BMCs-Best Execs-r2:AMM grid in qxp 12/24/09 9:42 AM Page 60
AWARDS
MEDIUM-CAPCORPORATEOFTHEYEAR Whileothercompetitorsscaledbackduringthedownturn,TSMC
InnoluxDisplayCorp. increaseditsspendingonresearchanddevelopmentby20%.Company
chairmanMorrisChangexpects2010tobearecordyearinbothrev-
enueandprofit,whilethecompany’sspendingcouldincreasefurther
InnoluxDisplayisamid-capcorporatewithlarge-capaspirations.The thankstoreneweddemandforhigh-endchips.
companyunderlineditsgrowthambitionswhenitagreedtoaUS$5bil-
lionmergerwithChiMeiOptoelectronicsinNovembertocreate
Taiwan’slargestliquidcrystaldisplay(LCD)panelmaker. BESTEXECUTIVE
Themovesurprisedanalysts,whohadbeenexpectingformermar- MorrisChang,chairman,TSMC
ketleaderAUOptronicstoconsolidatewithCMO.Instead,thenewly
createdChiMeiInnoluxentityhasusurpedAUOinthedomesticmarket
andisnowsettingitssightsongloballeadersSamsungElectronicsand Itwasatoss-upbetweenHonHai’sTerryGouandTSMC’sMorris
LGDisplayintheUS$88billionmarketforTVandcomputerdisplays. Changforthisyear’saward.
TerryGou,thelargestshareholderinInnoluxandchairmanofpar- AnalystswereimpressedwithGou’saggressivenessandambitionto
entcompanyHonHaiPrecisionIndustry,saidatthetimeofthemerger expandinspiteofaglobalrecessionthathitTaiwanparticularlyhard.
thatthecompany’sambitionwastobecomeakeyplayerintheglobal ButwhatsetChangapartamidthecrisiswashisdisplayofcorporate
marketforLCDpanels. governanceandresponsibilitytohisshareholders.
“Gouwon’tbesatisfiedwithbeingjustthenumberoneinTaiwan, “TSMCpaysattentiontoitsshareholders,”saidSteveChu,afund
hewantstobeamongstthetopthreeintheworld,”saidTerryKing, manageratINGinTaipei.“Theyareaverydisciplinedandfocused
TaiwanchiefexecutiveatANZ.“There’sno-oneasaggressiveasheisin company.”
Taiwanatthemoment.” Evenasrivalswerefocusingoncuttingcosts,TSMCincreasedR&D
InnoluxhadbeenlookingtoincreaseitspresenceintheLCDTV spendinganditpaidadividendofNT$3asharetoshareholders.
marketforsometime,andanalystssayCMOwasaperfectfit.The Chang’snameissynonymouswiththecompanyhefoundedin1987.
mergercombinesChiMei’slargercapacityformakingflatpanelswith Eventhoughhesteppeddownin2005tobecomechairman,the78-
Innolux’sfactoriesthatfocusonpartialandfullyassembleddisplays year-oldiswidelyregardedforhisworkethic.
usedintelevisionsandcomputermonitors. Certainlyheappearstohavenoplanstoslowdownatanagewhen
Innoluxshouldalsonoweasilyachieveitstargetofshipping mostpeershavelongsincebeenenjoyingretirement.
betweenfourandsixmillionLCDtelevisionsin2010. “I’manoptimist.IthinkbusinessnextyearwillbegoodandIthink
Thecompany’sstockpricehasdoubledsofarthisyear,reflecting businessthefollowingyearwillbegood,”ChangsaidinOctoberwhen
investoroptimismforarecoveryinTaiwan’stechnologyandmanufac- announcingquarterlyresults.
turingindustries. TheTSMCchairmanisquietlyconfidentthatnextyearwillbring
Still,thenewlymergedfirmfaceschallenges.Globalrevenueforflat aboutrecordprofitsforthesemiconductormanufacturerbasedon
paneldisplaysareforecasttodropbyasmuchas15%thisyearasthe increaseddemandforelectronicgadgets.
costoflarge-sizeLCDpanelsfallsnowthatasupplyshortagehas TSMCforecastshandsetshipmentswillrise10%nextyear,com-
dropped. paredwitha4%declinethisyear,andthatconsumerelectronicswill
increase8%,comparedwithadropof1%thisyear,basedonstronger
demandforset-topboxesforTVsandBlu-rayDVDplayers.
LARGE-CAPCORPORATEOFTHEYEAR Thecompany’spredictionsreflecttheself-professedoptimismofits
TSMC resilientchairman.Whateverhappensin2010,bothTSMCandChang
deserveplauditsforremainingpositiveduringayearthatofferedlittle
tocheerabout.
WhenAsiamoneyspoketoanalystsandinvestorstodeterminethebest
large-capcompanyinTaiwanthisyear,onenamekeptcroppingup:
TSMC. THAILAND
Theworld’slargestcontractchipmanufacturerhaslongbeenthe
darlingofTaiwan’sflagshipsemiconductorindustry.Yetthesectorwas SMALL-CAPCORPORATEOFTHEYEAR
ravagedbytheglobalfinancialcrisis,withconsumersandbusinesses TiscoBank
cuttingbackonthepurchaseofelectronics.
ThatledexportstoslumpandleftTSMCfacingableakoutlook.Its
2008fourthquarterrevenuedroppedbynearlyathirdyear-on-year TiscoBankmaybeoneofthesmallerlendersinThailandbutitisalso
andnetincomeslumpedbyalmosttwo-thirds.Butthecompanyrallied, oneofthemostdiverse.
anditwasthisresponsethatearnedrecognitionfromindustry Besidestraditionallending,thebankalsohassecuritiesandasset
observers. managementbusinesses,whilstitisalsothelargestautofinancing
Firstly,TSMCannouncedadealwithIntelinMarchinwhichit companyinthecountry.
agreedtomakechipsthatusetheUSfirm’sAtommicroprocessortech- Thepastyearhasbeendifficultforbankingindustriesinevery
nology.ThedealwasacoupfortheTaiwanesemanufacturer,giventhat countryacrosstheworld.ButTiscosawopportunityinthisadversity,
Intelnormallyproducesitsownmicroprocessors. andusedthemarketdisruptiontomakeassetacquisitionsandgrab
TSMCalsoreceivedsomegoodnewsinNovember,whenalong- marketshare.Manyforeignautomobileproducershadcutbackon
runninglegalbattlewithChineserivalSMICoverthetheftoftrade theircarfinancingascarsalesanddemandslumped,andTisco
secretswasresolvedinitsfavourbyaUScourt.TheTaiwanesecompa- swoopedintofillthishole.
nymayyetwinasmuchasUS$1billionindamages. Inthefirstquarter,TiscoboughtBt8.5billion(US$257million)
Therulingisaculminationofwhathasbeenaturbulentyearfor worthofautoleasingassetsfromPrimusLeasing.TheninJulythe
TSMCasitrodeoutthefinancialcrisisandturneditsbusinessaround. companysnappedupBt1.75billionofauto-hirepurchaseloansfrom
Thirdquarterrevenuefell3.3%year-on-yeartoaboutNT$90billion GMAC,aunitofGeneralMotors.Tiscoalsosignedanagreementwith
andnetprofitdeclinedslightlytoNT$30.6billion,butthatisstillthe Chevrolet’sThaiunittolenduptoBt2billiontodealersoftheUScar
firm’sbestquarterlyresultsinayear. company.
60 DEC2009/JAN2010 ASIAMONEY
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