Development and corporate strategy in Taiwan’s liquid crystal industry

Abstract

Taiwan’s TFT-LCD industry has rapidly grown since the end of the 1990s. This is widely attributed to cooperation with Japanese companies and technology licensing. However, technological cooperation and successful technological transfers require an appropriate approach by both the sharing and receiving parties. While content is certainly a consideration for the sharing party, the effort and ability of the receiving party to incorporate research and development activities, as well as product and process improvements, are believed to have a major impact on growth. This paper conducted an analysis of the background to and stages of the development of Taiwan’s liquid crystal display companies, their patterns of technological cooperation, their ability to catch up with competitors, and individual corporate strategies including strategy development.