Why did Morris Chang say yes?

Before the end of the year, there will be 6 chartered flights to transport more than 1,000 key TSMC employees and their families to Phoenix.
According to the plan, it is expected that more than 3,000 TSMC talents will eventually be sent to the United States, and they will become the long-term core talents of TSMC's U.S. factory.

[colinlee]

It is so obvious that this TSMC boss has acted a a traitor to Taiwan by siding with the US and acting in the best interests of the US !

[Monkey]

The US is going to tear apart TSMC like it did to ALSTOM of France and TOSHIBA of Japan.

[sammytanzo]

USA being good to Taiwanese is too good to be true

[khalimero]

I guess when TSMC moves to the US, the US dont need to get involved any more if China attacks Taiwan in the near or distend future.
So this has never been about the Taiwanees people but about control over the semiconductor industry by the US.
Al this would not surprise me at al because it seems to me like the US is hauling ass to get this done fast..

[easternrazor]

I just have a question. When Tesla decided to open their plant in China did they ship thousands of talents and their families to China? The same of Apple.
This has nothing to do with just profits. It is a complete deindustrialization of Taiwan semi conductor industry
One shudders to think what is going to happen to the Taiwan staff when US no longer needs them?
Will the Taiwan staff be accused of "spying" and tailed by FBI in their every movement, conversation, social post etc.
Knowing that US is paranoid....things will be rough.

[MASMIWA]

TSMC's move to the US will have a serious effect on Taiwan's economy. The Chinese mainland companies like SMIC will rush to fill some of the void. It looks like ASML is on the verge of selling its EUV lithography machines on the mainland as it ramps up its China staff and projects huge EUV sales in the future.

TSMC's operation is off to a bad start of the Taiwanese are complaining about their situation in Ameria. There were issues even before they left to the US and it was said that many TSMC workers refused to go. Now, the feedback could make TSMC's task of manning up to 3000 workers may not be realized. Everything smells of a failed venture like Foxconn found out in its US venture in Wisconsin. What makes TSMC think it can find qualified workers when Foxconn couldn't and their experience at their Oregon factory showed poor business success and Taiwan employees only signed up for temporary assignments?

This video makes it sound like these transplanted employees are permanent, yet there are media reports saying otherwise. It will be interesting to see how the demographics play out. MediaTek may start using SMIC or even start its own fab with TSMC employees refusing to move to the US.

While the big narrative is that top customers for TSMC are American companies, the US has supported Intel most in this attempted rise in bringing more fabs to the US. Several things come to mind: First Apple's depends on mainland China sales of their iPhone. It had tried several times to move offshore their assembly from China and failed in almost all endeavors because the supply chain is dominated by Chinese and Asian suppliers. If sales drop in Asia, Apples orders to TSMC will drop as we are seeing happening right now. Qualcomm depends on the China market as Chinese mobile phone makers are using Qualcomm or MediaTek chips in their phones. MediaTek is winning over Qualcomm in mobile phone chip sales. One can expect even more as Qualcomm's high end chips are banned from US exports to China.

The big winner will be Intel. It is getting the lions share of the US subsidies, Intel is getting a hand on production transition to higher nodes than 7nm. You can bet that some of TSMC's manufacturing processes will leak to Intel In the end, if there is a winner, it will be Intel.

China will be the biggest winner in this semiconductor war as disillusioned Taiwan TSMC employees see Taiwan as a dead end. More employees will migrate to the mainland to seek their future. TSMC will have to sell its China 'mature node' manufacturing since one of the conditions of this agreement is that they cannot improve their China operations for 10 years.

If ASML does increase its sales on the mainland and if its EUV machines can be sold on the mainland, for the most part, the fabs in the US will be uncompetitive in the world. The US may have to perpetuate subsidies to have a price point so it can sell worldwide. This is the same issue with the US auto industry. The 'Inflation Reduction Act' provides a per vehicle subsidy for American manufacturers so it can compete. The Europeans are complaining and threaten retaliatory tariffs in kind.

It is interesting that the US government complains about Chinese and European subsidies to domestic businesses, yet it has been doing this forever. This only makes those subsidies broader and more significant. Oil and Agriculture subsidies are a thing of the past.

And, ---there could be a black swan event where the rise of carbon, photonic, and quantum chips become reality, the whole issue of 5nm node (and better) silicon chips may be moot. It is said that these chips don't require the purchase of a $200 million EUV lithography machine. China is said to have a photonic CPU chip design completed and an photonic production line is slated for 2023.


Bottom line, Morris Chang may know this is his last hurrah in which he sees no choice but to end the TSMC empire. He is the captain of the Titanic and knows he has hit an iceberg. If the above scenario plays out, Taiwan may become more receptive to be a part of greater China, if only to survive. Even now, Taiwan depends on the mainland for 42% of its exports and 22% of its imports and already has about two million Taiwan Chinese living on the mainland. If this were to happen, Biden would have a heart attack.

[BryanChance]

Great video.. now I have a much better understanding of the relationship between TSMC, ASML, China/US.

[sammytanzo]

TSMC SHOULD NOT TRUST USA....LOYALTY SHOULD LEAN TOWARDS THE MOTHERLAND

[nlee]

TSMC will never get off the shackles! Poor TSMC engineers and welcome to the 21st century slavery!!

[benghui]

Soon TSMC will be rename ASMC, American semiconductor manufacturing company.

[ric]

Of course the products will be hell lots of expensive until nobody wants to buy.

[shuilong]

my heart feel sorry to the people of Taiwan, they have taken to the cleaner by TSAI. With TSMC being transferred to USA, With TSMC gone to usa Taiwan has LOSS HER CROWN JEWEL WITH nothing left

[ghenghiskhan]

His name is Morris. Do not fail to take note of that.

[akli]

Morris Chang was against this decision. It's the current CEO that made this decision. It will another Toshiba and Alsthom. Client base all USA companies that can cut orders at will.

[ahjotco]

Would these new taiwanese employees be discriminated against and be accused of spying for "China"?

[tienshou]

The whole area will be filled with Chinese restaurants, bubble tea parlors, and grocery stores with a lot of Chinese kids and soon becomes a Chinatown like Oakland Chinatown.

[riaskolamulathilabdulla]

With the prsent wages in US, cannot expect the company to turn to profit by manufacturing semiconductors at market price. Orelse make it Robotic oriented factory to overcome the high Salary burden(Dollar value). This factory can be turned to an R&D centre (under subsidy)for making advanced chips, supplying for NASA and Defence purposes.

[darthpaulx]

TSMC moves to US and after 2 years+ it's bye bye TSMC.
They took the death road.

[SafepathUS]

TSMC better quality Microchips & soon more Nano chips, stays in Taiwan as related videos explain. This partial move, only helps our US a little. We hear we don't have enough talents in these related topics. Yet China, Taiwan and Asian countries are smarter when it comes to efficiency and innovation too.
Think about it 🤔
Billions of harder working dedicated people trying harder to improve lives and at faster rates than our tarnished US reputation and thankfully they're sharing the future as most countries want to and not sanctions to limit others as our corrupt systems do .

My renewed passport is ready for many reasons to go to China and share business with others 👍 🙏 😀

[davidwongnyc]

So…. US is using economic coercion on TSMC. I thought the US said only China does it.