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 Nigeria Sun.

More Information

25 ℃

Thunder in Cotonou

International

Section

Following kidnapping, Frenchmen, US worker released in Africa

NIAMEY, Niger: Four weeks after US Secretary of State Antony Blinken visited Niger, an American aid worker and a French ...

Ukraine to receive more artillery shells from EU after agreement ok'd

BRUSSELS, Belgium: While chairing a meeting of EU foreign and defense ministers in Brussels this week, European Union (EU) foreign ...

Media reports nine Chinese killed at Africa mine

BANGUI, Central African Republic: Authorities from the Central African Republic have said that nine Chinese nationals were killed and two ...

Australian river town reports millions of dead fish

MENINDEE, Australia: After recent floods and hot weather, millions of dead fish have washed up in southeastern Australia, which authorities ...

Idaho to OK death by firing squad when drugs not available

BOISE, Idaho: Under a bill passed by the Idaho Legislature thios with a veto-proof majority, the state will allow firing ...

California joins with drugmaker to manufacture affordable insulin

SACRAMENTO, California: The state of California and generic drug manufacturer Civica have announced a 10-year partnership to produce affordable, state-branded ...