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Capital expenditures pick up in Taiwan’s semiconductor industry
Taiwan News, Staff Writer
2014-07-07 11:29 AM
The stepping up of capital expenditures and expanding of recruitment among wafer leaders TSMC (2330) and UMC (2303) and packaging testing leaders ASE (2311) and Siliconware (2325) demonstrate a strong economic recovery, represents the increasing importance of Taiwan’s semiconductor manufacturers in global industry, and builds an insurmountable obstacle for industry peers.

TSMC’s significant increase of its capital expenditures, R & D, and capacity has already induced a siphon effect in the global semiconductor industry. In addition to increasing the reliance of fabless IC design companies on Taiwanese manufacturing, even European and U.S. integrated device manufacturers such as Intel, Texas Instruments, Renesas, Fujitsu, and Infineon are ramping up order placement to Taiwan.

Semiconductor equipment factories pointed out, under the leadership of TSMC, Taiwan’s semiconductor industry has already established a comprehensive vertical supply chain. With the global semiconductor industry placing more and more emphasis on ecosystems, Taiwan’s semiconductor industry becomes increasingly important.

TSMC chairman Morris Chang recently stated at the company’s shareholders meeting, even though TSMC faces competition from Samsung and Intel, as long as TSMC maintains a leadership position in technology, capacity, and customer relations, in the future TSMC may be the only company left in the global foundry industry.

Chang’s words revealed TSMC’s ambition to dominate global industry and is an important indicator for the linking of Taiwan’s semiconductor industry.

TSMC has laid out capital expenditures and high R & D funding on the 20/16 nm process for three consecutive years, investing NT$300 billion annually on plant expansions to widen the gap between the company and Samsung. Recently TSMC named 400 R & D personal to a night shift in hopes of overtaking Intel in two years through seamless 24 hour R & D.

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