Integrated Circuit Design Industry Research Articles

The coevolution of innovation ecosystems and the strategic growth paths of knowledge-intensive enterprises: The case of China’s integrated circuit design industry

Knowledge-intensive enterprises (KIEs) play a significant role in creating value in larger ecosystems by exploiting innovative opportunities. The survival and development of KIEs significantly rely on the resources that they can obtain from heterogeneous regional endowments. However, few studies have investigated KIE development in relation to the evolutionary characteristics of the external environment under a specific regional context. Adopting the lens of ecosystems and a processual approach, using a case study of China’s IC design industry, the present study explores how KIEs coevolve with innovation ecosystems over time. More specifically, our case study reveals the mechanism by which KIEs benefit from innovation ecosystems by responding to changing resource dynamics over the course of ecosystem development, which in turn facilitates and shapes the development of KIEs into either market-oriented growth or technology-oriented growth paths. The theoretical contribution and practical implications based on our findings are discussed.

Incentive mechanism system of the management of IC design enterprises

Strengthening technological innovation and improving independent intellectual property rights is one of the most important tasks for the development of our country's integrated circuit enterprises. In addition to the main body of technological innovation-the enterprise's own efforts, it is also necessary to create an environment for enterprise technological innovation as a base for enterprise service organizations. Formulate policy support and management incentive mechanisms and guide enterprise technological innovation. In order to further improve the conditions of integrated circuit public service software and hardware, expand the sharing and application of resources, and promote the development and innovation of our country's integrated circuit design industry, an integrated circuit design industrialization base should be established. The base construction, government will, enterprise alliance, and public core technology research and development environment are integrated, aiming to play a guiding role in the integrated circuit industry. Starting from the problem of insufficient incentives faced by the management of integrated circuit design enterprises, this article uses a variety of research methods to deeply analyze the phenomenon of insufficient incentives for managers and further analyze the causes of insufficient incentives for company managers. Existing problems in the process of incentives for managers have targeted the implementation of broadband compensation, the establishment of dual career development channels, the improvement of performance appraisal systems, enrichment of training content and forms, etc., in order to provide guidance for the management practices of IC design enterprises’ managers. The research concluded: the new incentive mechanism has improved the profitability of the five branch companies. The employee turnover rate has been reduced from 9.35 to 3.27%, and the rework rate has been reduced from 6.8 to 2.1%. This not only improves R company’s industry competitiveness, but also enhances company cohesion and promotes The career development of company managers.

Entrepreneurship-driven growth in the integrated circuit design industry

Entrepreneurship-driven growth in the integrated circuit design industry

Publisher Correction: Entrepreneurship-driven growth in the integrated circuit design industry

Publisher Correction: Entrepreneurship-driven growth in the integrated circuit design industry

New Progress of China's Integrated Circuit Design Industry

New Progress of China's Integrated Circuit Design Industry

Impact of human capital strategies on employee attitudes and behavior: a view of internal and external labor markets

PurposeAccording to human capital theory, companies derive economic value from the knowledge, skills and abilities (KSAs) of their employees. Research conducted by strategic human resource management has focused on how investment in human capital can create a competitive advantage for an organization. The purpose of the paper is, therefore, to investigate how the choice of different human capital acquisition strategies – “make or buy” – can influence employee attitudes and behavior.Design/methodology/approachThis study explores the relationship between internal and external human capital strategies and employee’s attitudes and behavior in Taiwan's IC (integrated circuit) design industry. The cross-sectional dataset derives from a sample of 49 human resource departments and 497 employees from 25 different IC design companies.FindingsThe findings indicate that the decisions made on human capital strategies have an important influence on employee’s attitude and behavior. The results also show that a climate of trust and perceived organizational support is a cross-level mechanism for both human capital strategy and employees' attitudes and behavior.Originality/valueThere has been little research on the cross-level analysis of human capital acquisition strategies that can influence employee’s attitudes and behavior. This study verified that internal and external human capital strategies do affect employees' individual perceptions of organizational support via the organizational-level climate of trust, which in turn influences employees' attitudes and behavior. This cross-level mechanism indeed will facilitate new insights into the nature of strategic human resource management.

Pre-Evaluating the Technical Efficiency Gains from Potential Mergers and Acquisitions in the IC Design Industry

Increased global competition has led to a slowdown in Taiwan’s domestic semiconductor industry growth, which has resulted in many semiconductor companies reducing their investments and or seeking mergers and acquisitions (M & As) to increase market power, expand their business territories or increase their competitive edge. However, as there is general uncertainty regarding the efficiencies to be gained from these M & As, there has been an increase in M & A supervision. While past research has explored company operations and management efficiency after mergers, there has been less focus on potential mergers. Therefore, this study used a resample slacks-based measure (RSBM) and merger potential gains models to evaluate potential merger efficiency gains. Data on 29 Taiwanese-listed integrated circuit (IC) design industry firms were collected to evaluate the efficiency of potential M & As, from which it was found that the potential M & As efficiencies had positive and negative values, indicating that efficiency gains were not guaranteed. A positive value was found for a potential M & A between MTK & NOVATEK and MTK & DAVICOM, which meant that a potential M & A would increase operating efficiencies and reduce costs.

Analog IC Design Using Precomputed Lookup Tables: Challenges and Solutions

Design productivity remains an important aspect in the analog integrated circuit design industry, as growing competition and shorter design cycles pressure the traditional flow that involves time-consuming manual iterations in a circuit simulator. This paper describes innovations within an alternative framework that uses precomputed look-up tables (LUTs) to enable fast and accurate evaluation of circuit sizing scenarios without a simulator in the loop. It lets the designer explore and understand the design space boundaries in a systematic setting, thus supporting informed decision making and architectural innovation that is difficult to attain with fully automated, black-box sizing tools. Our discussion begins with an overview of the LUT-based design paradigm and its two primary variants: inverse design (finding design parameters that meet the specifications) and forward evaluation (sweeping design parameters to search the design space). In support of the latter, the core of our work focuses on improving the accuracy and speed of LUT access, enabling millions of queries within seconds on a standard computer. Large improvements over prior art are enabled using enhanced interpolation methods, which allow for a relatively large LUT grid spacing (hence small memory footprint) and yet accurate parameter lookup. We evaluate the efficacy of the proposed methods using two classical analog circuits, a bandgap reference and a folded cascode amplifier. In the bandgap example, we observe less than 1 ppm error between the LUT-predicted temperature coefficient and circuit simulation. In the folded-cascode example, one million design points are generated in only 4 seconds, providing the designer with useful maps that delineate the reachability of certain target specifications.

Global Technology Sourcing in China's Integrated Circuit Design Industry: A Conceptual Framework and Preliminary Findings

The paper examines the role of global technology sourcing, and its drivers and impacts in China’s integrated circuit (IC) design industry . IC design is one of the priority targets of China’s innovation policy, as codified especially in the “Strategic Emerging Industries” initiative. At the same time, however, China’s IC design industry is deeply integrated into the vertically disintegrated global semiconductor industry, through markets, investment and technology. The paper highlights a fundamental challenge for China’s innovation strategy: How can China reconcile its primary objective of strengthening indigenous innovation with the benefits that it could reap from its deep integration into international trade and into global networks of production and innovation?We show that the process of global technology sourcing is changing in important ways as it becomes possible to “source” technological services in an increasingly fine division of the value chain, even compared to what was possible a few years ago. The paper describes how globalization has transformed the distribution of scientific and technical knowledge; explores possible effects on technology sourcing; and examines the tension between these global changes and China’s indigenous innovation policy. Focusing on IC design for wireless communications, the most dynamic part of China’s country’s IC design industry, we examine how changes in markets and technology create new strategic opportunities for Chinese IC design companies, and discuss tentative findings of case study research.Global technology sourcing describes a small but important segment of China’s innovation system that is very different from the government-sponsored innovation of the strategic emerging industries and indigenous innovation. This raises an important policy question: Can China combine the benefits of both innovation strategies?

INNOVATION CHARACTERISTICS, INDUSTRIAL CLUSTERS, AND INTRA-INDUSTRY SPILLOVER EFFECTS IN INTEGRATED CIRCUIT INDUSTRY

Since Taiwan and U.S. integrated circuit (IC) industries cluster in Hsinchu Science Industrial Park (HSIP) and Silicon Valley, respectively, these IC firms can easily imitate any innovation through the interactions among intra-industry firms. The contribution of intra-industry innovation development to firms' technological advancement is defined as the "spillover effect". This paper compares how the innovation characteristics and industrial clustering influence the spillover effects. The results show the research and development (R&D) spillover effects in IC manufacturing, packaging and testing industries appear evidently greater than those in IC design industry, while the patent spillover effect exhibits greater for IC design industry than for the other IC industries. Similar production stages in IC manufacturing, packaging and testing industries enable firms to easily imitate R&D outcomes within the same industry. By contrast, the production process of IC design firms is diversified, so they hardly upgrade their technical skills through the interchange of R&D information within the same industry. Hence, the IC design firms, which focus on product innovation, rely more on patent licensing to develop core technology innovation. Finally, R&D spillover effect is evidently greater in U.S. IC design industry than in Taiwan IC design industry, while patent spillover effect appears greater in Taiwan IC design industry than in U.S. IC design industry. The IC design industry in U.S. free-rides intra-industry R&D outcomes more easily than that in Taiwan. Consequently, Taiwan IC design firms rely on patent spillovers to develop IC elements, which are compatible with the incumbent IC products.

Technological Innovation in China's High-Tech Sector: Insights from a 2008 Survey of the Integrated Circuit Design Industry in Shanghai

An intensive investigation of China's high-tech sector led by a noted Hong Kong—based geographer examines the patterns of cooperation between firms and local governments (so-called "state-firm strategic resonance") as an alternative to knowledge spillover in an effort to explain why certain firms are more likely to innovate than others within an economic cluster. As a case study, they select the integrated circuit design industry (a key in the development of more efficient computing and thus a critical element of the digital revolution) in Shanghai, one of the most advanced metropolitan regions in China. A systematic analysis of firm-level data obtained inter alia from the authors' 2008 survey and interviews revealed a significant pattern of variation in innovation that could not be explained by inter-firm interactions in the process of industrial clustering. The authors argue that the uneven pattern of technological innovation is contingent on a state-built institutional and market environment designed to stimulate firms' innovative activities, and demonstrate how firms respond to that environment in a Chinese metropolis. Journal of Economic Literature, Classification Numbers: H700, L630, O310, P230, R280. 5 figures, 7 tables, 57 references.

Cluster evolution of IC industry from Taiwan to China

In this work, we for the first time study the inter-industrial clustering behaviors of integrated circuit (IC) industry from Taiwan to China via amount of foreign direct investment (FDI). According to the mutual dependence among IC design, manufacturing and packaging-and-testing industries, Lotka–Volterra model is solved to explore the cluster evolutions. Effects of inter-level collaborations along production value chain on FDI flows into China are considered. Evolution of FDI into China for IC design industry significantly inspires the subsequent FDI of IC manufacturing, packaging and testing industries. Since the production of IC manufacturing, packing and testing enterprises depends on the preceded products that design industry has devised, the middle-stream manufacturing and downstream packaging-and-testing firms tend to converge toward upstream design houses. Taiwan IC industry's FDI amount into China is estimated to be cumulatively increasing, which suggests the clustering tendency of Taiwan IC industry. Prediction of FDI with Lotka–Volterra model is superior to that of the conventional growth model (i.e., Bass model) because the industrial mutualism among various stages is included. The flows of FDI have not yet reached equilibrium points, so the FDI inflows into China will expand for IC design or packaging-and-testing industry, while decline for manufacturing industry.

An integrated platform of collaborative project management and silicon intellectual property management for IC design industry

Due to the rapid growth of consumer electronics market, there are urgent needs in effective execution of integrated circuit (IC) collaborative design projects and better utilization of silicon intellectual property (SIP) as design knowledge on a virtual design cyber-space. In order to provide IC industry a well-integrated design environment, this research proposes an integrated information platform which combines the project management (PM) module, the design knowledge (e.g., SIP) management module and the collaborative working environment for the IC industry. With the project management module, the R&D team leaders can better monitor, coordinate and control design tasks among partners and their schedules to shorten the time to market. Moreover, a knowledge exchange environment, supported by the design knowledge management module, enriches the design chain productivity and efficiency. Finally, the integration of collaborative working space is the propeller to enable collaborative design. With the unique platform that integrates collaborative project and SIP knowledge management, IC companies gain competitive advantages when working as a virtual design team.

Grey Clustering Model for Creditworthiness Evaluation

Traditional commercial loan decisions in the banking business are made by statistics or econometrics method, but there have been some inappropriate application of the trouble. Adopted in this paper is mainly the application of grey clustering method for the rectification of the many imperfections inherent in the statistical credit extension model, based on the comparison under the conditions of identical financial ratio and identical industry in ratio analysis. The financial ratio data in Taiwan's integrated circuit design industry is examined and analyzed to develop creditworthiness evaluation based upon small samples. The substantiated results can be used to clearly differentiate various companies into different clusters they belong to, according to the financial operations of the enterprises being assessed. In addition, a ranking can be decided for each in its respective classified category. The result for the research can take into consideration for banks when loaning to enterprises.

Evaluating the effects of innovation policies on Taiwan's IC design industry: a fuzzy integral MCDM approach

The aim of this paper is to develop a 'technological system' for evaluating the effects of innovation policies. Limited resources, coupled with seemingly unlimited demand for development, means that policies must be made regarding the allocation of scarce resources. The significance of evaluating the effects of innovation policies is therefore increasing. A hierarchical fuzzy integral multi-criteria decision making (fuzzy integral MCDM) approach for evaluating the effects of innovation policies is proposed in this paper. To show the practicality and usefulness of this approach, a case involving the Taiwan Integrated Circuit (IC) design industry is demonstrated. The results show that the 'political' policy tool is the most effective. Environment side policies and scientific and technical development policies are vital to Taiwan's IC design industry. This demonstration also shows that the proposed model is valid.

The Relationships between Resource Configurations and Launch Strategies in Taiwan's IC Design Industry: An Exploratory Study

Within the last decade, the link between launch strategies and new product performance has been widely investigated. However, the relationship between resource configurations and launch strategies has received little attention. This study endeavors to fill that void by examining the relationships between resource configurations and launch strategy selections. In addition, this study investigates the moderating effects of market growth and competitiveness on the relationship between resources and launch strategies. Drawing on contingency theory and strategic studies, this study proposes that resource contingencies affect changes in launch strategies. This study also suggests that market characteristics play a contingent role in the relationships between the configurations of resources and launch strategy choices. Based on extensive studies reporting on market characteristics and their links to strategies, this study proposes that two market characteristics—market growth and competitiveness—are relevant for launch strategy decision making. Taiwan's integrated circuit (IC) design industry has been used as the analytical sample, as it has been identified as a promising sector for new product development. Based on the result of investigating 90 firms, four resource configurations are identified: (1) strategic and organizational abilities; (2) technological capabilities; (3) societal assets and goodwill; and (4) physical assets. Furthermore, two different launch strategies—innovative and product advantage and cost oriented—also are discovered. The results from a seemingly unrelated regression model reveal that technological capabilities and societal assets and goodwill contribute to the variation in the firms' choices of launch strategies. This study further conducted the simple slope analysis to observe the effect of the technological capabilities on the innovative and product advantage strategy under different levels of the market growth rate. The results interestingly showed that firms with technological capabilities demonstrated different degree of tendencies in employing this strategy in alignment with various market growth rates. The finding sheds some lights on the moderating role market characteristics play on the relationships between resource configurations and launch strategy selections. Academic implications and suggestions for practitioners also are provided.