Taiwan DRAM industry emerged on OEM basis, i.e. foundry manufactures based upon the technology authorized by the foreign owner. With the expansion of capacity, Taiwan DRAM industry has gradually increased its global market share. In particular, only those market players with 12¡¨foundry, which requires hefty capital investment and can significantly increases capacity, are able to compete in the market.
The financial tsunami started in 2008, however, impacted severely on the global economy. DRAM industry could not immune from this, and the collapse was unprecedented. Majority of market players were suffering losses, and unable to afford the migration of manufacturing process. Taiwan players used to borrow to expand capacity. Four major Taiwan DRAM players carry an aggregate debt of TWD300 billion. Taiwan DRAM industry is almost destroyed by the high leverage during the financial tsunami.
Facing the unprecedented difficulty of DRAM industry, Taiwan government raised an industry re-engineering (or consolidation, whichever is appropriate) proposal with an aim to enhance the competitiveness in the global market through changes in industry structure and business operation. Thanks to the industry recovery stemmed in the third quarter of 2009, DRAM price started rebounding. The financial difficulty of DRAM players was been resolved. The government¡¦s proposal for industry re-engineering was ended up with a failure.Taiwan DRAM players are still operating on OEM basis and lack of competitiveness in global market.
Though Taiwan DRAM players have turned profitable, benefited from price rebound, it is still a question mark that these players can survive in the long run. As long as the structural problem remains unsolved, the industry players and the government will face the same issue again in future. When the next recession is coming, whether Taiwan players shall exit the market, or Taiwan government shall step in? Whether the industry shall go through a consolidation? This paper will present the migration of DRAM industry life cycle, change of business model, strategic alliance, and industry trend in future, analyze on business strategies adopted by Taiwan DRAM players under the competitive environment. Hopefully, this paper could provide a reference as to the development of business strategy for Taiwan DRAM players.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0702110-111633 |
| Date | 02 July 2010 |
| Creators | Hu, Hsun-Chun |
| Contributors | Jin-Feng Uen, Pei Hao Huang, Cher Min Fong, Ming Rea Kao |
| 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-0702110-111633 |
| Rights | not_available, Copyright information available at source archive |
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