As the world debates whether Taiwan Semiconductor Manufacturing Company (TSMC) can revitalize Intel, Mark Liu, the former chairman of TSMC, has unveiled a more ambitious post-retirement plan. Liu has founded the Technology Competitiveness and Industrial Policy Center (TCIP) at the University of California, Berkeley, his alma mater.
During the launch event, Liu envisioned TCIP as a think tank where technologists and business leaders would engage in independent, non-partisan research. The goal is to provide policymakers with sound proposals on how to accelerate U.S. innovation in an era of intense high-tech competition.
Shankar Sastry, the new Faculty Director of TCIP and a fellow Berkeley alumnus from the late 1970s, provided an overview of the global innovation ecosystem. He noted that while the U.S. often leads in development, it struggles with scaling up production—a critical factor in creating prosperity.
Liu and Sastry have identified a key weakness in the U.S. semiconductor industry: the inability to scale production effectively. Liu once described TSMC as "not just Taiwan's TSMC, but the world's TSMC!" when explaining his decision to build chips in Arizona. He emphasized that staying confined to Taiwan would be a lack of progress.
However, TSMC's progress in Arizona has been hindered by cultural clashes and a lack of infrastructure for chip manufacturing. Liu faced significant pressure during his tenure. Notably, he did not attend the book launch event of TSMC's founder, Morris Chang, and Chang did not mention Liu during his speech.
Liu's retirement was announced by TSMC in December 2023, with C.C. Wei nominated as his successor. Liu will not remain on the board of directors. In a press conference in April 2024, Liu cited a desire to spend more time with his family as the reason for his retirement. However, media speculation suggests that the lack of U.S. government subsidies for TSMC's Arizona fab and negative publicity from labor unions may have played a role.
The decision to invest in Arizona was initially met with skepticism by Chang, who criticized the futility of de-globalization. However, political pressure from both the U.S. and Taiwanese governments was too great to ignore. The challenge of rebuilding a manufacturing ecosystem for advanced chips in America proved daunting. As a result, Liu became the focal point for the challenges faced in Arizona.
A senior TSMC executive noted that Liu should not bear sole responsibility for these challenges. The decision to expand to the U.S. was influenced by broader geopolitical considerations, including the U.S.-China rivalry.
Liu is known for being a reserved yet diligent individual and a devout Christian. His sudden retirement surprised many, given his age and health. However, the passing of a close friend may have prompted him to reevaluate his priorities.
During his tenure as chairman, TSMC's revenue and net profit tripled, and its market cap increased by 3.5 times. Now, through TCIP, Liu aims to bridge the gap between innovation and mass production by leveraging American and Taiwanese talent.
Liu's initiative is reminiscent of other TSMC executives who have continued to contribute to the industry through university affiliations after retirement. TSMC has a unique culture that encourages its engineers to pursue missions beyond their careers. In the podcast, we will delve into some of Liu’s colleagues under Morris Chang and their endeavors that have made TSMC a world leader in the semiconductor industry.
Please listen to the second episode of the TechSoda podcast. We apologize that the AI podcast is unable to distinguish between the past and the present. However, you will learn about some interesting facts from the history of TSMC and Mark Liu through the discussions led by the AI hosts.
Other references used for the podcast:
1. https://esg.businesstoday.com.tw/article/category/190807/post/202406110038
https://www.nytimes.com/2023/08/04/technology/tsmc-mark-liu.html
https://www.there100.org/our-work/news/interview-tsmc-its-increased-ambition
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