Abstract
This article studies the formation process of Taiwan 's integrated circuit (IC) industry, which in 1973 consisted of assembly plants only but has since grown to comprise a complete industry infrastructure, including design, mask, fabrication, and assembly capabilities. Taiwan's IC industry was formed in the following way: IC technology, strategically selected by the government, was introduced from RCA of the USA by the Industrial Technology Research Institute (ITRI) and then transferred to the industrial sector after being assimilated and improved. This article describes the formation process, including the selection of the IC industry as a target industry, the introduction of foreign technology, the assimilation and improvement of the introduced technology, and the transfer of this technology to local industry. Through a process of introducing, developing and disseminating technology, Taiwan's IC industry was established.
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