Samsung Plans to Manufacture Semiconductors in the US

Samsung Plans to Manufacture Semiconductors in the US

Samsung is investing $13 billion in a chip-making factory in the US, which would employ 1,900 people by October 2022.

Three location alternatives are being considered: Texas, Arizona, and New York.

Samsung will be competing with Taiwan Semiconductor Manufacturing Co. for the top leadership position in the $400 billion chip-making industry in the US.


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This post is based on The Hill article, Samsung considering investing billions in US chip plant, by Lexi Lonas, January 23, 2021; the KVUE article and video, Samsung reportedly considering $10B chip-making plant in Austin, by KVUE News Staff, Jan 22, 2021; and the YouTube video in the Spotlight. Image source: MS Mikel/Shutterstock

Discussion Questions:

1.  How does Samsung compete operationally in the chip-making industry of the US?

Guidance: To achieve the goal of becoming the top chipmaker in the US by 2030, Samsung needs a local presence to catch up with Taiwan Semiconductor Manufacturing Co.. Having a chip-making factory based in the US is the first step towards that goal.

2.  What are the location factors being considered by Samsung in building Continue reading

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The Case of the Disappearing Daigou

The Case of the Disappearing Daigou

January 10, 2021

Disappearing daigou are causing sales in Australia to plummet in key industries like infant formula, personal care and beauty, and nutritional supplements.

Daigou in Australia are personal shoppers who ship products to China. In this multi-billion dollar industry, millions in revenue have been lost by dairy and supplement brands because of changes precipitated by the pandemic.  Australian baby formula companies like Bubs, Nuchev, and A2 join others in daigou-driven markets to find new distribution strategies to get their products into the hands of Chinese consumers.

Pandemic-related issues are causing major shifts in this dynamic market and how it operates.


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This post is based on the ABC News Australia article, Chinese personal shoppers and Australian brands devastated by impact of coronavirus, by Bang Xiao, October 17, 2020; the Sydney Morning Herald article, A2 Milk to boost direct China sales as daigou market sours, by Dominic Powell, December 18, 2020; the AFR article, Disappearing daigou pull rug from Bubs and Nuchev (requires subscription), by Simon Evans, November 3, 2020; and the YouTube video in the Spotlight. Image source: Continue reading

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VW Partners with Amazon Web Services

VW Partners with Amazon Web Services

Volkswagen (VW) is in partnership with Amazon Web Services to link more than 120 VW factories to 1,500 suppliers and 30,000 plants worldwide via a cloud-based software and data portal.

The “industrial cloud” digitizes factory processes from stamping to painting to maintenance.  Supplier partners use an app store approach to share and contribute software applications.  Amazon provides support services, including data analytics and computing.


Video Spotlight: VW and Amazon team up to create an industrial cloud (Mar 28, 2019, Arirang News)


This post is based on the IT News article, VW sees Amazon-built ‘industrial cloud’ as future B2B marketplace, by Paul Lienert, July 24, 2020, and the YouTube video in the Spotlight. Image source: Shutterstock / vectorfusionart

Discussion Questions:

1.  What are the strategic implications of VW’s industrial cloud?

Guidance: The industrial cloud integrates VW factories with its suppliers and plants to digitize processes and improve supplier relationships.  The cloud technology better positions VW to compete on responsiveness, quality, and flexibility.

2. What role does VW’s industrial cloud play in its supply chain operation?

Guidance: The industrial cloud enables VW to address the barriers to integration of suppliers by sharing data Continue reading

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