Bookmark and Share


The chairman of Taiwan Semiconductor Manufacturing Company, the world’s largest contract maker of semiconductors, said that while Globalfoundries, a joint-venture between Advanced Micro Devices and Advanced Technology Investment Company, is a very dangerous competitors, TSMC will still remain the largest and the most successful contract manufacturer on the globe.

“We consider Globalfoundries to be a formidable competitor. I really think the battle will be a high casualty one. My job is to minimize the casualties on my side,” said Morris Chang, the chairman of TSMC, during a conference with analysts, reports IDG News Services agency. Casualties will be represented by money, he clarified.

Mr. Chang believes that Globalfoundries’ fab 2 that will worth $4.2 billion represents a strategy of “total commitment”. The fab 2, which will be the most advanced semiconductor manufacturing facility when it is built, requires tremendous investments and costs more than the factories operated by contract makers. As a result, Globalfoundries targets mostly leading-edge customers who require very advanced process technology. Nevertheless, Mr. Chang claims that TSMC will still remain the world’s largest contract maker with clients willing to pay a lot for manufacturing state-of-the-art chips.

The chairman of TSMC brought an example: at the Battle of Stalingrad during the World War II, the German generals were ordered to maintain their position at Stalingrad after they were surrounded by the Russian troops.

“Like Stalin, I have no doubt of the outcome,” said Mr. Chang.

One of the advantages that Globalfoundries has over TSMC is its leading-edge bulk and SOI manufacturing processes that are co-developed with IBM and other partners. As a result, Globalfoundries does not have to spend tremendous amounts of money on development of fabrication processes. However, TSMC already has a large customer base as well as an array of process technologies aimed at mainstream chips, which means that the company receives relatively consistent revenue streams.

Answering the question about potential acquisitions, Mr. Chang said that among the rest of the contract chip business, only Chartered Semiconductor of Singapore was worth buying.

For Chartered it is crucial to have a new investor willing to help the company. According to sources with knowledge of the matter, the semiconductor company has not started to invest into next-generation fabs, which means that in about a year or two from now Chartered will not be able to compete for designs that require 32nm or 28nm process technologies. Earlier this year unofficial information transpired that Advanced Technology Investment Company had made a take-over proposal by Chartered.

Tags: TSMC, Globalfoundries, Semiconductor, Business, AMD, TFC


Comments currently: 0

Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month