The IC industry, one of industries which are experiencing tremendously rapid development and enjoy an overwhelming influence towards the world, enjoys constant recognition from arbiters of various science fields, and governments. Now, the scientists of management and economics pay more attention to the evolution of the IC industry. The phenomena of IC industry such as "silicon valley" are researched and the experiences are learned and imitated by other high-tech industries when they develop. Chinese government has drawn new scheme to build IC industry in the ninth and the tenth "five year plan", also made it as "Strategy Industry" in the 21 century. The evolution and characteristics of IC industry is analyzed in detail with the theories of structure analysis, industry organization, transaction cost and so on. Then the role and position of Chinese IC industry on the world is analyzed. Finally the conclusions are drawn as follow: Vertical distribution will appear in the industry with the scale-up of the market demand, which lies in two aspects: one is that specialized enterprises emerge and mature in the market, the other is that vertical distribution appear in the vertical integrated organization and make its structure loosen.During the life cycle of the industry, there are different transaction costs in different phases, so the main structure of enterprises in the industry would be changed with the time.The efficiency of industry clusters and its function of reducing risk will prevent the companies in the clusters from integrating vertically. Consumers have different conception of the vertical diversity of products in the different phases of the industry cycle. However, the trend of difference always reduces, and then it affects the income and competitive mode of corporations in the industry, even its survival. Finally, the advice that instructs how to build Chinese IC industry and other high-tech industries is given according to the conclusions. |