A study on the industrial development and performance of Taiwanese high-technology integrated circuit firms

This research study is comprised of two parts. In the first part, we explore the successful industrial development of Taiwan's high technology Integrated Circuit industry in the historical context. The second part attempts to analyse the perfoffi1ance of Taiwanese Integrated Circuit firms based on econometric testing. Empirical work was conducted at two levels. The first level of analysis consisted of examining financial profitability according to firm size, as measured by the number of employees. The second level of analysis involved a more comprehensive analysis; it consisted of an examination of the persistency of profitability and growth. Combining the findings of historical study and econometric regression results provides insights into the long term industrial development and dynamics of the Taiwanese Integrated Circuit industry.