The electronics industry is a diverse and ever-changing field, and data assets have become a modern tool for competition. If you are able to accumulate a wealth of assets, how can you complain that there is nothing new in this industry? It'd ideal if you could sit back while running a business, but that would happen only after you've spent your whole life doing it.
In 1990, I accompanied a technology delegation to Beijing and served as the speaker of the first public seminar. From 1990 to 2000, most of the investments made by Taiwanese companies in China were only for contract processing, and it was only when the companies invested in the Yangtze River Delta that a critical change in the industry relationship occurred.
In the post-industrial era, globalization and efficient management have given everyone a deep understanding of the 80/20 rule. Each of us understands that 80% of the added value may come from the contribution of 20% of the elite.
With Intel and Samsung Electronics making frequent moves to target their common competitor TSMC, the media may be able to observe the changes in the industry from a different perspective, in addition to doing routine reporting.
TSMC has mastered the structural advantage, but can it just sit back? DIGITIMES recently collaborated with National Taiwan University's (NTU) leadership program to conduct a series of analyses and reports on ESG issues in the technology and automotive industries, and I was impressed by the research done by NTU students on how TSMC compares to other world-class companies.
Taiwan's semiconductor industry is in the limelight, or perhaps in the "crosshairs." As a leader, Taiwan's semiconductor industry must consider various key issues that will affect the future of the industry and develop various strategies with itself as the core.
TSMC's had 24.9% growth in sales in 2021 and it is estimated that it may be close to 30% in 2022. TSMC chairman Mark Liu has said the foundry has a structural advantage. I don't know how people understand the characteristics of the pure-play foundry, and what "structural advantage" means.
At this stage, it is clear that China wants the Pacific Ocean to be big enough to accommodate the two powers of China and the US, and to gain more time and space in order to bring its national power to its peak. Whether it is intruding into another country's air identification zone or entering the Miyako Strait, the purpose is to find a favorable argument and foothold in a confrontational environment. But the US obviously does not let an enemy lurking around and adopts a strategy of maximum pressure.
When US president Joe Biden visited South Korea, he visited Samsung Electronics' 3nm semiconductor fab. Should Taiwan or TSMC envy that? South Korea has a high-profile role to play in the international community, but what would happen if Taiwan had a similar role?
DIGITIMES Research recently conducted a survey of China's IC design industry. According to the data collected, China's total semiconductor imports in 2021 reached US$432.5 billion, up 23.6% from 2020, while exports totaled US$153.8 billion, up 31.9%, with a trade deficit of US$278.7 billion. Customs data is usually not too far off, but Taiwan is a major semiconductor producer and yet its exports reached only US$155.5 billion in 2021, so the structure of China's imports and exports clearly needs more explanation.
As an entrepreneur and industry analyst, I have never told anyone asking for advice that there is "no solution": There is always a solution and the only difference is whether it's a good one or bad one. Taiwan's semiconductor industry is known as the protector of the nation, but will it face stagnation or free fall?
I was once invited by the Canadian government to talk in several cities about the possibilities of Canada-Taiwan collaboration in the high-tech industy. The talks took me to Vancouver, Banff, Victoria Harbour, Calgary, Edmonton, Toronto and the nearby technology town of Waterloo. Asians account for a large portion of Vancouver's 40%, and Toronto and Waterloo are close to the Great Lakes region, which not only has a strong telecommunications industry.
MediaTek launched its first mmWave application processor (AP), the Dimensity 1050, towards the end of second-quarter 2022, nearly two years later than Qualcomm and Samsung Electronics. The late introduction may not be the result of weaker technology; market demand and customer structure are also important factors.
The global deployments of data centers are still dominated by China and the US, but the proportion outside of China and the US is gradually increasing, and the overall demand is still strong. Taiwan's server industry still still booming. According to DIGITIMES Research analyst Frank Kung, Taiwan's server industry still stands a chance of seeing a 6% growth in 2022, although the client structure will be much different.
The concept of "sustainable development" is about meeting the needs of the present without compromising the development opportunities of future generations. Looking at the goal of tackling the greenhouse effect, the international community has placed the next checkpoint at 2030. Europe's oil companies are changing their corporate identity labels; inside China, provinces are competing with each other to address climate change; supply chains are moving towards value chains; and green energy is becoming an emerging industry that we can hardly stay out of.