IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v56y2005i10d10.1057_palgrave.jors.2601958.html
   My bibliography  Save this article

A system dynamics model of the semiconductor industry development in Taiwan

Author

Listed:
  • J H Chen

    (National Chiao-Tung University)

  • T S Jan

    (National Chiao-Tung University)

Abstract

Taiwan has become the fourth largest semiconductor manufacturer worldwide within only 25 years. Taiwan’s success in developing its semiconductor industry has been widely recognized. Building a semiconductor industry in a developing country is costly, risky, and requires long-term accumulations of capital, technology, human resources, and production capacity. The development process depends on environmental interactions, which should be studied in an integrated and holistic manner. Using system dynamics methodology, this study analyses the development experience of the Taiwanese semiconductor industry, in order to provide better insight into the long-term industrial development process. The study also simulates the proposed model in one historical setting and two future scenarios. Implications for the development of the semiconductor industry in Taiwan and other Asian countries are discussed.

Suggested Citation

  • J H Chen & T S Jan, 2005. "A system dynamics model of the semiconductor industry development in Taiwan," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1141-1150, October.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:10:d:10.1057_palgrave.jors.2601958
    DOI: 10.1057/palgrave.jors.2601958
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2601958
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2601958?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. T-S Jan & C-T Hsiao, 2004. "A four-role model of the automotive industry development in developing countries: a case in Taiwan," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(11), pages 1145-1155, November.
    2. Berends, P. A. J. & Romme, A. G. L., 2001. "Cyclicality of capital-intensive industries: a system dynamics simulation study of the paper industry," Omega, Elsevier, vol. 29(6), pages 543-552, December.
    3. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    4. K Hafeez & H Abdelmeguid, 2003. "Dynamics of human resource and knowledge management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(2), pages 153-164, February.
    5. Sangho Chung, 2001. "The learning curve and the yield factor: the case of Korea's semiconductor industry," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 473-483.
    6. Wang, Jiann-Chyuan, 1994. "Cooperative research in a newly industrialized country: Taiwan," Research Policy, Elsevier, vol. 23(6), pages 697-711, November.
    7. Chen, Cheng-Fen & Sewell, Graham, 1996. "Strategies for technological development in South Korea and Taiwan: the case of semiconductors," Research Policy, Elsevier, vol. 25(5), pages 759-783, August.
    8. von Hippel, Eric & Tyre, Marcie J., 1995. "How learning by doing is done: problem identification in novel process equipment," Research Policy, Elsevier, vol. 24(1), pages 1-12, January.
    9. Pao-Long Chang & Chien-Tzu Tsai, 2000. "Evolution Of Technology Development Strategies For Taiwan'S Semiconductor Industry: Formation Of Research Consortia," Industry and Innovation, Taylor & Francis Journals, vol. 7(2), pages 185-197.
    10. Marvin B. Lieberman, 1987. "The learning curve, diffusion, and competitive strategy," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 441-452, September.
    11. Boyan Jovanovic & Peter L. Rousseau, 2002. "Moore's Law and Learning-By-Doing," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 346-375, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shan Jayasinghe & Lester W. Johnson & Nilan Udayanga & Lakshitha Kumarapperuma & Sanath Ranjitha, 2023. "Drivers Enabling Developing Countries to Enter High-Tech Production Networks through Global Production Sharing: Evidence from Malaysia, Taiwan, and Vietnam," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    2. Liu, Chung-Shu & Hsiao, Chih-Tung & Chang, Dong-Shang & Hsiao, Cheng-Hsing, 2016. "How the European Union’s and the United States’ anti-dumping duties affect Taiwan's PV industry: A policy simulation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 296-305.
    3. Day-Yang Liu & Chia-Kan Wang & Chung-Yi Fang & Pei-Leen Liu, 2021. "A Study of Project Financing on the Defense Industry in Systems Thinking Perspective," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(2), pages 1-6.
    4. Day-Yang Liu & Chia-Yang Chang & Chung-Yi Fang & Pei-Leen Liu, 2020. "Research on the Issuance and Distribution Model of Sports Lottery in Taiwan from a Systems Thinking Perspective," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(5), pages 1-4.
    5. Suhua Ou & Qingshan Yang & Jian Liu, 2024. "The global production pattern of the semiconductor industry: an empirical research based on trade network," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    6. Chih-Tung Hsiao & Hui-Ling Peng & Hui-Hua Huang, 2012. "The impact of sports ethics of professional baseball player to the development of sports industry in Taiwan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(6), pages 1753-1767, October.
    7. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    8. White, Leroy & Smith, Honora & Currie, Christine, 2011. "OR in developing countries: A review," European Journal of Operational Research, Elsevier, vol. 208(1), pages 1-11, January.
    9. Chih‐Tung Hsiao, 2014. "Industrial Development Research by Systems Approach in NICs: The Case in Taiwan," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(2), pages 258-267, March.
    10. Yu-Shan Chen & Chun-Yu Shih & Ching-Hsun Chang, 2012. "The effects of related and unrelated technological diversification on innovation performance and corporate growth in the Taiwan’s semiconductor industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 92(1), pages 117-134, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amsden, Alice H., 2004. "Import substitution in high-tech industries: Prebisch lives in Asia!," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Dosi, Giovanni & Grazzi, Marco & Mathew, Nanditha, 2017. "The cost-quantity relations and the diverse patterns of “learning by doing”: Evidence from India," Research Policy, Elsevier, vol. 46(10), pages 1873-1886.
    3. Liu, John Jen-wei & Ray, Pradeep Kanta, 2012. "The ‘Triple-alliance’ perspective for new industry creation: Lessons from the flat panel industry in Taiwan," Journal of Asian Economics, Elsevier, vol. 23(5), pages 585-599.
    4. Nadeau, Marie-Claude & Kar, Ashish & Roth, Richard & Kirchain, Randolph, 2010. "A dynamic process-based cost modeling approach to understand learning effects in manufacturing," International Journal of Production Economics, Elsevier, vol. 128(1), pages 223-234, November.
    5. Federico Cosenz & Guido Noto, 2016. "Applying System Dynamics Modelling to Strategic Management: A Literature Review," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(6), pages 703-741, November.
    6. Arvanitis, Rigas & Zhao, Wei & Qiu, Haixiong & Xu, Jian-niu, 2006. "Technological learning in six firms in Southern China: success and limits of an industrialisation model," MPRA Paper 18553, University Library of Munich, Germany, revised 2006.
    7. Victor M. Bennett & Daniel A. Levinthal, 2017. "Firm Lifecycles: Linking Employee Incentives and Firm Growth Dynamics," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 2005-2018, October.
    8. Sánchez-González, Gloria & González-Álvarez, Nuria & Nieto, Mariano, 2009. "Sticky information and heterogeneous needs as determining factors of R&D cooperation with customers," Research Policy, Elsevier, vol. 38(10), pages 1590-1603, December.
    9. Chia‐Wen Lee & Roger Hayter & David W. Edgington, 2010. "Large And Latecomer Firms: The Taiwan Semiconductor Manufacturing Company And Taiwan'S Electronics Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(2), pages 177-198, April.
    10. Collinson, Simon C. & Wang, Rowena, 2012. "The evolution of innovation capability in multinational enterprise subsidiaries: Dual network embeddedness and the divergence of subsidiary specialisation in Taiwan," Research Policy, Elsevier, vol. 41(9), pages 1501-1518.
    11. Mathews, John A., 2002. "The origins and dynamics of Taiwan's R&D consortia," Research Policy, Elsevier, vol. 31(4), pages 633-651, May.
    12. Mahmood, Ishtiaq P. & Singh, Jasjit, 2003. "Technological dynamism in Asia," Research Policy, Elsevier, vol. 32(6), pages 1031-1054, June.
    13. Agathe Gilain & Pascal Le Masson & Benoit Weil, 2018. "Managing Learning Curves In The Unknown: From ‘Learning By Doing’ To ‘Learning By Designing’," Post-Print hal-01900961, HAL.
    14. Wei ZHAO & Rigas ARVANITIS, 2008. "L’INeGAL DeVELOPPEMENT INDUSTRIEL DE LA CHINE : CAPACITeS D’INNOVATION ET COEXISTENCE DE DIFFeRENTS MODES D’APPRENTISSAGE TECHNOLOGIQUE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 61-85.
    15. Dowling, Malcolm & Ray, David, 2000. "The structure and composition of international trade in Asia:: historical trends and future prospects," Journal of Asian Economics, Elsevier, vol. 11(3), pages 301-318, December.
    16. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
    17. Heather Smith, 1999. "The Failure of Korea Inc," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 6(2), pages 153-166.
    18. Natarajan Balasubramanian & Marvin B. Lieberman, 2010. "Industry learning environments and the heterogeneity of firm performance," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 390-412, April.
    19. Can Huang & Naubahar Sharif, 2016. "Global technology leadership: The case of China," Science and Public Policy, Oxford University Press, vol. 43(1), pages 62-73.
    20. Arie Y Lewin & Silvia Massini & Carine Peeters, 2020. "Absorptive capacity, socially enabling mechanisms, and the role of learning from trial and error experiments: A tribute to Dan Levinthal’s contribution to international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1568-1579, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:56:y:2005:i:10:d:10.1057_palgrave.jors.2601958. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.