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Abstract ▼ AI-Helper

This article analyzes regional economic cooperation in Northeast Asia with a viewpoint of transnational semiconductor production network. First of all, it is shown that the different forms of transnational production networks have been developed in two sub-sectors of semiconductor industry, that is,...

This article analyzes regional economic cooperation in Northeast Asia with a viewpoint of transnational semiconductor production network. First of all, it is shown that the different forms of transnational production networks have been developed in two sub-sectors of semiconductor industry, that is, memory chip and non-memory chip. The transnational production network in memory chip sector is composed of a few competing big firms with vertical division of labor within a firm, while that in non-memory chip sector could be characterized as a complex of both vertical and horizontal division of labor among thousands of firms with different sizes and specialties across the nations in the region. The paper argues that the latter has started to dominate the semiconductor industry since the mid 1990s and this has positive implication for forming common interests among the firms in the region and, thus, intensifying regional economic cooperation in Northeast Asia.

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