TSMC Founder Says "Semiconductor Free Trade Is Dead" Amid US-China Conflict

"The Most Severe Challenge Ahead"

The founder of Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), stated that the global decline of semiconductor free trade is posing a serious challenge.

Jang Jung-moo, Founder of TSMC.

According to major foreign media on the 26th (local time), Morris Chang (Jang Jung-mou, 張忠謀), the founder, attended TSMC's annual sports event held in Hsinchu City, Taiwan, and said, "Free trade in semiconductors, especially in the latest semiconductor sectors, is dead. Our challenge is how to continue growing in this environment."

Chang Jung-mou said, "TSMC has once again broken records this year," but added, "The most severe challenge lies ahead."

He previously mentioned that geopolitical strategists consider certain locations as militarily indispensable, and stated, "Currently, TSMC has truly become such a place."

TSMC is at the forefront of the US-China conflict. In 2020, the US government imposed sanctions citing national security concerns, preventing Chinese telecommunications equipment company Huawei from purchasing semiconductors made using US equipment. At that time, TSMC stopped accepting new orders from Huawei.

The US Department of Commerce is investigating whether TSMC was involved in manufacturing AI and smartphone chips for Huawei, and it is reported that TSMC has stopped supplying products to one customer who delivered semiconductors to Huawei.