Direct Investments in Japan and Operational Efficiency of Semiconductor Companies from Taiwan
A Semi-parametric Analysis
DOI:
https://doi.org/10.51094/jxiv.939Keywords:
semiconductor, foreign direct investment, operational efficiency, TaiwanAbstract
This research examines direct investments in Japan by Taiwanese semiconductor companies over the past two decades (2004–2023) and their impact on operational efficiency. We first utilize Data Envelopment Analysis (DEA) to estimate inefficiency scores of semiconductor companies, and then apply truncated regression to assess how investing in Japan affects these bias-corrected scores. Our findings indicate that companies investing in Japan generally show higher operational efficiency than non-investors. However, we find no evidence that these investing companies gain extra efficiency from their supply chain activities in Japan.
Conflicts of Interest Disclosure
No conflicts of interest to declareDownloads *Displays the aggregated results up to the previous day.
References
Badunenko, O., & Tauchmann, H. (2019). Simar and Wilson two-stage efficiency analysis for Stata. Stata Journal, 19 (4), 950-988. https://doi.org/10.1177/1536867X1601600302
Brundage, C. (2023). The US-China semiconductor power-security dilemma: Decoupling the security and power struggles through the theory of Dr. Barry Buzan. International Journal, 78 (4), 595-613. https://doi.org/10.1177/00207020231213612
Gao, H. Z., Ren, M. N. C., & Shih, T. Y. (2023). Co-evolutions in global decoupling: Learning from the global semiconductor industry. International Business Review, 32 (6). https://doi.org/10.1016/j.ibusrev.2023.102118
Kamakura, N. (2022). From globalising to regionalising to reshoring value chains? The case of Japan’s semiconductor industry. Cambridge Journal of Regions Economy and Society, 15 (2), 261-277. https://doi.org/10.1093/cjres/rsac010
METI. (2021). The strategy for semiconductors and the digital industry. Retrieved 5 July 2024 from https://www.meti.go.jp/english/press/2021/pdf/0604_005a.pdf
Ouyang, H. S. (2006). Agency problem, institutions, and technology policy: Explaining Taiwan’s semiconductor industry development. Research Policy, 35 (9), 1314-1328. https://doi.org/10.1016/j.respol.2006.04.013
Sher, P. J., & Yang, P. Y. (2005). The effects of innovative capabilities and R&D clustering on firm performance: The evidence of Taiwan’s semiconductor industry. Technovation, 25 (1), 33-43. https://doi.org/10.1016/S0166-4972(03)00068-3
Simar, L., & Wilson, P. W. (2007). Estimation and inference in two-stage, semi-parametric models of production processes. Journal of Econometrics, 136 (1), 31-64. https://doi.org/10.1016/j.jeconom.2005.07.009
TSMC. (2024). JASM set to expand in Kumamoto Japan. Retrieved 5 July 2024 from https://pr.tsmc.com/english/news/3105
Wilson, P. W. (2018). Dimension reduction in nonparametric models of production. European Journal of Operational Research, 267 (1), 349-367. https://doi.org/10.1016/j.ejor.2017.11.020
Downloads
Posted
Submitted: 2024-10-20 14:57:10 UTC
Published: 2024-10-21 11:01:30 UTC — Updated on 2024-11-06 00:45:32 UTC
Versions
- 2024-11-06 00:45:32 UTC (2)
- 2024-10-21 11:01:30 UTC (1)
Reason(s) for revision
Correction of minor typos.License
Copyright (c) 2024
Kai-Yu Hsieh
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
