This research analyzes 73 listed semiconductor companies in Taiwan, categorized into three groups: IC (integrated circuit) design, IC manufacturing, and IC packaging and testing. Using the dynamic three-stage meta-frontier RDM DDF model, the study evaluates operational, sustainability, and market efficiencies from 2017 to 2021. The results reveal that IC manufacturing demonstrates the highest overall efficiency, followed by IC design, while IC packaging and testing exhibit the lowest efficiency. Regarding the technology gap ratio, IC design firms show the smallest gap, IC manufacturing firms perform moderately, and IC packaging and testing firms face the largest technological challenges. When examining stage-specific efficiencies, sustainability (ESG-related) performance emerges as the most efficient stage, surpassing both operational and market stages. This indicates that Taiwan’s semiconductor firms have achieved notable strengths in ESG practices, and the ESG performance of these companies has improved year by year. However, operational and market efficiencies remain relatively weaker, especially in the IC packaging and testing group. Based on these findings, this study recommends that firms further strengthen ESG integration into their business strategies, as sustainability practices have proven to be the key driver of efficiency gains. In particular, IC packaging and testing firms should prioritize technological upgrading and ESG adoption to close performance gaps. Moreover, policy makers are advised to provide incentives for sustainable innovation and cross-sector collaboration, ensuring that Taiwan’s semiconductor industry continues to lead globally while aligning with international sustainability goals.
Lin et al. (Fri,) studied this question.