TSMC s American dream is shattered, is there a way back for Zhang Zhongmou?

Mondo Tourism Updated on 2024-01-19

TSMC's plan to build a factory in the United States has been postponed for various reasons, which undoubtedly casts a shadow on the American dream. Previously, TSMC announced plans to invest $40 billion to build a factory in the United States, intending to produce high-end semiconductors in the United States. However, the implementation of this plan has encountered unprecedented difficulties. The subsidy conditions proposed by the United States** were rejected by TSMC, and the company began to think about returning to the Chinese mainland market. Does this mean that TSMC founder Zhang Zhongmou intends to return to his hometown?Perhaps, Zhang Zhongmou just saw that he would not get benefits and face risks if he continued to invest in the United States, so he chose to stop losses in time. In any case, TSMC's American dream has been shattered and faces enormous challenges.

Although TSMC and the United States have pursued each other earlier and planned to turn TSMC into "American Semiconductor Company", everything is just an illusion of the "honeymoon period". When the plan was put into effect, TSMC realized that the previously promised preferential policies and subsidies were either cut or non-existent. In addition, the lazy and arrogant workers in the United States were unable to complete the installation of the equipment on time, which led to the postponement of the construction plan. To make matters worse, TSMC has had to endure accusations from labor unions in the United States, who argue that TSMC is not to blame the workers. However, in fact, TSMC has invested a large amount of money in the United States, and the company's market value has evaporated by $77 billion since mid-June, which indicates that the capital market is not optimistic about TSMC's future development. And the financial performance data of the last two months is not optimistic, and TSMC's revenue has seen a double-digit decline. It seems that TSMC's cooperation plan with the United States has failed to meet expectations, which has instead led to difficulties and setbacks for the company.

At one time, TSMC and the United States thought that their cooperation could monopolize the global chip manufacturing industry, but they never expected the development speed of China's semiconductor industry to be so amazing. Now, the global chip market is gradually shifting from a shortage to a surplus, which highlights TSMC's wrong decision. Not only did they choose to relocate their factories to places where production costs were extremely high, but they also misestimated the strength and competitiveness of China's chip industry. In such an environment, the problems faced by TSMC have become particularly serious, and it is not easy for them to turn back.

In the face of TSMC's choice, is there a way back?For TSMC, returning to the Chinese mainland market is not an impossible option. China's semiconductor industry has made tremendous development in recent years, with strong technical strength and scale advantages. At the same time, China is also vigorously supporting and guiding the development of the semiconductor industry, providing a broad market and policy preferences. If TSMC can seize this opportunity and return to the Chinese market, there may still be a glimmer of hope. Of course, this is not to say that TSMC can easily turn around, the competition in overseas markets is still fierce, and TSMC needs to play a greater advantage in technological innovation, cost control and marketing to achieve success.

Looking back on the entire TSMC "American Dream", it has to be said that it was a failed experiment. Although TSMC and the United States were full of interest at the beginning, they encountered various difficulties and setbacks in the actual implementation. This story also provides us with some thoughts: in the context of globalization, when an enterprise chooses market expansion, it can not only look at short- and medium-term benefits and policy preferences, but also need to carefully consider long-term development and its own core competitiveness. For TSMC, although they are currently facing huge challenges, it does not mean that they do not have a chance to turn defeat into victory. Only by constantly adjusting strategies, enhancing their competitiveness, and improving management and technical level can they be invincible in the fierce global market. As the ancients said: "Self-cultivation, family harmony, governing the country, and leveling the world." "Sustainable development can only be achieved if it is both internal and external.

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