The end of vertical integration and the upcoming Modular Production is on of the most important trends in the future challenges for companies in Photonics.
Thinking about the case of the Japanese companies:
Vertical integration was a key success factor for Japanese traditional industries as automotive and basic electronics consumer electronics. But known for products connected to the communication network and broadcasting systems like mobile phone, PC, LCD, Japanese firms are losing their international market share.
Very diverse know how is in place and applying an horizontal manufacturing process or also called modular type seems more adequate. The interfaces between the modules are standardized in simple manners. Therefore it is easier for the new companies to join in to this market production zone.