TSMC founder Zhang Zhongmou criticizes the U.S. government and Intel’s Nikkei Chinese website

Taiwan Semiconductor Manufacturing Company (TSMC), a large semiconductor company, is engaged in a tongue war with the United States. TSMC founder Zhang Zhongmou delivered a speech in Taipei on the evening of October 26. He said that it is difficult for the United States to regain its former status (a strong semiconductor industry). They expressed dissatisfaction and refuted the recent increase in pressure on TSMC by the US authorities and rival Intel, which intends to cooperate on semiconductors.

Data map (photo taken during an interview with Reuters in 2017, REUTERS)

In order to strengthen the domestic domestic production of semiconductors, the United States is currently discussing the use of US$52 billion in subsidies to attract overseas companies and support domestic companies. However, Intel’s Chief Executive Officer (CEO) Pat Gelsinger stated that “U.S. taxes should be used for U.S. companies.” Especially for supporting TSMC as a competitor, he showed strong opposition.

On the other hand, TSMC accepted a strong invitation from the US and decided to build a cutting-edge new factory in Arizona. The construction of the factory on the premise of obtaining huge subsidies has already started. Because there is no retreat, so the “verbal intervention” of Intel is in a state of obvious boredom.

In addition, TSMC is also dissatisfied with the response of the US government. Not only has it not yet received a reliable pledge of subsidies, but recently involved in subsidies, the United States even required TSMC to disclose detailed corporate information. In the US Congress, no progress has been made in the review of the key subsidy itself. Against this background, Zhang Zhongmou can no longer remain silent.

Zhang Zhongmou criticized in his speech that he knew every Intel CEO, including this guy (Ji Xinji), and he was very welcome. As a reason, Zhang Zhongmou emphasized that he (Ji Xinji, who had had an exchange with the US government recently on the purchase of semiconductors in the United States) actively declared and appealed to Taiwan and South Korea to be very dangerous, and that he himself also wanted to obtain 52 billion from the US government. U.S. dollar subsidies require the construction of factories in the United States.

In addition, Zhang Zhongmou sternly pointed out that the United States may want to return to the powerful era of the 1990s when it controlled 42% of global semiconductor production, but this is very difficult. The cost in the United States is too high. (Strengthening of production) also does not help improve the competitiveness of American semiconductors. Even if it spends more than 100 billion US dollars, it is impossible to establish a complete supply chain in the United States.

At the end of his speech, Zhang Zhongmou emphasized, “5 years ago this guy (Ji Xinji) was a bit rude, and now he is also rude to TSMC, and now he is only treating him in his own way.”

Zhang Zhongmou completely withdrew from the operation of TSMC in 2018, but now he still has a certain influence in the industry. On October 26, he delivered a speech at the 20th anniversary of the “Taiwan Yushan Science and Technology Association” established for the purpose of revitalizing science and technology.

Nihon Keizai Shimbun (Chinese: Nikkei Chinese Net) Hiroshi Nakamura, Taipei

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