ABSTRACT

This chapter describes the course of development of the information industry in Taiwan. It explores the evolution and accomplishments of the personal computer (PC) industry in Taiwan. The chapter identifies and explains the key success factors in the PC industry. It discusses the development of the local PC industry. The development of Taiwan’s information industry can be traced back to 1954 when National Cash Register established its subsidiary in Taiwan. Then, in 1956, International Business Machines (IBM), following NCR, set up its subsidiary in Taiwan. In 1980, IBM for the first time plunged itself into the PC market and started to produce IBM PC 8088. To penetrate quickly into the PC market, IBM disclosed the architecture of its PC and stimulated the development of much applied software. In 1983, IBM launched its PC/XT. Its continuous price-cutting not only forced many other PC manufacturers to withdraw from the market, but enabled IBM to take the lead in the worldwide PC industry.