No ‘red tide’ out­side my of­fice win­dow, says TSMC chair­man

The China Post - - LOCAL -

Re­gard­ing the rise of a "red sup­ply chain" in China that al­legedly will see that coun­try's semi­con­duc­tor in­dus­try out­pac­ing Tai­wan's within three years, Mor­ris Chang, found­ing chair­man of Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC), said Sun­day that this will not be so easy for China to achieve as peo­ple think.

"I have not seen a red tide from the win­dows of the TSMC of­fices," Chang told the media when asked about the al­le­ga­tion be­fore at­tend­ing a fo­rum in Taipei.

The tech­nolo­gies, pro­duc­tion abil­i­ties and client trust that TSMC en­joys are all in the lead, and more­over, the firm's lead­ing sta­tus has ad­vanced even fur­ther now from that of a few years ago, Chang said, not­ing that "it will not be easy for the main­land to out­run us."

The "red sup­ply chain" has emerged as parts and com­po­nents made by lo­cal firms in China are re­plac­ing those made by Tai­wanese man­u­fac­tur­ers, which will make it harder for Tai­wanese firms to main­tain their com­pet­i­tive­ness and sur­vive in the Chi­nese mar­ket.

Asked about re­cent lay­offs and un­paid leave in the tech­no­log­i­cal sec­tor due to a slow­down, the head of the world's largest con­tract chip­maker said that the slow­down is tem­po­rary and is mainly be­cause in­ven­to­ries have not been de­pleted.

Chang as­sessed that in­ven­tory de­ple­tion will be com­pleted by the end of the year, and said he ex­pects that a re­cov­ery will be seen in the first quar­ter of next year.

Com­ment­ing on whether his com­pany will build a 12- inch wafer plant in China, Chang said that "there are many fac­tors that need to be con­sid­ered."

"We need a long pe­riod of time to think it over. We might go or we might not," he said.


Mor­ris Chang, found­ing chair­man of Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co., left, speaks on a panel with Acer Inc. founder Stan Shih, in a panel dis­cus­sion in Taipei, yesterday. Chang said that main­land China will not catch up with Tai­wan’s semi­con­duc­tor in­dus­try in a cou­ple of years.

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