Product line policy and profitability in the semiconductor industry: Analysis of 59 company financial data in 2001-2013.

By using the panel data of 59 semiconductor companies in 2001-2013 this study investigates the characteristics of financial condition of each product segment and explores the effective product line policy in semiconductor industry. Semiconductor is well-known as one of the fundamental products in contemporary information society. However, companies in the semiconductor industry often experiences financial difficulties, and we do not have a solution for it. From the analysis of semiconductor companiesf financial structure, we find that 1) entrants have to prepare the different strategy in accordance with each segmentfs situation, and 2) focused product line policy brings more profit than diversified product line policy.