Morris Chang Supports U.S. Efforts To Limit China’s Chip Advancements

On Thursday, Morris Chang, the retiring founder of TSMC warned that even if he backed U.S. efforts to halt China’s advancements in the semiconductor industry, the fracturing of the global supply chain and the reversal of globalization would raise prices and lessen the ubiquity of chips that run the modern world.

Speaking at a gathering organized by Taiwan’s Common Wealth Magazine, Morris Chang stated, “Globalization is dead in the chip industry, there is no doubt in my opinion. Although it is not quite dead, free trade is in peril”.

The 91-year-old veteran of Taiwan’s semiconductor sector predicted that as chip costs rise, their widespread use will either come to a halt or significantly slow down. “We’ll be playing a different game”, he added.

Because of its economic significance, TSMC is popularly considered in Taiwan as the holy mountain defending the country. TSMC is Asia’s most valuable listed firm and a significant Apple supplier.

Taiwan, which Beijing considers to be its territory, has been under increased diplomatic and military pressure from China in recent years. This has led to worries about what would happen to the chip fabs that dot Taiwan’s western coast and make the bulk of the most cutting-edge semiconductors in the world if China attacked or blockaded the island.

Taiwan is in a pickle as a result of U.S. ‘onshoring’ and ‘friend-shoring’ initiatives to increase chip manufacture domestically or in allies.

“Taiwan is not included in Friendshore. The commerce secretary has actually stated numerous times that Taiwan is a very dangerous location and that America cannot rely on Taiwan for chips”, said Chang. “That, of course, is Taiwan’s predicament, in my opinion”, he added.

TSMC is increasing its production footprint globally while keeping its most cutting-edge technology in Taiwan.

TSMC started building a second chip factory in Arizona before the end of last year. This facility will use cutting-edge 3 nm technology when it begins to produce chips in 2026. The business has invested a total of $40 billion on the U.S. project (roughly Rs. 3,30,860 crore).

Although Chang claimed that China’s chip manufacturing technology lags Taiwan by at least five or six years, the Chinese government is investing billions in boosting its semiconductor sector.