Engineers and Work in Global Design Networks of the Semiconductor Industry Inauguraldissertation zur Erlangung des Grades eines Doktors der Philosophie im Fachbereich Soziologie der Johann-Wolfgang-Goethe-Universität zu Frankfurt am Main vorgelegt von Peter Pawlicki aus: Bytom, Polen Frankfurt, Oktober 2012 1. Gutachter: PD. Dr. Boy Lüthje 2. Gutachter: Prof. Dr. Wilhelm Schumm 2 Contents Figures and Tables ............................................................................................................................. 5 Acknowledgments ............................................................................................................................. 7 1. Engineering work in the semiconductor industry – why? ............................................................. 9 1.1. Short remarks on methodology ............................................................................................................ 17 2. Industry, internationalization and innovation. Work and industrial restructuring ...................... 20 2.1. Globalization of work. Dynamics of production and innovation in theoretical perspective ............... 21 2.1.1. Global Commodity Chains ........................................................................................................... 21 2.1.2. Global Value Chains .................................................................................................................... 24 2.1.3. Global Production Networks ........................................................................................................ 29 2.1.4. Global Design Networks .............................................................................................................. 32 2.1.5. Modularization ............................................................................................................................. 35 2.1.6. Upgrading ..................................................................................................................................... 38 2.1.7. Work ............................................................................................................................................. 41 2.2. The changing face of innovation. Architectural innovation, capabilities and industry organization in globalizing markets .................................................................................................................................... 46 2.3. The place of innovation work. R&D locations and their various functions in Global Design Networks ............................................................................................................................................................51 2.4. Complex relations. Summary and development of guiding questions ................................................. 54 3. Organization and Geography of the Semiconductor Industry ..................................................... 60 3.1. The Semiconductor Sector – organization, geography and technology ............................................... 61 3.1.1. Formation and internationalization of the semiconductor industry .............................................. 61 3.1.2. The state as driver in industry development ................................................................................. 65 3.1.3. Commodification of knowledge and increased modularization ................................................... 68 Electronic Design Automation .......................................................................................................... 69 Semiconductor Intellectual Property – re-using knowledge ............................................................. 71 3.1.4. Geographical and organizational dynamics of the electronics industry ....................................... 73 Market shifts and changing product characteristics .......................................................................... 76 3.1.5. Technology dynamics – costs, differences, opportunities and draw-backs ................................. 78 Digital and analog – two different sides of semiconductors ............................................................. 82 Design automation – its limits as drivers of internationalization ...................................................... 84 Rationalization through design methodologies revised ..................................................................... 86 3.1.6. Fab-light and the disposal of manufacturing capabilities ............................................................. 88 3.1.7. The changing place of innovation interface ................................................................................. 93 Re-integration from the manufacturing side ...................................................................................... 93 Architectural innovation .................................................................................................................... 96 Foundries as network organizers ....................................................................................................... 98 3.1.8. The organizational landscape of the electronics industry .......................................................... 100 3.1.9. Mediatek – epitome of the dynamics in the electronics industry ............................................... 102 3.2. The Semiconductor Firm – three case studies in GDN integration and upgrading ........................... 107 3.2.1. The money conscious price specialist IDM ............................................................................... 107 Upgrading as a continuous process in intra-organizational GDN ................................................... 109 Local characteristics – enabling upgrading and driving adjustments .............................................. 115 GDN development and upgrading ................................................................................................... 117 3.2.2. Standard based SIPs of exotic origin .......................................................................................... 121 Problematic upgrading for a small partner in inter-organizational GDN ........................................ 123 The local labor market as barrier for upgrading .............................................................................. 128 GDN position and upgrading ........................................................................................................... 129 3.2.3. The slashed IDM ........................................................................................................................ 135 Differentiated upgrading in a developed location ........................................................................... 138 Drying-out labor market as future threat for upgrading .................................................................. 143 GDN position and upgrading ........................................................................................................... 146 3.3. Triangular restructuring and local integration on industry and firm level ......................................... 150 3 4. Knowledge, control and internationalization in the chip design labor process ......................... 155 4.1. Labor process – perspectives on work, control and skills .................................................................. 156 4.1.1. Responsible autonomy and direct control .................................................................................. 158 4.1.2. Structural forms of control ......................................................................................................... 161 4.1.3. Consent and commitment ........................................................................................................... 163 4.2. Knowledge and experience ................................................................................................................ 168 4.2.1. The tacit dimension of knowledge ............................................................................................. 171 4.3. Knowledge management as control ................................................................................................... 176 4.4. Strategies of control – analytical model and guiding questions ......................................................... 182 4.4.1. Task organization ....................................................................................................................... 186 4.4.2. Control structure ......................................................................................................................... 187 4.4.3. Lateral relations .......................................................................................................................... 189 4.4.4. Labor market relations ............................................................................................................... 191 4.4.5. Knowledge management ............................................................................................................ 192 4.4.6. Lateral dynamics ........................................................................................................................ 194 4.4.7. Guiding questions ....................................................................................................................... 195 5. The labor process in chip design – three case studies ............................................................... 200 5.1. Midtronic