- Morris Chang, founder of Taiwan Semiconductor Manufacturing Co. (TSMC), has expressed concerns about the company's future growth prospects due to increasing restrictions on semiconductor trade, particularly with China. He stated that the era of free trade in advanced semiconductors is effectively over, which poses significant challenges for TSMC as it navigates a landscape where major powers are vying for control over semiconductor technology. This situation is exacerbated by the U.S. government's ongoing efforts to limit China's access to cutting-edge chips, which could hinder TSMC's ability to expand its market share and innovate.
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The semiconductor industry is currently facing a critical juncture, with geopolitical tensions influencing supply chains and market dynamics. The U.S. has implemented export controls aimed at safeguarding national security, which have led to a decline in stock valuations for affected semiconductor firms. TSMC, as the world's largest semiconductor foundry, is particularly vulnerable to these shifts. The company must adapt to a new reality where its growth may be stunted by external factors, including regulatory pressures and competition from other nations investing heavily in semiconductor capabilities.
Why it matters
The challenges TSMC faces could significantly impact its market position and growth trajectory in the semiconductor industry.
