Title: Global industrial migration: the case of the integrated circuit industry

Authors: Chih-Young Hung, Chiu-Chiang Hu, Chi-Sheng (Jason) Hsu, Yemi Babington-Ashaye, Michael Nystrom, Joseph Badino

Addresses: Chiao Tung University, Room 709, 1001 Ta-Hsueh Rd, Hsinchu, Taiwan. ' Chiao Tung University, Room 709, 1001 Ta-Hsueh Rd, Hsinchu, Taiwan. ' International Program Center, Industrial Technology Research Institute (ITRI), Building 51, 195, Section 4, Chung Hsing Road, Chutung, Hsinchu, Taiwan 310. ' World Economic Forum, 91–93 Route de la Capite, 1223 Geneva, Switzerland. ' International Program Center, Industrial Technology Research Institute (ITRI), Building 51, 195, Section 4, Chung Hsing Road, Chutung, Hsinchu, Taipei 310, Taiwan. ' International Program Center, Industrial Technology Research Institute (ITRI), Building 51, 195, Section 4, Chung Hsing Road, Chutung, Hsinchu, Taipei 310, Taiwan

Abstract: This paper investigates the global technological migration of the integrated circuit industry from the discovery of semiconductors in 1958 to the founding of a dominant industry model in the late 1980s. The critical turning points we focus on are: 1. the birth of the industry in the USA in the late 1950s; 2. the global change in the business model effected in 1987 by Taiwanese government intervention; 3. the current migration of production capacity to China. Our scope is limited to the USA in discussing the birth and early days of the industry, and to Taiwan in discussing industrial migration. It underscores the role of government and cost reduction in the global migration of the industry. The conclusions of the paper suggest that international technology migration is not an automatic process but the result of specific efforts on the part of the countries involved.

Keywords: integrated circuits; industrial policy; political economy; semiconductor industry; research institutions; public private partnerships; industrial transformation; knowledge transfer; globalisation; technology migration; global industrial migration; production capacity; Taiwan; USA; United States; government role; cost reduction.

DOI: 10.1504/IJTG.2006.011922

International Journal of Technology and Globalisation, 2006 Vol.2 No.3/4, pp.362 - 376

Published online: 31 Dec 2006 *

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