Semiconductor Shockwave: TSMC Founder Declares Free Trade Dead, Casting a Shadow Over Industry Growth
- Morris Chan, founder of Taiwan Semiconductor Manufacturing Co.
- At an internal event held in Taiwan's Hsinchu City, he said, "TSMC is now a field that all major countries want to secure," reiterating the idea he first...
- TSMC, whose major customers include Apple and Nvidia, manufactures 99% of the world's artificial intelligence (AI) accelerators.
TSMC Founder: “Free Trade in Semiconductors is Dead” – Tough Challenges to Promoting Growth
Morris Chan, founder of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract manufacturer of semiconductors, says TSMC will accelerate growth as the U.S. restricts supply of cutting-edge semiconductors to China. He said he would soon face the “toughest” challenges in the process.
At an internal event held in Taiwan’s Hsinchu City, he said, “TSMC is now a field that all major countries want to secure,” reiterating the idea he first raised in 2019. “Free trade in semiconductors, especially cutting-edge semiconductors, is dead. Our challenge is how to continue to drive growth in this environment.”
TSMC, whose major customers include Apple and Nvidia, manufactures 99% of the world’s artificial intelligence (AI) accelerators. With strong demand for AI, the company is expected to record record sales this year, and its stock price has roughly tripled since 2022, when OpenAI released its conversational AI ChatGPT.
However, TSMC is restricted from making the most powerful AI chips for Chinese customers as the US works with allies like Japan and the Netherlands to limit China’s access to cutting-edge semiconductors and manufacturing equipment. China still accounts for more than 10% of TSMC’s sales.
TSMC discovered this month that semiconductors it manufactured for certain customers ended up in the hands of Chinese telecommunications equipment maker Huawei. TSMC became aware of the presence of the virus in Huawei products and stopped shipments to its customers around mid-October. The company then notified both the U.S. government and Taiwanese authorities.
Zhang said TSMC has a strong team to ensure its success, and said that thanks to its employees, it could be a record-breaking year for 24 years.
Meanwhile, CEO Wei Zhejia said he is fully confident that TSMC will continue to enhance its technological leadership. TSMC reiterated that its new semiconductor facility in Arizona is “progressing well,” and that TSMC is now playing an even more important role in the global semiconductor industry.
TSMC’s Arizona factory has also shown promising results, with a yield rate exceeding that of its Taiwan facility by approximately 4 points.