Advancing Taiwan's Semiconductor Industry: Capitalizing on its Comparative Advantage at the Global, Regional and Firm Levels

doi:10.21754/iecos.v25i2

淡江大學機構典藏 > 國際事務學院 > 全球政治經濟學系 > 期刊論文 > Item 987654321/126369

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Title:	Advancing Taiwan's Semiconductor Industry: Capitalizing on its Comparative Advantage at the Global, Regional and Firm Levels
Other Titles:	El avance de la industria de semiconductores de Taiwán: Aprovechamiento de su ventaja comparativa a escala mundial, regional y empresarial
Authors:	Huang, Fu-Chuan Florencia
Keywords:	Semiconductor Industry, TSMC, Hsinchu Science and Industrial Park, Industrial Cluster, Clip Alliance.
Date:	2024-09-27
Issue Date:	2024-10-08 12:06:04 (UTC+8)
Publisher:	Universidad Nacional de Ingenieria, Lima
Abstract:	Taiwan's substantial growth in the 21st century is primarily driven by its production of crucial semiconductors, essential for the Fourth Industrial Revolution, technological advancements, and military enhancements. This prominence has positioned Taiwan as a vital player in the global semiconductor industry. This paper argues that Taiwan's semiconductor success is not only due to its strategic partnerships, especially with Silicon Valley, but also its comparative advantages in industrial, institutional, and firm-level aspects as part of a catch-up strategy. The study explores Taiwan’s trajectory in semiconductor development, analyzing its competitive edge through the lenses of catch-up theories, global production networks and value chains, industrial clusters, and geopolitical factors. It concludes that Taiwan's competitive edge is shaped by state-driven institutional and industrial advantages and by firms' fast-follower strategies. These advantages are embedded within the global high-tech division of labor and supported by the regional network of the Hsinchu Science and Industrial Park, which facilitates pooled human resources, technological transfer, collaborative vertical division of labor, and complementary industries. Recent geopolitical tensions have reinforced the semiconductor alliance, pushing TSMC to expand globally. While this expansion enhances collaboration, it also increases competition and challenges. Nonetheless, Taiwan's semiconductor dominance, based on these advantages, remains difficult to replicate elsewhere.
Relation:	Journals of Economics, Applied Statistics and Social Science, vol. 25, no. 2
DOI:	10.21754/iecos.v25i2
Appears in Collections:	[全球政治經濟學系] 期刊論文

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