Taiwan Semiconductor Manufacturing Co (TSMC) founder and chairman Morris Chang will resign in June, in the after leading the Apple Inc provider into the world’s greatest foundry chipmaker, with a market estimation of about $185 billion. Chang, who is 86 years old and known as the father of Taiwan’s chip industry, will be succeeded as chairman by Mark Liu. Liu has been co-CEO alongside C.C. Wei since 2013. Wei will become the sole CEO of the company.
The shift in leadership and management comes when TSMC has garnered thriving interest in chips used as a part of cell phones. The company seeks to broaden its client base and move into developing ventures like artificial Intelligence and self-driving automobiles. It could also see competition from Samsung Electronics, the world’s best memory chipmaker, which intends to triple its stake in the manufacturing business within the next few years by assertively pursuing customers.
The succession has been in progress for quite a long time. Liu and Wei have held integral posts since 2012, establishing the co-CEO roles in 2013. Before that, they were senior VPs; Wei for business advancement, and Liu for operations.
Chang said that upon his retirement, he would not sit on the governing body or take part in managerial exercises, for personal and family reasons. “The past 30-odd years, during which I founded and devoted myself to TSMC, have been an extraordinarily exciting and happy phase of my life. Now, I want to reserve my remaining years for myself and my family.”
The planned leadership succession will not change the company in a fundamental way, analysts said. “I think Liu and Wei will continue TSMC’s current model for some years,” said Mark Li, an analyst at Sanford C. Bernstein. “I do see the increasing cost of newer generation technologies as an issue, but for now TSMC will still maintain the cadence of R&D development. But if something new comes up, such as uses of new technology that increases TSMC’s cost, they’ll need to change their plan accordingly.”