Blocking China's chip industry will raise costs, warns founder of TSMC

Robert Besser
19 Mar 2023, 13:58 GMT+10

The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to slow China's advances in the semiconductor industry.
Asia's most valuable listed company and a major Apple supplier, TSMC is widely regarded in Taiwan as the "sacred mountain protecting the country," due to its economic importance.
Chang, 91, said, "There is no question in my mind that, in the chip sector, globalization is dead. Free trade is not quite that dead, but it is in danger."

TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to slow China's advances in the semiconductor industry.

However, he stressed that prices would increase and the availability of the wide variety of chips that power the modern world will decline due to the "bifurcation" of the global supply chain and the reversal of globalization.

At an event hosted by Taiwan's CommonWealth Magazine, Chang, 91, said, "There is no question in my mind that, in the chip sector, globalization is dead. Free trade is not quite that dead, but it is in danger."

"When the costs go up, the pervasiveness of chips will either stop or slow down considerably. We are going to be in a different game," he added.

Asia's most valuable listed company and a major Apple supplier, TSMC is widely regarded in Taiwan as the "sacred mountain protecting the country," due to its economic importance.

In recent years, China has applied more diplomatic and military pressure against Taiwan, which Beijing views as its territory.

At the same time, Taipei is in a predicament regarding US efforts to boost chip manufacturing locally or in allied countries.

In 2022, TSMC began construction of a second chip factory in Arizona that uses advanced technology, which will begin production in 2026, bringing it total investment in the US to $40 billion.

In response, the Chinese government has invested billions in the country's chip sector, but Chang said China's chip manufacturing technology lags behind that of Taiwan by "at least five or six years."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Baton Rouge Post.

More Information

84 ℉

Fair in Baton Rouge

Business

Section

California fast food restaurants ordered to pay staff $20 an hour

SACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...

In $10 billion deal, China Eastern Airlines to acquire 100 more planes

BEIJING, China: In a deal worth US$10 billion at list prices this week, state-owned carrier China Eastern Airlines announced that ...

China says Evergrande chairman being investigated for 'illegal crimes'

BEIJING, China: This week, China Evergrande Group said its founder and chairman, Hui Ka Yan, is being investigated over suspected ...

Trial starts in California of Tesla Model 3 Autopilot fatality

RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...

FTC takes Amazon to court for monopolizing online marketspace

SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...

Saudia Arabia welcomes EV maker Lucid's first international factory

JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...

World

Section