TSMC Founder Schooled Nancy Pelosi On US' Bid To Establish Independent Chips Industry: Report

Taiwan Semiconductor Manufacturing Company (TSMC) founder Morris Chang reportedly schooled former House Speaker Nancy Pelosi about the United States' plans to establish an independent semiconductor industry during the latter's trip to Taiwan in August 2022.

Chang told Pelosi that the $52 billion package for semiconductor manufacturing under the CHIPS and Science Act was "a good start," Pelosi revealed in a recent interview with Alexander Burns, which Politico published Tuesday.

However, the discussion quickly turned the mood into a serious one as the 91-year-old tech mogul questioned whether the U.S. is actually committed to supporting advanced chip technology or is just being impulsive in attempting to get a chunk of the lucrative but complicated market.

The CHIPS and Science Act, signed into law last year, has been championed by the White House to "boost American semiconductor research, development and production."

Chang then pointed out there is a long way to go before the U.S. actually establishes a self-sufficient chips industry due to the many challenges embedded in the industry.

Chang warned that it is "terribly naïve of the United States to think that it could rapidly spend its way into one of the most complex electronics-manufacturing markets in the world," according to the Politico report.

The former MIT student further noted that the chips industry is a complicated one, with demands in labor and raw material collection, as well as "microscopic precision" in constructing manufacturing plants. There's also the complex processes of assembling semiconductors, Chang said, as per the outlet.

Chang also said that while the massive spending package for the U.S. chips industry may work for the establishment of the sector, continuous investments are necessary to keep the ball rolling.

Chang added that the U.S. needs to keep investing in Taiwan's security if it wants to secure an independent and reliable chips industry, considering that TSMC has mastered the sector that the U.S. is only attempting to create at this point.

Pelosi visited Taiwan early in August 2022 amid threats of potential Chinese retaliation, CNN reported. The Chinese Ministry of Foreign Affairs said at the time that Pelosi's visit "gravely undermines peace and stability across the Taiwan Strait, and sends a seriously wrong signal to the separatist forces of 'Taiwan independence.'"

A photo of Pelosi with Chang and Taiwan's President Tsai Ing-wen, as well as other individuals from the two sides' delegations outside the Taipei Guest House, has been released to the public.

TSMC said its chairman Mark Liu did not have a private meeting with Pelosi, adding that the semiconductor giant has no comments regarding the CHIPS Act, according to the Taipei Times.

There have been concerns about the possible consequences of Pelosi's visit to Taiwan, with one analyst commenting that he thinks China will "nationalize" TSMC if Beijing decides to invade Taiwan due to heightened tensions.

In December last year, TSMC announced its plans to triple its initial investment of $12 billion to $40 billion for the construction of two semiconductor manufacturing facilities in Arizona that are estimated to hit an annual revenue of $10 billion when the plants are operational.

The first chip fabrication facility, or fab, is expected to be up and running by 2024, while the second fab is expected to be completed by 2026.