The tool-in ceremony of TSMC’s new fab in Arizona was attended by prominent figures like CEOs from Apple, Nvidia, and AMD, as well as President Biden. Morris Chang, the founder of TSMC, gave a powerful speech emphasizing the death of globalization and free trade. He mentioned that TSMC’s decision to build a fab in the US is a reflection of the changing geopolitical situation. Chang also highlighted the challenges faced in terms of talent shortage, cultural differences, and cost problems that arise when establishing fabs in America. The speech shed light on the importance of the event as the “end of the beginning” for TSMC’s Arizona fab.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| TSMC’s new fab in Arizona | Shift from offshore to onshore manufacturing | TSMC Arizona becomes a key manufacturing hub | Globalization and free trade limitations |
| Death of globalization and free trade | Globalization and free trade decline | Rising cost of goods and products | Changing political and economic landscape |
| Shortage of qualified American talent in semiconductor industry | Reliance on foreign engineers for training and deployment | Increased investment in training and relocation of talent | Talent shortage and cultural barriers |
| Shift from “offshoring” to “onshoring” and “friendshoring” | Focus on domestic manufacturing and partnerships | More companies establish manufacturing operations in the US | Changing economic and political priorities |
| Transition from “tool-in” to “opening ceremony” | Progress in semiconductor manufacturing facility construction | Increased focus on production and operational challenges | Advancement of manufacturing capabilities and processes |