More than half of the silicon wafers produced worldwide are controlled by Taiwan Semiconductor Manufacturing Company, whose customers include Apple and Intel. Silicon wafers are used in everything from cell phones to vehicles and missiles.
It has been navigating the geopolitical scuffles between China and the United States in recent years. The two nations are at odds over a number of topics, including technological advances, trade, and Taiwan, which serves as the key manufacturing hub for semiconductors worldwide.
Concern over the likely future of the semiconductor industry, which is vital to the world economy, has increased recently. China, which views Taiwan as its own territory, has threatened to invade the island nation in the past.
“I can assure everyone that we will manufacture here in Taiwan for the three-nanometer, two-nanometer (chips),” TSMC CEO CC Wei said on Tuesday at a shareholder meeting in the northern town of Hsinchu.
As the global market shifts towards goods using artificial intelligence, like ChatGPT, TSMC’s three-nanometer and two-nanometer processors are anticipated to be among the most cutting-edge technology in use today.
We also stated that “almost entirely in Taiwan” would be used in the production of a product that is much smaller: the 1.4-nanometer chip.
China has intensified its political and military pressures on Taiwan, vehemently objecting to any kind of diplomatic relations with the island.
In reaction to US House Speaker Kevin McCarthy’s meeting with Taiwanese President Tsai Ing-wen in California in April, Beijing held three days of military drills simulating a blockade of the island.
On Tuesday, TSMC made an effort to seem composed.
“I believe that in the midst of global geopolitical tensions, Taiwan’s semiconductor sector stabilizes the situation. They all hope that TSMC is still around, whether they are in China or the United States, according to executive chairman Mark Liu.
“I sincerely hope Taiwan’s semiconductor industry can prosper and help to reduce geopolitical conflict around the world.”
In spite of this, Liu predicted that TSMC’s performance in the latter part of the year “will be higher than the first half” due to the US-China trade dispute, the effects of the Russia-Ukraine war, and climate change.
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He noted that TSMC is still in talks with German authorities about building a facility in Dresden, despite their worries about the labor market and supply chain infrastructure in that nation.
There are undoubtedly some holes, but the local administration promised to fill them soon, according to Liu. “We are satisfied with it, actually.”
