Eric Schmidt: "For Security, More Samsung and TSMC Factories Should Be Attracted to the US"

[Asia Economy Reporter Koo Chae-eun] Eric Schmidt, former CEO and chairman of Google, stated that "the United States should leverage its political influence over the governments of South Korea and Taiwan to persuade Samsung Electronics and TSMC to partner with American semiconductor design companies and manufacture advanced semiconductors in the U.S."

On the 20th (local time), Schmidt made this remark in a column titled "Semiconductor Dependence Threatens U.S. Security," published in the U.S. daily The Wall Street Journal (WSJ). He proposed policy directions for the U.S. to win the semiconductor competition against China. Schmidt said, "South Korea and Taiwan rely on U.S. military security commitments," and that Samsung Electronics could guarantee the fulfillment of these commitments by forming joint ventures with American companies such as Qualcomm and Nvidia.

He further mentioned exerting influence over the South Korean and Taiwanese governments and cited U.S. tax benefits and subsidies, saying, "They could be persuaded that increasing semiconductor production in the U.S. would be advantageous for Samsung Electronics and TSMC." In the column, Schmidt revealed, "TSMC produces 92% of the advanced semiconductors needed for smartphones, laptops, and ballistic missiles," and "American companies outsource nearly all advanced semiconductor production to Taiwan."

He added, "If Taiwan's semiconductor production capacity ceases to function or falls into China's hands, the U.S. technology sector will be devastated," warning that a conflict between Taiwan and China could trigger a national security crisis related to semiconductors. Schmidt expressed concern, stating, "If China continues to develop sustained advantages across the semiconductor supply chain, it will create fundamental technological breakthroughs that the U.S. cannot counter," and "the U.S. is on the verge of losing the semiconductor competition."

To win the semiconductor competition, Schmidt also advised focusing on advanced semiconductor production while strengthening the linkage between research and development (R&D) and manufacturing.

This content was produced with the assistance of AI translation services.