Lion 930 chip shall use a 5nm fabrication process.

The Trade Sanction The worlds superpower, ASU Company did not prepare well for the emergence of 5G mobile technology. Its once flourishing telecommunications companies which led the 1G and 2G mobile technology, had been split up or sold off in the past ten years.

ASU has accused WST for imposing a security threat to the world in its 5G mobile technology. It has rallied its allied countries not to adopt WSTs 5G mobile system. It has also demanded ASUs leading mobile phone Operating System designer, Toogle, not to licence the worlds most popular Toogle Mobile Services (TMS) Apps System to WSTs future smartphone models. However, the sanction does not apply to WSTs products that has been licensed, e.g. the WST M20 phone. ASU also demanded CMST to stop fabricating microprocessors for WSTs products, after a grace period of 120 days. In this grace period, CMST can supply WST with ICs for its one-years needs.

WST is in a crisis. The management need to deploy projects to survive through the crisis and possible growth in the future.

Question 1 (a) Organisation Strategy: What is a Project Portfolio Management System? Appraise how it can help WST to eliminate or minimise the impact of three (3) problems that may affect WSTs survival. (b) Project Classifications: WSTs management team has gathered a list of potential projects for evaluation: Project A: Contract CMST to fabricate Lion 920 microprocessors for 120 days. Project B: File patents for its 6G Mobile Technology. Project C: Develop the WST Mobile Services (WMS) Apps System. Project D: Apply to European Union (EU) Electromagnetic Immunity Certification for its M20 Smartphone. Project E: Implement Six Sigma Quality Management System. Project F: Build an IC Fabrication Plant. Classify each of Project A to F into one (1) of Compliance, Strategic or Operational categories and differentiate how the project can help WST to meet is business objectives and social functions. (c) Project Evaluation: Assuming after the prioritisation the projects, WST management has decided on the project to build an IC Fabrication Plant and named it the IFP Project. It is considering one of the three sites for the plant: Science Park at Ayer Rajah, Central Business District at Shenton Way or an industrial estate at Tuas, in the outskirts of Singapore. Rate three (3) criteria WST shall use to evaluate the sites, your relative ranking on the criteria and the highest rated site for each criterion. Your criteria must be a mix of financial and non-financial considerations.

Your answer shall be in the following format: Criterion (*1/2/3) is _______ which is a *financial/non-financial criterion. It is the *highest (most favourable)/middle/lowest ranked criterion for WST because ______. The highest rated site under this criterion is *Ayer Rajah/Shenton Way/Tuas because ______. Note: i. * Choose one of the items. ii. Repeat the above for all three criteria. iii. You must not repeat the choice of same site for different criteria. iv. You are not required to carry out the multi-weighted scoring.