<p>This question seems somewhat broad. There are some general advantages to going &quot;global&quot;, or at least expanding into other countries.</p>
<ol>
<li><p>Access to other labor markets.</p>
</li>
<li><p>If there are other industries present the supply or buy from this firm the move may result in shorter transportation time, enabling quick reactions and some cost saving.</p>
</li>
<li><p>Political reasons, such as getting around trade barriers and seeking favour with the local governments. (Perhaps the firm is already reliant upon the country as a supplier.)</p>
</li>
</ol>

CC BY-SA 4.0
2022-06-05T09:13:35.170Z
2022-06-05T09:13:35.170Z
Giskard
<p>Semiconductor foundries like the UMC in Taiwan has expanded into China, Singapore and Japan. What is better for the company? globalization or localization? I don't really understand the movotation of an expansion into a new country since the value chain of semiconductor is global anyway. What are the advantages when a semiconductor foundry goes global?</p>

<china>
Globalization potential of semiconductor foundries such as UMC
Daniela Kümin
# Globalization potential of semiconductor foundries such as UMC

(Asked by: username_0 on 2022-06-04)

Semiconductor foundries like the UMC in Taiwan has expanded into China, Singapore and Japan. What is better for the company? globalization or localization? I don't really understand the movotation of an expansion into a new country since the value chain of semiconductor is global anyway. What are the advantages when a semiconductor foundry goes global?

**Tags:** china

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## 1 answers

### Answer by username_1 on 2022-06-05. Score: 1

This question seems somewhat broad. There are some general advantages to going "global", or at least expanding into other countries.

1. Access to other labor markets.
2. If there are other industries present the supply or buy from this firm the move may result in shorter transportation time, enabling quick reactions and some cost saving.
3. Political reasons, such as getting around trade barriers and seeking favour with the local governments. (Perhaps the firm is already reliant upon the country as a supplier.)


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