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 Afghanistan Sun.

More Information

null in null

International

Section

Honduras to end diplomatic relations with Taiwan

TEGUCIGALPA, Honduras: In what could signal the end of his country's decades-long relations with Taiwan, Honduran foreign minister Eduardo Enrique ...

Focus on Chinese abuse of Uyghurs by US House

WASHINGTON D.C.: A new US Congressional committee focusing on China held its second hearing on the alleged abuses of the ...

Latest California storm causes 5 deaths in Bay area

SAN FRANCISCO, California: A new round of extreme winter weather that hit California, also drifted into neighboring Southwest states, with ...

Near-misses causes US to warn airlines, pilots to be on greater alert

WASHINGTON D.C.: After several high-profile near collision incidents, the US Federal Aviation Administration (FAA) has issued a safety alerts to ...

In rare move, Cambodia arrests two for insulting king

PHNOM PENH, Cambodia: Two Cambodian opposition figures--- Yim Sinorn and Hun Kosal--- have been charged under the country's rarely used ...

Deaf student can sue for denial of education, says US Supreme Court

WASHINGTON D.C.: The US Supreme Court has ruled that a deaf student in Michigan can sue his public school district, ...

Central Asia

Section

Despite promises, girls again barred from schools in Afghanistan

KABUL, Afghanistan: Afghanistan's education ministry has announced that the country's school year has begun, but the United Nations children's agency, ...

"Seniors didn't get their deserved respect": Pakistan's Shadab makes big statement following T20I series loss to Afghanistan

Sharjah [UAE], March 27 (ANI): Pakistan stand-in skipper and all-rounder Shadab Khan believes plenty of positives will come from his ...