The Semiconductor Industry in Taiwan

Abstract

Taiwan’s semiconductor industry was the result of carefully orchestrated long-term planning by the government and private firms. It offers an evident example of how the interplay of domestic policy and international supply networks can fend off the encroachment of mad technologies. However, this statement poses three questions that warrant attention from network theorists. First, do small firm networks, such as the family firm networks that exist in Taiwan, despite their limited financial reserves, have hidden network resources that can support risky diversification into semiconductor industries? Secondly, do small firm networks, with severely restricted marketing capabilities, have other network resources that encourage the commercialization of new technologies? Thirdly, if the network resources of Taiwanese family firms have overcome the above two difficulties in innovation and technology commercialization, what are the unique organizational advantages that have made their success possible?