Abstract
Taiwan is one of the world's largest provider of thin film transistor liquid crystal display (TFT–LCD) panels, second only to Korea. In 1998, Taiwan accounted for only 1% of market share worldwide, but by 2002 its market share was over 30%. This study examines the causes behind this amazing growth. There are five major TFT–LCD manufacturers in Taiwan, the largest being AU Optronics Corp. (AUO), which evolved from a 2001 merger between Acer Display Technologies and Unipac Optoelectronics Corp. This case study discusses the benefits obtained from mergers that result in more complete product lines and integrated resources to enhance competitiveness. Porter's Diamond Model is utilized to develop a greater understanding of Taiwan's unique competitive advantages in the global TFT–LCD industry. Then, using the Grey forecasting model, we show that Taiwan's TFT–LCD industry can expect continued growth. The article ends with suggestions for encouraging developing of Taiwan's TFT–LCD industry.
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