How Taiwan's semiconductor distributors select strategic partners in China

Abstract

Purpose

Taiwan's semiconductor industry continues moving out to China, therefore Taiwan's semiconductor distributors must cooperate with the local distributors in China in order to survive. The purpose of this paper is to discover the key factors considered by Taiwan's semiconductor distributors when selecting partners in China.

Design/methodology/approach

This study summarizes the factors from the literatures and the experts' discussion, then develops a hierarchical structure. Using DEMATEL and MMDE to construct the causality of the dimensions, which are then taken as the basis for the development of the analytic network process (ANP) framework. Finally, it gets the weight values of various factors through the results of ANP, which serves as a proposal to discuss how Taiwan's professional semiconductor distributors select partners in China.

Findings

According to the weight of the ANP, results show that trust and commitment, scale, market share and corporate culture are factors that increase the possibility of collaboration.

Originality/value

China has become a favorite for foreign investments. Taiwan's semiconductor distributors must actively expand the China market in order to maintain their survival. This study focuses on Taiwan semiconductor distributors who want to invest and establish factories in China, and investigates the key factors that are involved in the selection of partners for Taiwan semiconductor distributors. The results can increase the chances of success among cooperative members.

Citation

Chen, C., Lee, H. and Wu, C. (2012), "How Taiwan's semiconductor distributors select strategic partners in China", Journal of Technology Management in China, Vol. 7 No. 1, pp. 36-49. https://doi.org/10.1108/17468771211207330