A Study of Taiwan's Business Cycle of IC Foundry Industry and Operating EfficiencyTSMC and UMC as Examples

• Main Authors: Tung-Sing Lee, 李聰祥
• Other Authors: Wei-Shan Hu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/37671645413219730845

碩士 === 中原大學 === 企業管理研究所 === 91 === Abstract The economic development in Taiwan has been grown for the past two decades. The electronic industry became the major part of the industry constructor in Taiwan, and the semiconductor manufacturers also became the essential district global semiconductor industry. The sales performance of the semiconductor industry follows the trends of economic prosperity or depression. When the demand of the market is raised, the production and the sales of the semiconductor industry is increased subsequently, and the suppliers are willing to invest heavily in the plant, land, and equipment. The total capital investment of the industry has been greatly increased, but the average sales price (ASP) of IC has been slow down under the condition that the new facilities are built up to mass production to make the supply to be deeply increased. The government agencies, the management of the enterprise and the investors have the need to understand the relationship of the development of the industry and management performance. This work targets at Taiwan Semiconductor Manufacture Corporation (TSMC) and United Manufacture Corporation ( UMC) which are the top two publicly listed manufacturers of the electronics in Taiwan. This study investigates the impact of the business cycle between 1998 and 2002 on the financial performance of the firms in the semiconductor industry. The summary of the empirical results is listed as follows: 1. The relationship between the B/B ratio of the semiconductor equipment and the performance of the business is significantly relevant. 2. There is a significantly positive relation between the supply and demand of the semiconductor industry and the performance of the semiconductor industry. The variable used in this study are the average salary index (ASI), the industry production index (IPI) and the combined index of the ASI and IPI, which consequently demonstrated that the semiconductor industry’s performance had deeply been affected by business cycle. 3. The relationship between the growth index of the business and the performance of management is significantly positive. For example, there is a significantly positive relation between the sales growth rate, and the net profit after tax growth rate, which indicates that there is a significantly positive relation between the performance of management and the business cycle of the semiconductor industry.