Business groups' dynamic performance of Taiwan semiconductor industry: the carry-over perspective

This study evaluates dynamic operating performance for Taiwan's semiconductor industry from 2006 to 2009 by using dynamic DEA, a technique based on the perspective of inter-period carry-over in accounting. Furthermore, the industry' various characteristics are evaluated to determine their relationships to the semiconductor industry's efficiency. The following empirical results are found: companies within a business group are more efficient on average than ones under a non-business group; while IC design companies are more efficient than others, investment firms in China are more competitive; companies with high level scopes generally operate better than those with low level scopes. The potential applications and strengths of using DEA to assess the semiconductor industry are also highlighted.