pramaanik

thanks

In 2022 TSMC Chairman Mark Liu appeared in a rare interview with CNN’s Fareed Zakariya.In the interview, Liu categorically says that if China were to take over Taiwan, it would find TSMC’s facilities unusable because their secret ingredient is human capital and real-time international collaboration with companies for materials, software, hardware, and know-how.

Part 1: https://edition.cnn.com/videos/tv/2022/07/31/exp-731-taiwan-... Part 2: https://edition.cnn.com/videos/tv/2022/07/31/exp-gps-0731-ma...

China is the only middle-income country in the Global Innovation Index top-30 (at 11th place in 2022).

There are a range of theories that try to explain China's rise in this area: state capitalism, technology theft, returnee talent, or forced technology transfer.

I feel it's a combination of some fundamental factors. Higher investment in education and infrastructure, a benign geopolitical climate that permitted technology transfers, and a State focus on innovation.

While many individual policies have failed to deliver the promised results, they have been able to spur private R&D investment.

What is your view?

At a broader level, this accident again shows how vulnerable the semiconductor supply chain is, and it's not just because of geopolitics. I like the analogy by Willy Shih at HBS - "semiconductor supply chain is like a transcontinental relay race with hidden hurdles".