Morris Chang, co-founder of Taiwan Semiconductor Manufacturing Company (TSMC), expressed confidence in TSMCs ability to continue creating miracles in the global semiconductor industry despite ongoing geopolitical challenges and trade disruptions. Speaking at TSMCs annual Sports Day, Chang emphasized the companys resilience and its focus on innovation. He noted that TSMC is progressing towards mass production of its 2-nanometer technology next year, with an even more advanced A16 process planned for late 2026, keeping the company at the forefront of semiconductor manufacturing. Chang also highlighted TSMCs impressive financial performance, including a 33.1% net profit increase in the first nine months of 2024, along with a projected 30% sales growth in U.S. dollar terms, underscoring TSMCs strength in a shifting industry landscape.

Optimism About India: Chang is particularly optimistic about Indias potential as a growing semiconductor market, with projections that Indias semiconductor market could surpass $100 billion by 2030. India’s rising demand for electronics and the government’s push for local manufacturing make it an attractive opportunity for TSMC and other global semiconductor companies. The Indian government has been fostering a conducive environment for semiconductor manufacturing by offering incentives and improving infrastructure.

Geopolitical Context and Opportunities: With global supply chains shifting due to tensions, particularly involving China, TSMC views India as a strategic partner. The company has already made significant investments in fabs in the U.S., Japan, and Germany, and sees India’s growing role as complementary to these efforts. Indian officials have been in discussions with major semiconductor players, including TSMC, to encourage future investments.

Despite this optimism, TSMC and other Taiwanese companies have yet to make significant commitments to set up fabs in India. Concerns around Indias infrastructure and talent development, including the challenge of retaining skilled workers, remain key barriers to realizing Indias full potential in the semiconductor space. However, Changs bullish outlook reflects the growing importance of India in the global semiconductor market, with the next few years being crucial to the partnership’s evolution.

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