TAIPEI (TVBS News) — TSMC Founder Morris Chang recently voiced concerns about the increasing challenges facing Taiwan's semiconductor landscape. These challenges arise not just from heightened geopolitical tensions, globalization, and free trade but also from national security issues.
As technology companies globally shift their supply chains from "just in time" to "just in case," Chang spoke out during TSMC's Sports Day on Oct. 14. He warned, "The competitive environment for TSMC in the upcoming years won't be any easier than before."
He emphasized, "Globalization, especially for semiconductors, has become obsolete. Free trade no longer holds the same relevance. The focus now is on national security."
The surge in AI applications is fueling a demand for semiconductors, highlighting their significance in the tech sector's digital transformation.
Post-pandemic and amid U.S.-China trade tensions, experts note a trend: numerous countries are aiming to localize semiconductor manufacturing.
Arisa Liu, an economist with the Taiwan Institute of Economic Research (TIER), said, "Supply chains are evolving to be more regionalized, fragmented, and independent, even in short-term strategies."
She also pointed out the stark divide between pro-China and anti-China factions. "Additionally, there's a noticeable spread of semiconductor production capacity worldwide," Liu added.
Despite economic uncertainties and relying heavily on AI, high-performance computing (HPC), and innovative packaging services, TSMC remains the world's top contract chipmaker. This status is maintained by the robust demand for 5nm and 3nm chips.
Yet, global manufacturers are now viewing Southeast Asia as a potential alternative for chip production over Taiwan. The latter's growth pace in the region lags behind.
Liu elaborated on the possible consequences, "If nations prioritize their own supply chains, production might be less efficient and more costly. The outcome of such strategies is still unpredictable."
Industry experts assert that for Taiwanese manufacturers venturing globally, retaining their premier chips within Taiwan is paramount. This move ensures a competitive edge amidst escalating global rivalries.