Internet and e‐commerce adoption by the Taiwan semiconductor industry

Abstract

PurposeTo determine the status of internet and e‐commerce adoption by the Taiwan semiconductor industry, the research is designed to help government and enterprise in formulating strategic plans and making resource allocation decisions.Design/methodology/approachUsing the three‐level model of internet commerce adoption (MICA), a survey of 287 companies and web sites was designed. Semiconductor firms were placed into five categories: integrated circuit (IC) design, manufacturing, packaging, IC testing, and peripheral device manufacturing.FindingsThe MICA model shows the internet adoption ratio for semiconductor firms as 82.6 percent, significantly higher than the electronics and electrical machinery industry sector (56.5 percent). The IC manufacturing and packaging segment are in the processing stage, the final stage of development for the MICA model. One‐third of the IC testing industry segment falls into the provision stage, and 36.1 percent web sites are in the processing stage. The IC design and peripherals industrial segments are located in the provision stage.Practical implicationsThe IC manufacturing segment is conducting more financial transactions than the other segments – a result that matches earlier research showing that larger companies are most likely to implement e‐business applications. Many enterprises in the industry are lagging with the adoption of the internet indicating a need for education and training.Originality/valueThis benchmark study provides a framework for evaluating the internet adoption status of semiconductor and other high technology firms. The MICA model is demonstrated to be suitable for evaluating the different stages of internet adoption.