[News] PSMC’s Frank Huang Explores Global Expansion through Fab IP, Diverging from TSMC’s Path

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As various governments actively court semiconductor foundries in Taiwan, PSMC, in partnership with India’s Tata Group, held a groundbreaking ceremony for India’s first 12-inch fab on March 12th. As per a report from TechNews, PSMC has been collaborating with Japan and India recently to establish a semiconductor manufacturing path distinct from TSMC’s, marking Chairman Frank Huang’s latest overseas strategy amidst geopolitical shifts.

Due to various countries actively developing the semiconductor industry and seeking assistance from Taiwan, PSMC Chairman Frank Huang stated that this year is a transformative year for PSMC. In addition to optimistically viewing the new foundry opportunities brought about by geopolitical shifts, PSMC will also focus on a global development strategy centered around “Fab IP.”

“Taiwan’s semiconductor strength is formidable because no one else can do what Taiwan is doing,” said Frank Huang. He mentioned that, following President Tsai Ing-wen’s directive to assist India in building a semiconductor plant, it serves as a path for Taiwanese companies to understand the foundational cooperation model in India.

Therefore, PSMC decided to provide technology, with India responsible for building the plant and providing funding. The investment structure involves 70% from the Indian government and 30% from the Tata Group.

Global Expansion Through “Fab IP”

PSMC’s Fab IP strategy leverages its long-term accumulated experience in plant construction and semiconductor manufacturing technology to assist other countries in building semiconductor plants while earning royalties for technology transfers.

Frank Huang pointed out that the company has established a “Manufacturing IP Transfer Department” which does not invest money but only provides technology transfer. Its main focus is assisting other countries in building plants, extending from Japan and India to countries in the Middle East and Europe, all of which represent opportunities for Taiwan.

PSMC General Manager Brian Shieh believes that overseas plant construction requires a thorough consideration of operations and future costs. Therefore, PSMC tends to assist in building plants without assuming operational responsibilities. Instead, they only provide services, which differs from TSMC’s overseas cooperation model.

Due to the keen interest of various countries in IP technology transfer, Frank Huang believes that IP transfer will also become one of the important sources of revenue in the future. “Up to 7-8 countries have approached PSMC,” including Vietnam, Thailand, India, Saudi Arabia, France, Poland, Lithuania, and others.

He mentioned that from Japan to India, they have been actively engaged in IP transfer and are currently in discussions with two other countries. The source cited by the report also indicates that Vietnam is actively negotiating with PSMC, although PSMC has not responded to this.

Read more

• [News] PSMC Assists Tata in Fab Establishment through Technology Transfer
• [News] Tata Group Rumored to Invite Taiwanese Businesses to Establish Fabs in India, Possibly Partnering with UMC or PSMC

(Photo credit: PSMC)