Key people have left China’s largest chip maker

A According to a Reuters report the company and / or its board of directors were left there by experienced, key professionals. Perhaps the most painful may be the departure of Chiang Shang-Yi, a former head of research and development at market-leading TSMC. He explains that Chiang wants to spend more time with his family, which may indicate that the 75-year-old authority no longer wants to take on a similar, highly responsible position in the future. Chiang Shang-Yi’s contract last year was seen as key by the industry, as TSMC owes part of it to the technological and economic breakthroughs he has achieved in recent years.

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Liang Mong-Song, who has visited both Samsung and TSMC, will “just” leave the board and deputy CEO there to focus on other tasks within the company. Liang will be followed by Zhou Jie, a former (non-executive) director, and Young Kwang Leei, who will hold similar expertise elsewhere.

The important personnel changes are presumably due to U.S. trade restrictions. For more than a year, the U.S. Department of Commerce has ruled in a resolution that U.S.-based suppliers can only sell chip-making solutions to China’s largest manufacturer, Semiconductor Manufacturing International Corporation (SMIC), with special government permission. The U.S. government also says SMIC is supplying chips to the Chinese People’s Army, posing “unacceptable risks” to the country.

This means that some players will no longer be able to supply SMIC with the various key equipment needed for semiconductor manufacturing, forcing the company to suspend the introduction of more advanced processes with a bandwidth of 10 nanometers or less. For the Chinese manufacturer, this could be particularly painful as it continues to lag far behind in technology. Its current state-of-the-art 14-nanometer bandwidth is a roughly 5-6 year disadvantage compared to the market-leading TSMC-Samsung-Intel trio.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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