MA-tek Chairman Hsieh Yong-fen Interview / Global Expansion Seizing AI Business Opportunities

 

 

Answer: The semiconductor market this year is very polarized. Currently, everyone is most optimistic about the AI field, where top-tier customers and applications are indeed thriving. Due to the high difficulty of AI applications, companies that keep up can enjoy significant benefits, while the consumer product-related mature processes are somewhat "cold." However, there is also an opportunity for the consumer market to be revitalized by AI. Just like everyone hopes to have basic AI functions on their computers, if AI can help operations more quickly, the opportunities will be substantial. In the past, people bought phones seeking the latest models, and if a phone has AI analysis capabilities, there will definitely be demand, even if it only has basic functions. People will still want to buy the new models; the continuous innovation in consumer electronics taps into human weaknesses. Taiwan has strong semiconductor capabilities and will definitely develop towards the high-end market, rather than engaging in price competition in the low-end market. For example, the electric vehicle market in mainland China is developing rapidly, with electric cars priced under $20,000 that are both cheap and good, which can undermine many major manufacturers. Japan's semiconductor industry was the world's leader in the early years, but later withdrew from fields like DRAM, and it took 30 years for them to want to strengthen the semiconductor manufacturing sector again.

 

In recent years, Japan has seen limited development in advanced products, but the Japanese government has begun to pay attention to semiconductors. With leading semiconductor companies investing in Japan, and Sony's semiconductor division collaborating with the Japanese government on a series of plans, it is expected that there will soon be more semiconductor manufacturing and related demand across Japan from south to north, supported by the government.

 

In the past, Japan had fewer IC design companies developing independently, instead relying on the IDM model of large trading companies and internal laboratories. However, Japan now has the opportunity to encourage more IC design companies to develop independently. From the perspective of the production process, MA-tek also has a greater opportunity to promote its product validation experience, which it has assisted IC design clients with in Taiwan, to Japan, and the layout is progressing smoothly.

 

Investing in research and development, spending money without hesitation.

 

Question: What is MA-tek's growth direction this year?

 

A: This year, we strive for double-digit growth, and our overseas layout continues to advance. We will not hold back on R&D investment, which will reach 1.2 to 1.4 billion this year, including the opening of the Suzhou laboratory, expansion and upgrading of testing equipment and laboratory facilities in Nagoya and Kumamoto.

 

In 2022, MA-tek invested 1.8 billion yuan, which included the establishment of two laboratories within a year, located in Shenzhen and Kumamoto respectively. The demand in the mainland market, due to the trend of developing wafer fabs independently, is a significant advantage for MA-tek. Regardless of how mature processes advance, analysis is still required, and MA-tek can provide fast service value.

 

Q: What is the future layout direction?

 

In recent years, Japan has had limited development in advanced products, but the Japanese government has begun to pay attention to semiconductors. We see leading semiconductor companies investing in Japan, as well as Sony's (SONY) series of plans with the Japanese government. With government support, it is expected that the demand for advanced processes in Japan will quickly lead to more semiconductor manufacturing and derivative demand from south to north.

In the past, Japan had relatively few IC design companies developing independently; instead, they followed the IDM model of large trading companies along with internal laboratories. Subsequently, Japan has the opportunity to encourage more IC design companies to develop independently. From the perspective of the production process, MA-tek also has a greater opportunity to promote its product validation experience in assisting IC design customers in Taiwan to Japan, and the layout is progressing quite smoothly.

 

Investing in research and development, spending money without hesitation.

 

Question: What is MA-tek's growth direction this year?

 

Answer: This year, we strive for double-digit growth, and our overseas layout continues to advance. We will not hold back on R&D investment, which will reach 1.2 to 1.4 billion this year, including the opening of the Suzhou laboratory, expansion and upgrading of testing equipment and laboratory facilities in Nagoya and Kumamoto, etc.

 

In 2022, MA-tek invested 1.8 billion yuan, which included the establishment of two laboratories within a year, located in Shenzhen and Kumamoto, respectively. The demand in the mainland market, due to the trend of developing wafer fabs independently, is a significant advantage for MA-tek. Regardless of how mature processes advance, analysis is always needed, and MA-tek can provide fast service value.

 

Q: What is the future layout direction?

MA-tek pursues growth every year. If it develops to challenge the scale of annual revenue of 10 billion yuan in the future, there will be many opportunities. Based on the successful experience in Taiwan, it will replicate successful operational experiences, such as the complete operation of the Shanghai headquarters in mainland China. Shanghai is preparing to expand the fifth building this year, and it has been selected and is ready to expand, providing services and starting to develop satellite laboratories in Xiamen, Shenzhen, Suzhou, and other locations.

 

Currently, the operations in Japan are developing north and south, replicating the experience in Taiwan. Although the location of the Japan operations headquarters is not yet clear, it is reasonable to expect development centered around Nagoya or Tokyo based on geographical location. MA-tek will soon establish an operations headquarters in Japan, allowing customers to centrally utilize the headquarters' equipment, avoiding delays in sample submission and analysis due to geopolitical issues, export controls, and other regional factors. There is no need to send samples abroad; each regional headquarters can serve the local customers' related needs.

 

Recently, many customers in Penang, Malaysia have established packaging factories, and some customers have inquired whether they can provide services locally. MA-tek is still cautiously evaluating and carefully considering this, to avoid expanding too quickly as the capital requirements are significant and personnel training also takes time. From the service characteristics of the industry, the packaging factories in Malaysia are relatively singular in type, and future developments will still depend on local progress.

 

From the perspective of the United States, Germany, and Malaysia, Malaysia currently has characteristics that are more likely to develop. After all, the semiconductor industry is a tough industry and requires night shifts. Outside of semiconductors, MA-tek has ventured into biomedical research and observed that the difference lies in time. Analyzing and testing semiconductor development needs to be fast, measured in hours for immediate analysis, while biomedical testing can take three months without issue. If speed is not a requirement, the pace of making money will be slow, and thus it is necessary to focus on top-tier projects. Therefore, we really appreciate clients who are "very urgent." Sometimes clients are hesitant to say so, but they tend to push harder. However, we are actually very willing to get paid quickly, benefiting both parties.

 

 

MA-tek Chairman Xie Yongfen Exclusive Interview / She Encourages Young People to Brave Pursue Their Dreams

MA-tek (3587) Chairman Xie Yongfen encourages young people to bravely pursue their dreams. She stated that the company values diverse qualities in talent during recruitment, and even students who enjoy playing video games may receive extra points in interviews. Those who can cook possess qualities that align with material analysis scientists and will also be given priority in hiring.

 

Xie Yongfen is Taiwan's first female PhD in materials science, having studied from a bachelor's degree to a doctorate at National Tsing Hua University. She has worked at institutions such as the Industrial Technology Research Institute, Bell Labs, United Microelectronics Corporation, and AU Optronics. In 2002, she founded MA-tek and dedicated herself to the materials analysis industry, recognizing the trend that semiconductor IC products need health check-ups just like people. In recent years, she has gradually entered the field of archaeological authentication and plans to venture into the biomedical field in the future. Therefore, she strongly encourages young people to bravely pursue their dreams.

 

Xie Yongfen is good at cooking. She said that when she has free time, she cooks in a scientific way, whether it's rice noodle soup or boiled noodles with sauce, she can do it effortlessly. In her view, a good scientist is actually like a chef who knows how to cook well, adjusting the saltiness or the ratio of ingredients to achieve deliciousness. The philosophy of cooking also applies to science, just like the recipe for a scientific experiment. She said that during interviews, she first asks candidates if they play video games and cook. Candidates initially thought these were negative points, but she emphasized that they are actually positive points. If they can do both, they are given priority for hiring. Young people who play video games are usually quick and agile, and it's even better if they play Japanese or American games, as their foreign language skills are also stronger for smoother gameplay.

 

Xie Yongfen values diverse qualities in talent. She said that holding a diverse mindset allows many children to light up with excitement when they see her, smiling broadly due to the affirmation they receive. Different hobbies can be developed here to showcase their strengths, and some hobbies do not need to be completely obstructed; appropriate development can create a second specialty. Regarding diverse development, Xie Yongfen mentioned that the professional analysis laboratory can ensure the safety of IC shipments, whether for automotive or consumer products. MA-tek not only integrates technology industry services but also becomes a third-party organization for intellectual property infringement assessments, successfully completing related assessment services, and has also ventured into archaeological and historical assessment research, collaborating with relevant historical museums in Tainan and Taitung.

 

Due to the emphasis on the semiconductor industry chain by various countries, MA-tek has previously received numerous invitations for overseas laboratory cooperation, including a letter from the Fraunhofer-Gesellschaft, known as the "German Institute of Industrial Research," inviting MA-tek for collaborative research, indicating the importance placed on the analysis field. MA-tek invests approximately 800 million yuan in equipment each year. Regarding the establishment of equipment and laboratories, Xie Yongfen analyzed that the premise for setting up a laboratory is the presence of a cluster effect, but just like opening a hospital requires doctors.

 

The above information is extracted from the Economic Daily.