| This paper investigated the possibility and potential problems of high-tech enterprises' merger according to the motivation, objective and result of the TSMC's 3-in-1 merger through example analysis and literature review to optimize the process of merger and enhance corporate competitiveness. As technology is a global activity and China has promised to remove tariffs on information products in 2005 after entering the WTO, the semiconductor industry has become one of the focused high-tech industries of the Chinese government, the China will become the global center of the industry. Since information indicated that the capacity of the semiconductor industry in China will be higher than the demand in 2005 and merger will become a natural consequence, suggestions for merger were proposed in this paper. This paper also discovered that high-tech enterprises should evaluate the global economic condition, long-term developing trend and prosperity cycle of the industry during mergers, in order to capture the rapid changes in the economic-based economy.Results indicated that merger among high-tech enterprises does not exist in any merger theory, though it proves the pride hypothesis and agency theory. Therefore, instead of producing cheap products to struggle for market share, entrepreneurs should avoid the misconception that 'production scale is the final victory' but focus on 'R&D and innovation' and replace merger with strategic alliance according to 'customer and market orientations', in order to innovate technology, management and products; create new market demands; and display the capacity of existing equipments. Hence, instead of merger, strategic alliance is more suitable for high-tech enterprises. Even if merger is unavoidable, timing is the important key to prevent capacity waste, Chinese authority should take the advantage of the extensive market in China and adopt the 'trade technology with market' strategy to encourage innovation in China.
|
PDF Full Text Request