As the IC (integrated circuit) industry migrates to the System-on-Chip (SOC) era, a novel business model, the SOC design service (DS), is emerging. However, how to expand a firm's innovation competences while satisfying multiple objectives including highest quality, lowest cost, and fastest time to market as well as most revenues for economics of scale are always problems for a design service firm. Therefore, attempts to expand the innovation competences, and thus the competitiveness, of latecomers in the SOC DS industry have already become the most critical issue facing the top managers of SOC design service firms. In this paper, a novel multiple attribute decision making (MADM) analytic framework based on the concept of competence set expansion, as well as MADM methods consisting with DEMATEL, ANP and multiple objective decision making (MODM) will be proposed in order to define a path for expanding a late-coming SOC DS firm's innovation capabilities. An empirical study on expanding innovation competence sets, of a late-coming Taiwanese DS firm then will be presented.