Business Strategies and Competitive Advantages of Domestic Semiconductor Equipment Manufacturers-A Case Study of Company G
|關鍵字:||競爭策略;半導體設備製造;半導體封測;Business Strategy;Semiconductor Equipment Manufacturing;Semiconductor Package and Testing|
In 2014, the output of Semiconductor Equipment Industry was estimated to have reached the scale of US$39.1 billion, the equivalent of NT$1.17 trillion. 81 per cent (or NT$0.95 trillion) of the output value was attributed to wafer production equipment, and 19 per cent (or NT$0.22 trillion) of the output value was attributed to packaging and testing of production equipment. In 2014, the market size of Taiwan accounted for US$11.7 billion of the global market, ranking first place in the world for five consecutive years. Primary reasons for the market growth of Taiwan were due to the record breaking capital expenditure growth of TSMC, as well as the receipt of record high subcontracted orders from global package manufacturers, enabling Taiwan to become the largest semiconductor equipment market in the world. Semiconductor equipment output in Taiwan represents the better part of 30 per cent of global equipment output. As such, the localization of semiconductor equipment and increase the self-sufficiency rate of the key process equipment within the semiconductor plants are important issues for the industry. TSMC has set up a one-stop production chain (including Silicon intellectual property services, Wafer OEM, and IC backend packaging), as well as expanded their high-end semiconductor packaging and testing technologies. This has created a great business opportunity for Taiwan domestic equipment manufacturers. This research will utilize the case study of the G Company to explore how the domestic semiconductor equipment makers can break up the market oligopoly of foreign suppliers to create comparative advantages to gain market share and profit growth. This research will also analyze the R&D strategy of branded semiconductor equipment manufacturers in Taiwan, and how they compete in the semiconductor market dominated by foreign competitors. Applying the framework proposed by Michael Porter, this research will ultimately seek business strategies to establish comparative advantages in order to achieve an increase in market share and the targeted profitability. Over the past five years, Taiwan domestic semiconductor equipment manufacturers have performed well in the semiconductor equipment arena. By focusing on adopting unique business strategies, and coupled with the flourishing semiconductor orders in Taiwan, they have gained them success in the specific semiconductor equipment arenas. This study explored the case company G, its market positioning, and how it could leverage its competitive advantage to gain a favorable position amongst foreign competitors (i.e. overseas semiconductor equipment suppliers) to establish its competitive threshold. Taiwan domestic equipment manufacturers are strongly recommended to strengthen a co-development relationship between their clients and RD teams. Growing together with the semiconductor manufacturers during their first stage of development, and becoming their main equipment suppliers would be an essential focus of business strategies for domestic equipment makers in order to differentiate themselves in the semiconductor market.
|Appears in Collections:||Thesis|