【Epoch Times, October 28, 2024】Taiwan’s Financial Times Media Chairman, Xie Jinhe, posted on Facebook discussing the success of TSMC (Taiwan Semiconductor Manufacturing Company) and the current issues faced by Samsung. He analyzed that Samsung’s market value is now only a quarter of TSMC’s, so where did things go wrong for Samsung?
He also analyzed that TSMC in Taiwan bears the title of “Guardian Mountain of the Nation” and is actually a beneficiary of anti-globalization trends.
The leading semiconductor foundry TSMC held its 2024 sports event at Hsinchu County Stadium on the 26th, where the 93-year-old founder, Morris Chang, and his wife, Sophie Chang, attended. Upon their entrance, they received a warm welcome from TSMC employees, and other former high-level executives from TSMC, like C.C. Wei, CEO of MediaTek, and Jason Chen, Chairman of Acer, were also invited to participate.
Xie Jinhe remarked that at the sports event, Morris Chang, known for leading TSMC’s global expansion efforts, received cheers from the audience. This veteran hero of TSMC is truly a national treasure that cannot be replaced by anyone. Despite missing the Asia-Pacific Economic Cooperation (APEC) meeting in Peru, due to his age, his presence was deeply missed.
The 2024 APEC summit is set to take place in Lima, Peru in November. Presidential spokesperson Kuo Yahui announced on the 21st that President Lai Ching-te has designated former Presidential Advisor Lin Hsin-yi to represent Taiwan at the 2024 APEC Economic Leaders’ Meeting, with hopes of enhancing Taiwan’s visibility and importance.
Xie Jinhe emphasized that during TSMC’s sports event, Morris Chang twice mentioned that globalization is dead and the future is full of challenges. In his view, TSMC is actually a beneficiary of anti-globalization trends. Why? Excluding the total market value of Taiwan’s capital market, the market value of TSMC alone accounts for more than one-third of the Taiwan stock market. Without TSMC, the Taiwan stock market could lose ten thousand points, posing a significant challenge to Taiwan’s economy.
He further stated that while tensions may seem high between the two sides of the Taiwan Strait, resorting to military action to resolve cross-strait issues is the most foolish approach. Why is TSMC’s Chairman C.C. Wei confident in TSMC’s explosive growth over the next five years? It’s because the Chinese Communist Party (CCP) lacks prowess in advanced manufacturing processes. Why is the CCP constrained by technology? It’s because ASML’s EUV and DUV exposure machines are restricted from being sold to China.
During the sports event, Morris Chang gave a speech highlighting TSMC’s pillars of “leading technology, excellent manufacturing, and customer trust” in 2024. He praised TSMC employees for their record-breaking achievements and acknowledged the tough challenges ahead. The key to TSMC’s success lies in continuous development with its outstanding team and leadership.
Xie Jinhe pointed out that the reason TSMC is where it is today is thanks to U.S. protection of advanced manufacturing equipment. If advanced manufacturing technology was also globally available, TSMC’s current position might be different. Over the years, the CCP has been among those aiming to destroy TSMC. Despite relentless criticisms from certain circles, claiming TSMC is akin to Toshiba or American Integrated Circuit Company (AICT), and accusing it of draining Taiwan’s resources, none of these baseless allegations have prevailed. This is a blessing for Taiwan and TSMC.
“From another perspective, Samsung is likely the biggest victim of globalization,” Xie Jinhe stated. In the past, Samsung and TSMC were on equal footing, but now TSMC’s market value exceeds one trillion U.S. dollars while Samsung’s has dwindled to 250 billion U.S. dollars, a quarter of TSMC’s value. Where did Samsung go wrong?
Xie Jinhe analyzed that besides lagging behind TSMC in advanced manufacturing process yields, Samsung’s first downfall was in the smartphone market. Before 2005, Samsung held over 30% market share in China, which has now plummeted to 0.3%. Apart from losing ground in China, Samsung’s market share in Africa and Eastern Europe has been eroded by Chinese smartphone brands. Even its primary production base in Vietnam is outmatched by Chinese brands. Additionally, once dominant in LCD panels, Samsung now lags behind Chinese giant BOE, only retaining OLED displays and acquiring LED manufacturers.
He noted that Samsung’s stock price has plunged over the past three months, dropping by 35.7% from 88,800 Korean won (approximately 64 U.S. dollars) to 57,100 Korean won (about 41 U.S. dollars). Samsung’s flagship DRAM memory business has also been outperformed in the HBM memory upgrade competition by SK Hynix. This year, Hynix’s market value has even surpassed Intel, marking a significant event in the semiconductor industry.
Xie Jinhe concluded that all this underscores how under Chinese Communist Party-led globalization, many industries suffer. Formosa Plastics Group faced the brutal reality of price wars and emerged as a loser. Ultimately, only by continuously raising the bar on technological thresholds and outpacing the CCP, can industries survive. TSMC’s role as the “Guardian Mountain of the Nation” hinges on this vital aspect.