The Japanese TFT-LCD firms had a great loss due to the Asian Financial Crisis in 1997, so the firms finally transferred the big size TFT-LCD technology which they protected a lot to Taiwanese firms to raise money, and Taiwan has beat Japan to be the second largest TFT-LCD production country since the mass production in 1999. The main reason is not only the breakthrough of technology for a long time, but also the large laptop and monitor market in down stream and support from the government. In order to understand how government supported, there are four factors chosen, which are the market factor, industrial development environment, scientific and technological talents, and technology innovation, and then study the strategies and its motivation that government has for these factors respectively.
The research result indicates that although the strategies that government has for the market factor and industrial development environment, that one was allowing domestic firms to invest in China and the other was establishing the science parks, are different, the motivations of these two strategies are both constructing a more complete industrial chain. Looking at the global TFT-LCD industrial with a more prospective thought and take the number one TFT-LCD production country in the world Korea as a reference, it can be discovered that it is not enough to build up a complete industrial chain but is also important for TFT-LCD firms to establish their own brands to secure the orders and get profits more directly.
For the last two factors, although the government has done a lot of scientific and technological talents training programs and TFT-LCD technology innovation projects, the government still need to think about how to deal with the flow of talents to China as China government is progressively developing TFT-LCD industry these years, and try to cooperate with the industry and academia on flat panel display technology innovation as being a cutting-edge technology risk-sharer to build up a technology layout for the TFT-LCD industry in Taiwan in advance.