dc.description.abstract | Taiwan is known as a Semiconductor Kingdom, with its output value of IC packaging and testing being ranked number one in the world. Lead frame is one of the main components of IC packaging. In recent years, Taiwanese lead frame manufacturers have gradually improved on the international market share and process capability through mergers and acquisitions. This research uses the Structure-Conduct-Performance (SCP) analysis model to evaluate six Taiwanese lead frame companies and provides advices on the future development and new entry strategy.
The main results are summarized below. In terms of market structure, the lead frame industry is a moderately concentrated market. The products are mainly customer designs or industry standards, with little product differentiation. The entry threshold for new players is not high, while it takes time to strengthen its competitiveness. In terms of manufacturer conduct, pricing power is limited, with price fluctuations mostly driving by market demand and prices of metal. The manufacturer′s product strategy and research and development effort have great impacts on the company′s growth. Mergers and alliances are important measures to pursue expansion. In terms of business performance, obtaining production capacity, technology, and sales channels through mergers and acquisitions are the important factors to grow. In addition, the economies of scale, product strategy, and market demand have direct impacts on the performance of manufacturers. Our suggestions to manufacturers in the lead frame industry include mastering upstream raw materials, reaching economies of scale, establishing highly reliable quality system, and developing horizontal expansion strategy. | en_US |