Dynamic networks of interlocked directorates in Taiwan semiconductor industry: 1995, 2000,2005,2010

The interlocked networks of board directors in Taiwan semiconductor industry has dramatically changed since 1995. The semiconductor industry has increased continuously and upgraded to the leading positions in the world. The number of firms, board directors and the percentage of directors crossing two more firms have increased as well. We create the affiliation networks among board directors in 1995, 2000, 2005, 2010, and examine the network characteristics of large components each year. In the early period of Taiwan semiconductor industry, very few cohesive elite directors coming from the same state sponsored research institute governed the network field with high local network closure and less bridges. However, after a series of global economic depression and strong industrial competition, the networks of interlocked directorates have transformed to be characterized by moderate degree of local clustering and centrality betweeness (brokers). Most of the old elites with state background retired, and newly emerged elites with investment bankers and industrial executive background governed the networks with more crossing firm ties and became the brokers of multiple components. The business community of Taiwan semiconductor industry seems to transform into a robust networks which are available for innovations.