Learning and linkages: The management of captive ASIC design and manufacturing capability

Many large electronic systems manufacturers have captive internal ASIC (application-specific integrated circuit) design and manufacturing capability. The ASIC environment is driven by continuous and significant advances in basic design and manufacturing technology, CAD (computer-aided design) tools, and design complexity. The author introduces a framework for managers charged with deriving competitive advantage in this environment. The framework is made up of four parts: strategic intent, guideposts, organizational structure, and coordination arrangements. The critical issues of organizational learning and internal and external linkages between task groups are described and highlighted. Application of the framework is illustrated with the experiences of an electronics systems manufacturer