True. That is why TSMC could not afford to forgo the joint venture among IBM/Intel/SUNY/Global Foundries/Samsung for advance nanotechnology research on an atomic scale. However,TSMC chose not to foster its own home-grown technology in IC equipment development. It shall result in the errosion of its profit margin. By contrast, Samsung had committed massive resources in this sector. It's going to come back to bite TSMC big time.
Taiwan's chip history: 1973-1974 -ITRI was formed this is a non profit research institute,then ERSO formed , 1980 UMC a private firm was formed and the whole technology from ITRI was transferred to UMC by ERSO. A VLSI program was taken up by ERSO between 1983-1988 and in the year 1987 TSMC started the first dedicated merchant foundary. Now after 25 years of history Taiwan holds the number one position. The efforts by the Taiwan's government engineers are to be praised at this time for their countries progress in the field of IC fabrication. History avilable at www.iamot.org/conference/index.php/ocs/10/paper/view/.../793
Great achievement, and does this mean the newly elected government should consider diversification in terms of investment? Plus, given the inherent stress on the environment in the process, sustainability should also be a key focus for future development.
An industry with 10.3 billion dollars annual output, according to official report «2011 Industrial Development in Taiwan, R.O.C.»,contributes to Taiwan GDP by merely 2.39%. It is one of larger than life industrial sectors that enjoy spot light without due performance.