TSMC Founder Warns Taiwan’s Chipmaking Edge Will Be Over In 20 Years

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The Taiwan Semiconductor Manufacturing Company's (TSMC) founder, Dr. Morris Chang, believes that not only does his company have the right skillset to make its new chipmaking plant in the U.S. a success but also that Taiwan's edge in the semiconductor manufacturing industry can erode in the next two to three decades. Dr. Chang shared his opinion at TSMC's annual Sports Day earlier today in Taiwan. TSMC holds the event each year, but recently, it was forced to cancel it due to restrictions due to the coronavirus pandemic. As part of his remarks, he shared stories about the hard work that TSMC's engineers have to do to ensure that the firm's facilities remain operational and his experience in setting up the world's biggest contract chip manufacturer.

2023 has been quite a tumultuous time for TSMC as the firm has had to deal with one set of bad news followed by another. The year has been slow for the chip sector, as a glut in the personal computing market has reduced shipments. As a result, TSMC's revenue has been dropping consistently annually for almost every month this year, and to keep up with the slowdown, the firm has already cut its revenue guidance twice this year.

At the same time, a new chip manufacturing plant that the firm is building in the U.S. has also been delayed due to what TSMC describes as difficulties in setting up advanced equipment. Commenting on the delay, Dr. Chang shared that it was always his dream to set up a chip plant in the U.S. decades ago when he created TSMC. Between then and now, it has better funds, talent and technology, which he believes can help the