TSMC’s recent visit to the United States highlights the country’s significant challenge in rebuilding its local supply chain for manufacturing due to a lack of talent. Some internet users joked that the solution to this problem is to open a branch of Chiao Tung University in Arizona (AZ). Hui-Min Chung, Dean of the College of Management at Yang Ming Chiao Tung University, revealed that “many universities in the United States have come to Taiwan to look for us, hoping to collaborate.” Why has Yang Ming Chiao Tung University piqued the interest of the American academic community? In addition to producing semiconductor talent, the legend of Lan-Jen lecture, which attract attendance from Morris Chang and C.C. Wei even when they are busy, may provide some insight.
C.C. Wei, CEO of TSMC, recently gave a lecture at Yang Ming Chiao Tung University’s EMBA program, known as the “Lan-Jen Lecture,” on “New Challenges in Semiconductors.” This lecture took place just before the factory relocation ceremony in the United States on December 3, when there were growing doubts about the move. Despite the challenges, C.C. Wei chose to attend. One might wonder where the “Lan-Jen Lecture” came from.
Lan-Jen Lecture began in 1990, at the height of Taiwan’s technology industry. During that time, Chun-Yen Chang founded Taiwan’s first semiconductor research center, as well as the “National Nano Device Laboratories” (NDL), laying the groundwork for Taiwan’s world-class semiconductor industry. He became president of Chiao Tung University in 1998 and decided to establish an EMBA program to cultivate more high-level operation and management talents in the technology industry, even inviting Morris Chang to teach EMBA classes.
In 2017, the Yang Ming Chiao Tung University EMBA program celebrated its 20th anniversary. At that time, Taiwan’s industry faced the severe challenge of transformation. Hui-Min Chung, Dean of the College of Management at Yang Ming Chiao Tung University, recalled Chun-Yen Chang’s belief that Taiwan’s industry urgently required transformation and that senior executives of enterprises required a “innovation mentality” and “global impact.” As a result, the Lan-Jen Lecture was established specifically to invite leaders of leading enterprises to give speeches and engage in discussions, contributing to the transformation of business concepts.
The name “Lan-Jen Lecture” honors the contributions of Academician Lan-Jen Chu of the American Academy of Sciences to National Chiao Tung University (Yang Ming Chiao Tung University) and Taiwan’s technology industry.
Lan-Jen Chu was born in Huai’an, Jiangsu Province of China. He graduated from Shanghai Chiao Tung University in 1934 and received an Sc.D. in electrical engineering from MIT in 1938. The well-known “The Stratton-Chu equations” in academic circles to clarify the energy relationship between moving media and fields was invented by Lan-Jen Chu.
Lan-Jen Chu has received numerous honors, including the United States President’s Medal of Science (United States Certificate of Merit), academician of Academia Sinica, and the American Academy of Sciences. Concerned about the cultivation of national talent, Lan-Jen Chu once said, “It is very important to support the young generation, which is the hope of the country’s future.”
In 1958, Lan-Jen Chu actively assisted Chiao Tung University in establishing a school in Hsinchu and invited well-known overseas scholars to teach in Taiwan, such as Prof. Ecles, Prof. D. Arden, and Prof. Petterson from MIT; Prof. Wang Zhao Zhen and Prof. Dallman from Cornell University; J.J. Chang and Prof. Simon Sze from Bell Labs; and Dr. Hung-Chang “Jimmy” Lin from Westinghouse, as well as Dr. McNally and Dr. Mcgauhan.
As a result, Hsinchu Chiao Tung University gradually established key departments that have had a significant impact on the development of Taiwan’s technology industry, including laboratories for computers, microwave lasers, telecommunications, and semiconductors. Hui-Min Chung said that although the hinterland of Hsinchu Chiao Tung University is small, more than 30% of the senior executives in Taiwan’s electronics industry are alumni of Chiao Tung University.
C. C. Wei playfully pointed out that it would be nice if TSMC could go to the United States with Chiao Tung University.
C. C. Wei is an alumnus of Chiao Tung University and a senior executive at TSMC. More than 20% of TSMC’s senior executives are Chiao Tung University graduates. On December 3, C. C. Wei mentioned in his speech “New Challenges in Semiconductors” that one of the biggest challenges TSMC faced when setting up a factory in the United States was talent. Therefore, he said, “It would be great if Chiao Tung University was also in (the United States).”
Hui-Min Chung revealed that during the first session of the Lan-Jen Lecture in 2017, the lecture’s organizer, Chun-Yen Chang, was suffering from cancer. Nonetheless, he personally invited Morris Chang to serve as the keynote speaker.
“At that time, the theme of Chairman Chang’s speech was innovation. The outside world said that TSMC follows an “OEM model,” which is too simplistic,” said Hui-Min Chung.
“TSMC does not follow the traditional vertical integration model for semiconductors but practices “open innovation.” Back then, Chairman Chang always emphasized that open innovation must be linked to business models.” “In CEO Wei’s third lecture, he talked about the semiconductor ecosystem, which is also based on open innovation. Because many people need to participate, the system must be innovative and efficient enough.”
Hui-Min Chung determined that TSMC’s 2017 revenue was NT$977 billion (almost NT$1 trillion), with a gross profit margin of approximately 50 percent and a return on equity of 23.56%. C. C. Wei took over for Mark Liu in 2018. By 2022, the revenue had already surpassed NT$2 trillion, the gross profit margin had nearly reached 60%, and the return on equity was anticipated to exceed 35%. Hui-Min Chung stated that Chairman Morris Chang’s succession plan has been very successful.
In the future, TSMC will face the challenges of manufacturing internationalization as well as geopolitical aspects as the United States attempts to rebuild its domestic manufacturing supply chain. Furthermore, all of these endeavors will face significant talent challenges. According to Hui-Min Chung, “recently, many universities in the United States have come to Taiwan to look for us, hoping to collaborate.”
“All internationally famous universities have abroad campuses. New York University, for instance, operates a branch campus in Shanghai. Ming Chuan University is the only Taiwanese university with an overseas branch campus” Hui-Min Chung stated sincerely. To foster talent from all walks of life, it is therefore worthwhile to investigate how to link Taiwanese education with Taiwan’s industrial transformation and supply chain initiatives abroad.
Source: Global Views Monthly
Translation: NYCU