Applying DEA, MPI, and grey model to explore the operation performance of the Taiwanese wafer fabrication industry

The study applies data envelopment analysis (DEA) and Malmquist productivity index (MPI) to explore the operation performances of the Taiwanese wafer fabrication companies from 2004 to 2007. The input variables are total assets, operation costs, and selling and administrative expenditures, while the output variable is net sales. The results show that if Taiwanese wafer fabrication companies want to increase their operation performances, they should improve their CRS and VRS efficiencies not scale efficiency. Furthermore, this paper utilizes GM (1,1) – one order and one variable in the grey model – to forecast the growth trend of the Taiwanese wafer fabrication industry from 2008 to 2010, and then employs GM (1,N) – one order and N variables in the grey model – to measure the influences of the input variables upon the output variable. This study demonstrates that the most influential factor for the output variable, net sales, is selling and administrative expenditures.