United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, yesterday named former chief financial officer Stan Hung (洪嘉聰) to succeed Jackson Hu (胡國強) as the new chairman in an effort to revitalize the company and enhance customer services.
“Moving forward, UMC remains committed to serving our customers with the best possible foundry services while enhancing the strength of our financial structure and controlling costs to maximize the benefits for our customers, shareholders and employees,” Hung said in a statement yesterday.
As part of the management reshuffle, the chipmaker also chose chief operating officer Sun Shih-wei (孫世偉) as chief financial executive, replacing Hu. UMC will hire Hu as a senior adviser.
“My top priority as CEO will be to ensure that we deliver solutions that target our customers’ success as they face these times of economic uncertainty,” Sun said.
The shakeup came as the chip industry faces a risk of slower-than-expected revenue growth in the third quarter.
Credit Suisse expected a “more muted third quarter” and forecast revenue growth of 7 percent to 10 percent for contract chipmakers on Tuesday — a sober forecast compared with the 15 percent projected by some analysts.
Some analysts expressed concern about Hung’s appointment, as most semiconductor companies including major rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) prefer candidates with a firm grounding in the technology over those with backgrounds in finance.
“I don’t think it is a good arrangement for the chipmaker’s future expansion in terms of business and technology development,” said a semiconductor analyst who declined to be named.
The analyst said it would be challenging for Hung to lead a technology-oriented firm.
However, another semiconductor analyst at a European research firm said “we are neutral about this management change. We believe the adjustment will not lead to any major changes in UMC’s future strategies.”
Sun has played a key role in helping UMC develop advanced technologies and the new position should suit him, the analyst said.
UMC shares jumped 1.01 percent to NT$15.5 yesterday, outperforming TSMC, which rose 0.37 percent to NT$53.8.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS