Chang steps aside as CEO of TSMC
Mark LaPedus
EE Times
(05/10/2005 1:48 PM EDT)
SAN JOSE, Calif. — In what could be the changing of the guard, Morris Chang has stepped aside as chief executive of silicon foundry giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).
Rick Tsai, president and chief operating officer of TSMC, will assume the role of both president and chief executive of the company, effective July 1. Tsai, who joined TSMC in 1989, is now widely considered the heir apparent to Chang at the foundry provider.
Chang, the founder of TSMC, will remain chairman of the company. F.C. Tseng, deputy chief executive of TSMC, will also step aside and will serve as vice chairman of the company.
The moves were announced on Tuesday (May 10), when Chang proposed the changes at a board meeting in Taiwan. It was also announced that neither Chang nor Tseng will participate in the company's employee profit sharing once they assume their new posts.
Chang, according to TSMC, will continue to dedicate his efforts as chairman. But as president and CEO, Tsai will be responsible for the business and strategy of TSMC and its affiliated companies, reporting to Chang.
As vice chairman, Tseng will assist Chang and remain as chairman of TSMC's China subsidiary, Global UniChip Corp., and the TSMC Education and Culture Foundation.
"Dr. Chang believes that the structure of the top management team should be planned in advance and implemented in steps," said Lora Ho, TSMC's vice president and chief financial officer, in a statement.
"In line with that philosophy, he has contemplated TSMC's future organization over the past few years. Recently, Dr. Chang felt that TSMC had already become a strong company, and the management had proven themselves ready to resume larger responsibilities for the future. Dr. Chang therefore proposed the changes and received the unanimous support of the board," Ho said.
At the same time, Tsai's star has been rising at TSMC. In 1989, he joined TSMC and has held various executive posts. For some time, Tsai had been TSMC's president and chief operating officer, a role he assumed after serving as executive vice president of worldwide marketing and sales.
Prior to joining TSMC, Tsai moved through the ranks during his eight-year career at Hewlett-Packard Co. At HP, he held various jobs, including R&D project manager, manufacturing engineering project manager, and as a member of the technical staff.
Star search
Back in 2001, TSMC announced some major management changes, including the possible heir apparent to Chang. At the time, Tseng, president and chief operating officer of TSMC, had been named to the new position of deputy chief executive.
And at the same time, Tsai, then executive vice president of worldwide marketing and sales of TSMC, had been named president and chief operating officer.
The changes signaled that Chang would hand more responsibilities over to TSMC executives, especially Tseng and Tsai, according to analysts. Tseng had been responsible for the company's day-to-day operations, it was noted.
After 2001, though, Tseng took an even greater role at TSMC, that is, looking at more long-term strategies for the company, according to analysts. That, in turn, caused some to speculate that Tseng may be the heir apparent to Chang.
As the new CEO, meanwhile, Tsai will lead TSMC's ship amid an IC down cycle. In announcing its first quarter 2005 financial results, TSMC last month said it expects its manufacturing capacity utilization to increase to about 80 percent in the second quarter and reaffirmed a plan to spend more than $2.5 billion on expanding capacity. Excess inventory among customers and the seasonal slowdown also crimped sales in the first quarter.
Going forward in the second quarter and beyond, TSMC is "unlikely to a material improvement (in business) this year," according to a report from Pacific Crest Securities Inc. (Portland, Ore.)
Separately, Royal Philips Electronics NV reported that TSMC's board on Tuesday (May 10) approved conversion of up to 1.05 billion of its common shares into American depositary shares. Philips said it is considering offering a substantial part of 1.05 billion common shares, a sum which represents about a quarter of its holding in TSMC (Hsinchu,Taiwan).
|
