Abstract
When the Intel started its chipsets production, the fierce competition have forced many chipsets companies out of business except Via, SiS, and ALi, all from Taiwan, in the global market competition. A recent study by MIC (Market Intelligence Center) showed that in the system core logic chipset segment, Taiwan companies owned 51 percent of global market share in 2000. Among them, Via was the second largest chipsets company in the world due to its PC133 success in 1999. Over years, the chipsets companies in Taiwan have adopted various strategies to sustain their competitive advantages. For example, SiS builds its own foundry plant and become an IDM (Integrated Device Manufacturer). ALi collaborated with ITRI (Industrial Technology Research Institute) to start a new product line, DVD controller chipset, first time by a Taiwan company. This study examines these three companies competitive advantages by conducting in-depth reviews and secondary data analysis. The resource-based theory and dynamic capabilities theory were applied in the analysis process. The results indicate that the short-term competitive advantages include technology innovation, product cost reduction, and time-to-market while the long-term competitive advantages consist of technology, marketing, business reputation and so on.