TSMC Founder Morris Chang, speaking at a press conference following the TSMC sports event on the 14th, noted that countries around the world are currently building their semiconductor supply chains. In his view, Japan is a more ideal location for this, given the evolving economic landscape, Taiwan’s semiconductor manufacturing environment might lose its advantages in about 20 to 30 years.

According to a report by Taiwanese media TechNews, discussing TSMC’s global presence, Chang mentioned that about 27 to 28 years ago, it was his dream to build a TSMC fab in the United States, and at that time, establishing WaferTech was a beautiful dream. However, this dream turned into a nightmare after 2 to 3 years due to various cultural factors. But he also believes that today’s TSMC is vastly different from the company of a couple of decades ago. Whether it’s talent or technology, it has improved significantly. With proper preparation, perhaps the past dream can be realized.

Now, countries worldwide are establishing their semiconductor supply chains. So which countries have a better chance of success? Chang believes, based on past experiences, that Japan and Singapore are more ideal places. However, Singapore has limited resources, making Japan the more favorable option. Additionally, the Kyushu region in Japan offers abundant resources such as land, water, and electricity, along with a strong work culture.

Looking at TSMC’s overseas expansion, in 2020, TSMC announced its investment to build a factory in Arizona, USA, with plans to establish 4-nanometer process capabilities. Construction on the Arizona plant began in June 2021, and a groundbreaking ceremony was held in December of the same year. However, due to construction delays, the actual start of production is expected to be pushed back from the original target of late 2024 to 2025.

In comparison, TSMC’s Kumamoto fab has commenced equipment installation, and its facility progress seems to be ahead of the new plant in Arizona. In addition to their Kumamoto Fab 1, TSMC had previously indicated its consideration of building a second factory in Japan, likely to be situated near the first one.

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(Photo credit: TSMC)