Investigating Taiwanese and Mainland China foundry industries by spectral analysis

Increasing numbers of Taiwan investors are investing in Mainland China foundry industry. This paper examines the existing development, difficulties and risk encountered for Taiwanese foundry industry in Mainland China and Taiwan. Telephone surveys and structured interviews are conducted with 50 foundry companies of 100% response rate. A novel research methodology, spectral analysis, is used for the analysis in identifying dominant factor(s) in the development of Taiwanese and Mainland China foundry industries. From the survey results, it is found that Taiwanese foundry companies tackle a multitude of management issues in both Mainland China and Taiwan; practical strategies must be implemented early to alleviate potential management risks and to promote smooth business operations. Providing enough cash flow and understanding cultural differences between two countries are suggested and encouraged to be concerned for Taiwanese when establishing their business in Mainland China foundry industry.