Business Ecosystem and Technology Roadmap in Taiwan’s TFT-LCD Industry

Abstract

During the past decade, Taiwan, a reliable source of quality 12-inch wafer manufacturing, grew to become the largest supplier of TFT-LCD panels in the world. The financial crisis in 2008 and increasing competition from other Asian manufacturers shortly after, led to the current scenario, which is characterized by global oversupply, demand fluctuations, and price volatility. As a result, in 2012 several firms attempted to form alliance strategies in support of Taiwan’s TFT-LCD industry. This paper proposes the Grand Alliance in Taiwan’s TFT-LCD and describes three methods to analyze the current strengths, limitations, and future potential of the Grand Alliance: an Industry Value Chain (Porter 1985), a Dynamic Five Forces framework (Porter 1980), and a Business Ecosystem (Moore 1993). The results suggest that developing a business ecosystem lifecycle could obtain an appropriate technology roadmap for Taiwan’s TFT-LCD industry. The study provides useful observations and directions for management and business coalitions involved in drafting and executing globally competitive strategies.