Abstract
This study surveyed the development of global semiconductor industry from the historical and technologically evolutionary views in order to conclude the general rules of this industry. The theoretical structures of technological evolution mentioned in this study include: dominant design (Utterback, 1974; 1993; 1995), technological paradigm (Dosi, 1982; 1988) and technological field (Friedman, 1994). From all these theories, it is concluded that regular behaviors and relevance must exist in the technological development of an industry, and this development will proceed by following the rules of a system. Rules of a system is the formalization of the contacts or the theories. The illustration of this process can be regarded as the accumulation of knowledge, and it will help the directors of semiconductor industry know the effective way to produce. Eight rules are concluded in this study, including strategic alliance; investment of a great deal of money on the semiconductor industry; the supporting policy of the government; the rapid reaction to the price; multiple products; overseas production; the protection of patents and the support of the complementary products.