Industryweek 1638 20844 Taiwan Semiconductor Wafer Fabrication
Industryweek 1638 20844 Taiwan Semiconductor Wafer Fabrication
Industryweek 1638 20844 Taiwan Semiconductor Wafer Fabrication
Industryweek 1638 20844 Taiwan Semiconductor Wafer Fabrication
Industryweek 1638 20844 Taiwan Semiconductor Wafer Fabrication

Taiwan Semiconductor Sees the Light

Jan. 14, 2010
Company veers away from its traditional business in December to enter the solar technology sector

When market growth becomes stagnant, find a new industry. At least that's what Taiwan Semiconductor Manufacturing Ltd. (TSMC) did. The world's largest custom chip maker, with revenues of US$10 billion, veered away from its traditional business in December to enter the solar technology sector by acquiring 20% of Motech Industries Inc. for US$193 million.

The company also has plans to enter the LED lighting market. TSMC's board of directors has approved US$46 million to set up an LED production line and product development lab, according to Rick Tsai, the company's president of New Businesses. So why the move into uncharted territories?

"We have observed that the semiconductor market is maturing," Tsai said in an e-mail interview with IndustryWeek. "Since 2000, the compound annual growth rate of the semiconductor market has declined to single digits. While we still expect our sector, dedicated chip foundry, to continue to outperform the overall semiconductor industry, we believe that we can bring more value to shareholders by finding new ways to drive growth beyond the next decade."

Taiwan Semiconductor's expertise is in wafer fabrication, as shown above, but the company will use its experience in the field to enter the solar and LED lighting markets.

The company also sees great potential for the green industry. Motech was attractive to TSMC because the company produces solar panels using polysilicon wafers, much like the semiconductor industry, Tsai says. In addition to its partnership with Motech, TSMC will develop its own technology for the solar supply chain, including thin-film solar cells, according to Tsai.

Moving forward, TSMC will use its partnership with Motech to gain a better understanding of its new industry, Tsai says. "Our task right now is to find the entry points in the value chain, define the right business models and formulate the business strategies. While we are not completely done with these, they are certainly taking shape quickly."

See Also

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!