TIPS^®  Taiwan Intellectual Property Special

Taiwan Forges Chip Industry Trend

The Asia Wall Street Journal reported on June 20, 2001 that, by the year of 2002, at least 6 new chip foundry ventures would be in production around Asia at an estimated investment of more than U.S.$ 8 billion.

Asian countries are racing to import the Taiwan foundry business model, as the cornerstone of concerted efforts to facilitate their economies toward hi-tech development. New foundry ventures in Asia include 3 large projects in China (Shanghai Grace Semiconductor Manufacturing Corp., Semiconductor Manufacturing International Corp., and Beijing Huaxia Semiconductor Co.), two in Malaysia, and one in South Korea. Moreover, Singapore’s Chartered Semiconductor Manufacturing Ltd., the third largest chip foundry in the world, is also expanding.

The report also pointed out that the Taiwanese companies’ experienced management teams, combined with their strength in technology and creditability earned through years of closely protecting the intellectual property rights of customers, raise the competition barrier against the newcomers. Therefore, it is believed that the newcomers will not be able to pose a serious threat to Taiwan concerns in the near future.