Online information source for semiconductor professionals

When demotion is a promotion

15 June 2009 | By Mark Osborne | Editor's Blog

Popular articles

‚??Velocity‚?? the new buzzword in Intel‚??s PQS annual awards - 12 April 2012

Oberai discusses Magma’s move into solar PV yield management space - 29 August 2008

Applied Materials adds Jim Rogers to Board of Directors - 29 April 2008

TSMC honors suppliers at annual Supply Chain Management Forum - 03 December 2008

Sematech Litho Forum: Sematech mulling multi-beam mask writer effort - 12 May 2010

Rick TsaiLast week's news that TSMC would enter the Solar and LED markets and not as a foundry supplier, coincided with Morris Chang taking back the reins of daily management of the company and Rick Tsai moving to run the new business venture. This was taken as a demotion for Tsai and a form of retribution for his actions to cut TSMC’s workforce as the foundry struggled with record low utilization rates. Apparently, there had been worker protests over the redundancies, which had impacted TSMC’s reputation.

Tsai will now set up and potentially expand TSMC’s revenue generation into two fast-expanding markets that could eventually be a million times bigger than that of the semiconductor market in years to come.

The solar market is set to explode again in 2010 and is in many respects still in its infancy. Exciting times, and I suspect Tsai is praying to thank the gods for getting the chance to build a business in that market, let alone in the LED realm.

Of course, if he has also taken a pay cut and lost or had other benefits reduced, that would certainly take the edge off the new role. However, if successful I doubt he would have suffered financially in the long term.

If I was in his position I would see this as a promotion, not a demotion. I am also not sure that Chang wants the job of running TSMC again. It is so much tougher than when he created the company that we may well see a new appointment in the next six months or so, especially if TSMC makes a decent enough recovery from the current downturn. But the tough competitive conditions stay the same.

Tsai on the other hand is now ‘free’ to get TSMC’s growth back on stream in two dynamic markets. Which would you prefer to be doing?

Related articles

Where have all the students gone? - 10 January 2007

MKS Instruments names new COO, VP and CFO - 06 January 2010

Oxford Instruments founder honoured by Japanese Government - 22 May 2008

Samsung announces appointment of Chang-Soo Choi as President and CEO - 26 January 2009

TSMC joins IPL Alliance as first foundry member - 30 May 2008

Reader comments

No comments yet!

Post your comment

Name:
Email:
Please enter the word you see in the image below: