Mainland China is an emerging market. The labor cost is very cheap in the market, and the growth rate of market is high. For saving manufacturing cost and expanding business, many companies, including those from Taiwan, invest in Mainland China. For fulfilling a great amount of demand in IC and encouraged by China government, SMIC has established a foundry in China. TSMC and UMC also plan to set up their foundries there in 2002.
What is the best strategy and how to compete are the most things the Taiwan companies concerned, since the foundry industry in Mainland China is developing. This study is based on the Diamond Model (Porter, 1990) and foreign invest theories, and tries to analyze the foundry industrial structure in Taiwan and China. This study also finds out the strategic considerations, which can explain why Taiwan foundry companies invest in China. Then this study predicts the situation of the development of foundry industry in Mainland China in the future. Finally, the study tries to suggest better strategies to Taiwan foundry companies.
This study finds out the strategic considerations of Taiwan foundry companies when they invest in Mainland China. They are: 1.Ownership advantage of technology, capacity and service; 2.Location advantage of the market potential in China and reward offered by China government; 3.Internalization advantage of setting up a wholly owned subsidiary; 4.Competitive pressure in foundry industry. The strategic suggestions are: 1.Being the leading company in Mainland China; 2.Using the resources of China market; 3.Focusing on foundry; 4.Cross-Strait joint production. Making use of these four suggestions, Taiwan foundry companies will enlarge the market share in the worldwide foundry market.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0619102-165729 |
| Date | 19 June 2002 |
| Creators | Wen, Cheng-Bin |
| Contributors | Cher-Min Fong, Hsien-Tang Tsai, Zhi-Hong Zeng, Pei-How Huang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0619102-165729 |
| Rights | not_available, Copyright information available at source archive |
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