Morris Chang, the co-founder of Taiwan Semiconductor Manufacturing Company (TSMC), expressed his confidence in the company's ability to continue "creating miracles" within the global semiconductor industry. Speaking at TSMC's annual Sports Day, he emphasized the company's resilience and innovative capabilities amid geopolitical challenges and shifting trade dynamics that threaten global supply chains.

Chang highlighted TSMC's commitment to cutting-edge technology and efficient manufacturing processes as key factors that will enable the company to maintain its leadership position. He noted that TSMC is advancing towards mass production of its 2-nanometer process technology next year, with plans for an even more advanced A16 process set for commercial production in late 2026. Despite the complexities of the current global landscape, including increasing tensions in international trade, Chang remains optimistic about TSMC's future prospects and its role as a critical player in the semiconductor market.

Additionally, TSMC has reported significant financial growth, with a net profit increase of 33.1% in the first nine months of 2024 compared to the previous year, and projections of 30% sales growth in U.S. dollar terms. This robust performance reinforces Chang's belief that TSMC will continue to thrive and innovate in an evolving industry landscape.

Bullish On India

Morris Chang of Taiwan Semiconductor Manufacturing Company (TSMC) is increasingly optimistic about potential opportunities in India as the country seeks to bolster its semiconductor manufacturing capabilities.

India is projected to have a semiconductor market exceeding $100 billion by 2030, driven by rising demand for electronic goods and the government's push for local manufacturing. This positions India as an attractive market for TSMC and other semiconductor manufacturers.

The Indian government is actively creating a favourable ecosystem for semiconductor production, including incentives and infrastructure improvements. Recent statements from Indian officials indicate that ground breaking for new fabs will occur soon, signalling a commitment to developing a robust semiconductor industry.

Geopolitical Considerations

As global supply chains shift due to geopolitical tensions, particularly concerning China, TSMC sees India as a strategic partner. The company is already investing heavily in fabs in the U.S., Japan, and Germany, and India's growing role in the semiconductor landscape could complement these efforts.
Interest from Major Players: Indian officials have expressed confidence that major semiconductor companies, including TSMC, will eventually establish operations in India. There are ongoing discussions between the Indian government and these companies to explore potential collaborations.

Despite the optimism, TSMC and other Taiwanese firms have yet to make significant commitments to establish fabs in India. Reports indicate that while Taiwan holds a dominant position in global semiconductor manufacturing, its involvement in India's nascent industry remains limited.
Infrastructure and Talent Development: To attract significant investments from companies like TSMC, India must enhance its infrastructure and develop a skilled workforce. Concerns about talent retention, as many trained professionals prefer opportunities abroad, need addressing to build a sustainable semiconductor ecosystem.

TSMC's bullish outlook on India reflects both the country's potential as a significant player in the global semiconductor market and the challenges it faces in attracting investment and expertise. The coming years will be crucial in determining how this partnership evolves.