TSMC chairman issues warning

The technological war between the United States and China is heating up, deepening anti-globalization efforts. TSMC Chairman Liu Deyin recently warned that under the international trend of globalization and fragmentation, national security demands have followed. The biggest concern for the industry and economy is that the speed of global innovation will "slow down", especially when powerful countries pursue "AI Sanctions" (AI Sanctions)" will deepen geopolitical uncertainty.

Liu Deyin gave a speech last week titled "TSMC under AI" and pointed out that semiconductor technology is a key driving force for new AI capabilities and applications. Taiwan is already in a good position in the semiconductor industry and stands out in a chaotic world.

However, he emphasized that technological competition is intensifying, and the expansion of the U.S. chip ban on China will slow down the speed of global innovation. Not only will mainland China spend a lot of time making old things, but leading U.S. companies will also slow down because they cannot see their opponents. In the end, this is the biggest hidden worry for the industry and economy.

Facing the new international situation, Liu Deyin emphasized that he did not use "globalization is dead" but "globalization is divided." In the divisive trend of globalization, demands for national security have also followed. The most important thing for Taiwan now is to remain calm. It must maintain the world's confidence in Taiwan and not cause global concern. This is the biggest challenge.

He said that in the case of TSMC, amid the fragmentation trend of globalization, TSMC’s customers have paid more attention to manufacturing in different regions. Therefore, TSMC has also gradually expanded its global presence in accordance with customer requirements. In addition to increasing customer trust, it also increases future growth. , and more importantly, attracting talents from around the world.

As for the global semiconductor market, Liu Deyin pointed out that among the top 20 semiconductor companies in the world in 2022, Fabless Company without a wafer factory has appeared. It is estimated that Huida will become the world's largest semiconductor company in 2023. Fabless company is progressing very fast. In the next five years, the growth rate of system companies will be 17%, Fabless company is about 10%, and IDM (semiconductor integrated component factory) company is only 4%. In addition, semiconductor technology can improve three times every two years. Based on this calculation, it will be 242 times in ten years.

Liu Deyin said that unlike other semiconductor companies whose products are all applied by themselves, TSMC allows the world to apply them at the same time. "This is TSMC's purpose, to release the energy of innovation." As it continues to expand advanced technologies, TSMC has also become a technology As a provider and ecosystem builder, TSMC does not compete with customers, but jointly builds an open innovation platform.

TSMC Chairman Liu Deyin said that TSMC’s plant in Arizona, USA, has been experiencing constant twists and turns, and has continued to solve problems. It has also reached a very good communication with the Union (union). In the process, it is sometimes laughed at. “I don’t feel dissatisfied, as long as It’s good to learn, and learning experience is very important at TSMC.”

Liu Deyin said that TSMC is praised and not criticized in Taiwan. "Not being criticized is the biggest enemy of engineers." After going out, encountering new environments, new people, and new management methods are opportunities for learning and growth. . The most exciting thing about TSMC's global layout is its employees. They all want to go out and show their ambitions.

Citing the continuous ups and downs at the Arizona plant in the United States as an example, he said that TSMC and the labor union have also reached quite good communication. In Taiwan, unions are considered very bad, but unions in the United States today are different from those in the 1960s.

Liu Deyin believes that the union speaks for the basic benefits and wages of basic personnel, which is very reasonable. "As long as we reach an agreement with them, we will not take advantage of them." The union sets the wages and the members will track them. Therefore, using The union's method of exploring problems and further promoting employees' cohesion is also good, but it requires considerable communication. "These are our new learnings, and this learning will continue."

In addition, he mentioned that he recently went to Japan to meet with TOYOTA leaders and discussed the past in the 1980s when TOYOTA had to set up a factory in the United States because the United States required that Japanese cars sold to the United States must be produced in the United States. The process of setting up a factory in the United States for TOYOTA was also very difficult and the learning process was long. Recently, TOYOTA returned to the United States to set up a factory and it went very smoothly. The key is to have adequate communication, rather than looking at personality, culture, etc. This is a process of globalization. The only way to go.

Liu Deyin also mentioned that during this trip to Japan, he discovered that the salary level of Japanese engineers is lower than that of Taiwanese engineers, but the "quality (quality) of Japanese engineers is very good and they are very dedicated." This is something he did not expect ten years ago.

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