Where will TSMC go?

Latest update time：2023-12-31

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Source: Content from North American Intellectual Property News , thank you.

As the world's largest semiconductor foundry, TSMC's dominant position in the industry is unquestionable. Not only does it have about 60% of the global market share, it also far surpasses its closest competitor Samsung in the field of advanced semiconductor manufacturing, especially in the production of 5nm and 3nm chips.

Since TSMC specializes in producing state-of-the-art chips, these chips are critical to advancing artificial intelligence and Internet of Things technologies. Although the semiconductor and foundry industry as a whole is showing a downward trend in 2023, TSMC's precise focus on advanced technologies such as artificial intelligence and the Internet of Things ensures that it maintains a solid position in the market, even as its revenue declines in fiscal 2023 Excellent performance in trends.

TSMC's business strategy can be so precise. Chairman Liu Deyin and Wei Zhejia, two professional managers, cooperate in the division of labor for external communication and internal management respectively, achieving extremely high efficiency. Now that Liu Deyin has chosen to retire in 2024, who will take over the external communication aspect? Can we continue our past achievements? And easing the most important geopolitical issues at present are already the top concerns of the global industry.

Since the outbreak of the COVID-19 epidemic, it can be said that there are both opportunities and challenges for TSMC. On the one hand, the changes in the semiconductor supply chain have pushed TSMC’s importance to the peak. However, on the other hand, due to geopolitical risks, TSMC has also Being pushed to the forefront, it is easy to get blamed.

In addition to geopolitics, TSMC also faces challenges in foundry services. For example, Intel has announced that it will surpass TSMC in 2nm. Although its old rival Samsung is still lagging behind in the manufacturing process, it hopes to use a new generation of 3D integrated with memory. Packaging technology is used to seize the OEM pie dominated by AI chips.

Although the declarations of Intel and Samsung have always been exaggerated, they cannot be ignored because they focus on whether TSMC, which is affected by geopolitics, has the ability to stand in a neutral position in the future, not be threatened by external forces, and continue to provide stable supply.

If the answer is no, then Intel and Samsung do not need to truly lead TSMC in manufacturing processes, and orders will naturally go from TSMC. Therefore, the biggest problem facing TSMC now is not technology or the market, but a 100% political issue.

Faced with international forces, international customers, directors, and changes, Liu Deyin's decisions in the past two or three years have been close to perfect. His harmonious personality and methods have repeatedly allowed different conflicting interests to reach consensus and work together to survive the supply chain. The intense difficulties have not only helped TSMC's own development, but also promoted Taiwan's economic boom. In comparison, Wei Zhejia only needs to take care of production lines, technology and customer orders. Although the difficulty of the work cannot be said to be lower, it is certainly not easier than Liu Deyin. few.

TSMC decided not to nominate another candidate to replace Liu Deyin as chairman, but instead let Wei Zhejia directly take over as chairman, returning to the one-man power model of the Zhang Zhongmou era. It is curious where he will lead TSMC.

Wei Zhejia is recognized as a bold CEO who acts decisively. His leadership strategies and global expansion plans for the company are one of the most notable features of his tenure. Under his leadership, TSMC has not only made significant progress in technological innovation, but also demonstrated a forward-looking vision in global market layout. Wei Zhejia's strategy focuses on ensuring that TSMC maintains its leading position in advanced technology while expanding its influence in the global semiconductor market. He has also finalized the construction of multiple domestic and overseas wafer fabs.

When Taoyuan was faced with the issue of TSMC's land, Wei Zhejia also chose another place to settle down, not to be affected by outside noise and to ensure that the planning of advanced manufacturing processes could be implemented step by step. Most of the investment scale and research and development direction of advanced processes are decided by him, and it was later proven that his views were correct. In the face of more diverse challenges in the future, whether they are external threats or internal crises, as the sole leader of TSMC , his job is to ensure that the interests of shareholders can be maintained and that the value of TSMC continues to increase. There is no need to question whether the Wei family is capable of doing this.

However, the impact of geopolitics may still be unavoidable. All Wei Zhejia can do is to avoid risks as much as possible and expand the production base, but at the same time maintain TSMC's competitiveness and the positive growth of Taiwan's supply chain.

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