STUDY ON THE UPGRADING OF CHINA INTEGRATED CIRCUIT (IC) INDUSTRY UP TO THE GLOBAL VALUE CHAIN: A CASE STUDY

Abstract

In the globalization era, cost competitiveness alone will not be sufficient to guarantee further success. The China’s Local Industrial Clusters（LICs）faced a serious challenge between the top-down (global) and bottom-up (local) governance pressures. This paper uses the Global Value Chain(GVC) framework analysis to explain China Integrated Circuit (IC) industry’s development stage, position of the GVC, and demonstrate that the relationships with these global actors and upgrading opportunities of IC.
Key words: Local Industrial Clusters (LICs), Global Value Chain (GVC), Governance, Upgrading Risk