Minister of Economic Affairs Wang Mei-hua (王美花) yesterday said investors should maintain confidence in Taiwan’s semiconductor industry, as it plays a critical role in the global supply chain and there is no imminent drop in demand.
An internal message sent recently to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) employees was simply a reminder for them to take leave after the work pressure over the past three years and was not an indicator of weakness in the local industry, Wang said.
“TSMC is still sitting on large orders, while its capacity utilization is currently under 100 percent,” Wang said, adding that she had been in contact with the company. “The chipmaker was only reminding its employees to take their leave at a time when some of its equipment is being maintained.”
Photo: Liao Chen-hui, Taipei Times
The internal video message that was sent on Monday afternoon by TSMC chief executive officer C.C. Wei (魏哲家) gave rise to concerns that the world’s largest chipmaker had been hit by weakening global semiconductor demand, analysts said.
The message also raised the specter of furloughs in Taiwan’s manufacturing sector if the global economy continued to weaken, they said.
However, Wang said there was no need for such fears, and she urged investors to remain upbeat about the outlook for Taiwan’s semiconductor industry in particular.
“Investors should have faith in Taiwan’s semiconductor industry, as Taiwanese suppliers play a critical role in the global supply chain and are irreplaceable” she said.
Meanwhile, flat-panel maker Innolux Corp (群創) yesterday said it is also encouraging its employees to take annual leave, in the interest of their physical and mental health.
In addition, other major screen suppliers have reduced production to prevent a supply glut amid falling demand, it said.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS