Strategic Decision Analysis for Capacity Expansion with Migration for Semiconductor Assembly Industry

  • Yenming J Chen National Kaohsiung First University
DOI: https://doi.org/10.53555/ams.v3i11.1109
Keywords: capacity migration, capacity expansion strategy, semiconductor assembly industry, multi-principle strategic decision

Abstract

This paper aims to understand strategic decision-making for capacity expansion
via the use of the analytic network process, and to investigate further the difference in
policies for capacity expansion in a situation of capacity migration. As the government’s
westward policy slackens, and industries strive for business growth, higher profits
competency, they have moved their products and capacity to China as they realize the larger
labor population, lower production cost, easier land access and additional premium policies
there, a phenomenon termed capacity migration. This study focuses on how semiconductor
assembly industries make capacity expansion strategies while facing capacity migration. As
most strategic analysis methods cannot provide actual manipulation methods, this research
aims to build a multi-principle strategy model that can provide operable methods for abstract
decisions. Findings of this study reveal that in the industrial environment where there is
capacity migration, the semiconductor assembly industry should considers the Preemption
Strategy when making capacity expansion strategic decisions.

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Author Biography

Yenming J Chen, National Kaohsiung First University

Professor, Logistics Management Department of National Kaohsiung First University of
Science and Technology

Published
2017-11-30
How to Cite
J Chen, Y. (2017). Strategic Decision Analysis for Capacity Expansion with Migration for Semiconductor Assembly Industry. IJRDO - Journal of Applied Management Science, 3(11), 32-48. https://doi.org/10.53555/ams.v3i11.1109
Issue
Vol. 3 No. 11 (2017): IJRDO - Journal of Applied Management Science
Section
Articles

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