A semiconductor chip product of TSMC. (Photo: VCG)
Earlier this week, Taiwan Semiconductor Manufacturing Company TSMC decided to move its "chip production" to the US, amid growing tensions between the US and China over the chip issue.
The administration of US President Joe Biden has imposed a series of controls on the sale of chips and advanced chip-making equipment to Chinese companies.
TSMC is estimated to hold 90% of the super-advanced computer chip market share in the world. The company has supplied products to many "tech giants" including Apple and Qualcomm.
In early September, TSMC announced that August revenue rose nearly 60% to a record high of $7.06 billion, driven by strong global demand.
“The chip is a particularly important product,” said Morris Chang, founder of TSMC, on Nov. “But it seems that people have only realized this recently, and as a result a lot of people are jealous of Taiwan's chip industry.”
Mr. Chang is now retired, but remains an influential figure in the industry. He recently attended the Asia-Pacific Economic Cooperation (APEC) Economic Leaders Meeting.
During the event, Mr. Chang discussed the semiconductor industry with US Vice President Kamala Harris and met with Chinese President Xi Jinping. He said Ms. Harris welcomed TSMC's investment in Arizona.
Advanced semiconductor chips such as those produced by TSMC are an integral part of modern electronic devices, from smartphones to washing machines.
They are difficult to manufacture because of high development costs and technological know-how. This means that most of the production is concentrated in a few suppliers such as TSMC.
[TSMC stops cooperating with Chinese company due to US restrictions]
Advances in chip manufacturing necessitated the etching of ever-smaller transistors onto semiconductor wafers.
Mr. Chang said TSMC's factory in Arizona will produce chips using 3-nanometer technology - the company's most advanced technology today.
In 2020, TSMC has committed to invest at least $12 billion to build its first chip manufacturing facility in Arizona.
At the time, the company said that the facility would "use TSMC's 5-nanometer technology to fabricate thin semiconductor wafers" and thereby directly bring in more than 1,600 highly specialized jobs.
Mr. Morris Chang, founder of TSMC. (Source: Nikkei Asia)
"I know for a fact that the cost of making chips in the US will be at least 55% higher than in the island of Taiwan," Chang said during a press conference on the sidelines of APEC. “But this does not hinder the intention to move some manufacturing jobs to the US. The chip manufacturing process that we switched to is the most advanced of any company in the US, and that's very important to the US."
TSMC's increased presence in the US also comes at a time of rising tensions between China and Taiwan. The fate of the chip industry on the island has, therefore, become a global concern.
Experts have warned that any disruption to chip supplies from Taiwan could cripple the production of critical equipment, affecting people around the globe.
(Vietnam+)
