Archetypeunverified
Semiconductor / capital-intensive
Enormous fixed capacity investment with cyclical utilization and price erosion.
What changes about the finance work: Margin is dominated by utilization, not by sales effort
Relationships pointing at this node.
changes these tasks
1The task exists in this business archetype but behaves differently. The note is the point of the edge: it must say how it differs, not merely that it does.
Unit cost is dominated by fab utilisation and yield rather than by any variable input. At low utilisation, fixed depreciation per wafer swamps every other line, so cost per unit is really a capacity question and cost-reduction programmes aimed at materials move almost nothing.