The Performance evaluation of Taiwan IC Design Industry

In recent years, IC design industry has been prosperous in Taiwan. IC design industry not only lifts the value chain of IC industry, but also makes a high value-added contribution to Taiwan’s economy. Why does IC design industry have such an outstanding performance? Is it because of historically haphazard or of any other reasons? In this thesis, there are two major topics to be discussed. First, from managerial accounting point of view, is better R&D performance based on performance evaluation system in IC design industry? Secondly, is any significant relationship between the performance of a R&D department and the financial performance of a company in this industry.

From literature review, the research defines the integration degree of performance evaluation system with three dimensions：integration level、valuation process and motivational incentive. Is more completeness of performance evaluation system, more success of R&D performance? This thesis will be deeply probed into the relationship between the completeness of performance evaluation system and the performance of a R&D department in Taiwan’s IC design industry. Besides, management team concerns whether good performance in R&D department reflects on the financial performance of a company.

The research summarized the status of performance evaluation system of Taiwan IC industry, the methods of performance evaluation system and its major successful factors of product development. This research will help IC design house to examine whether its performance evaluation system is far beyond the industry’s general standard and to improve its performance evaluation system. The major findings of this research can be concluded as follows:

1. The performance evaluation of R&D activities is based highly on market oriented and customer satisfaction
2. There is a significant relationship between performance evaluation system and the performance of a R&D department
3. The performance evaluation highly rely on financial motivational incentive such as employee stock bonus and employee stock option plan.
4. Motivational incentive of performance evaluation system has a significant relationship with company history and the amount of paid-in capital.
5. Unfortunately, There is no any significant relationship between the performance of an R&D performance and financial performance of a company.