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TSMC's succession plan to ensure firm's long term development: analyst

TSMC's succession plan to ensure firm's long term development: analyst

Taipei, March 3 (CNA) A succession plan recently unveiled by Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, will be able to ensure the company's commitment to long-term development, an analyst said Saturday. As part of the plan, TSMC's board of directors has approved the appointment of Senior Vice President of Research and Development Chiang Shang-yi, Senior Vice President of Operations Mark Liu, and Senior Vice President of Business Development C.C. Wei as Executive Vice Presidents and Co-Chief Operating Officers. The company said the three executive VPs and Co-COOs and its finance and legal divisions will report directly to Chairman and Chief Executive Officer Morris Chang, but that other divisions will report to the three new executive VPs and Co-COOs. TSMC said the appointment, which is scheduled to become effective from March 5, is paving the path for the succession to Chang, who is sticking to his plan to step down by June 2014. Chang reassumed the position as the company's Chairman and CEO in June 2009 amid a global financial meltdown which hit the world's economy and seriously impacted demand. "Under the close supervision of Chang, the succession plan showed the company's determination to ensure its operations will remain normal even after Chang's departure," Grand Cathay Securities analyst Meissen Chang said. "The succession plan is able to assure TSMC's clients and investors that the company will have consistent and stable development strategies," he said. Morris Chang has long been described as a pioneer of the integrated circuit sector and his visionary leadership has earned him a reputation as the father of the Taiwan semiconductor industry. "The move is positive to TSMC and is expected to reduce concerns over the company's outlook without Chang," the analyst said. "I think TSMC has served as a good model in management succession for the local manufacturing sector." In 1987, Morris Chang founded TSMC, which was the world's first dedicated IC foundry company. TSMC's business model has prompted the development of fabless IC companies that only design ICs, but outsource to dedicated foundries for production. (By Jackson Chang and Frances Huang)


Updated : 2021-04-15 01:10 GMT+08:00