Taiwan Semiconductor Billionaire's Wealth Soars Amid AI Boom
Jensen Huang-Backed Quanta's Stock Rises
Chairman & CEO Wealth Surges Over 140% in 2 Years
TSMC, Foxconn, MediaTek Also Affected
Jensen Huang, CEO of NVIDIA, held a small dinner at a night market during his visit to Taipei, Taiwan, last May. The gathering included Lin Baili, Chairman of Quanta Computer, Morris Chang, founder of TSMC, and Cai Mingkai, CEO of MediaTek. As industry giants associated with the two words 'Taiwan' and 'semiconductor' came together, the world's attention was focused on the event.
Bloomberg recently reported that the wealth of ten Taiwanese semiconductor industry billionaires has rapidly increased, further strengthening the so-called 'Silicon Shield'?a semiconductor shield that deters China's military invasion. The outlet emphasized, "Billionaires are reshaping the economy and real estate market, thereby enhancing Taiwan's security."
Last May, Jensen Huang, CEO of NVIDIA (far right), who visited Taipei, Taiwan, is moving outside a restaurant together with Morris Chang, founder of TSMC (center). [Image source=AFP Yonhap News]
This phenomenon has especially intensified since the release of the generative AI, ChatGPT, in November 2022. As the AI boom swept the globe, semiconductor demand surged, and Taiwanese semiconductor companies leading the industry grew significantly. As a result, the combined wealth of the ten Taiwanese billionaires in the semiconductor sector increased by 87% in less than two years.
The top billionaire leading the Silicon Shield in Taiwan is Chairman Lin Baili. According to the Bloomberg Billionaires Index, his net worth reached $13.2 billion (approximately 17.64 trillion KRW as of the 20th), marking a 147% increase since November 2022. As the founder of Quanta Computer, he holds a 26% stake. Jensen Huang named Quanta as a key partner in the AI revolution, causing Quanta's stock price to soar and propelling Lin Baili to become Taiwan's wealthiest individual last year.
Accordingly, Quanta's CEO, Chi Chunlong, also saw his wealth rise to $3.2 billion, a 144% increase since November 2022. Chi Chunlong, who was Lin Baili's college roommate, owns a luxury shopping center in Taipei valued at $240 million.
Morris Chang, founder of TSMC, the world's largest foundry (semiconductor contract manufacturer), saw his net worth increase by 85% to $4.4 billion compared to November 2022. F.C. Cheng, an early member and vice chairman of TSMC, also experienced an 85% increase, reaching $1.2 billion.
TSMC, responsible for the absolute volume of advanced semiconductor production worldwide, is a flagship Taiwanese company. The company's stock price, which ignited during the COVID-19 pandemic, accelerated further with the AI boom, nearly doubling since November 2022. TSMC has built factories across Taiwan as well as in the United States, Japan, and Germany, invigorating local economies. Bloomberg reported, "Real estate transactions have been active in some areas where TSMC has decided to build new factories."
Guo Taiming, former chairman of Taiwan's Foxconn, Apple's largest contract manufacturer, also saw his wealth increase by 86% during the same period, reaching $10.2 billion. Jason Chang, chairman of ASE Technology, the world's largest semiconductor backend company, and Richard Chang, vice chairman, saw their net worth rise to $6.9 billion and $1.7 billion, respectively, marking increases of 56% and 46%. Additionally, MediaTek's CEO Cai Mingkai and former vice chairman George Zhu, along with Pierre Chen, founder of Yageo, a major multilayer ceramic capacitor (MLCC) manufacturer, were listed among Taiwan's top ten semiconductor billionaires. The two MediaTek executives recorded wealth growth rates in the 60% range, while Pierre Chen's increase was in the 30% range.
Former chairman Guo Taiming wielded significant influence in Taiwanese politics, even running for the presidential election. Pierre Chen, founder of Yageo, has shown great interest in wine and art collection, ranking among the world's top 200 collectors and influencing related industries.
Bloomberg stated that the expansion of wealth among Taiwanese semiconductor billionaires is directly linked to Taiwan's security. In a situation where a Chinese military invasion is a concern, the growing influence of semiconductor magnates through their assets can serve as a kind of shield to prevent it. This is truly the 'Silicon Shield.' A Taiwanese semiconductor industry insider said, "Semiconductors are maintaining Taiwan's current status. However, as China strengthens its semiconductor self-reliance, it will be difficult to defend forever."
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