TSMC chief’s China visit sparks speculations

CALIFORNIA: Morris Chang, chairman and CEO of Taiwan Semiconductor Manufacturing Company (TSMC), located in Hsinchu Science-Based Industrial Park, Taiwan, visited Shanghai China a week ago, giving rise to speculations that he had been invited by Shanghai’s officials to seek his advice for the development of China’s semiconductor sector.

Though TSMC has refused to comment on Morris Chang’s visit to Shanghai, the trip comes at a time when semiconductor companies in both Taiwan and China are keen on looking at opportunities for collaboration and alliances, following the improved relations between the governments of Taiwan and China.

According to reports, Taiwan is likely to lift a ban soon on its foundries investing in advanced process fabs located in China. Lifting of the ban would let Taiwan Semiconductor Manufacturing Company take a major stake in Semiconductor Manufacturing International Corporation (SMIC), the leading foundry in China.

In November 2009, SMIC had offered TSMC a 10 per cent stake as a part of settling a lawsuit on trade secret. However, TSMC requires the approval of the government of Taiwan to accept SMIC’s offer of 10 per cent stake.

Media reports say that the meeting of Morris Chang with the officials of the Chinese government occurred on the day when two major foundries based in China – Grace Semiconductor Manufacturing Corporation (GSMC) and Hua Hong NEC – announced a joint-venture to set up a 12-inch fab in Shanghai.