TSMC Founder Warns Of Global Chip Industry Slowdown Amid US-China Tech Tensions

Taiwan Semiconductor Manufacturing Co (TSMC) Founder Morris Chang issued a stark warning regarding the escalating technology tensions between the United States and China. Chang, who established TSMC in the late 1980s, expressed deep concerns about the potential repercussions of these tensions on the global chip industry during an event in New York.

The catalyst for Chang's concerns is the latest set of export restrictions imposed by US officials, further tightening control over the export of chips and chipmaking tools to China. These restrictions were enacted shortly after Huawei Technologies unveiled a new domestically manufactured chip, causing the US to clamp down on technology exports.

Chang stressed that isolating China's chip industry from the rest of the world could have far-reaching consequences, affecting not only China but other global players as well. His assertion is that such decoupling would inevitably slow down the worldwide chip industry, primarily due to the highly interconnected and interdependent nature of the global semiconductor supply chain.

In addition to the potential economic implications, Chang drew attention to the geopolitical tensions between the US and China. He characterised this friction as an established power grappling with an emerging one, a situation that historically has culminated in conflicts of a more serious nature. Expressing his concerns, Chang remarked, "It looks like countries are mad at each other, that worries me," alluding to the volatile nature of international relations in such situations.