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TSMC founder Chang says breaking up chip supply chain will be costly

Bloomberg7/17/2021 12:24 AM GMT+08  • 2 min read
TSMC founder Chang says breaking up chip supply chain will be costly
Chang said governments may still can't build a self-sufficient supply chain after spending hundreds of billions of dollars
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Taiwan Semiconductor Manufacturing Co. founder Morris Chang warned that efforts by governments around the world to build domestic chip supply chains could push up costs and yet still fail to achieve self-sufficiency.

Speaking as Taiwan’s envoy to the Asia-Pacific Economic Cooperation leaders’ virtual meeting, Chang’s comments come as Taiwan’s dominant position in the semiconductor business has come under pressure, amid a widespread global chip shortage and calls in Tokyo to Washington and Beijing for domestic chipmakers to increase self-reliance.

“Free trade over the past few decades has significantly boosted the development of semiconductor technology,” Chang told reporters Friday night in Taipei. “More complex technology has led to the supply chain going offshore,” he said. “If we try to turn back the time, costs will go up, technology development will slow down.”

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