Taiwan Must Improve Its Chip Tech to Stay Ahead, TSMC's Hou Says

Taiwan should pour more resources into advancing chip technology and expanding its supply chain expertise to maintain global leadership, an executive from its most valuable company said hours after Donald Trump was elected to be US president for the second time. From a report: "We should accelerate research and development to ensure our standing as an indispensable member of the global semiconductor supply chain," Taiwan Semiconductor Manufacturing Co. Senior Vice President Cliff Hou said in remarks delivered in his role as chairman of the Taiwan Semiconductor Industry Association on Thursday. "We are also working with the government to see whether we can attract foreign partners to set up design and materials centers in Taiwan."

The self-governing island, home to the world's biggest contract chipmaker, TSMC, lives with the constant threat of invasion by China, which considers it a breakaway territory. The imminent change in US leadership may alter its standing in global affairs. While President Joe Biden has repeatedly voiced unequivocal support for Taiwan, Trump said the island should pay the US for defending it, calling Xi Jinping "a very good friend of mine until Covid" in an interview with Bloomberg.

Hou, a 27-year TSMC veteran who obtained his doctorate in the US, added that Taiwan must also aim to develop more expertise in equipment and materials, areas that are dominated by foreign businesses. Meanwhile, the close relationship Taiwan and the US have forged over the past few decades will not be affected by the election's outcome, the executive told reporters separately on the sidelines of his trade group's event in Hsinchu. [...] In October, Trump told podcast host Joe Rogan that Taiwan took away US semiconductor business and jobs. "These chip companies, they stole 95% of our business. It's in Taiwan right now. They do a great job, but that's only because we have stupid politicians," Trump said as part of a lengthy interview where he also stated he protected Taiwan from China during his first stint as president.

"Leave Us Alone"

[bill_mcgonigle]

It's a smart play.

Trump won't go to War with China for Taiwan but this sends a strong signal that Taiwan will fall behind if a status quo is adopted after being conquered and foreign cooperation is required.

Taiwan has more value to China by being left alone.

Say what you want about Xi but he understands the value of economic partnerships.

TSMC also has a strong hedge in Arizona, with the implication that R&D will move there if China is belligerent, potentially making an attack a negative economic value.

Re:"Leave Us Alone"

[hdyoung]

All you need to do is explain to Trump that he'll never get an iphone 18-pro if he lets China knock over Taiwan.

There are going to be a great many explanations like this over the next 4 years. "How does this affect the big T" is just about the only question that will matter for the next 4 years. The answer to this question will be the only thing that drives policy.

Re:"Leave Us Alone"

[iAmWaySmarterThanYou]

Xi understands economic partnerships such as taking over the entire South China Sea, stealing islands from their neighbors, laying claim to international waters, requiring 51% Chinese ownership of foreign companies in China, rampant IP theft from so-called partners. Yes, he understands. Not sure you know what this word "partnership" really means, though.

Trump wouldn't defend Taiwan? You, me, nor Xi has any idea what Trump would do. But we do know he's no friend of Xi and current Chinese leadership in general.

Taiwan is not an economic issue for Xi. It is political and military. Taiwan is in a key location that prevents easy access for a future Chinese navy from freely accessing the Pacific. They're currently penned in. If you don't understand geopolitics you have two choices, stay quiet and learn or just stay quiet.

Re:

[iAmWaySmarterThanYou]

Your fear of me is amusing. Keep checking that coward box.

Not hard to see where it is going

[AlanObject]

I am sure people in Taiwan know fully well that Trump is perfectly OK with Russia taking over Ukraine. In other words demonstrate conclusively that the U.S. is not only a toothless tiger but also is willing to de-fang NATO. Nobody will ever trust the U.S. to hold up a treaty again but that's beside the point. Trump doesn't care about that.

Once that happens you will see China move to take over Taiwan. Trump, Man Of Peace, will do little to stop them if he doesn't actively aid the process. And what's the U.S. going to do anyway? Call on allies? Musk, successful at operating a plant in mainland China, will certainly have convince him it is not a big deal.

So yeah this is Taiwan's best move. Their only shot is A) make the DoD realize that they are indispensable to the U.S. security interest as a separate nation and B) hope that they convince Trump. With the new congress, I am not optimistic.

Re:

[psycho12345]

Realistically, because of the various wars and so on, it has made one thing perfectly clear: You want to survive, get nukes. I fully expected Japan, Taiwan, Ukraine, South Korea, Poland and a few others to acquire their own nuclear arsenals. Probably in the range of a couple dozen warheads, just enough to tell any invader "I'll kill your major cities".

Re:

[serviscope_minor]

I fully expected Japan[...]to acquire their own nuclear arsenals.

Japan have a pretty strong space program. They've developed a small, entirely solid fuelled, extra disposable 4 stage launch vehicle capable of putting scientific satellites in a variety very precise orbits. Unusually for a satellite launcher it's mobile and requires a crew of only 8 people to launch. You know when you just need to launch a satellite right the fuck now after a long period of storage from an undisclosed location. Those solar

Re:

[psycho12345]

Hahaha yes. Same thing with them having helicopter carrying craft that just happen to have the right length for an F35 to fly off of. And have enough storage space for an entire squad of F35's to be stored on. And it is totally for self defense!

*End Sarcasm*

Yeah, Japan could transform into easily a top 5 offense military power on Earth inside maybe 1 year, 2 tops.

Re:

[necro81]

So yeah this is Taiwan's best move.

That, and deploying explosives around every single fab and design center, rigged to blow in the event of an invasion.

Re:

[ceoyoyo]

Taiwan says the same thing about China. So what?

It's always funny

[smooth wombat]

How the convicted felon keeps telling other people they need to pay for something when he's always broke and begging others for money.

Re: It's always funny

[Fons_de_spons]

No no no no no you do not understand, you do not see the true business genius Trump is.

Me neither, but I am told that is because I am stupid.

Re:

[radarskiy]

You don't get rich by spending your own money.

Hou is Smart

[RossCWilliams]

All Taiwan needs to do is look at Ukraine to understand the outcome of getting into a fight with a powerful neighbor. Hou seems to understand that Tawain's status depends on the mainland government remaining patient because Taiwan is more valuable as a trading partner under the status quo than as a desolated war zone.

That means having economic value that outweighs any political and strategic issues. Taiwan's chip industry is clearly its most important economic value to China, the United States and the rest

Taiwan should harden its economic defenses.

[Eunomion]

With DC falling under Russian control for a brief time, Taiwan will need to guard against contingencies.

Senior VP at 27!?!?

[OneOfMany07]

Color me surprised.

Less so that the young-ish person in a technology heavy field thinks they need to invest in new tech to stay ahead.

Oh, 27 years of experience...

[OneOfMany07]

Never mind. Coffee hasn't kicked in yet.