• Dedicated Wafer Sorting: Ardentec Wafer Testing Service

Abstract

Using the unique position of Ardentec in the value chain as the opening, the role of “wafer sorting” in semiconductor industry is illustrated as the umpire in baseball game. There was a critical decision and challenges faced by Dr. Chih-Yuan Lu, Chairman of Ardentec. Then, this case introduces the background of Ardentec to describe how Dr. Lu and his founding team recognized the niche of wafer sorting in 1999, and how Ardentec separated the specialized slice of value chain in the semiconductor industry to provide a unique service of dedicated wafer sort between the front-end of integrated circuit (IC) design and wafer fabrication, and the back-end of assembly and testing. On one hand, under the System-in-Package (SiP) testing, integrated with heterogeneous functions, Ardentec has employed various solutions including the “known good die” (KGD) to enhance the distinctive value of wafer sorting. On the other hand, considering the increasing competition of the full-service back-end companies, Ardentec comes across the crucial challenge to maintain continuous growth and profitability. Thus, this case raises critical questions and fundamental decisions to the readers: What strategy should Ardentec develop to maintain growth and profitability? How will Ardentec upgrade its core competence and provide value for its customers to expel the rivals? How can Ardentec maintain its unique dedicated wafer sort position in value chain, while trying to enhance its business scope?

Keywords: Semiconductor Value Chain, Wafer Sorting, Virtual Testing House, Business Model, Entrepreneurship