Abstract
Flat panel display, once a rising star in Taiwan, fell and landed on the list of the so-called Taiwan’s Four “Miserable” Industries within no more than two decades. When LCD screens started to take over CRT starting in 1998, the universal belief in its promising future can be well described by the words of the founder of the ChiMei Corporation, Mr. Wen-Long Hsu, who then affirmed: “The flat panel industry is now presenting Taiwan an once-in-a-lifetime opportunity.” Having ranked number one worldwide in output value and made record-high profits in 2007, the soaring profitability attracted heavy investment, which undermined the industry’s recovery after the soon following economic crisis in 2008 crippled it. As the devastating financial crisis brought upon global economy the coldest winter, ChiMei Optoelectronics, the renowned “happy enterprise,” had to announce a nearly 80% cut in its contractors just one week before Christmas. The breaking news shook the whole industry and consequently led to the later merger with Innolux Display Corp., a subsidiary of Hon Hai Group. Merged by Innolux Display, ChiMei Optoelectronics and TPO Displays, the “New Chimei” is confronted outside by a hostile global market and a financial dilemma sparked by heavy fines due to the Clayton Act and inside faces extensive culture shocks and contradicting business philosophies. This research paper intends to study its survival and transformation: how the new Chimei, while challenged both inside and outside, manages to bounce back, reestablish its competitive edge and find the key to lead the industry once again through its refined R&D, innovated product strategy, revolutionized HR management and precise cash flow control.