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TSMC management considers technological independence of countries to be an unjustifiably expensive undertaking
31.03.2021 [03:51],
Alexey Razin

The contradictions between the United States and China in recent years have led to the fact that the first of the countries indirectly suffered from the sanctions imposed against the second. The ban on cooperation with Huawei and SMIC has upset the balance of supply and demand in the semiconductor industry, as a result, now the whole world, including American companies, is suffering. All this was exacerbated by the pandemic.

Image source: TSMC

According to Bloomberg, TSMC chairman of the board of directors Mark Liu, during his recent speech, according to Bloomberg, called the uncertainty of the political situation in relations between China and the United States one of the main reasons for the crisis that paralyzed the semiconductor industry. It is the instability of supplies against the backdrop of sanctions that forces many TSMC customers to order products with a large stock, significantly exceeding current needs. The balance of supply and demand is artificially disrupted. Sanctions against Huawei led to a redistribution of the market, which also exacerbated the situation. The normalization of the situation, in the opinion of the TSMC leadership, could be facilitated by constructive negotiations between the United States and China.

According to the chairman of the board of TSMC, the impact of the coronavirus pandemic on the production of semiconductor components was negative regardless of the geographic location of the profile enterprises. The current aspirations of many countries to provide themselves with local production of chips will not lead to anything good, according to the leadership of the Taiwanese company. Unprofitable industries are said to be scattered across the planet. Hearing this from the head of a company that agreed to build a factory in the United States and a research center in Japan is somewhat strange, but in this matter you should certainly have a sense of proportion.

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