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Co-evolutions in global decoupling: Learning from the global semiconductor industry

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  • Gao, Hongzhi
  • Ren, Monica
  • Shih, Tsui-Yii

Abstract

Discussion of deglobalization in recent years appears to be focused on decoupling the People’s Republic of China (PRC) from the US-led global value chains (GVCs). While country policies co-evolve with one another in decoupling, firm strategic responses co-evolve with government policies. In this study, we explore key co-evolutionary conditions of reciprocally coupled ecosystems, diversity and selective stress in the context of the global semiconductor industry. We apply co-evolutionary constructs of bidirectional causality, qualitatively new system, and niche specialization to make sense of adaptive responses of third-party manufacturers (Taiwanese foundry businesses) in the US-PRC decoupling. Our study posits that a third-party manufacturer can survive, and even enhance their strategic and competitive advantages, despite political disruptions in international markets. Third-party manufacturers can engage in symbolic decentralization and balancing strategies with regard to their manufacturing locations in their co-evolutions with the policy changes during the US-PRC decoupling.

Suggested Citation

  • Gao, Hongzhi & Ren, Monica & Shih, Tsui-Yii, 2023. "Co-evolutions in global decoupling: Learning from the global semiconductor industry," International Business Review, Elsevier, vol. 32(6).
    • Handle: RePEc:eee:iburev:v:32:y:2023:i:6:s0969593123000185
    DOI: 10.1016/j.ibusrev.2023.102118
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    8. Gao, Lan & Huang, Ruting, 2024. "Digital transformation and green total factor productivity in the semiconductor industry: The role of supply chain integration and economic policy uncertainty," International Journal of Production Economics, Elsevier, vol. 274(C).
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