Upgrading the Economy: Industrial Policy and Taiwan’s Semiconductor Industry Harvard Case Solution & Analysis

The government-led production and incubation of the semiconductor industry in Taiwan is a striking success for supporters of strong industrial policy. It has actually caused the island country's supremacy of the international "factory" company where companies like Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) produce the designs of "fabless" design services. The 2 have a combined worldwide market share of near 70% of this international company sector.

This success was even more striking since when the effort started, the nation had few of the huge scale companies that might support the R&D and scale needed to get in such advanced capital extensive markets. There were no companies with the deep technological roots or the ability base to even start. Federal government organizers acknowledged the difficulties of upgrading the country's innovation base and created a method that involved the production of "pilot firms" that would serve as automobiles to bridge in between sources of leading edge innovation (mainly sourced from abroad) and the commercialization to be brought out by regional companies.

Upgrading the Economy Industrial Policy and Taiwan's Semiconductor Industry Case Study Solution

PUBLICATION DATE: February 13, 2009 PRODUCT #: 609089-PDF-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS

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