Abstract
In the world-wide semiconductor business, Taiwan has become thelargest area for wafer foundry which attracts orders from abroad designerand manufacturer along with the support by competitive back-endassembly factory, it brings lots of market demand to Testing business.Compared with Foundry, Dram & Assembly, Taiwan’s Testingbusiness is a little behind, but the Testing market will grow up in hugecontinuously with world-wide semiconductor trend by professional,mature development of business value chain and more on businessperformance of Testing including cost, delivery and output.At the beginning stage of Taiwan Testing business, Logic IC is in ahigher ratio among Testing product, but after 95’s, Memory IC becamethe core part of Testing business. Up to the end of 2002’s, there are total35 companies in Testing, and total employees are 12,850 persons, thebusiness value of top five companies is around 60.4%.The key factors to the success of Testing can be analyzed from threeparts of cost, added value and speed. It is similar to the resource ofcompetition advantages including cost leadership, differentiation andfocus in Porter’s Generic competition strategy. In summary, they all putthe competition on : Technology ability, Business scale, Speedinformation feed-back, core cost and focused operation.The research of this article is as a case study to evaluate the coreⅡcompetence and make a analysis of advantages and disadvantages basedon a leading company in Taiwan’s Testing business. Further more, toanalyze the trend of competition advantages for Testing business incombined with Testing business development trend.In the model of semiconductor division of labour and the businesscharacteristic of high capital consolidated in Testing, it will be a topic tobe worthy of thinking how to develop the business strategy withcompetition advantages. In this article, we suggest that the Testingbusiness strategy should focus on: Strategy alliance and partnership,Technology innovation & R/D, Information technology management,capital management and development of Human resource to enlarge thegap with competitors and still keep the leading advantages.In the future, the semiconductor business will be more maturegradually in Mainland of China, Taiwan’s semiconductor companies allhave the preparations and plan to explore their business there. How totransfer and copy existing advantages? Whether the competition andcooperation model is working or not on both site? How to proceed themanagement of business supply chain? They may be some suggestionsfor next studying direction.