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