The Taiwanese semiconductor industry could reap billions of dollars in foreign investment set to flow into Asia, but are being hindered by government bureaucracy, industry leaders said yesterday.
PricewaterhouseCoopers Consulting East Asia (PWC) partner, John Moran, told an audience of top industry leaders that changes in the global semiconductor industry meant that foreign investment dollars would soon flow into the region.
"There are billions and billions of dollars coming into Asia as semiconductor manufacturers in Europe and the US are shutting down. So there is an enormous amount of growth in the area of how to use e-business," Moran said.
E-business -- which includes e-commerce, e-supply chain and other business electronic information exchange functions -- has been heralded as a defining factor in the success or failure of enterprises in the near future.
Moran was presenting PwC's e-business expertise and e-supply chain services to an array of top executives in Taiwan's semiconductor and other sectors.
Taiwanese companies need to be more open to partnerships in order to meet the competitive challenge of the near future, he said.
"Taiwan needs to be more open when working with others, for example with suppliers in other countries, on how to work together to create brand new channels, cut out some layers. This will create more value for Taiwan and work on Taiwan's competitiveness -- creating products out of ideas quickly and with high quality," he said.
Taiwanese bureaucracy, however, remains a hindrance to the industry's development, according to Herman Hsia (
Civil service resistance to the adoption of global standards was delaying the creation of the necessary regulatory environment for the development of standards for immediate financial transfers and other e-business standards, Hsia said.
"I have tried to convince the finance ministry but they say it doesn't fit certain local regulations .... We need to change those regulations now, because e-business grows so fast -- if we don't learn fast then we'll soon be left behind," he said.
Hsia added that legislators keen to invest in high-tech stocks were hindering the work of technical professionals.
"Recently legislators tried to do things that are improper -- but they are not the professional people, and they don't know how to invest in the high-tech sector," he said.
"Taiwan needs specialized committees made up of professional advisors aiding legislators, like in the US," he added.
The former Minister of State left the legislature three years ago to set up the NII funded by Taiwan's private sector.
Standardization continues to be a significant obstacle to implementing an e-supply chain, said CW Lin (
"Our main problem is standardization, which applies across the board, whether it's our own supply chain, or the Taiweb, or other relationships across the Internet. For example, Intel is one of our suppliers but they have a better system than we have. So we're watching the moves of the major companies to create a common format for supply chains.
Lin added that a lack of information resource planning by a firm's downstream suppliers of computer parts was a major obstacle to creating an e-supply chain.
"NT$1.7 billion of our NT$2 billion revenue last year depended directly on our suppliers. But around half of them have no enterprise resource planning and only have a management information system at best," Lin said.
Tom Sun (
"Our approach is to basically tie partnerships to an e-business infrastructure wherein we can start to plan together. Once you have planning you have commitment and then you have trust," Sun said.
By October at the latest, all of Motorola's future product releases will be from its Internet Appliances (IAs) range, which begins with its new Taichi model due next month, Sun said.
IAs -- which allow consumers access to the Internet without using a computer -- have been widely touted as the hot product of the new century. In contrast to Taiwan's history as a chip manufacturing and parts assembly center for overseas computer conglomerates, e-supply chain development in the IA market would be on Taiwan's terms, PwC's Moran said.
"In IA, the Taiwanese are saying: `We'll do it our own way. We'll team up with others but will drive the development of the market.' The question is what does Taiwan want to be famous for in the new world. If you have a good idea and the right people there's a massive amount of money available today," he said.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted monthly revenue that suggested second-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chipmaker weather the COVID-19 pandemic and US sanctions on its second-biggest customer Huawei Technologies Co (華為). Apple Inc’s main iPhone chipmaker posted sales of NT$120.88 billion (US$4.08 billion) for last month, up 40.8 percent year-on-year and bringing its revenue for the second quarter to NT$310.7 billion, beating the NT$308.8 billion analysts expected on average. TSMC, a barometer for the industry thanks to its heft in the global supply chain, had previously lowered its revenue outlook for this
‘POSITIVE EFFECT’: Phison this year began shipping SSDs to Japan’s largest pachinko maker, which uses the components in its machines featuring high-resolution graphics Phison Electronics Corp (群聯電子), a designer of NAND flash memory controllers and modules, yesterday reported that revenue last quarter grew 11 percent from a year earlier on the back of new orders from Japan’s largest pachinko maker. Revenue last quarter expanded to NT$10.86 billion (US$366.82 million) from NT$9.79 billion a year earlier, Phison said. However, on a quarterly basis, revenue slumped 15.62 percent from NT$12.87 billion, it said. The Miaoli-based company said that it is benefiting from growing demand for solid-state drives (SSDs) used in devices beyond computers, which is stimulating growth for the NAND flash memory industry. Pachinko machines are one