Abstract

Carliss Y. Baldwin and Kim B. Clark emphasized the power of modularity using a design structure matrix (DSM), which was invented by Donald Steward and refined by Steven Eppinger. Meanwhile, liquid crystal displays (LCDs) and semiconductor devices, such as large-scale integrated circuits (LSIs) are key devices in this information age. There are many similarities between them, such as fabrication and design processes. However, there are many differences such as substrate and device size. The product designs of LCDs and LSIs have not been investigated using the DSM. I investigated the product designs using the DSM. LSIs are produced using a standard-sized silicon wafer as the “design rules”, which reduces the interdependencies among related companies as the results analyzed by the DSM. Therefore, they can be fabricated using standard equipments, and can use the division of labor. The product design of LSI can reduce the interdependencies and the product and business architectures are “modular” type. On the contrary, LCDs manufacturers produce larger LCD panels to be more competitive with customized equipments. There is no standard-sized glass and standard equipments. The product design of LCD is keeping the interdependencies among related companies and the product and business architectures are “integral” type as the results analyzed by the DSM. As the final results, the product and business architectures of LCDs and LSIs can be categorized into “integral” and “modular” types using the DSM, respectively.