Skip to main content
SpringerLink
Log in

Macro, Meso and Micro Coordination and Technological Progress: Catch Up Experiences of Samsung and Taiwan Semiconductor Manufacturing Corporation

  • Chapter
Learning, Capability Building and Innovation for Development

Part of the book series: EADI Global Development ((EADI))

Abstract

High-tech manufacture of semiconductors was one of the industries targeted strategically by Korea and Taiwan to spearhead industrial catch up. The importance of the industry to these countries is underscored by the amount of exports generated: Korea and Taiwan exported US$27 and US$44 billion worth of integrated circuits respectively in 2009 (WTO, 2010, Table 11.54). Connecting with foreign sources of knowledge was the initial route that these countries took to promote the industry. Foreign-owned firms initiated semiconductor assembly in Korea and Taiwan in the late 1960s. However, national firms became the platform for technological catch up in the industry. Samsung and Taiwan Semiconductor Manufacturing Corporation (TSMC) became by far the flag bearers of the successful positioning of their respective countries in the global semiconductor grid.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

Bibliography

  • Amsden, A. (1989), Asia’s Next Giant: South Korea and Late Industrialization. New York: Oxford University Press.

    Google Scholar 

  • Amsden, A. and W.W. Chu (2003), Beyond Late Development: Taiwan’s Upgrading Policies. Cambridge: MIT Press.

    Google Scholar 

  • Amsden, A., T. Tschang, and A. Goto (2001), Do Foreign Companies Conduct R&D in Developing Countries? Tokyo: Asian Development Bank Institute.

    Google Scholar 

  • Brown, C. and G. Linden (2009), Chips and Change: How Crisis Reshapes the Semicon-ductor Industry. Cambridge: MIT Press.

    Book  Google Scholar 

  • Chang, H.J. (1992), “The Political Economy of Industrial Policy in South Korea”. Cambridge Journal of Economics, 17(2), 131–157.

    Google Scholar 

  • Chang, H.J. (1998), “Korea: The Misunderstood Crisis”. World Development, 26(8), 1555–1561.

    Article  Google Scholar 

  • Cimoli, M. and J. Katz (2003), “Structural Reforms, Technological Gaps and Economic Development”. Industrial and Corporate Change, 12(2), 287–411.

    Article  Google Scholar 

  • Coase, R. (1937), “The Nature of the Firm”. Economica, 4(16), 386–405.

    Article  Google Scholar 

  • Cohen, W. and D. Levinthal (1990), “Absorptive Capacity: A New Perspective on Learning and Innovation”, Administrative Science Quarterly, 35, 128–152.

    Article  Google Scholar 

  • Dornbusch, R. and Y. Park (1987), “Korean Growth Policy”. Brooking Papers onEconomic Activity, 18(2), Washington, DC.

    Google Scholar 

  • Edquist, C. and S. Jacobssen (1987), “The Integrated Circuit Industries in India and South Korea in An International Techno-economic Context”. Industry and Development, 21, 1–62.

    Google Scholar 

  • Ernst, D. (2006), “Innovation Offshoring: Asia’s Emerging Role in Global Innovation Networks”, East-West Center Special Report 10, Hawaii: East-West Center.

    Google Scholar 

  • Evans, P (1995), Embedded Autonomy: States and Industrial Transformation Princeton: Princeton University Press.

    Google Scholar 

  • Fransman, M. (1986), “International Competitiveness, Technical Change and the State: the Machine Tool Industries in Taiwan and Japan”. World Development, 14(12), 1375–1396.

    Article  Google Scholar 

  • Hong, W. (1993), “Trade and Development: the Experience of Korea and Taiwan”, in G. Hansen (ed.), International Trade and Development. London: Routledge.

    Google Scholar 

  • Johnson, C. (1982), MITI and the Japanese Miracle. Stanford: Stanford University Press.

    Google Scholar 

  • Jones, L. and I.I. Sakong (1980), Government, Business and Entrepreneurship in Economic Development: The Korean Case. Cambridge: Harvard University Press.

    Google Scholar 

  • Katz, J. (2000), “Structural Change and Labor Productivity in Latin American Manufactoring Industries 1970–96”. World Development, 28(9), 1583–1596.

    Article  Google Scholar 

  • Katz, J. (2001), “Structural Reforms and Technological Behaviour: The Sources and Nature of Technological Change in Latin America in the 1990s”. Research Policy, 30(1), 1–19.

    Article  Google Scholar 

  • Katz, J. (2006), “Structural Change and Technological Capabilities”. Cepal Review, 89, Santiago de Chile.

    Google Scholar 

  • Khan, M. (1989), “Clientelism, Corruption and the Capitalist State: A Study of Bangladesh and South Korea”. Doctoral thesis, Cambridge: University of Cambridge.

    Google Scholar 

  • Kim, L. (1997a), From Imitation to Innovation. Cambridge: Harvard Business School Press.

    Google Scholar 

  • Kim, L. (1997b), “The Dynamics of Samsung’s Technological Learning in Semiconductors”. California Management Review, 39, 86–100.

    Article  Google Scholar 

  • Kim, L. (2001), “Knowledge Management: A New Perspective for Development Strategy”. Honolulu: East-West Center, Economic Series No. 12.

    Google Scholar 

  • Kim, L. (2003), “The Dynamics of Technology Development Lessons from the Korean Experience”, in S. Lall and S. Urata (eds), Competitiveness, FDI and Technological Activity in East Asia. Cheltenham: Edward Elgar.

    Google Scholar 

  • KSIA (2005), “The Outlook of the Semiconductor Equipment Industry”, Lecture presented at The 4th Vacuum Technology Conference, Korea Research Institute of Standards and Science, Korea Semiconductor Industry Association (KSIA), Seoul.

    Google Scholar 

  • Kuo, S. (1983), The Taiwan Economy in Transition. Boulder: Westview.

    Google Scholar 

  • Lin, Y. (2003), “Industrial Structure, Technical Change and the Role of Government in Development of the Electronics and Information Industry in Taipei, China”. Economics and Research Department, Working Paper Series No. 41, Manila: Asian Development Bank.

    Google Scholar 

  • Lin, Y. (2009), “Taiwan’s Brain Gain Program”, in Rasiah, R. and K. Thiruchelvam (eds), Brain Drain, Brain Gain and Brain Circulation Experiences of India, Malaysia and Taiwan. Putrajaya: Ministry of Science Technology and Innovation.

    Google Scholar 

  • Luedde-Neurath, R. (1986), Import Controls and Export-oriented Development: A Reassessment of the South Korean Case. Boulder: Westview.

    Google Scholar 

  • Manners, D. (2009) “Intel partners with TSMC to outsource Atom processor”, March 2, Electronics Weekly.com, http://www.electronicsweekly.com/articles/02/03/2009/45558/intel-partners-with-tsmc-to-outsource-atom-processor.htm, downloaded on 29 April 2009.

  • Mathew, J. (2005), “Strategy and the Crystal Cycle”. California Management Review, 47(2), 6–32.

    Article  Google Scholar 

  • McKinnon, R.I. (1976), “Saving Propensities and the Korean Monetary Reform in Retrospect”, in R.I. McKinnon (ed.), Finance in Growth and Development. New York: Marcel Dekker.

    Google Scholar 

  • Mowery, D., J. Oxley, and B. Silverman (1996), “Strategic Alliances and Interfirm Knowledge Transfer”. Strategic Management Journal, 17, 77–91.

    Article  Google Scholar 

  • Nelson, R. (2008a), “Economic Development from the Perspective of Evolutionary Economic Theory”. Oxford Development Studies, 36(1), 9–22.

    Article  Google Scholar 

  • Nelson, R. (2008b), “What Enables Rapid Economic Progress: What Are the Needed Institutions”, Research Policy, 37(1), 1–11.

    Article  Google Scholar 

  • Nelson, R. and S. Winter (1982), An Evolutionary Theory of Economic Change. Cambridge: Harvard University Press.

    Google Scholar 

  • North, D. (1990), Institutions, Institutional Change and Economic Performance. New York: Cambridge University Press.

    Book  Google Scholar 

  • Nysted, D. (2010), “Samsung Builds Low Cost, Power Efficient DDR3 Memory: Chip Fabrication Process Shrinks to 30nm”. February, Techworld (http://news.techworld.com/sme/3211548/samsung-builds-low-cost-power-efficient-ddr3-memory/), downloaded on 1 October 2010.

  • Rasiah, R. (1988), “The Semiconductor Industry in Penang: Implications for the New International Division of Labour Theories”. Journal of Contemporary Asia, 18(1), 24–46.

    Article  Google Scholar 

  • Rasiah, R. (1994), “Flexible Production Systems and Local Machine Tool Subcontracting: Electronics Component Transnationals in Malaysia”, Cambridge Journal of Economics, 18(3), 279–298.

    Google Scholar 

  • Rasiah, R. (1995), Foreign Capital and Industrialization in Malaysia. Basingstoke: Macmillan.

    Book  Google Scholar 

  • Rasiah, R. and Y. Lin (2005), “Learning and innovation: The Role of Market, Government and Trust in the Information Hardware Industry in Taiwan”. International Journal ofTechnology and Globalization, 1(3/4), 400–432.

    Article  Google Scholar 

  • Rasiah, R., X.X. Kong, Y. Lin, and J.Y. Song (2010), “Explaining Variations in Semi conductor Catch-up Strategies in China, Korea, Malaysia and Taiwan”, in F. Malerba and R. Nelson (eds), forthcoming.

    Google Scholar 

  • RMG and Associates (n.d.), “Top 20 Semiconductor Suppliers Sales Surge 21% in 2009” (http://www.maltielconsulting.com/Semiconductor_Q2_09_growth_maltiel_semiconductor.htm), downloaded on 4 October 2010.

  • Rodrik, D. (1994), “Getting Interventions Right: How South Korea and Taiwan grew rich”. National Bureau of Economic Research (NBER), Working Paper No. 4 164, Cambridge.

    Google Scholar 

  • Samsung (2010) “Samsung Electronics”, October (http://www.absoluteastronomy.com/topics/ Samsung_Electronics), downloaded on 1 October 2010.

  • Saxenian, A.L. (2006), The New Argonauts: Regional Advantage in a Global Economy. Cambridge: Harvard University Press.

    Google Scholar 

  • Saxenian, A.L. and J.Y. Hsu (2001), “The silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading”. Industrial and Corporate Change, 10(4), 893–924.

    Article  Google Scholar 

  • Schumpeter, J. (1934), The Theory of Economic Development. Cambridge, MA: MIT Press.

    Google Scholar 

  • Shapiro, H. and L. Taylor (1990), “The State and Industrial Strategy”, World Development, 18(6), 861–878.

    Article  Google Scholar 

  • Shilov, A. (2007), “TSMC Confirms Entering Microprocessor Manufacturing Business”, July (http://www.xbitlabs.com/news/cpu/display/20070727063402.html), downloaded on 25 September 2010.

  • Shilov, A. (2010), “Samsung Remains top DRAM Maker Amid Dramatic Market Growth”, January (http://www.xbitlabs.com/news/memory/display/20100129100308_Samsung_Remains_Top_DRAM_Maker_Amid_Dramatic_Market_ Growth.html), downloaded on 4 October 2010.

  • Song, J.Y., P. Almeida, and G. Wu (2003), “Learning-by-Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer”. Management Science, 49(4), 351–365.

    Article  Google Scholar 

  • Teece, D. (1982), “Towards an Economic Theory of the Multiproduct Firm”. Journal of Economic Behavior & Organization, 3, 39–63.

    Article  Google Scholar 

  • Vernon, R. (1971), Sovereignty at Bay: The Multinational Spread of U.S. Enterprises. New York: Basic Books.

    Google Scholar 

  • Vogel, E. (1991), The Four Little Dragons: The Spread of Industrialization in East Asia. Cambridge: Harvard University Press.

    Google Scholar 

  • Wade, R. (1990), Governingthe Market. Princeton: Princeton University Press.

    Google Scholar 

  • Wikipedia (2011), “Samsung Electronics” (http://en.wikipedia.org/wiki/Samsung_Semiconductor #History), downloaded on 4 May 2011.

  • Williamson, O. (1975), Markets and Hierarchies: Analysis and Anti-Trust Implications. New York: Free Press.

    Google Scholar 

  • Winter, S. (1987), “Knowledge and Competence as Strategic Assets”, in D. Teece (ed.), The Competitive Challenge: Strategies for Industrial Innovation and Renewal. Ballinger: Cambridge.

    Google Scholar 

  • World Bank (2005), “Malaysia: Firm Competitiveness, Investment Climate and Growth”. Report published by the World Bank, Washington, DC.

    Google Scholar 

  • WTO (2009), International Trade Statistics. Geneva: World Trade Organization (WTO).

    Google Scholar 

Download references

Authors
  1. Rajah Rasiah
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Universidad Autónoma Metropolitana, Mexico

    Gabriela Dutrénit (Professor) (Professor)

  2. Seoul National University, Republic of Korea

    Keun Lee (Professor) (Professor)

  3. Columbia University, USA

    Richard Nelson (Professor of International and Public Affairs, Emeritus, Director of the Program on Science, Technology and Global Development) (Professor of International and Public Affairs, Emeritus, Director of the Program on Science, Technology and Global Development)

  4. Columbia Earth Institute, USA

    Richard Nelson (Professor of International and Public Affairs, Emeritus, Director of the Program on Science, Technology and Global Development) (Professor of International and Public Affairs, Emeritus, Director of the Program on Science, Technology and Global Development)

  5. Universidad Autónoma Metropolitana, Mexico

    Alexandre O. Vera-Cruz (Professor) (Professor)

  6. Maastricht University, The Netherlands

    Luc Soete (Professor and Rector Magnificus) (Professor and Rector Magnificus)

Copyright information

© 2013 Rajah Rasiah

About this chapter

Cite this chapter

Rasiah, R. (2013). Macro, Meso and Micro Coordination and Technological Progress: Catch Up Experiences of Samsung and Taiwan Semiconductor Manufacturing Corporation. In: Dutrénit, G., Lee, K., Nelson, R., Vera-Cruz, A.O., Soete, L. (eds) Learning, Capability Building and Innovation for Development. EADI Global Development. Palgrave Macmillan, London. https://doi.org/10.1057/9781137306937_11

Download citation

Publish with us

Policies and ethics

Search

Navigation