TSMC, as the world's leading foundry, has always been affected by management changes in the semiconductor industry. on June 4, 2024, TSMC's Chairman, Liu Deyin, announced his retirement at the shareholders' meeting, marking the end of an era for TSMC and heralding the beginning of a new one.
During Liu Deyin's tenure, TSMC has successfully established a leadership position in the global semiconductor industry through its technological leadership. He emphasized that the speed of TSMC's progress was the point it cared most about, and that this emphasis on the speed of technological progress was the key to TSMC's ability to maintain its leadership position in a highly competitive market.
At the last shareholders' meeting, Liu Deyin, faced with questions from minority shareholders about TSMC's future competitiveness, especially concerns about whether Huawei would overtake TSMC, gave a firm and confident answer, “It should be unlikely.” Liu Deyin emphasized that since TSMC is now taking the lead in technology, one of the most important points to care about is whether TSMC has progressed faster than its rivals. This answer not only reflects Liu Deyin's confidence in TSMC's technological strength, but also his clear understanding of the company's future direction.
Figure: TSMC Chairman Liu Deyin announced his retirement at the shareholders' meeting
On both ends of the spectrum, Huawei, as a Chinese tech giant, has made remarkable progress in the semiconductor field in recent years. Huawei's chip design capabilities, especially its breakthroughs in 5G technology and artificial intelligence, have allowed it to gradually become a major player in the global semiconductor industry. However, Huawei's development path has not been smooth in the face of multiple pressures from the international market and supply chain challenges.
So why has Huawei become a competitor of TSMC? In this regard, China's overseas semiconductor network that is mainly based on the following reasons:
1. technological innovation: Huawei's innovation in chip design and 5G technology, so that it is in some areas of competition with TSMC's products.
2. Market expansion: Huawei's expansion in the global market, especially in Asia and Europe, has increased its competitiveness with TSMC in the global semiconductor industry.
3. Supply Chain Integration: Huawei's ability to integrate its supply chain has enabled it to control costs more effectively and improve efficiency so that it can compete with TSMC on price and performance.
4. Policy support: The Chinese government's support for local high-tech companies has provided Huawei with strong backing and enhanced its competitiveness in the global semiconductor industry.
With the retirement of Liu Deyin, President Chieh-Chia Wei will fully dominate TSMC's operations, ending the 11-year-long dual-chief executive system. Chieh-Chia Wei's response at the shareholders' meeting demonstrated TSMC's determination to continue to work closely with its customers and grow together. This customer-centered strategy will further strengthen TSMC's position in the semiconductor industry.
Overall, TSMC's transition from the De-Yin Liu era to the Chieh-Chia Wei era is not only a change in management, but also a continuation and deepening of TSMC's development strategy. In the face of possible future competition and challenges, TSMC is expected to continue to maintain its leadership position in the global semiconductor industry by virtue of its technological leadership, deep understanding of customer needs, and solid market positioning. With Chieh-Chia Wei taking full ownership of TSMC's operations, we have every reason to expect that TSMC will open a new chapter and lead the semiconductor industry to even greater heights. Meanwhile, Huawei's rise and development as a competitor to TSMC will also have a profound impact on the global semiconductor industry.
