This essay studies Taiwan’s Semi-Conductor industrial policy with policy instrument approach. It discusses the advantages and disadvantages of industrial policy means in the past and the most appropriate trend of industrial policy instruments in the future. First, it reviews previous policy instrument theories and sums up four most important thinking items when we choose policy instruments: environment context, problem characters, state capacity, society ability. In planning evaluation analysis stage, it focuses on cooperation of environment context and problem characters. In feasible analysis stage, state capacity and society ability were emphasized. According to this and policy instrument types from governance concept, it constructs “the most appropriate policy instruments selection standard”. Besides, we should apply different kinds of policy instruments by “give-and-take strategy” and “package way”.
Following that, this paper makes reference relative government’s publications and plan reports and gradually concludes the developed process of Taiwan’s Semi-Conductor industry from 1960 to today, important industrial policies made by government, and policy instruments they used. Finally, it examines if policy instruments they used are appropriate and provides policy advice for selection of policy instruments in the future by “the most appropriate policy instruments selection standard”. The conclusion of this research are that public information, ability structuring, organization associating of guidance instruments; public service, laws making, and finance systems of foundation instruments; contracting and government-sponsored enterprise of indirct instruments; and some direct instruments such as tax expenditure and finance grant are the most appropriate selection.
