Chip lords: the world's most important company

芯片霸主

Money Talks from The Economist

2025-07-24

44 分钟
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Around 90% of the world's leading chips are made by TSMC, and most of them in Taiwan. Without those chips, the most critical advancements in AI—or even in the latest iPhone—would not have been possible. So how did one company become so dominant? And should the world be so dependent on chips made in a country on a geopolitical faultline between China and America? Hosts: Ethan Wu and Mike Bird. Guests: The Economist's Shailesh Chitnis; Chris Miller, author of “Chip War”; Asianometry founder Jon Yu; and Wendell Huang, CFO of TSMC. Transcripts of our podcasts are available via economist.com/podcasts. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.
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  • The Economist.

  • In the 1980s, Taiwan was still living under military dictatorship.

  • Poverty was widespread.

  • Taiwan was a strange place to me when I first went there in 1985.

  • Morris Chang was 54 at the time.

  • He'd grown up in mainland China and spent his adult life in America.

  • But his decision to move to Taiwan would transform the island's industrial fortunes.

  • The Prime Minister of Taiwan had the foresight to start a semiconductor development project in Taiwan.

  • Chang was invited to head up that initiative.

  • At the time, I had already worked in the industry for 30 years,

  • and I had already been the head of the largest semiconductor operation business in the world, Texas Instruments.

  • He soon set up a rival firm, Taiwan Semiconductor Manufacturing Company, or TSMC.

  • Cheng invested heavily in R&D as he sought to catch up with

  • and overtake firms at the cutting edge of global chip manufacturing.

  • It was a long slog, but it paid off.

  • Today, TSMc completely dominates the industry.

  • Their fabs in Taiwan produce 90% of the world's leading edge chips.

  • There's just one small snag.

  • In a show of force, China sent a dozen warships and over 70 military aircraft in drills encircling Taiwan.

  • Taiwan famously sits on a geopolitical fault line, and that's not all.