16th September 2005

Taiwan as centre of IC world

posted in Business |

Comments on “Seeing Taiwan as centre of IC world”, an interview of Nicky Lu by Mike Clendinin

IPs fill up the differentiating edge gap in a product leading to higher sales and thus higher revenues. But the broad definition of IP has also changed over the years. What was initially termed as the “winning” block in a chip has now become a generic part. So one needs to keep up innovating to come up with new IPs, new value-addition to the IC.

In the “manufacturing reigns supreme” years, Taiwan had the edge of having the wafer fab, assembly & testing plants as well as multiple design houses in the vicinity. Later when this along with the lower cost was no longer sufficient, foundries started focusing more on their IP portfolios and now on addressing the various issues arising in the design chain, in addition to the manufacturing issues. This has also been a triggered by the need of the “falling of the walls” between the design space and manufacturing space. Forced or not, this is good for the industry especially in the DSM zone.

Given the earlier edge of having in place the basic semiconductor ecosystem, Taiwan can be strongly poised if it can efficiently harness the synergy from it as an integral unit rather than as separate entities.

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