TSMC founder Morris Chang is in support of US restrictions on China

TSMC founder Morris Chang and Chip War author Chris Miller discussed the state of the chip industry at the CommonWealth Semiconductor Forum at the Shangri-La hotel in Taipei. Chang admitted for the first time during an hour-long public discussion that he supports recent US initiatives such as the Chips Act, as well as efforts to slow Chinese semiconductor development. Over 300 people attended today’s event, with at least one-third of them being senior semiconductor executives.

Miller, an associate professor of international history at Tufts University’s Fletcher School of Law and Diplomacy, opened the forum by sketching out how TSMC became the world’s most important chipmaker.

The public discussion between Chang and Miller was then moderated by CommonWealth chairperson Yinchuen Wu. Lai Ching-te, Taiwan’s Vice President and DPP Chairman, also spoke at the event.

Miller predicted that the chip industry will experience significant geographic branching in the coming years, with a chasm separating China from the rest of the world. However, he stated that due to the current concentration of associated technologies in a few countries, the shift would occur “rather slowly.”

During the forum, Chang told the audience that the globalisation of chip manufacturing would result in higher chip costs – with production costs in the US up to double those in Taiwan – as well as a slowing of development.

Hang stated that China is currently five to six years behind Taiwan in chipmaking technology, and he supports US efforts to maintain that position. Clearly, the TSMC icon is referring to US pressure on allies and key companies like ASML to limit technology sharing with Chinese firms. Chang also backed the Chips Act initiative in the United States. This is significant because it is the first time we have seen the iconic TSMC founder express support for these US policies.

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