A forecast said Taiwan TSMC's foundry (contract chip manufacturing) competitive edge will last about 5 to 10 years.
Taiwan's Central News Agency reported that Ye Junxian, chairperson (Minister level) of the National Development Council (NDC), a policy planning agency under the Executive Yuan, said at a media event on the 17th (local time), "TSMC's advantage could be maintained for at least 5 to 10 years."
TSMC secured trust by focusing on contract manufacturing instead of creating its own brand, the founder set a principle of not competing with customers, and support from systems such as education and the industrial ecosystem, as well as Taiwan's work culture, were also seen as factors in TSMC's success.
Ye added that, as a "plus one" (+1) success factor, it was also very important that the Taiwan government set technical restrictions on overseas semiconductor investment. Ye said, "If it had not, we could have faced the same situation as other industries in Taiwan moving to China and ultimately being replaced by China," adding, "The United States is currently taking the same approach, stipulating that certain processes cannot go overseas."
He went on, "Thanks to demand from client companies seeking to secure goods ahead of U.S. tariff imposition, Taiwan's second-quarter growth rate exceeded 8 percent," and explained, "There is no such demand in the second half, but the AI boom remains, and orders from TSMC's client companies are fully booked through the end of next year."
He then said that AI is driving exports and domestic investment, adding, "It should not be too difficult for this year's economic growth rate to exceed 4 percent." Earlier, Taiwan authorities also raised this year's growth forecast last month from 3.1 percent to 4.45 percent.