Two stages' performance analysis of Taiwanese IC design industry: a dynamic network slacks-based data envelopment analysis approach
by Ching-Cheng Lu; Xiang Chen; Shih-Wen Lee; Shao-Yin Hsu; Kuo-Wei Chou
International Journal of Technology Management (IJTM), Vol. 89, No. 1/2, 2022

Abstract: The integrated circuit (IC) industry has a very significant role for Taiwanese exports, since Taiwan is a trade-oriented small open economy. This paper is to assess the performance of efficiency and total factor productivity (TFP) of the 47 publicly-traded companies in Taiwan's IC design industry by applying the dynamic network non-oriented slacks-based data envelopment analysis models (DN non-oriented DEA models) to estimate dynamic efficiency score and Malmquist Index. The aim is to evaluate their production, market, overall efficiencies and the productivity change between 2010 and 2014. The dynamic efficiency measure indicates the level of efficiency increases in the first two years, then declines after. Malmquist productivity analysis shows a significant decline in the production stage between 2010 and 2014. It is suggested that Taiwanese IC design industry should strengthen the exchange of the IC design experience and try to cooperate with universities in research and development to improve production performance.

Online publication date: Fri, 20-May-2022

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