| dc.description.abstract | The semiconductor back-end industry includes the semiconductor testing and assembly process. This research paper selected the semiconductor back-end industry as the study object. The semiconductor back-end vendors in Taiwan are standing on the global leading position of the industry with the advanced research capability, stable quality, and strict production cost control capability. Based on the current advantages such as semiconductor clustering effect and supply chain management strength, it is worthy to discuss whether Taiwanese semiconductor back-end vendors can also succeed in the China market which is the fastest growing electronics consumer market in the world.
The research is based on the diamond theory model from the book of Porter (1990) “The Competitive Advantage of Nations”. The paper is to verify and discuss which strategy is the most successful model to break through the China market for Taiwanese semiconductor back-end vendors. In order to find out the best model, the following subjects were discussed, the characteristic of Taiwanese semiconductor back-end industry, the related dissertations and study papers, and the case study of company A by the aspect of company A competitive advantage analysis, company A global operation model and global resources. The study can be the strategy selection reference for Taiwanese semiconductor back-end vendors to move forward to China market. It can also help other growing industries to build up their strategy for breaking through China market according to their own capability in the future.
The purpose of the study is as following,
1. Discussion of the motivation of moving forward to China market, the market selection and the business model of entering China market by focusing on the characteristics of semiconductor back-end industry.
2. Actual practice of company A as the example to evaluate and suggest which market and which strategy are the most successful and suitable for semiconductor back-end industry.
According to the conclusion of the study of company A, in order to successfully enter the China market, company A selected the different entering models for different technologies to reduce the risk of failure. It adopted 3 kinds of entering models,
1. Implemented the low end testing and package technology products in China to occupy the market share before Taiwanese government announce the green light policy for back-end semiconductor technology release to China.
2. Merged the IDM manufacturing plants in China, or merge the small partner company which is overseas booked from company A’s own capital.
3. Joint venture with the international IDM to set up high technology testing and assembly house. By utilizing the strength of both parties, it can quickly occupy the market share of high technology semiconductor back-end industry in China to get the win-win situation with IDM customers.
Although the merge or joint venture take time and cost to eliminate the different opinion between both parties, it can reduce the time, difficulties, and risks of company A to enter China market. Company A already occupied steady amount of market share in China. From the achievement of company A, its strategy and management is successful and is the benchmark and learning example for Taiwanese vendors to break through China market.
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