Capital Cop of Wafer Foundry Company： A Case Study of TSMC and UMC

• Main Authors: Chi-Wen He, 何啟文
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/13359801911205951550

碩士 === 立德管理學院 === 科技管理研究所 === 94 === The wafer foundry industry in Taiwan plays a very important role in Semiconductor Manufacturing Industries of the world. In wafer foundry industry, capital investments not only affect by the market, but also affect by the progressive technology.Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Company (UMI) in Taiwan constantly break through the silicon processing, and invest constantly on the capital investment. They expand the factories to increase productivity and shares in the market. Wafer foundry industry is the kind of high capital-intensive. But how the wafer foundry industry decides the ongoing capital investment? Grunfeld (1958) has used the micro-data of the stock value and company stock value to explain the individual behaviors of capital investment in American. Theoretically, the profit opportunities and capital of stock for the company are the two major factors for a company to expand their capital investment. Is that the same way in the wafer foundry industry? The paper applies Grunfeld’s model to estimate the capital investment function of TSMC and UMI, then discusses the capital investment behavior of the companies.After examining the Chow test, we reject the hypothesis that TSMC and UMI are the same capital investment equation at significance level 0.1.Accordingly, the investment behavior of the two company’s different approach was discussed.