Abstract
This study is to examine the causal relationship of investment funding and corporate performance for Taiwan IC (Integrated Circuit) industry. The data is panel data consisting of cross-section units over a number of periods. The Dynamic Panel Data Model is adopted in the analysis. For the perspective of whole IC industry, the results show that neither physical investment nor R&D investment has significant impact on corporate performance. In addition, we divide the data into IC design group and IC manufacturing group and repeat the same analysis for each subgroup. The results indicate the key influencing factor is R&D investment for IC design houses, while the physical investment is more important influencing factor for IC manufacturing firms. Such results indicate that IC design houses are R&D-intensive type and IC manufacturing firms are physical investment-intensive type.