Knowledge spillovers among semiconductor companies with different technology positions and with different roles in the industry chain

Abstract

This study focuses on the knowledge spillovers in the semiconductor industry by employing patent bibliometrics and social network analysis methods. Based on the technological development of wafer diameters, the analysis is divided into three time periods: 6-inch (1976-1991), 8-inch (1989-1999) and 12-inch (1997-2011). Two types of knowledge spillover relationships between semiconductor companies are examined, of which strong ties are defined as the R&D cooperation activities between companies, while weak ties are represented by the patent citations between semiconductor companies. We apply two divisions to categorise semiconductor companies in this study. First, based on each company's technology position in the knowledge spillovers network, companies are classified as technology leaders, technology brokers, technology followers, or technology isolated companies. Second, based on the role of each firm in the industry chain, semiconductor companies are divided into six types, which are-integrated device manufacturer (IDM), IC design, foundry, packaging & testing, IC equipment, and others. Study results indicate that technology leaders are the main sources of semiconductor knowledge spillovers among the four distinct technology positions. Furthermore, IDMs and foundries are the sources of semiconductor knowledge spillovers among all roles within the industry chain. Consequently, we suggest that monitoring the development of technology leaders, such as IDMs and foundries, is important in formulating strategies for the research and development of the semiconductor industry. In addition, it is suggested that foundries transform their relationships with IDMs from vertical outsourcing manufacturing to horizontal R&D cooperation.