FY 2015/2016 Research Topic: C-13
The Shifting Locus of Innovation in the Electronics Industry and the Rise of Taiwanese Component Firms
This research project investigates the industry-level and firm-level dynamism that has driven the rapid expansion of the electronics components industry in East Asia.
During the past few decades, modularization of product architecture has taken place in the electronics industry, which has led to a shift of the major locus of innovation and inter-firm competition from the final product sector to the component/module sector. This transformation has led to structural changes in the Taiwanese electronics industry, namely the relocation of production sites of final products to low-cost countries (especially to China), rapid expansion of component and module production, and emergence of gigantic EMS firms and competitive suppliers of key electronic components. Among these, we will focus on the rising importance of the electronics component/module sector in Taiwan and carry out the following studies. First, we will conduct an industry-level analysis to grasp the shifting locus of inter-firm competition from the product sector to component sector. Second, we will conduct a case study of Taiwanese SoC vendors and explore how these firms have encapsulated value-added of products into the IC components.
April 2015 - March 2016
Members of the Research Project
- Ajia Keizai