Abstract
At present nearly the half of the top ten IC assembly and testing manufacturers are located at Taiwan. Taiwan has the major providers of IC assembly and testing service. In order to accommodate IC packaging to the technology migration and development of VLSI two technology evolutions have been successively experienced in IC assembly technology. In the beginning of 21st century, the third technology evolution, which the IC assembly technology is changed from single-chip package to multiple-chip package (MCP).This research investigates the development and evolution of technology innovation in IC memory package and analyzes the MCP product, which is the typical product of 3rd technology evolution.The research also studies the attributes in innovation and establishes an "innovation map". The study then explores the strategies of technology innovation the case firms needed with different models of strategic alliance in IC memory supply chain. The result of study reveals that the most of IC memory packages are "Product Innovation" and "Process Innovation" in terms of technology innovation and can be categorized into “Distinctive Innovation” and “Incremental Innovation” by looking into IC memory development trends. The case study shows the different strategic alliance in IC memory supply chain is related with strategy making of technology innovation. In Case A model, the priority of technology innovation is to satisfy customer’s requirement by taking the advantage of equity strategic alliance, and then the secondary is to explore the new customers and products. With regards to Case B model, the technology innovation is recommended adopting the diversiform approach to enhance the competitiveness and customer satisfiaction by utilizing its rich experience in research, development, and production.At the end, the research further investigates the market requirement of MCP business and studies how Taiwan’s assembly houses utilize their own advantages, such as technology innovation and supply chain relationship, to enhance the competitiveness in MCP market.