Patent analysis in external technology acquisition: A case of Taiwan Semiconductor Manufacturing Company

Prior research mentioned that external technology acquisition is a shortcut for companies that seek to develop breakthrough technologies or products. In this study, we examine the external technology acquisition in Taiwan Semiconductor Manufacturing Company (TSMC) based on the USPTO patent assignment data and analyze the complementary relationship between externally acquired technologies and self-owned technologies in TSMC. Based on our analysis, we argue that external technologies usage does not always create complementary synergetic effects from integration with self-owned technologies. The data shows that most of the externally acquired patents at TSMC were acquired from assignors of NCR/MAGNACHIP SEMI, and AMBERWAVE SYS in 2006-2010. External technology acquisitions in TSMC are concentrated on “Photovoltaic” and “Computer Hardware & Electrical Devices” technologies. According to the externally acquired patents cited by self-owned patents of TSMC, we conclude that although external technologies in “Photovoltaic” appear integrated with TSMC's self-owned technologies, other external technologies are not well- integrated with self-owned technologies, particularly for patents in the field of “Computer Hardware & Electrical Devices”.