Abstract
The total revenue of Taiwan's IC design industry is now the second in the world, only behind the United States. Despite the disadvantages of limited research resources and little influence over the global electronics market, it was able to build up a core competence of speed, quality, flexibility and cost through knowledge assimilation and utilization. Taiwan did not attempt to challenge the technology leadership in a confrontational manner, but focused on being a superior quick follower. The implementation of this niche strategy and the core competence of the IC design industry originates from five major factors: supportive policy, technology manpower, entrepreneurship, vertical disintegration and industrial cluster. This paper is dedicated to discussing this unique strategy and the supporting factors of Taiwan's IC design industry.
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