Soaring Like Eagles: ASM's High Tech Journey in Asia

This work takes an in-depth look at ASM Pacific Technology, the world's top company in the semiconductor assembly and packaging equipment industry. Started in Hong Kong thirty years ago, it had to face many unfavorable conditions for high-tech in Asia (such as the lack of infrastructure and resources), the volatility of its industry, and severe competitions from companies in the U.S., Europe, and Japan throughout its history. Nevertheless, it maintained profitability for all thirty years, grew organically and consistently, and today is significantly larger than any of its competitors. This book reviews the history of ASM's growth, examines its success from differentiated strategies, leadership and culture, innovative practices, technologies and products. The management lessons along these dimensions are also explored in detail. The book also covers Asian-specific context, such as the establishment of an advanced manufacturing operation in mainland China, and explains its unique culture, challenges, and opportunities.

Table of Contents:
Chapter 1: A Rewarding Journey This chapter introduces the remarkable growth of ASM, against the backdrop of several hightech challenges in Asia. It outlines the potentials of establishing a semiconductor equipment firm in Hong Kong, and the uphill battles that the company must face. It also gives a brief synopsis of the success factors of the company -- its management and innovative strategies. Chapter 2: The Foundation Years: 1975--1985 This chapter traces through the first decade of ASM. Began as a one--man operation with little start--up fund, the company established itself along four aspects in this period of time: financial, business, human resource, and corporate culture. This chapter thus considers how ASM laid its foundation. Chapter 3: Growing Beyond Borders: 1985--1995 This chapter traces through the second decade of ASM. During this period, the company expands from primarily a Hong Kong--based private company to a publicly--listed corporation with operations in Singapore and mainland China. This chapter explains how the expansions took place, and how the company emerged to be among the top five in its industry. Chapter 4: Achieving Industry Leadership: 1995--2005 This chapter traces through the third decade of ASM. The company had major expansions in its R&D, and ascended rapidly in its industry to become #1 within a few years. This chapter explores some of the challenges it faced during this period, and how it managed to overcome them. Chapter 5: Differentiated Strategies This chapter focuses on the strategies that ASM employed in competing in the marketplace. It began with ASM's philosophy of using an interlocking set of strategies to maximize the value delivered to its customers, and then explored five major strategies it had employed in details. They included . Retained earnings to fund organic growth . Diversified products and application markets . Relentless pursuit of customer satisfaction . Vertical integration in design and manufacturing . Total solution with world--class products. Chapter 6: Leadership and Culture This chapter explains the pre--eminent role of leadership in a corporation, and the corporate culture that is an extension of the leaders' beliefs and practices. It then explains ASM's visionary leaders, high--caliber executives, and unique corporate culture to show how they integrate in defining ASM's way of managing and developing its employees. It also explains how management handles difficult but necessary decisions for the benefit of the company. Chapter 7: Innovative Practices This chapter explores several innovative practices that have helped ASM to develop its people and processes. They include a matrix organizational structure, a stock incentive scheme (both of which are targeted to recruit and retain its talents), an IT infrastructure, and state--of--the--art manufacturing (both help to make ASM's processes more efficient). Chapter 8: Technologies and Products This chapter considers the practice of technology and product development at ASM. In particular, it explores the R&D strategies, the structure, and the development of new technologies and products to fulfill customers' needs. Furthermore, it discusses the company's success in launching new products that provide differentiated values to the customers beyond what its competitors can offer, a strategy that has proven immensely successful amidst cutthroat competition in the market. Chapter 9: Future Challenges This chapter takes a summative view of the journey that ASM has traveled, and explores the issue of corporate longevity -- how it can sustain its growth? What are the challenges in the industry that it should be prepared for? What are its plans in preparing the future leadership? These issues are explored in details in this chapter.