Journal of East Asia Management

Institute of Management Research, Pusan National University (부산대학교 경영연구원)
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An Innovation Path of Catch-up by Semiconductor Latecomers: The Semiconductor Manufacturing International Corporation Case

  • Qing, Lingli (Graduate School of Management of Technology, Pukyong National University) ;
  • Ma, Xiang (School of Mathematics and Information Science, Nanchang Normal University) ;
  • Zhang, Xuming (Graduate School of Management of Technology, Pukyong National University) ;
  • Chun, Dongphil (Graduate School of Management of Technology, Pukyong National University)
  • Received : 2022.07.17
  • Accepted : 2022.08.17
  • Published : 2022.08.31
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Abstract

Exploring innovations for latecomers to catch up has been a popular concern in industry and academia. Over the last decade, more and more East Asian latecomer firms have moved beyond imitation and are delivering innovative products and services to the market. However, the semiconductor latecomers from China have limited success in catching up with more mature semiconductor firms. Our study examines how semiconductor latecomers to break through the latecomer's dilemma by innovation and achieve catch-up. We use a single-case approach for the Semiconductor Manufacturing International Corporation (SMIC) vertical development process to analysis its innovation path of catching up. The study's results showed that SMIC relied on the government's policy and funding support, and based on the strategic endurance of entrepreneurs, it persisted in technology R&D investment and independent innovation for 20 years. SMIC finally smashed the dilemma of latecomers and successfully achieved catch-up. With these findings, we believe that the path of catching up innovation for semiconductor latecomers should be equipped with independent innovation of technology, strategic leadership of entrepreneurs and support of government policies. As these factors are combined, latecomer firms' position is expected to rise and catch-up will become visible. Our study contributes to some enlightenment on the innovation path for latecomers in China and global semiconductors to achieve their catch-up.

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References

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