Government-led development and incubation semiconductor industry in Taiwan is an astounding success for the supporters of strong industrial policy. This has led to the domination of the island nation of the global "foundry" business, in which companies such as Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) production structures "power" design companies. The two share a global market share approaching 70% of the global business segment. This success is all the more remarkable because, when the initiative began, there were a few large firms scale, which could support the R & D and scale required to enter such a complex capital-intensive industries. There is no firm with deep roots or technological skills base in order to even begin. However, the government has recognized the challenges of modernization plan the technological base of the country and formulate a strategy that resulted in the creation of a "pilot sites", which will serve as a means to overcome between the power of advanced technologies (mainly derived from abroad), and commercialization will be from the local firms. "Hide
by Willy Shih, Jyun-Cheng Wang Source: Harvard Business School 25 pages. Publication Date: February 13, 2009. Prod. #: 609089-PDF-ENG
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