Business · General Industry
Vertical integration
Owning multiple consecutive stages of the value chain, for example design, fabrication, packaging and systems, within one company. Gives control and margin capture at the cost of capital intensity and focus.
- Also known as
- Vertically integrated
- Type
- Business
- Domain
- General Industry, Industry structure
Notes
The industry moved from vertical IDMs towards horizontal specialisation from the late 1980s, and partially back again with in-house silicon at systems companies.
Related terms
Part of the General Industry glossary, with every term in the topic and the lifecycles, tools and standards that use them.
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