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Foxconn, TSMC mum on Samsung's 'Kill Taiwan' plan

Publication Date : 21-03-2013

 

Taiwanese multinational electronics contract manufacturing company Foxconn yesterday declined to comment on a recent report indicating that the company, along with semiconductor leader Taiwan Semiconductor Manufacturing Company (TSMC), are the targets of Samsung's “Kill Taiwan” policy in the fiercely contested technology market.

The report, published by Business Today, delved into the recent history of the technology sector, retelling developments within Taiwanese, Japanese and South Korean companies since the financial crisis of 2008.

According to the report, Samsung's campaign against Taiwan's technology sector began at the end of the 2008 global financial crisis, with a focus on the field of Dynamic Random-Access Memory (DRAM) technology. Following the aftermath of the 2008 financial crisis, mutual capital investments between Taiwan and Japan DRAM manufacturers came to a halt, with many Taiwanese companies and Japan's Elpida Memory Inc. facing decline or demise.

As part of the “Kill Taiwan” policy, South Korean companies LG and Samsung unanimously canceled all ongoing and future orders of display panels from their Taiwanese suppliers. In addition, during an international indictment on display panel price-fixing, Samsung avoided fines and sentencing by assuming the role of the state witness, to the detriment of AUO, CHIMEI, Chunghwa Picture Tubes Ltd., and LG, who had to face full legal repercussions.

The report cited HTC's difficult 2012 as an example of Samsung's intent. HTC, Taiwan's leading handset maker, lacks a vertically integrated supply chain, which prevented the company from offering a competitive product against Samsung's dominance in the smartphone sector.

Meanwhile, sources close to Foxconn said the relationship between Samsung and Foxconn should not be viewed only as a fight until the bitter end, noting that the companies have not ruled out the possibility of collaboration.

Recent dealings with Sharp may be a telling sign of South Korea's next move in their alleged “Kill Taiwan” plan. In their bid to acquire a 9.9-per cent stake in Sharp, Foxconn experienced sizable difficulties, with the deal remaining inconclusive for the better part of a year. Meanwhile, Sharp announced consent in allowing Samsung to purchase a 3-per cent stake on March 6.

TSMC, meanwhile, said the rapidly expanding global market for smartphones and mobile devices was its primary revenue driver in 2012. On the other hand, Samsung gained a large portion of the rapidly expanding global smartphone market following the release of its S III models in 2012. These phones are equipped with the company's own Exynos series mobile processor.

 

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