Taiwan High Power Diode Industry, Business Strategy Study
Date Issued
2004
Date
2004
Author(s)
Lo, Yao Min
DOI
zh-TW
Abstract
Taiwan General Semiconductor (TGS) established high-power diode factory at Hsin-Dien, Taiwan in 1964, and this is the starting point of Taiwan’s IC industry. This industry comes to Taiwan quietly and leaves quietly from Taiwan; almost all diode makers went to China and established their factory there. These diode companies only keep wafer plants and global operation centers in Taiwan, and with their factories in China, they have a total global market share of 27% in this industry. However, their products are concentrated on diodes of low profit, and no company could be a leading company in this industry.
Most engineers of the high-power diode factory in Taiwan came from TGS and TGS contributed a lot to this industry in Taiwan. The entry barrier to this industry is not too high, and engineers with some capital and technology tried to enter. In the past 40 years, there are totally more than 40 companies established. Companies from the ingot growth to the electronics products form integrated industry chain and satisfy the needs of each other. This industry is lucky enough and Taiwan is the important manufacturing base of electronics products. As the pie grow bigger, and when the cost of labor and land soar, many companies shifted their operation to China, China becomes a good stage for Taiwanese high-power diode companies. With plenty human resources, China becomes manufacturing center of many kinds of products and the needs for diodes are very strong. The economic growth of more than 10% also benefits Taiwanese high-power diode makers in China.
This study starts at economic scale of an industry, and observes leading companies in this industry. Many key technologies with many top tier and high profit products remain at companies in Europe, USA, and Japan. The study of the business strategies, products mix, market positioning of these benchmark companies provides a good reference for the Taiwanese companies in the process of growth and transformation.
From the competitiveness theory of Professor Porter, case study of the management strategy of the Taiwanese high-power diode makers, and the SWOT analysis, this study tries to propose a management strategy and product development trends, which might be helpful to better development of this industry in Taiwan. The author wishes that Taiwanese companies will stop making low level products and construct high quality product lines, they will also have strong R&D, with good profit and good brand names in the worldwide market so that they become leading companies in this industry. Taiwanese companies already occupy the strategic competitiveness, their future and growth depends on how to keep these and develop even better strategies.
The author also wishes to suggest to the government for this industry. Although the high power diode is not a main stream of current R&D, this industry is big enough and enjoys stable growth and profitability, the government should encourage scholars and research organizations to facilitate company transformation for their better future.
Subjects
差異化
競爭優勢
分離式元件
Differentiation
Competitive advantage
Discrete devices
High power diodes
SDGs
Type
thesis
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