Founder of Taiwan's TSMC Says "TSMC Would Be Devastated in War with China"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Hyun-woo] Morris Chang, the founder of Taiwan's TSMC, the world's largest semiconductor foundry (contract manufacturing) company, warned that if a war breaks out between China and Taiwan, TSMC could be devastated. However, he predicted that China would avoid a direct attack as it does not want the collapse of Taiwan's semiconductor industry.

According to local media such as Taiwan's Liberty Times on the 11th, Chang appeared on the American CBS in-depth interview program "60 Minutes" aired on the 9th and said, "If a war (between China and Taiwan) occurs, TSMC will inevitably face a 'devastation' situation where everything is destroyed," adding, "However, if Chinese President Xi Jinping prioritizes the economy, he will refrain from military action against Taiwan."

He emphasized, "China will avoid attacking Taiwan to prevent the collapse of Taiwan's semiconductor industry, which is closely linked to global economic development," and added, "Many Taiwanese believe that the 'Silicon Shield' provided by TSMC, a manufacturer supplying semiconductors to many countries worldwide, can protect China’s attack on Taiwan."

However, concerns are growing both inside and outside Taiwan that China might actually carry out an invasion of Taiwan. Separately from Chang, former Taiwanese military chief Lee Hsi-ming, who also appeared on CBS's "60 Minutes," stated, "The Chinese military invasion of Taiwan is not a matter of possibility but a matter of time," and pointed out, "What the Taiwanese military needs most, based on the experience of the Russia-Ukraine war, is asymmetric weapons such as the American-made portable anti-aircraft missile Stinger and anti-tank missile Javelin, rather than large military equipment like warships or fighter jets."

Meanwhile, on the same day, TSMC's stock price plunged more than 7% intraday due to the announcement of the Biden administration's advanced semiconductor export restrictions to China and concerns over escalating military tensions between China and Taiwan, worsening investor sentiment.

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