The development strategies for Taiwan's semiconductor industry

Taiwan's integrated circuit (IC) industry development process can be separated into three stages: the initiation stage, consisting of obtaining technology and facilitating setup of domestic companies; the burgeoning stage, consisting of the formation of manufacturer's R&D abilities; and the growth stage, consisting of further raising an industry's international competitive levels. In each stage this article examines the development strategy from the perspective of interactions among the government, research institute, and the domestic industry in terms of technology selection, R&D activities, technology transfer, and industry development results. Finally, factors underlying success, issues arising from the case, and suggestions for newly industrialized countries are discussed.