Taiwan Must Improve Its Chip Tech to Stay Ahead, TSMC's Hou Says

Taiwan should pour more resources into advancing chip technology and expanding its supply chain expertise to maintain global leadership, an executive from its most valuable company said hours after Donald Trump was elected to be US president for the second time. From a report: "We should accelerate research and development to ensure our standing as an indispensable member of the global semiconductor supply chain," Taiwan Semiconductor Manufacturing Co. Senior Vice President Cliff Hou said in remarks delivered in his role as chairman of the Taiwan Semiconductor Industry Association on Thursday. "We are also working with the government to see whether we can attract foreign partners to set up design and materials centers in Taiwan."

The self-governing island, home to the world's biggest contract chipmaker, TSMC, lives with the constant threat of invasion by China, which considers it a breakaway territory. The imminent change in US leadership may alter its standing in global affairs. While President Joe Biden has repeatedly voiced unequivocal support for Taiwan, Trump said the island should pay the US for defending it, calling Xi Jinping "a very good friend of mine until Covid" in an interview with Bloomberg.

Hou, a 27-year TSMC veteran who obtained his doctorate in the US, added that Taiwan must also aim to develop more expertise in equipment and materials, areas that are dominated by foreign businesses. Meanwhile, the close relationship Taiwan and the US have forged over the past few decades will not be affected by the election's outcome, the executive told reporters separately on the sidelines of his trade group's event in Hsinchu. [...] In October, Trump told podcast host Joe Rogan that Taiwan took away US semiconductor business and jobs. "These chip companies, they stole 95% of our business. It's in Taiwan right now. They do a great job, but that's only because we have stupid politicians," Trump said as part of a lengthy interview where he also stated he protected Taiwan from China during his first stint as president.

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