Fri, Nov 04, 2022 page11

• Maintaining semiconductor industry's edge key to future: Powerchip chair

  STATE INVOLVEMENT: The key to maintaining Taiwan’s semiconductor sector role is to cultivate top engineers through tech and research institutions, Frank Huang said

  • Staff writer, with CNA
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  The competitive advantage of Taiwan’s semiconductor industry is based on conditions created locally and the key to the industry’s development hinges on how to maintain its competitiveness rather than reducing reliance on the country by moving operations overseas, Powerchip Semiconductor Manufacturing Corp (力積電) chairman Frank Huang (黃崇仁) said on Wednesday.

  Taiwan’s global dominance of semiconductor fabrication is built mainly on the back of high-caliber engineers, relatively low costs and the high cost-performance ratio of domestic industry, Huang said.

  These factors enable chipmakers to push prices lower than their counterparts in the US and other countries, he said.

  

  Powerchip Semiconductor Manufacturing Corp chairman Frank Huang speaks to reporters after a forum in Taipei on Wednesday.

  Photo: CNA

  In such a situation, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is highly profitable and can continue to invest heavily in advanced processes, thereby remaining the industry leader, he said.

  Many conditions have allowed Taiwan’s semiconductor industry to maintain its edge, including professional engineers, the internationalization of the industry and government support for the building of new fabs, Huang said.

  Without these conditions, that advantage does not exist, even if semiconductor manufacturing companies move their operations overseas or build new plants in the US, he said.

  Huang’s comments came as the international community has begun to discuss the need for the semiconductor industry to reduce its reliance on Taiwan to minimize risks to the global economy amid geopolitical tensions and a major chip shortage.

  Referencing this discussion of “de-Taiwanization” in the semiconductor industry, Huang said that the key to the sector’s future development is how to maintain its competitiveness, for instance, by continuing to cultivate top engineers through semiconductor technology and research institutions.

  The government needs to keep providing resources including land, energy, water and tax incentives to support the industry’s development, he said.

  The US semiconductor industry is the global leader in IC design and semiconductor manufacturing equipment, while Taiwan holds a leading position in the wafer manufacturing process, Huang said, adding that Taiwan’s competitive advantage cannot be easily replicated.

  Successful semiconductor investment is not just about money, Huang said, adding that TSMC has 30 years of experience in industry development.

  On Tuesday, TSMC announced that it would hold the first tool-in ceremony for its fab in Arizona next month to install the first batch of production equipment at the plant.

  Taiwan has built its strength in the field and would be able to export its semiconductor technology, Huang said.

  Regarding US efforts to jointly develop the industry with Japan, Huang said they still need Taiwan, citing the example of a joint venture between Japan’s Sony Group Corp, Denso Corp and TSMC to build a fab in Kumamoto.

  National Development Council Minister Kung Ming-hsin (龔明鑫) earlier this week told a legislative session that removing Taiwan from the semiconductor supply chain would not be easy given the country’s strength in advanced semiconductor technology research and development.

  The most important thing Taiwan can do is to continue working to strengthen its semiconductor supply chain resilience, Kung said.
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