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Evolution Of Technology Development Strategies For Taiwan'S Semiconductor Industry: Formation Of Research Consortia

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  • Pao-Long Chang
  • Chien-Tzu Tsai

Abstract

As the world enters the twenty-first century, technology is now more than ever the key factor in the promotion of industrial development and economic growth. This presents an enormous but unavoidable challenge for developing countries; they must carry out their industrial technology development in such a way as to create strong high-tech industries that can successfully compete in the global market, while moving their national economies in the direction of prosperity. In light of these challenges, an overall technology development strategy has become the critical success factor for an industry in terms of technology acquisition, diffusion and application. Over the course of the past three decades, Taiwan has regarded the semiconductor industry as one of the most strategically important of the high-tech industries. Since starting with a few downstream assembly plants in the 1960s, the semiconductor industry has developed into a comprehensive industrial system with vertical and horizontal division of labor. It has gone through various growth stages, involving foreign-capital-based assembly, manufacturing technology transfer, growth of local plants, industrial system expansion and upgrading by industrial cooperation. The corresponding strategies for technology development cover technology introduction, technology transfer and cooperative R&D, with gradually escalating technological capabilities successfully encouraging industrial growth. The semiconductor industry has not only become the leading industry of the Hsinchu Science-based Industrial Park, but it has also generated revenues ranked fourth highest in the world. This article studies strategies adopted at different stages by Taiwan's semiconductor industry in its technological development, focusing specifically on the research consortium strategy and the case of the industry consortium, the Advanced Semiconductor Technology Research Organization (ASTRO).

Suggested Citation

  • 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.
    • Handle: RePEc:taf:indinn:v:7:y:2000:i:2:p:185-197
    DOI: 10.1080/713670256
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    Citations

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    Cited by:

    1. Bown, Chad, 2020. "How the United States Marched the Semiconductor Industry into Its Trade War with China," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 24(4), pages 349-388, December.
    2. Chen-Lung Chin & Picheng Lee & Hsin-Yi Chi & Asokan Anandarajan, 2006. "Patent Citation, R&D Spillover, and Tobin's Q: Evidence from Taiwan Semiconductor Industry," Review of Quantitative Finance and Accounting, Springer, vol. 26(1), pages 67-84, February.
    3. 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.
    4. 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.
    5. Li, Yung-Ta & Huang, Mu-Hsuan & Chen, Dar-Zen, 2014. "Positioning and shifting of technology focus for integrated device manufacturers by patent perspectives," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 363-375.
    6. 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.
    7. Balaji Parthasarathy & Yuko Aoyama, 2006. "From Software Services to R&D Services: Local Entrepreneurship in the Software Industry in Bangalore, India," Environment and Planning A, , vol. 38(7), pages 1269-1285, July.
    8. 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.

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