A key reason for Taiwan Semiconductor Manufacturing Company’s (TSMC) success is that the company has never competed with clients, company president and co-CEO CC Wei

TSMC never competes with clients, says co-CEO

Josephine Lien, Taipei; Adam Hwang, DIGITIMES [Thursday 29 May 2014]

A key reason for Taiwan Semiconductor Manufacturing Company’s (TSMC) success is that the company has never competed with clients, company president and co-CEO CC Wei said at the TSMC 2014 Technology Symposium in Taiwan on May 29.

TSMC’s main competitors have not only cooperated with but also competed with clients, but this is an infeasible business model, Wei said. The competitors referred to are Samsung Electronics and Intel, market analysts said.

According to TSMC estimates, 1.25 billion smartphones and 300 million tablets will be shipped globally in 2014, of which 480 million and 120 million units, respectively, will be shipped from China.

TSMC turned out 16 million 8-inch-equivalent wafers based on over 200 manufacturing processes for more than 440 clients in 2013, with chips used in about 8,600 products. In 2013, TSMC reached a global market share of 55% for baseband ICs, 73% for RF ICs, 80% for APUs, 90% hard disk drive ICs and about 100% for GPUs.

TSMC expects 28nm technology to account for over 30% of 2014 consolidated revenues. HKMG process accounts for 85% of 28nm-based output and 60 clients have adopted 28nm HKMG. 28nm production is undertaken at TSMC’s Fab 15 factory, and monthly production capacity increased from 50,000 wafers in 2012 to 100,000 units in August 2013.

TSMC started 20nm volume production at Fabs 12 and 14 in the second quarter of 2014 and has had 20 tape-out clients. In addition, TSMC has 16 tape-out clients for 16nm FinFET Plus.

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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