It Taiwanese Foundry Enterprises Upgrade Strategy

In the process of the world economic integration, increasing uncertainty of the world economy, increasing of the possibility of fluctuations in the global economy, and accelerating of economic restructuring, which means living environment of enterprises is also changing. Especially, since the economic crisis in 2008, overseas orders have sharply dropped, export demand has been down, and labor costs have been increasing, which enhances a strong impact on many manufacturers. In particular, the Medium-sized Taiwan- invested OEM companies are suffered huge impact. Numerous Taiwan- invested OEM companies are facing the fact:OEM mode’s lower profits, strongly dependency, poor anti-risk.Also It is a question that how to upgrade their own restructuring to achieve sustainable development patterns. This article, introduce the policy background of Taiwan-invested IT OEM companies help to enhance the mainland demand and the fact of Taiwan-invested IT OEM companies step into the mainland in the IT industry’s value Network, integrate the resources of the competing companies, establish the mainland sales channels, increase the share of the mainland domestic sales, step through the integration of National Value Chain (NVC, the same in the following), to meet the upgrading conditions of Global Value Chain, with upgrading mode of diversity value chain.First, this paper makes comprehensively analysis on economic background of mainland’s OEM companies and Taiwan-invested IT OEM industry, defines the necessity of OEM enterprises up-grading, and makes review and comments relevant literature on domestic and international OEM companies’upgrading. This paper makes Brief description of the mode of operation of the Taiwan-invested OEM companies entering the mainland sales market, which given the scope and theoretical basis of this paper.Secondly, this paper analyzes the micro-based evidence of the OEM production in the OEM companies of our nation, discusses theoretically the feasibility of the OEM model on the basis of economy. This paper delivers the prerequisites and the game’s profits that medium-sized IT Taiwan-invested OEM companies enter into the mainland’s domestic market, which to further clarify the Global Value Chain of OEM industry and the rationality of the division of work in NVC.Further more, based on the discussion of re-exports and domestic OEM business model, dominant indicator system is proposed with analysis of different types and modes, different mode of operation of the processing enterprises entering the domestic market, which provides a convenient upgrade path for a more in-depth study of OEM companies. Then analyze the background and new market opportunities of IT industry in mainland have condition of NVC and national radio and television industry carry out the triple play. On this basis, this paper try to propose that Taiwan-invested IT OEM companies maintain the output affair, while through the integration of NVC to expand the domestic market, with the general mode of upgrading path during training internally and externally.Finally, the paper introduces a case how Taiwan Cameo Tech Group opened the domestic market through modular electronic products, and then analysis and validated the upgrade strategy that Taiwan-invested OEM companies through IT Industry with characteristics of NVC with the mode of training internally and externally. The conclusion delivered by the author, prove to be meaningful and practical for the upgrade of our system in upgrading Taiwan-invested and mainland IT OEM companies.