During an interrogation session at the Hsinchu District Prosecutors' Office on June 9 about his company's alleged investment in China, United Microelectronics Corp (UMC) chairman Robert Tsao (
First, regarding operational know-how: Most of the sophisticated machines used in Taiwan's wafer-foundry industry are imported, and the industry does not possess the crucial technologies. Its success lies in the past assistance of the government, which put up a great amount of capital and offered a highly preferential tax policy. Its success also lies in the nation's high-quality talent, such as engineers with master's or doctoral degrees performing tasks that are often left to regular technicians in foreign semiconductor factories. As a result, we have developed the world's most efficient business process and yield control. This is what operational know-how is.
As for various manufacturing patents, they are simply the records of achievements made as part of building new factories and upgrading to better production processes. Their actual value is not high, and they are obtained to protect a company's rights rather as a tool of competition. Taiwanese chipmakers spend a massive amount of money applying for patents, and Taiwan is already in the top five countries in terms of the number of US patents it owns. But these companies' profits from patent authorization is extremely low.
This shows that for UMC or Taiwan Semiconductor Manufacturing Co (TSMC), the world's biggest contract chipmaker, their most valuable asset is their ability to raise funds and their operational know-how. Perhaps such expertise cannot be patented, but it is much more valuable than some impractical, transitional patents.
Second, on UMC's alleged violation of the law: The Web sites of UMC (www.umc.com.tw) and He Jian (www.hjtc.com.cn) are strikingly similar. Take He Jian's most advanced 0.18-micron chips for example. About 95 percent of the company's 0.18-micron "libraries" are the same as those of UMC.
If the government fails to severely punish those who break the law, chipmakers that abide by the law and operate in Taiwan will become fools, while breaking the law becomes the best shortcut for laggards to surpass competitors.
Third, on the damage to Taiwan's semiconductor industry: When China's Semiconductor Manufacturing International Corp was established in 2000, it publicly vowed at a press conference in California to catch up to Taiwan and replace our wafer-foundry industry. Today, as a Chinese company, He Jian has also openly joined the array of companies seeking to replace or eliminate Taiwan's semiconductor industry -- with the help of UMC's most advanced manufacturing processes and even its clients. How can the government that nurtured UMC in the past and the law-abiding public possibly accept this?
What's worse, UMC has used Taiwan's resources and spent a lot of money to develop its manufacturing processes. Now, under the chairman's orders, the company has become He Jian's tool for business in China, completely disregarding the constraints of the government and its 900,000 shareholders. This method of harming Taiwan while benefiting China certainly deserves the government's and the public's harshest condemnation.
Tony Su is the convener of the technology section at the Taiwan Economics and Technology Thinktank.
TRANSLATED BY EDDY CHANG
There is much evidence that the Chinese Communist Party (CCP) is sending soldiers from the People’s Liberation Army (PLA) to support Russia’s invasion of Ukraine — and is learning lessons for a future war against Taiwan. Until now, the CCP has claimed that they have not sent PLA personnel to support Russian aggression. On 18 April, Ukrainian President Volodymyr Zelinskiy announced that the CCP is supplying war supplies such as gunpowder, artillery, and weapons subcomponents to Russia. When Zelinskiy announced on 9 April that the Ukrainian Army had captured two Chinese nationals fighting with Russians on the front line with details
On a quiet lane in Taipei’s central Daan District (大安), an otherwise unremarkable high-rise is marked by a police guard and a tawdry A4 printout from the Ministry of Foreign Affairs indicating an “embassy area.” Keen observers would see the emblem of the Holy See, one of Taiwan’s 12 so-called “diplomatic allies.” Unlike Taipei’s other embassies and quasi-consulates, no national flag flies there, nor is there a plaque indicating what country’s embassy this is. Visitors hoping to sign a condolence book for the late Pope Francis would instead have to visit the Italian Trade Office, adjacent to Taipei 101. The death of
By now, most of Taiwan has heard Taipei Mayor Chiang Wan-an’s (蔣萬安) threats to initiate a vote of no confidence against the Cabinet. His rationale is that the Democratic Progressive Party (DPP)-led government’s investigation into alleged signature forgery in the Chinese Nationalist Party’s (KMT) recall campaign constitutes “political persecution.” I sincerely hope he goes through with it. The opposition currently holds a majority in the Legislative Yuan, so the initiation of a no-confidence motion and its passage should be entirely within reach. If Chiang truly believes that the government is overreaching, abusing its power and targeting political opponents — then
The Chinese Nationalist Party (KMT), joined by the Taiwan People’s Party (TPP), held a protest on Saturday on Ketagalan Boulevard in Taipei. They were essentially standing for the Chinese Communist Party (CCP), which is anxious about the mass recall campaign against KMT legislators. President William Lai (賴清德) said that if the opposition parties truly wanted to fight dictatorship, they should do so in Tiananmen Square — and at the very least, refrain from groveling to Chinese officials during their visits to China, alluding to meetings between KMT members and Chinese authorities. Now that China has been defined as a foreign hostile force,
RSS