TSMC Faces Challenges Abroad and Domestically

Taiwanese chip giant TSMC is predicting challenges and competition amid global headwinds and opposition to new semiconductor foundries in Taiwan.

Transcript

00:00 A protest against one of the giants of Taiwanese technology.

00:09 These residents of Taoyuan are demonstrating against an expansion to one of TSMC's chipmaking

00:14 plants.

00:16 Activists now say that TSMC has abandoned plans to expand the factory, but the company

00:21 has yet to confirm ahead of an expected briefing on Thursday.

00:25 It comes at a time when the challenges facing the semiconductor giant are far from limited

00:30 to Taiwan.

00:32 Over the weekend, TSMC's founder Morris Chang warned of rising global headwinds in the industry

00:38 and more competition for TSMC.

00:40 "Our competitors will use that advantage to beat us."

00:48 TSMC is the world's leading chipmaker, a fact that has seen other countries courting its

00:53 services.

00:54 The company has invested billions of dollars to start producing its technology overseas.

00:59 But that has also brought it some headaches.

01:01 Two new TSMC fabs in the U.S. state of Arizona were expected to start production next year,

01:07 but have faced delays due to a talent shortage.

01:10 "This change and growth keep reminding us that TSMC is a global company.

01:19 Our foundation is in Taiwan."

01:21 TSMC's roots, though, remain in Taiwan, in science parks from the north to the south.

01:27 And just this year alone, the chip's designer announced $2.8 billion in spending on a new

01:31 production site in Shenzhou.

01:34 These pair with plans to produce chips overseas beyond its two fabs in China, including factories

01:39 in Japan, the U.S. and Germany.

01:43 All that expansion hasn't slowed down the company's desire to innovate.

01:47 Just earlier this year, the company announced it was ready to begin mass production of its

01:51 advanced 3-nanometer chip, with 2 and 1 nanometers set to follow.

01:57 But with an ever-growing list of stakeholders, from the U.S. to Taiwan, the recent protest

02:02 is a reminder that not everyone welcomes an ever-growing TSMC.

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