Abstract
This research adopts Value Chain and SWOT analysis methods to compare the competitive advantages of foundry fabs across the strait. According to the value chain of Foundry fab business model, four major management activities are identifies: quality, demand, cost and technology. These four elements are then appied in the comparative analysis. In addition, the triangle of demand, cost and technology is used to discuss the value-added activities on the supply chain among which the similarities and differences on fad firms are addressed. The in-depth interview was conducted for information collection. Relevant secondary data sources are also explored for additional insights including industrial news, various databases, and research reports. The results of the study revealed: (1) customer demand is directly related to the fabs capacity utilization; (2) low costs can not always guarantee high business performance and large market share; (3) the differentiating strategy in fact play a crucial role in achieving higher profits and better business outcomes. Key Words: Value Chain, Foundry Fabs firm, Competitive Advantage, Business and Strategy.