Journal of Intelligent Manufacturing

, Volume 21, Issue 6, pp 885–896 | Cite as

Technology management and strategy composition: innovation of IC foundry

  • Grace T. R. Lin
  • Hsiao Chen Yu
  • Aaron Y. L. Hsieh
  • James C. Chou


The goals of this research are two-tiered: The first goal is to analyze the evaluation criteria used by integrated circuit (IC) designers when selecting foundry service providers. The second goal is to use an in-depth case study on the global IC foundry leader, TSMC, to explore the strategic compositions of IC foundry’s process development, since the process technology has been found, through our survey at the prior stage, to be the most significant evaluation criterion in view of competitiveness in the customer market. As a result, for the foundry industry, technology no longer counts for everything, although it is a priority; coordinated strategies, in contrast, should assure more business merits for all concerned. This study has drawn the strategy matrix with eight categories of IC foundry process strategies.


IC foundry IC designers Evaluation criteria MCDM AHP IC process strategy model 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Ahmad N., Qiu R.G. (2009) Integrated model of operations effectiveness of small to medium-sized manufacturing enterprises. Journal of Intelligent Manufacturing 20(1): 79–89CrossRefGoogle Scholar
  2. Ansoff H.I. (1984) Implanting strategic management. Prentice-Hall, New JerseyGoogle Scholar
  3. Chen G.R., Lu T.E., Chen M.L., Hsieh T.R. (2004) An environmental and strategic analysis for current IC foundry in Taiwan. Review of Taiwan Economics 9(4): 69–82Google Scholar
  4. Chu M.T., Shyu J.Z., Khosla R. (2008) Measuring the relative performance for leading fabless firms by using data envelopment analysis. Journal of Intelligent Manufacturing 19(3): 257–272CrossRefGoogle Scholar
  5. Corner J., Buchanan J., Henig M. (2001) Dynamic decision problem structuring. Journal of Multi-Criteria Decision Analysis 10(3): 129–142CrossRefGoogle Scholar
  6. Dağdeviren M. (2008) Decision making in equipment selection: An integrated approach with AHP and PROMETHEE. Journal of Intelligent Manufacturing 19(4): 397–406CrossRefGoogle Scholar
  7. Dataquest website. (1999).
  8. Hill C.W.L., Jones G.R. (2003) Strategic management theory. Houghton Mifflin Company, BostonGoogle Scholar
  9. IC Insights website. (2008).
  10. Industry & Technology Intelligence Service website. (2007).
  11. Kasanen E., Wallenius H., Wallenius J., Zionts S. (2000) A study of high-level managerial decision processes, with implications for MCDM research. European Journal of Operational Research 120: 496–510CrossRefGoogle Scholar
  12. Kotler P. (1994) Marketing management. Prentice-Hall, New JerseyGoogle Scholar
  13. Kuo K.M. (1984) Marketing management. San Min Book Co., Ltd., TaipeiGoogle Scholar
  14. Lo M.C., Chang C.Y., Tzeng G.H., Tseng F.M. (2005) Development strategies of pure wafer foundries using AHP. ISAHP Conference, HawaiiGoogle Scholar
  15. McCarthy E.J. (1979) Basic marketing. Homewood, IL, IrwinGoogle Scholar
  16. Nonaka I., Takeuchi H. (1995) The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford University Press, New YorkGoogle Scholar
  17. Perry W., Moffat J. (1977) Developing models of decision making. Journal of Operational Research Society 48: 457–470Google Scholar
  18. Porter M.E. (1985) Competitive advantage. Free Press, New YorkGoogle Scholar
  19. Porter M.E. (1998) Competitive strategy. Free Press, New YorkGoogle Scholar
  20. Rink D.R., Swan J.F. (1979) Product life cycle research: A literature review. Journal of Business Research 7(3): 219–242CrossRefGoogle Scholar
  21. Saaty T.L. (1980) The analytic hierarchy process. McGraw-Hill, New YorkGoogle Scholar
  22. Shyu J.Z., Yu H.C., Lee Z.Y., Kuo L.F. (2003) Using fuzzy MCDM method to study the evaluation criteria and location preferences on foundry service providers by IC designers. Journal of Management 20(2): 219–249Google Scholar
  23. Smallwood J.E. (1991) The product life cycle: A key to strategic marketing planning. In: Enis B.M., Cox K.K., Mokwa M.P. (eds) Marketing classics: A selection of influential articles. New Jersey, Prentice HallGoogle Scholar
  24. Triantaphyllou E. (2000) Multi-criteria decision-making methods: A comparative study. Kluwer, Norwell, MAGoogle Scholar
  25. Tzeng G.H. (1977) A study on the PATTERN method for the decision process in the public system. Japan Journal of Behaviormetrics 4(2): 29–44Google Scholar
  26. Tzeng G.H., Shian T.A., Lin C.Y. (1992) Application of multi-criteria decision making to the evaluation of new energy-system development in Taiwan. Energy 17(10): 983–992CrossRefGoogle Scholar
  27. Tzeng G.H., Tsaur S.H. (1993) Application of multi-criteria decision making to old vehicle elimination in Taiwan. Energy and Environment 40(3): 265–283Google Scholar
  28. Wells L.T.J. (1968) A product life cycle for international trade? Journal of Marketing 32(3): 1–6CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  • Grace T. R. Lin
    • 1
  • Hsiao Chen Yu
    • 1
  • Aaron Y. L. Hsieh
    • 1
  • James C. Chou
    • 1
  1. 1.The Institute of Technology ManagementNational Chiao Tung UniversityHsinchu CityTaiwan

Personalised recommendations