The Study on the Competitive Advantage of the Material Localization at the Industry Growth StagUsing Taiwan and South Korea TFT LCD Optical Film Industry as an Examplee--

• Main Authors: Chuang, Jui-Chiao, 莊瑞嬌
• Other Authors: Yang, Chyan
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/11124633081196643348

碩士 === 國立交通大學 === 高階主管管理碩士學程 === 99 === The TFT LCD industry originally stemmed from mid-stream panel manufacturing. Since panel technology was mostly provided by the dominant Japanese companies, key upper-stream components and materials relied on imports in the early stage of development of the industry, which had a relatively low self-sufficiency rate in materials. The TFT LCD industry entered the growth stage in 1998, with up to seven panel factories investing in production lines of various generations in succession. With the area and dimensions of production equipment becoming larger and larger, the panel industry not only faces the challenges of establishing process technologies for different generations and maintaining good yield, but also needs to secure the supply of upper-stream components and materials and maintain cost control, with the material cost as high as over 60% and even higher as panel sizes grow. In order to increase the competitive advantage of the TFT LCD industry, the government has included flat panel display technology in the industry strategy of “Two Trillion & Twin Star” as listed in the 2002-2007 national development plan since 1998. The government has been greatly encouraging domestic businesses to invest in key upper-stream components and materials and motivating foreign major companies to open semiconductor fabrication plants (fabs) in Taiwan. Meanwhile, several large-scale technology development programs are being promoted to fully foster development in panel and upper-stream materials. The biggest competitor for the TFT LCD industry in Taiwan is South Korea. The same industry in South Korea has a similar history of development and issues, except that there are fewer panel companies in South Korea. To further understand how the localization of key materials, especially optical film, affects the development model and efficacy of the growing industry and to explore the key factors of success in the core competitiveness for the related industries in Taiwan and South Korea, this article presents the study on the core competitiveness of optical film localization in Taiwan’s TFT LCD industry using a literature review as well as interviews and surveys with experts. In addition, the Diamond Model and the Five Force Model by Michael Porter (1990) and SWOT analysis are utilized as analytical tools and to form a theoretical basis. The analysis of the TFT LCD material industry in Taiwan and South Korea in this article includes aspects such as current material development, upper and down stream supply chain, and industry development. Given the complex structure of TFT LCD, numerous key components, and relatively complete development of the prizm localization in both Taiwan and South Korea, optical film becomes an important portion of the cost in the panel materials. As a result, this thesis will be focused on the analysis of the optical film used in the back-light lens industry. The models and strategies of optical film localization in Taiwan and South Korea are compared by considering the objective conditions in competitiveness such as industry resources, market size, development potential, national system, and model and capability of technology development, followed by an analysis of the associated benefit and effect on the panel industry. In the end, the best model for development of material localization for growing industry and the corresponding core competition strategy are presented as the reference and basis for the government in setting industrial policy and for the industry in establishing competitive advantages.