TSMC Founder Morris Chang Says Globalization and Free Trade Are ‘Almost Dead’

TSMC founder Morris Chang said globalization and free trade are “almost dead” during the opening ceremony of the company’s advanced chip plant in Arizona. His wording stopped short of calling either completely dead, describing instead a global supply chain that has been heavily reconfigured.

The shift comes amid rising geopolitical tensions, particularly between the US and China, and efforts to bring manufacturing closer to home. Countries are also forming blocs rather than pursuing ever-closer global ties and free trade, the source article says.

Supply chain shocks since COVID-19 have affected businesses and consumers. The chip shortage from 2020 to 2023 was described as a major disruption across sectors worldwide. The source attributes it to increased electronics demand during lockdowns, geopolitical strains and the end of just-in-time logistics.

More recently, a memory shortage has affected companies and consumers. The article links the bottlenecks in consumer-grade memory, including DDR5 RAM and SSD storage, to the AI boom: growing demand for AI data centers and high-bandwidth memory has put pressure on production.

TSMC produces around 90% of the world’s most advanced semiconductors and holds up to 70% of the global contract chip-making market, according to the source.