TSMC warns of semiconductor trade challenges ahead

Taiwan, home to Taiwan Semiconductor Manufacturing Co. (TSMC), is facing challenges in the semiconductor industry due to rising geopolitical tensions, as emphasized by founder Morris Chang. In recent comments, he stated that the concept of free trade in semiconductors has effectively ended, which poses significant difficulties for TSMC's growth. With the company being a critical supplier for major technology firms, including Apple, its operations are under scrutiny as geopolitical dynamics shift. TSMC has expanded its manufacturing capabilities globally, establishing sites in the US, Germany, and Japan while grappling with pressures related to U.S. dependency on Taiwanese chips. Furthermore, TSMC recently reported that its chips were found in a Huawei product, prompting concerns over U.S. export controls and national security. Lawmakers are calling for investigations into this situation, which highlights the fragile balance of technological rivalry and the critical implications for national security. Overall, TSMC’s positioning is pivotal in an industry that increasingly intersects with geopolitical strategy, illustrating the complications stemming from current trade and technology policies.