Focus on Business Association SEMI Taiwan

   

SEMI (Semiconductor Equipment and Materials International) is the largest business association for the semiconductor industry, with a worldwide membership of 2,600 companies. It is best known for its trade shows, which are highlight events for the semiconductor industry.

SEMI Taiwan opened its office in Hsinchu in January 1996. The SEMI Taiwan office sponsors the inaugural SEMICON Taiwan exhibition usually held in September at the Taipei World Trade Center. SEMICON Taiwan is primarily a local show, however it draws attendees from most of Southeast Asia and other parts of the world and is now the world's fourth-largest industry exposition.

The worldwide semiconductor industry is a $142 billion market. Taiwan's semiconductor revenue is about $14 billion or 10% of worldwide sales. The semiconductor capital expenditure for 1999 in Taiwan was $5.5 billion, representing over 20% of worldwide expenditures. [3] This verifies the enormous commitment to invest in capital plant and equipment in Taiwan.

Semiconductors are a vital sector to the Innovation Economy. Taiwan is a dominant player in the global information technology industry, with major market share in the manufacturing of PCs and peripherals.

George Lin, president of SEMI in the Southeast Asia region, is responsible for operations of both the Taiwan and Singapore offices. He discusses the reasons for the extraordinary success of Taiwan in the semiconductor industry, the role trade associations play, and the reasons why the Chinese culture is particularly well suited to the Innovation Economy.

George Lin

Reversing the " made in Taiwan " stigma

Government support of high-technology manufacturing and development has clearly played an important role in the rapid growth of Taiwan's industry, especially in the development of the semiconductor foundries, a business model with its roots in Taiwan. But perhaps just as important has been a dedication to building and providing world-class manufacturing capabilities. For many years , "made in Taiwan" was a negative label, with many consumers seeing Taiwanese-manufactured goods as cheap and inferior. To overcome this, Taiwanese companies placed a significant amount of emphasis on quality and continual improvement, the same way that Japanese companies did in overcoming their own image problem of the 1960s. As Japan was able to turn its industries into models of quality and advanced technology, Taiwan too was able to prove that its companies were capable of producing electronics and other high-value products of extraordinary quality.

Taiwan and semiconductor industry are well suited to each other

The development of a full-spectrum technology industrial economy, from materials providers up to electronic systems manufacturing, has put in place a technology infrastructure that is well suited to semiconductor manufacturing. The real key to the successful development of a semiconductor industry is having the supply, support, transportation, and other infrastructure elements in place that enable lower production costs and increased productivity. The basic elements grew quickly with the development of all the different technology industries, and as semiconductor equipment and materials suppliers recognized the tremendous growth opportunities in Taiwan, their expansion and presence in Taiwan enabled the industry's development to accelerate even more.

Technology parks have made a big difference for Taiwan

The technology parks are an important and integral part of the high tech development in Taiwan. HSIP, for example, has contributed a great deal in the world of high tech; it has the longest history and occupies the largest area in Taiwan. In recent years, another park has been developed in Tainan, a southern city on the island. It will have the newest facilities and convincing scale in all respects. Taiwan semiconductor industry would not have been this successful, had it not been for the parks advantage. Its location, infrastructure, financial, and logistics all account for the noted success of the industry.

Business associations have an important role to play in linking Taiwan to the world

The role of an association is primarily to aid its members in expanding business opportunities, so for any industry, participation with and support of industry associations is important. For a global association such as SEMI, this is even more true as we enable growth and development of business opportunities around the world. By having a presence in Taiwan, SEMI is able to address the needs of the local industry, and by having offices, events, and services worldwide, we enable Taiwanese companies to extend their reach beyond their shores to every market where there is significant semiconductor manufacturing activity. Likewise, through our presence in Taiwan and through our industry events and trade shows, we bring the global industry to Taiwan, enabling our members from around the world to establish relationships with Taiwanese companies.

Taiwan works well with multilocation companies through Taiwan transnationals

Of course, the miracle of Taiwan's high-tech advancement did not happen just overnight. It has had its difficulties, frustrations, and obstacles over years. Isn't it true about what they say, "Success breeds success." There are a few products such as scanners , monitors , notebooks , and computer peripherals that captured the eyes of the world, largely through the pioneering efforts of those who had studied in the United States and came back in early 1980s to make an impression .

Homecoming often is a sense of feeling and calling of those whose roots are in Taiwan. As such, working on mulitple locations, multiple environments, and even multiple mindsets can easily become a second nature for the individuals involved. We should not overlook the fact that most of these engineers and companies have the Chinese and English language advantage that sets them apart from others.

There is something special about the Chinese culture

The Chinese culture is a great advantage in the high-tech industries, for these reasons:

  • Willingness to contribute seems to be an in-born nature. What else can one be more proud of than to do what one feels a sense of repayment of what one owes in life? This is not patriotism per se; rather, the opportunity is right for the Chinese to stand tall after being suppressed for generations.

  • There is a Chinese saying, "No matter how tall a tree grows, when it comes time for the leaves to fall, they all return to the roots." This kind of mentality, consciously or unconsciously, is in every Chinese mind. The output of such a mentality goes without saying.

  • Politics aside, one can work well in all localities. China is picking up very quickly to provide opportunities for those willing to work in high tech; much more so today than in previous years. As a contrast, science and high-tech people outside China have enjoyed the freedom of working in a totally free environment, which is easily taken for granted. They enjoy the opportunity of being creative and are eager to contribute to the new economy, where one can aspire to a greater society, country, and a race on this earth.

Taiwan seems to always be in the forefront of change, and its people are able to make regional wealth whatever happens in the external world. It is often cited as one of the best examples of a developing country that took its economic fate into its own hands; they focused on a unique role in the world economy, leveraging the intelligence, diligence, and pluckiness of its people for their common good.

   


Creating Regional Wealth in the Innovation Economy. Models, Perspectives, and Best Practices
Creating Regional Wealth in the Innovation Economy: Models, Perspectives, and Best Practices
ISBN: 0130654159
EAN: 2147483647
Year: 2002
Pages: 237

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