Signal Semiconductors moved from laggard to leader by combining portfolio and performance moves

Summary

McKinsey uses the semiconductor industry to show how combining two kinds of strategic moves can reverse a sector's fortunes. By its analysis, chipmakers trailed during the 2000s yet had surged back by 2024. On the portfolio side they allocated capital dynamically and sustained heavy investment. On the performance side they pursued differentiation and raised productivity. The report presents the case as evidence that bold and focused strategies pay off, in contrast to the common habit of spreading resources evenly across business units.