LONDON – Foundry Taiwan Semiconductor Manufacturing Co. Ltd. plans to raise its R&D spending by nearly 39 percent to NT$50 billion (about $1.68 billion) in 2011, according to a Taipei Times report that quoted chairman and CEO Morris Chang.
Chang said the spending increase was necessary to develop technology. TSMC's ability to do this in the past was the primary reason for its success today and it would be necessary to see off competition from the likes of Intel and Samsung in the future, the referenced Chang as saying.
He said that the companies are not in direct competition at present with Intel making logic, Samsung, memory and TSMC operating as a contract manufacturer of chips.
"Intel is the semiconductor industry’s Mercedes-Benz, while TSMC is a Toyota,” the report quoted Chang as saying. However, the companies would be rivals over the next 20 years, Chang said adding that the growing significance of netbook computers and smartphones favored TSMC.
Chang said that the strength of the Taiwan dollar against the U.S. dollar was an issue for TSMC, according to the report.
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