Globalisation Has Taken Backseat To National Security, Technological Leadership: TSMC Founder Morris Chang
Morris Chang, founder of Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker, on Tuesday expressed his observations on the evolving landscape of globalisation during a business forum in Taipei yesterday.
Chang highlighted that globalisation is taking a backseat to national security concerns and the pursuit of technological leadership, with US-China relations becoming more focused on competition rather than cooperation.
Chang noted that globalisation, once characterised by the free movement of businesses across borders, now comes with the caveat that such exchanges must not compromise national security, technological supremacy, and economic leadership. Expressing skepticism, Chang questioned whether this new paradigm can still be considered as true globalisation.
These remarks by Chang come at a time when tensions between the United States and China continue to escalate. Just a day prior to his comments, China announced export controls on certain metals widely used in the semiconductor, communications, and defense industries, as part of an ongoing trade war with the US regarding access to high-tech microchips.
The 91-year-old industry veteran, who remains influential in the chip industry, previously declared the death of globalisation in the chip sector. He argued that the peak of globalisation was reached in the 2010s and has since waned due to the US and China implementing measures to bolster their domestic chip industries.
Known as the "sacred mountain protecting the country," TSMC holds significant economic importance in Taiwan. While the company has affirmed that its most advanced manufacturing will remain on the island, it has been expanding its operations abroad in recent years. TSMC's dominance in producing cutting-edge chips for major clients like Apple has shielded it from the broader industry downturn.
Concerns over the fate of chip factories located on Taiwan's western coast, which account for the majority of the world's most advanced chips, have been rising due to China's escalating diplomatic and military pressure against the democratic government in Taipei. China claims Taiwan as its own territory, a stance that the Taiwanese government vehemently rejects.
