Technology entrepreneurial styles: a comparison of UMC and TSMC

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Technology entrepreneurial styles a comparison
of UMC and TSMC

• ?????? (94312039)
• ??????? ??

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Abstract

• 1.Technology entrepreneurship concerns the ways
  in which entrepreneurs draw on resources and
  structures to exploit emerging technology
  opportunities.
• 2.On the paper compares technology
  entrepreneurial styles of two leading Taiwanese
  semiconductor firms(UMC and TSMC).
• 3.UMC(1)agility in organizational networks
• (2)business diversification
• 4.TSMC(1)stability in self-dependent
• development
• (2)business focus

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Introduction

• 1.Technology entrepreneurship probes the
  relationship between entrepreneurship and
  technological innovation,and examines how
  entrepreneurs explore and exploit organizational
  resources and technological systems.
• 2.The process of undertaking entrepreneurial
  behavior and entrepreneurial activity may need
  some endeavors in the area of organizational
  function.(human resource policy and
  organizational design)
• 3.(1) human resource address the demands of
  survival,stabilization, and facilitate
  entrepreneurial processes for start-up firm.
• (2) organizational designmay be another
  impulse for entrepreneurial success by different
  organizational design.

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Three sections

• 1.The evolution of UMC and TSMC is introduced
  form the technology entrepreneurship perspective.
• 2.The similarities and differences in the styles
  of behaviors, activities and technology
  entrepreneurship between the two firms are
  discussed.
• 3.summarize the conclusions and implications for
  theory and research as well as for managers.

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The four eras of Semiconductor technology

• 1. 1980-1985,LSI/digital era
• 2. 1986-1990,VLSI/digital era
• 3. 1991-2000, submicron/network era
• 4. Beyond 2000,nanometer/internet
• era

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Origin of UMC

• 1.In the 1960s,the IC industry was targeted as a
  candidate for Taiwans industrial migration, and
  the Complementary Metal-Oxide-Semiconductor(CMOS)
  process technology was identified as the
  potentially dominant manufacturing technology.
• 2.In the mid-1970s,a development program was
  initiated by the Taiwan government that aimed to
  upgrade the structure of industry by shifting the
  economy away from labor-intensive industries
  towards knowledge-intensive products and
  technologies.
• 3.1976,wafer manufacturing,circuit design,and
  mask making,together with the management skills
  required for IC fabrication were transferred by
  ERSO.
• 4.UMC was spun-off from ERSO and founded in 1980.

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Origin of TSMC

• 1.In 1985,ERSO established the Common Design
  Center(CDC),an advanced public computer-aided
  design facility,to assist start-up design firms.
• 2.In 1987,overseas Taiwanese engineers had
  returned to Taiwan(including ???).
• 3.TSMC was given Taiwan government support and
  solicit foreign IC companies to join the venture.

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1980-1985

• UMC
• 1.focused its capacity on the production(digital
  watch ICs,musical equipment ICs,and telephone
  ICs) by ASIC.
• 2.avoiding standard commodities
• 3.packaging outsourcing
• 4.In 1984,develop and sell an 8-bite
  microprocessor by cooperating with overseas
  Taiwanese engineers in Silicon Valley.

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1986-1990

• UMC(emphasis on technology and product
• development)
• 1.In 1988,develop 1.2-micron 1 MB ROM
  successfully for consumer electronics
  products.
• 2.In 1989,focus mainly on value-added products
  (computer peripheral and communication products)
• 3.restructured its corporate organization and
  established four business units(consumer,computer,
  memory and communication products)
• 4.In 1990,develop memory(1.0-micron 256k Low
  Power SRAM,1.0-micron 2 MB/4 MB ROM)

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1986-1990

• TSMC(Intel was looking for overseas wafer
• outsourcing contractors)
• 1.pure foundry business model
• 2.semiconductor technology transferring from
  Philips

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1991-1995

• UMC (flexibility and quick decision-making)
• 1.product diversification
• 2.In 1995,organization transformation into a
  pure-play foundry
• 3.three joint venture wafer foundry companies
• (USC ,UICC,USIC)

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1991-1995

• TSMC
• 1.the worlds largest and fastest growing
  dedicated semiconductor foundry
• 2.manufacturing more than one million 6-inch
  wafers per year in 1995
• 3.expanding its business in internet, digital
  consumer electronics, and wireless applications

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1996-2000

• UMC
• 1. in 1998,entering Japanese wafer-foundry market
  
• 2.in 1999,merge four unitsUSC, USIC, UICC,UTEK
• 3.reorganization focuses our Taiwan-
• based more financially efficient and
  competitive organization
• 4.developing deep-submicron production

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1996-2000

• TSMC
• 1.In 1996,technology transferred from Fujitsu
• 2.emphasis on customized service (virtual fab-the
  eFoundry platform)
• 3.in 1998,the first production-volume 0.35-micron
  process wafers fabricated
• 4.taking the further step of changing from a pure
  manufacturer to a provider of semiconductor
  design services
• 5.in 2000,successfully advanced process
  technology to the 0.13-micron level through
  self-dependent development.

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Beyond 2001

• UMC
• 1.in 2001,joint development with Infineon
• 2.in 2002,only invested in some potential
  customer firms and fostered them to become the
  leading parties in their own industries(MediaTek
  and AUO),and created a win-win situation.

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Beyond 2001

• TSMC
• 1.In 2001, announced a long-term plan to build
  six 12-inch wafer plants
• 2.In 2002,90/65nm technology joint with
  Philips,ST Microelectronics and TSMC reinforce
  their RD efforts in leading edge technology

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Comparison of UMC and TSMC

• UMC
  TSMC
• Entrepreneurial 1.acquirement of initial
  government
• Behavior support
• 2.employment of
  well-educated
• engineering
  force
• 1.agility
  1.stability
• 2.organizational
  network 2.self-dependent
• 
  development
• 3.business
  diversification 3.business focus

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Comparison of UMC and TSMC

• UMC
  TSMC
• Entrepreneurs 1.growth context in
  1.growth context in a
• background sophisticated Taipei
  traditional Chinese
• 
  family
• 2.domestic education
  2.US education in
• in management
  science electrical engineering
• 3.domestic work
  3.US work experience
• experience
  
• 4.achievement
  4. achievement
• motivation from
  motivation from
• competition
  patriotism

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Conclusion

• 1.the agile entrepreneurial style of UMC
  facilitates its entrepreneurial behavior in
  effective utilization of organizational networks
  and of diversification.(local entrepreneurial
  human resource and organizational designs of
  matrix and network structures)
• 2.the stability entrepreneurial style of TSMC
  contributes to its entrepreneurial behavior in
  self-dependent development and business
  focus.(international entrepreneurial human
  resources and organizational design of functional
  structure)
• 3.an entrepreneurs background can impact upon
  the technological entrepreneurial style in
  several respects.
• 4.the success of UMC and TSMC demonstrated to
  other entrepreneurs that Taiwan,as a
  technological latecomer,still had opportunities
  to overcome the barriers to entry and to catch up
  with the new technology frontiers.