Dynamical competition of IC-industry clustering from Taiwan to China

Bi-Huei Tsai, Kuo Hui Tsai

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Most studies employ qualitative approach to explore the industrial clusters; however, few research has objectively quantified the evolutions of industry clustering. The purpose of this paper is to quantitatively analyze clustering among IC design, IC manufacturing as well as IC packaging and testing industries by using the foreign direct investment (FDI) data. The Lotka-Volterra system equations are first adopted here to capture the competition or cooperation among such three industries, thus explaining their clustering inclinations. The results indicate that the evolution of FDI into China for IC design industry significantly inspire the subsequent FDI of IC manufacturing as well as IC packaging and testing industries. Since IC design industry lie in the upstream stage of IC production, the middle-stream IC manufacturing and downstream IC packing and testing enterprises tend to cluster together with IC design firms, in order to sustain a steady business. Finally, Taiwan IC industry's FDI amount into China is predicted to cumulatively increase, which supports the industrial clustering tendency for Taiwan IC industry. Particularly, the FDI prediction of Lotka-Volterra model performs superior to that of the conventional Bass model after the forecast accuracy of these two models are compared. The prediction ability is dramatically improved as the industrial mutualism among each IC production stage is taken into account.

Original languageEnglish
Title of host publicationComputational Methods in Science and Engineering - Advances in Computational Science, Lectures Presented at the Int. Conference on Computational Methods in Science and Engineering 2008, ICCMSE 2008
Pages505-508
Number of pages4
DOIs
StatePublished - 1 Dec 2009
Event6th International Conference on Computational Methods in Sciences and Engineering 2008, ICCMSE 2008 - Hersonissos, Crete, Greece
Duration: 25 Sep 200830 Sep 2008

Publication series

NameAIP Conference Proceedings
Volume1148 2
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference6th International Conference on Computational Methods in Sciences and Engineering 2008, ICCMSE 2008
CountryGreece
CityHersonissos, Crete
Period25/09/0830/09/08

Keywords

  • Bass model
  • Clustering
  • Competitive analysis
  • Equilibrium analysis
  • FDI
  • Lotka-Volterra model
  • Social science
  • Statistical methods
  • Vertical disintegration structure

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