Assignment Number 2
29th October, 2011
The Taiwan Computer & Semiconductor Manufacturing Industry Summary:
Taiwan has pursued aggressive investments in the computer & semiconductor industry over the last twenty years. As a result Taiwan is one of the leading manufacturer and exporter of computers, semiconductors and related products in the world. We are using Michael Porter's Determinants of National Competitive Advantage, to analyze the success of Taiwan in the semiconductor manufacturing industry. One of the key factors in determining the synergies from the various conditions are the policies of the government of Taiwan. Taiwan’s Success & National Competitive Advantage:
The computer & semiconductor industry, including IC manufacturing, design, and packing, forms a major part of Taiwan's exports. Due to its strong capabilities in OEM wafer manufacturing and a complete industry supply chain, Taiwan has been able to distinguish itself from its competitors. The sector output reached US$39 billion in 2009, ranking first in global market share in IC manufacturing, packaging, and testing, and second in IC design. Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) are the two largest contract chipmakers in the world. Porter's Diamond of National Advantage as Applied to Taiwan
In "The Competitive Advantage of Nations”, Porter has featured the Diamond of National Advantage with four major categories. We have used these categories to analyze the potential of Taiwan in the computer industry. Porter’s Diamond lists the factors as displayed in the figure below.
Porter’s Diamond Model
1. Highly Specialized Workforce
The universities in Taiwan have a high focus on engineering studies with a focus on computer related studies and as a result Taiwan has a highly specialized work force...