An Analysis of Value Migration and Profit Model of the TFT-LCD Industry in Taiwan

• Main Authors: De-Han Kuo, 郭德漢
• Other Authors: Li-Ping Chen
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/57656927426276756892

碩士 === 世新大學 === 經濟學研究所(含碩專班) === 93 === With PC and NB getting popular, and the times of digital TV coming, the development of desiplay technology tends to play the role on display flatternizing. Meanwhile, the emergance of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) saves energy usage with lower voltage, lighter and thinner, smaller volume. More colorful display and many terminal products are expected by various industries involved in all of the Flat Panel Display manufacturing. Due to its high potential in future development, from the late 1990s, Taiwanese firms started to invest into this new industry continually. New firms entered into this industry soon and filled in the industrial chain. Values of this industry are expected to grow high even at this stage. My thesis is to explore the value trsnasformation during this growing period, based on Slywotzky’s value migration and profit patterm theory. This analysis starts with constructing the research framework of industrial value migration. Then, by making use of the data from the Open Information Observation Unit, the thesis goes on doing analysis of the subindustries of the Taiwan TFT-LCD industry. The analysis shows that the value shift track of Taiwan TFT-LCD Industry, surveys the phenomenon and effect of shifting effects, and discusses the planed strategies and the profit patterns of the related enterprises in the industry through the study of the industry information. According to the study, the wholeTaiwan TFT-LCD Industry is in value inflow period. On its upstream of component industry, the value migration phenomenon involves with the Driver IC subindustry. On the mid-down stream of panel board industry, the value migration of the mid-down stream develops toward TFT-LCD panel board subindustry. And, on the the third sub-industry － the terminal application industry, the value migration of the terminal develops toward LCD TV subindustry. As the time of digital TV coming, LCD TV panel board tends to have high potential, and the value migration track of the whole industry develops toward the mid-down stream. With expectation on LCD TV to be the most profitable and outstanding product in the TFT-LCD Industry, it has attracted more of the information appliances manufactures and IT firms to join into this industry even though all panel board manufacturers join in producing LCD TV. When LCD TV market faces fierceful competition from foreign manufacturers, the subsistan strategy of OEM would become pure price competition. The research extends to suggest Taiwan firms should shift their profit pattern by transmit traditional OEM manufacturing into OBM or self-branding manufacturing and channel managment.