Recently, Huang Chongren, Chairman of Taiwan's TSMC, stated in a public meeting that 2024 will be a crucial year for TSMC's transformation. He revealed that the company plans to gradually withdraw from the panel driven IC market, which has long held an important position, and withdraw from the sensor field to cope with the continuous changes in the global semiconductor industry and changes in market demand.
As an established veteran semiconductor company in 1987, Li Jidian has a deep technological accumulation in the field of panel drive ICs and once held a leading position in the global market. However, with the continuous evolution of display technology and the diversification of terminal market demand, the competition in the panel driven IC industry is becoming increasingly fierce, and profit margins are gradually being compressed. In this context, after careful consideration, the senior management of Li Jidian has decided to make strategic adjustments in order to achieve long-term development.
Huang Chongren pointed out that the development of the semiconductor industry is changing rapidly, and enterprises must keep up with the pace of the market. Although withdrawing from certain traditional fields means giving up existing market share, it is also to concentrate resources and energy, and invest in new technology fields with more potential and in line with future development trends. He emphasized that Li Jidian will continue to invest in research and development, especially breakthroughs in high-end process technology, to enhance the company's core competitiveness.
In fact, this is not the first time that TSMC has undergone a strategic transformation. In the past few decades, the company has successfully shifted from initial memory chip manufacturing to providing a wider range of semiconductor solutions. The decision to withdraw from certain fields can be seen as another important step in its transformation and upgrading.
Industry analysts believe that TSMC's decision reflects the challenges and opportunities faced by the entire semiconductor industry. On the one hand, with the saturation of traditional electronic product markets such as smartphones and televisions, the demand for panel driven ICs has slowed down; On the other hand, the development of new technologies such as 5G, the Internet of Things, and artificial intelligence has brought new growth momentum to semiconductor enterprises. Therefore, timely adjustment of product lines and technological development direction is crucial for enterprises.
For TSMC, after exiting the panel driven IC and sensor fields, it will invest more energy and funds into other growth markets. It is reported that the company has started to increase investment in fields such as automotive electronics and high-efficiency computing chips, hoping to achieve new breakthroughs in these areas.
With the global emphasis on green energy and sustainable development, Li Jidian is also actively exploring semiconductor technologies related to environmental protection. Huang Chongren revealed that the company is developing more energy-efficient semiconductor products to meet the market's demand for energy conservation and emission reduction.
The strategic transformation of Li Jidian is not only a prediction and response to future market trends, but also a repositioning of the company's own development. Faced with the profound changes in the global semiconductor industry, the choice of Li Jidian will undoubtedly provide certain reference significance for other enterprises. Although there may be some challenges in the short term, in the long run, this strategic adjustment is expected to bring new vitality and energy to TSMC.
As the transition year of 2024 approaches, various preparations for Li Jidian are being carried out in an orderly manner. Industry insiders are generally concerned that this company once held a dominant position in the field of panel driven ICs
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