Strategies of semiconductor industry in Taiwan

Abstract

This study explores the common characteristics and differences among the business strategies adopted by Taiwan's IC makers which is the fourth largest country in the world. The common strategies shared by Taiwan IC makers include vertical disintegration, global strategic alliance, vertical alliance within IC industry, flexible fund allocation and IP (Intellectual Property) rights awareness. Despite the global downturn for IC industry in 1996 and 1997, the IC industry in Taiwan continued to grow fast with its outstanding performance in profitability and production capability. This research intends to propose a few recommendations to Taiwan IC makers and related parties with regard to the direction of their business strategies.