Article ID: | iaor20021152 |
Country: | South Korea |
Volume: | 18 |
Issue: | 1 |
Start Page Number: | 1 |
End Page Number: | 13 |
Publication Date: | May 2001 |
Journal: | Korean Management Science Review |
Authors: | Cho Keun-Tae, Kwon Cheol-Shin |
Keywords: | decision theory: multiple criteria, analytic hierarchy process |
Despite that the semiconductor industry plays an important role to our economy, it has abnormal industrial structure stressing too much on memory chips. Thus, it is essential for our industry to develop nonmemory chips to obtain technological leadership in a highly competitive semicondutor market. In this study, we demonstrate how benefit/cost analysis using the Analytic Hierarchy Process (AHP) can be used for the proper selection of nonmemory semiconductor chips: Microprocessor, ASIC, digital IC and Analogue IC. The final results show that ASIC is the most attractive chip to develop, followed by Analogue IC, digital IC and Microprocessor. This is somewhat consistent with the information that we found with respect to the elements that were taken into consideration. Sensitivity analysis is also provided here.