Chi Mei Optoelectronics Harvard Case Solution & Analysis

Chi Mei is a Taiwanese industrial group, which makes the main diversification in technology intensive TFT-LCD flat panel display industry. Because diversification away from its core competence in the petrochemical industry, it is an opportunity to learn how the company was able to become a world leader in a relatively short period of ten years. Such organic diversification relatively unusual by Western standards, especially in technology and markets, which have relatively high barriers to entry and where there is no deep-rooted national technical or scientific basis. In such Chi Mei interesting vehicle for studying the growth of major Asian industrial cluster with global scope which has no members or rivals in the West. The case can also be used to expose students to the global supply chain of key components of the information technology. Taiwan and Korea are currently the world's major centers for the production of semiconductors (eg, DRAM and flash memory) and flat panel displays. Taiwan is also the center of a notebook computer manufacturing and Taiwanese companies, through its China-based manufacturing and assembly operations to drive 60% of IT exports from China. However, few students even know which of these major global players. Taiwan and Korea-based TFT-LCD panel are critical components in laptops, computer monitors and flat panel TV from almost all well-known brands.
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by Willy Shih, Howard J., Chintay Shih, Jyun-Cheng Wang Source: Harvard Business School 25 pages. Publication Date: May 20, 2008. Prod. #: 608123-PDF-ENG

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