Abstract
High technology firm’s technology knowledge and intellectual capital is an important source of competitive advantage. The key questions are how to use intellectual capital to enhance technology development and knowledge diffusion and how to efficiently use the firm’s research resource to increase competitiveness. There are two key approaches for technology development: first, develop internally and second, get the knowledge from outside through technology transfer. Taiwan DRAM industry usually used the technology transfer approach. This research addresses the main concern for Taiwan DRAM company, that is, how to conduct technology transfer and knowledge diffusion.This research developed a detail case study with in-depth interviews for the selected DRAM company on how to conduct technology transfer of the process technology for mass production. The study focused on how to integrate the internal and external paths of knowledge diffusion to achieve the objective of knowledge transfer. The case discussed how the process knowledge was developed to compliment business needs in the process of technology transfer. We hope that the DRAM case study provides an example on how to integrate the knowledge diffusion from internal and external sources for the technology transfer and development in the semiconductor industry.