TAIPEI - Both Taiwanese and Chinese businesses need to develop their innovation ability, and by doing so, companies across the strait will no longer need to rely on toil and sweat to make a profit, said a senior officer of Semiconductor Manufacturing Co. yesterday.
The comment was made by TSMC's Chinese business division deputy general manager Luo Zhen-qiu, who attended a forum that discussed cross-strait semiconductor industry cooperation and development. Luo touched on how businesses across the strait may compliment each other.
According to Luo, the Internet of Things will be the main driver for the semiconductor industry's growth in the future, and the industry will grow to US$1.9 trillion (S$2.3 trillion) in value in 2020. A robust manufacturing technology, production capacity and innovative service, are the key to the industry's success, Luo said.
Over the past four years, TSMC's capital expenditure has reached US$31 billion, the amount of which is sufficient to build two to three aircraft carriers, Luo said.
In yesterday's forum, Luo commented on the difference between Taiwan and mainland China in regards to human resource, technology, business and market edge.
With talent across the strait, laborers on both sides of the Taiwan Strait are willing to work hard, but the humanistic quality of Taiwanese sets them apart from the Chinese, who on the other hand, possess an intrepid quality, Luo said.
With technology, Taiwan has accumulated an extensive knowledge over a long period of time, and it also possesses industrialization experience. China on the other hand, has the ambition to develop and make use of innovative manufacturing technology and also possesses fundamental science knowledge.
In the business world, Taiwanese companies possess expertise in supply chain management and optimization, with small- and medium-sized companies possessing flexible strategies. In China, there are large corporations with corresponding large-scale strategies.
In regard to market expansion, Taiwan has a better understanding of European and American markets, while China's own market is large enough with its own rules and standards set up.
In order to facilitate cross-strait cooperation, trust must first be established, and this all begins from the heart, Luo said.
Both Taiwan and China lack an innovative spirit, and to correct this, it has to start from education. With innovation, businesses across the strait will no longer need to rely on sweat and toil to make a profit, Luo said.