Abstract
The equipment investment often accounts for a large proportion of capital expenditures in the establishment of a new plant or expansion in Taiwan's TFT-LCD industry. Policy makers face great challenges, including how to meet their capacity planning, product range needs, equipment types and number, and how to control the cost and time with set procurement strategy. These are the factors to be considered by the many decision-makers in the procurement process.This study mainly explores the equipment purchasing requirements for production needs assessment, the procurement strategy and associated decision-making process, and the considerations in the evaluation of procurement benefits. Through the literature review and case analysis comparing TFT-LCD and semiconductor industries practices, this study proposes a systematic process to include early supplier involvement in the equipment evaluation and procurement processes, multi-sourcing strategy, and strategic supplier for the dual distribution. Such a process can significantly reduce overall equipment procurement cost and risk.Keywords: TFT-LCD, Equipment Evaluation, Purchasing Strategy