Abstract
In the fast-changing market environment, demand chain management (DCM) that has been considered as a powerful strategic weapon recently help companies enhance their competences with the idea of customer demand driving the upstream supply activities. Frequent exchanges of DCM knowledge make closer relationship among supplier and customer. Enterprises can make quicker and more flexible response to customer demand at lower cost.This research explores the issue of how local companies in semiconductor industry achieve the goal of operational agility with frequent exchange of DCM knowledge. Accordingly, a framework of demand chain ontology is proposed and represents the linkage and combination process of core knowledge among partners in demand chain.. The operational agility can be improved by a systematical collection, integration, learning, and internal or external sharing of the DCM knowledge. The research reveals that the technology and market aspects of DCM knowledge help improve opreational agility when the demands encounter incremental changes. When the demands encounter substantial platform changes, the matches of technology and market knowledge are needed to enhance operational agility.