Title: Dynamic simulation of the decision to construct next-generation TFT-LCD fabrication plants in Taiwan

Authors: Pao-Long Chang; Shu-Ping Ho

Addresses: Department of Business Administration, Feng Chia University, 100 Wenhwa Road, Seatwen, Taichung, 40724, Taiwan ' Department of Information Management, WuFeng University, 117, Section 2, Chiankuo Road, Minhsiung, Chiayi, 62153, Taiwan

Abstract: Thin film transistor liquid crystal display (TFT-LCD) panels have increased in scale on an annual basis since they were adopted for use in television sets in 2003. The higher-generation TFT-LCD plant provides larger sized LCD panels. The increases in technological levels pose a serious challenge to TFT-LCD companies as the size of next-generation TFT-LCD glass substrates continually increases. The construction of next-generation TFT-LCD manufacturing plants is a complex and dynamic process, subject to the influences by interactions among many factors. This paper utilises system dynamics to examine the dynamic structure of next-generation TFT-LCD plants in an attempt to explain system behaviour and simulate relevant trends. Results show that the development of next-generation TFT-LCD plants is determined by the interaction between market demand, and technology level. In other words, these factors form a number of critical loops and a complex, dynamic development process.

Keywords: investment decisions; TFT-LCD industry; system dynamics; dynamic simulation; next-generation TFT-LCD plant; thin film transistor; TFT; liquid crystal displays; LCDs; LCD panels; market demand; technology level.

DOI: 10.1504/IJMD.2013.055678

International Journal of Management Development, 2013 Vol.1 No.2, pp.163 - 179

Published online: 12 Jul 2014 *

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