TSMC's Semiconductor Manufacturing Capabilities and Future Prospects: Morris Chang's Three Predictions

TSMC (Taiwan Semiconductor Manufacturing Company) has garnered attention as it has grown into the world's largest semiconductor manufacturing foundry. Morris Chang (張忠謀), its founder and chairman emeritus, has offered insightful predictions about the strategies behind TSMC's success and its future.

Morris Chang's first prediction was that TSMC would become a subject of geopolitical contention. As early as 2019, he warned, "The world is no longer peaceful, and TSMC will inevitably become a geopolitical issue." The fact that the British economic journal 'The Economist' identified Taiwan's semiconductor industry as "the most dangerous place on Earth" demonstrates the accuracy of his prediction.

His second prediction pertained to the semiconductor industry pursuits of the United States and China. In a 2021 speech, Morris Chang anticipated that even with government subsidies, the US would find it difficult to catch up with TSMC in the long term. He also predicted that despite China's government investing tens of billions of dollars, China's semiconductor manufacturing technology would lag behind TSMC by more than five years, and its semiconductor design capabilities would be 1-2 years behind. He asserted that because semiconductor technology accumulates incrementally, it is impossible for China to leapfrog advanced nations in a short period.

Thirdly, Morris Chang cautioned that government-led semiconductor localization policies could be risky. At the 2021 APEC summit, he pointed out that "even if advanced nations invest hundreds of billions of dollars in subsidies to pursue semiconductor localization policies, they will only end up creating a high-cost supply chain." Instead, he emphasized that the semiconductor industry's development should be led by private enterprises within a free trade system.

Since its founding, TSMC has grown by prioritizing customer satisfaction and fulfilling its social responsibilities. While strengthening relationships with its key customers, it is also collaborating with governments worldwide to establish semiconductor production bases. Moreover, it is committed to leading the way in next-generation technology development and energy innovation.

As predicted by Morris Chang, TSMC is expected to play a pivotal role in the evolving global economic and technological landscape. Amidst the intensifying competition for semiconductor dominance, TSMC's manufacturing capabilities and collaborative strategies are receiving increasing attention.