Is Tseng the heir apparent to Morris Chang at TSMC?

Is Tseng the heir apparent to Morris Chang at TSMC?
HSINCHU, Taiwan -- Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) here today announced more management changes and promotions, including the possible heir apparent to the company's long-time leader in Morris Chang.

In a major announcement issued by the company today, F. C. Tseng, president and chief operating officer of TSMC, has been named to the new position of deputy chief executive of the Hsinchu-based foundry giant.

In other changes, Rick Tsai, executive vice president of worldwide marketing and sales of TSMC, has been named president and chief operating officer for the company.

Both Tseng and Tsai will continue to report to Chang, TSMC's long-time chairman and chief executive.

The moves signal that Chang will hand more responsibilities over to TSMC executives, especially Tseng, according to analysts. A 14-year veteran, Tseng has been responsible for the company's day-to-day operations for the last three years as president and COO.

Now, Tseng will take an even greater role at TSMC, that is, looking at more longer-term strategies for the company, according to analysts. Previously, Chang--the founder of TSMC and father of the silicon foundry business--was solely responsible for the company's long-term strategies.

Chang is by no means giving up any control of TSMC. But Chang appears to be placing more responsibilities on the shoulders of various company executives--at a time when TSMC and other foundry providers are experiencing the worst downturn in the history of this business.

Some speculate that Tseng may be the heir apparent to Chang. A spokesman for TSMC said that there has been no announcements that Tseng will become the next CEO--or chairman--of TSMC.

But still, Tseng is the rising star at TSMC. "Through this reassignment, Dr. Tseng is expected to take still greater responsibility in planning and managing the company's long-term strategies," Chang said.

"To leverage TSMC's leadership position in technology, service and competitiveness, Dr. Tseng will focus on reinforcing the company's R&D organization, design service group, and information technology resources," Chang said.

This represents the latest management changes at TSMC. In July, the company reorganized its sales and marketing organization, bringing in two new managers from outside the company to replace a U.S. executive (see July 9 story ).