retired founder of TSMC has said that even though he supports US efforts to slow China’s progress in the semiconductor industry, the “bifurcation” of global supply chains and the reversal of globalization will increase prices and the ubiquity of the chips that power the modern world will decrease.
“There is no question in my mind that, in the chip sector, globalization is dead. Free trade is not so much dead, but it is under threat,” Morris Chang said while speaking at an event organized by TaiwanCommonwealth magazine.
Chang, who remains an influential voice in Taiwan’s chip industry even at the age of 91, said: “When costs go up, the prevalence of chips will either stop or slow down significantly.” “We’re going to be in a different game.”

In Taiwan, TSMC is the most valuable listed company in Asia and a major Apple The supplier is widely regarded as the “sacred mountain protecting the country” because of its economic importance.
China has in recent years increased diplomatic and military pressure against Taiwan, which Beijing views as its territory, raising concerns about the fate of chip fabs that dot Taiwan’s west coast and are home to some of the world’s largest nuclear power plants. Produces advanced chips if China blockades or attacks the island.
US “onshoring” and “friendshoring” efforts to promote chip manufacturing in states or allied countries present a predicament for Taiwan.
“Friendshore does not include Taiwan. In fact, the Secretary of Commerce has repeatedly said that Taiwan is a very dangerous place, that we – America – cannot rely on Taiwan for chips,” Chang said. “Now, of course, I think Taiwan has a dilemma.”

TSMC is expanding its global production footprint, even as it keeps its most advanced technology in Taiwan.
Late last year, TSMC began construction of a second chip factory in Arizona that will begin production in 2026 using advanced 3nm technology. The company’s total investment in the US project is $40 billion.
Meanwhile, the Chinese government is pouring billions into strengthening its chip sector, but Chang said China’s chip manufacturing technology is “at least five or six years” behind Taiwan’s.