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

Hongzhi Gao, Monica Ren and Tsui-Yii Shih

International Business Review, 2023, vol. 32, issue 6

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.

Keywords: Adaptive responses; Co-evolutionary theory; De-globalization; Global value chains; Semiconductor industry; Taiwanese foundry business; Third-parcty; US-PRC decoupling (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.ibusrev.2023.102118

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