By John Liu and Paul Mozur from NYT Technology https://ift.tt/qRinQuS
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Inside Taiwanese Chip Giant, a U.S. Expansion Stokes Tensions
Taiwan Semiconductor Manufacturing Company (TSMC) is one of the world's leading chip makers, producing critical components for smartphones, laptops, servers, and other devices that power our digital lives. Founded in 1987, TSMC has grown to become a global player with over 50% market share in advanced semiconductor manufacturing. However, as the demand for faster, smaller, and more powerful chips continues to soar, so do the geopolitical risks and challenges facing TSMC, especially in its relationship with the United States.
In recent years, TSMC has been expanding its presence in the U.S., both to tap into the local talent and market and to address the concerns of U.S. officials about the reliance on foreign suppliers for critical technologies. TSMC has built a new factory in Arizona, with a planned investment of $12 billion over nine years, and has announced plans to increase its investment in its existing facility in Washington State. These moves have been praised by the U.S. government as a sign of TSMC's commitment to the U.S. and a boost to its economic and security interests.
However, the U.S. expansion has also stoked tensions within TSMC, as some executives and employees worry about the potential risks and costs of building a new supply chain in a different country. The concerns range from the difficulty of recruiting and retaining talent in a new location to the differences in culture, regulation, and infrastructure. Moreover, some fear that the U.S. government may pressure TSMC to prioritize its domestic needs over its global customers or to share its sensitive technologies and know-how with U.S. rivals.
John Liu, TSMC's senior vice president of operations, acknowledges the challenges of building a new fab in Arizona, but believes that it is a necessary and strategic move for the company. "We have to think globally and act locally," Liu said in a recent interview with the New York Times. "We want to diversify our risks and opportunities, and we want to bring our customers closer to the source of production." Liu added that TSMC would follow the same high standards and values in the U.S. as it does in Taiwan, and that the company would not compromise its independence or security.
Paul Mozur, the author of the NYT article, notes that TSMC's expansion in the U.S. reflects a broader trend in the tech industry, where companies are reshaping their global supply chains and partnerships to adapt to the changing political and economic landscape. Mozur also points out that TSMC's success in navigating these challenges will have far-reaching implications for the industry and the world. "As the world becomes more divided and contested, TSMC's expansion in the U.S. highlights the complexities and trade-offs of global interdependence," Mozur writes. "The stakes are high, and the risks are real, but the rewards could be enormous."
In conclusion, TSMC's U.S. expansion is a testament to its ambition, resilience, and adaptability in the face of uncertainty and volatility. While it may pose some internal and external challenges, it also offers new opportunities and benefits for the company and its stakeholders. As TSMC continues to innovate and collaborate with its customers and partners, it will need to balance its global and local interests, its strategic and operational priorities, and its values and norms. Only by doing so can it maintain its leadership in the semiconductor industry and contribute to the progress of the digital age.