Taiwan chip makers respond to Samsung threat

The world’s largest semiconductor foundry – Taiwan Semiconductor Manufacturing Co (TSMC) – is ready to react to threats to its business from Korean giant Samsung.

Morris Chang, CEO and chairman of TSMC, and regarded as the “father” of chip foundry business, was reacting to a threat made last week by Samsung that it would “kill” Taiwan.

Chang said, according to a report in Taiwan wire Digitimes, that the Samsung threat should not be underestimated. But, he indicated, TSMC – which is the largest foundry player in the world – is ready to engage in battle with Samsung.

Many manufacturers of devices – including Apple – do not want to put their eggs into the Samsung basket because they view the vertical giant as a potential threat to their own businesses.

Competition in the foundry business is fiercer than ever before, with semiconductor giant Intel reportedly touting for business too. Other players in the field include Abu Dhabi firm GlobalFoundries (GloFo), UMC, IBM Microelectronics, and Chinese foundry SMIC.

Few can compete, however with TSMC, which has a broad reach of expertise in many semiconductor sectors.