Former Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) joint chief operating officer Chiang Shang-yi (蔣尚義) is to take a job at Chinese rival Semiconductor Manufacturing International Corp (SMIC, 中芯國際), the Shanghai-based chipmaker said yesterday.
SMIC’s announcement ruffled feathers in local semiconductor circles, as Chiang is one of the key people who helped TSMC clinch top spot in the global semiconductor market through a slew of technological upgrades.
Chiang retired as vice president of TSMC’s research and development division in 2006, but he was “summoned” to rejoin the company in 2009 by TSMC chairman Morris Chang (張忠謀) to assist with the upgrades to 28-nanometer, 20-nanometer and 16-nanometer technologies.
Photo: Hung Yu-fang, Taipei Times
The advanced chips accounted for 55 percent of the chipmaker’s total revenue last quarter.
In 2013, Chiang, 70, retired again and was tapped as an adviser to Chang for the following two years. That role ended in December last year.
TSMC said that it was informed by Chiang in advance about his new position and that it does not expect it to adversely impact the company.
His position would be part of SMIC’s efforts to enhance its corporate governance and it is not linked to the chipmaker’s operations, TSMC said.
SMIC, the biggest contract chipmaker in China, has been struggling to implement advanced technologies and it lags behind TSMC by about three generations in terms of technology.
TSMC is planning to ship 10-nanometer chips in the first quarter next year, while SMIC is still relying on 28-nanometer chips.
SMIC’s revenue contribution from its 28-nanometer chips increased to 1.4 percent of its overall revenue last quarter, up from 0.1 percent the previous year, according to the company’s financial statement.
TSMC has a more than 70 percent share of the worldwide 28-nanometer chip market.
Chiang would be an independent non-executive director, the company said in a filing with Hong Kong Exchanges and Clearing Ltd.
Chiang does not hold any other position at SMIC or any of its subsidiaries, SMIC said in the filing.
Chiang led TSMC’s research and development as it set milestones in semiconductor technology, from legacy 0.25-micron chips to advanced 16-nanometer FinFET technologies, transforming TSMC from a technology follower to a technology leader, SMIC said.
Chiang is to receive annual cash compensation of US$40,000 and an option to subscribe for 187,500 SMIC ordinary shares, the company said.
TSMC shares fell 1.37 percent to close at NT$180 in Taipei trading yesterday, while SMIC shares slipped 0.76 percent in Hong Kong trading.
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