Operation analysis and performance assessment for TFT-LCD manufacturers using improved DEA

Given the rapid evolution in digital era, the products with the features of light, thin and energy-saving have fostered the development of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) manufacturer globally. Moreover, the key players are clustered in South Korea and Taiwan, and hold approximately 83% of total sales worldwide. TFT-LCD display has been the mainstream in information industry at present. The TFT-LCD competition seems critical because of rising demand. The major issue for managers of TFT-LCD is how to make the optimal resource allocation and create more profits. The cases have been studies in this research include Korea, Japan and Taiwan. Based on the trend analysis by IEK (Industrial Economics and Knowledge Center), public information, financial statements, and using improved Data Envelopment Analysis (DEA), this research measure the business performance of TFT-LCD manufacturers in Taiwan, Korea and Japan from 2002 to 2007. The results show Innolux has the highest performance while Toshiba comes up the last.