Title: Manufacturing platform of strategic innovation in global semiconductor industry

Authors: Yu-Ling Lin; Po-Yung Chu

Addresses: Department of Business Administration, National Chin-Yi University of Technology, No. 35, Lane 215, Sec.1, Chung-Shan Road, Taiping, Taichung 411, Taiwan. ' Department of Management Science, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu City 300, Taiwan

Abstract: While integrated circuit (IC) companies in most countries are vertically integrated, Taiwan is an exception to that rule. An alternative business model for IC manufacturing was created out of and initiated by Taiwan|s innovative foundry service strategy. A new IC ecosystem is clustered with platform leaders as well as constituent specialisation firms. Functioning as a whole and complementarily to one another, the separate but networked entities focus on their core business to create their own unique values. In the ecosystem, global IC design firms then emerge uniquely positioned. This platform also helps to explain the remarkable performance of small-medium enterprises (SMEs) in Taiwan|s IC design segment.

Keywords: manufacturing platforms; strategic innovation; semiconductor industry; integrated circuits; Taiwan; vertical integration; alternative business models; innovative strategies; foundry service strategies; ecosystems; platform leaders; specialisation firms; separate entities; networked entities; core businesses; unique values; design firms; small and medium-sized enterprises; SMEs; sustained competitive advantage; global markets; business excellence.

DOI: 10.1504/IJBEX.2012.044571

International Journal of Business Excellence, 2012 Vol.5 No.1/2, pp.21 - 34

Published online: 29 Dec 2011 *

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