GlobalFoundries and UMC Challenge TSMC in the Israeli Market

6 May, 2013

The domination of TSMC in the local market is considered by GlobalFoundries and UMC as a business opportunity to offer lower prices for the local fabless industry

“The Israeli market gives us a unique opportunity”

Sharon Akler, DELTA Microelectronic
Sharon Akler, DELTA Microelectronic

The global semiconductor foundries, UMC and GlobalFoundries, have decided to increase their marketing efforts in Israel, to win new production orders at the expense of the dominant TSMC in the local fabless market.

Beside the specialty foundry TowerJazz in Migdal-Haemeq, the local semiconductors industry is consist of many small and medium fabless companies that design chips and send them offshore for production, mainly by TSMC.

Techtime has learned that this situation is taken as market opportunity by TSMC’s major competitors, UMC and GlobalFoundries. “We offer the Israeli market better prices and a closer technical support, since we are located in Europe'” said Sharon Akler, sales manager for Mid Europe and Israel in DELTA Microelectronic.

The Danish company won last year a position of aggregator for GlobalFoundries, and is taking care of small to medium deals. The big ones are made directly by GlobalFoundries. Following its nomination as the foundry’s rep in Europe, DELTA has started to learn the Israeli market and about 6 months began to market here its offer. “We speak with the same Israeli companies that TSMC target”, said Akler.

“TSMC and GlobalFoundries are very similar in terms of technology and services. Our process was developed in cooperation with IBM, Samsung and STMicroelectronics, and we cover the entire range of technologies that TSMC cover. Now we are beginning to develop our fabless market in Israel.”

Kurt Huang (left) and Oliver Hsieh, UMC
Kurt Huang (left) and Oliver Hsieh, UMC

Another player in this competition against TSMC domination is the Taiwanese UMC. Last week the company sent its Director of Corporate Marketing, Mr. Kurt Huang to ChipEx conference in Tel-Aviv, to introduce its capabilities to local potential costumers. The company is also planning a marketing campaign that will be managed from its European headquarter. Mr. Oliver Hsieh, Business Director EMEA in UMC, told Techtime: “The Israeli market gives us a unique opportunity. It has many development companies that shape future products”. UMC is considering now opening a permanent office in Israel.

According to the market research company IC Insights, Fabless company IC sales increased more than 3x the rate of the total IC market from 1999-2012.

The top five semiconductor sales leaders in 2012, according to its 2013 McClean Report, are Intel, Samsung, TSMC, Qualcomm and Texas Instruments. Pure-play foundries and fabless companies were the star performers for 2012 and within the top 25 ranking are three pure-play foundries (TSMC, GlobalFoundries, and UMC) and six fabless companies.

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