Taiwan Semiconductor Manufacturing Company (TSMC) does not recognize itself as a beneficiary of increased outsourcing by Japan-based IDMs, which have seen production at their domestic plants interrupted by the recent earthquake and tsunami, according to company chairman Morris Chang. TSMC would rather consider how the events bring some important lessons for the overall chip industry, said Chang.

With many Japan-based semiconductor companies continuing to confront difficulties in resuming normal operations and procuring upstream materials after the recent quake, industry sources have speculated that major contract chipmakers could gain more outsourcing from Japan-based IDMs.

Unlike commodity DRAM, products that TSMC manufactures are usually customized, Chang indicated. It requires a certain period of time for TSMC to work with customers to ensure technological feasibility and mass production yields, Chang added.

The increased orders due to the crisis is insignificant and short-lived, Chang indicated, adding that the company is paying more attention to how the industry supply chain will evolve after the incident.

There is growing concern that key providers of wafers and other IC materials, which are mostly Japan-based, may see their supplies constrained. Shortages of materials could cause bottlenecks in the worldwide manufacturing and packaging of semiconductor chips.

In addition, Chang noted that TSMC's major equipment suppliers in Japan are recovering better than expected. Chang previously said that TSMC was unsure whether the crisis would affect its expansion plans for 2012, due to concerns that deliveries from some tool suppliers might be disrupted by production suspensions and infrastructure damage in the country.