Prior analyses in research literature often suggests that the sheer nature of strategic competition amongst firms within similar markets is based on relative behavior dynamics and relationships with rival firms, however, this is not the exclusive means or basis on which competitive firms act within multimarket contact (MMC) contexts. There are many variables that shape the dynamic behavior between competing firms. Accordingly, MMC firms’ strategies within the semiconductor industry offer substantial effects in competitive capabilities and the performance of firms. In this thesis, strategies of multimarket contact firms and their corresponding competitive dynamics will be expanded upon in relation to firm performance. Specifically, firms’ interactions between both multichannel contacts and other in-market rivals will be evaluated relative to firm strategy. These considerations will be evaluated in comparison to prior research literature as well as industry case studies for detailed comprehensive and contextual analyses.

Prior analyses in research literature often suggests that the sheer nature of strategic competition amongst firms within similar markets is based on relative behavior dynamics and relationships with rival firms, however, this is not the exclusive means or basis on which competitive firms act within multimarket contact (MMC) contexts. There are many variables that shape the dynamic behavior between competing firms. Accordingly, MMC firms’ strategies within the semiconductor industry offer substantial effects in competitive capabilities and the performance of firms. In this thesis, strategies of multimarket contact firms and their corresponding competitive dynamics will be expanded upon in relation to firm performance. Specifically, firms’ interactions between both multichannel contacts and other in-market rivals will be evaluated relative to firm strategy. These considerations will be evaluated in comparison to prior research literature as well as industry case studies for detailed comprehensive and contextual analyses.

Table of Contents
I. Introduction 3
Research Goal 4
Research Process 4
II. Literature Review 6
Multimarket Contact Theory 6
Mutual Forbearance and Competition 8
MMC, Market Concentration and Competitive Dynamics 12
Multimarket Contact and Firm Performance 15
E-Commerce & Global Demand: Addressing Resource Capacity 18
Multichannel Contact Strategies 23
Shared-Market Channeling Strategy 24
Contract Channeling Strategy 25
Strategic Alliance Channeling Strategy 27
Multichannel Strategies and Innovation 29
III. Methodology 34
Research Design 34
Data Collection 34
IV. Result 36
Global Market Outlook of Semiconductor Industry 36
Global Semiconductor Industry Structure 41
Competitive Landscape of Global Semiconductor Industry 45
MMC Competition and Strategy Cases in the Semiconductor Industry 50
Intel Corporation: MMC Theory, Mutual Forbearance and Pricing Strategy 50
Samsung: Subsidiary Markets and Contract Strategies 53
TSMC & Samsung: Competitive Dynamics of Strategic Alliances 57
V. Conclusion 60
Future Suggestions 62
References 63

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