The Last Semiconductor: From Morris Chang to the Quantum Future
All the eyes are in NVDIA but the real opportunity is TSMC.As the era of semiconductors reaches its peak, the quantum age is on the horizon.
Imagine Morris Chang, a young man with ambition and the courage to chart his own path after two rejections from MIT’s PhD program. Redirected into industry, he joined Texas Instruments, rising through the ranks. Yet, despite his achievements, he was met with the walls of discrimination. Chang realized something crucial: he needed to build his own empire if he wanted true impact. And so, he left for Taiwan—not just to build a company but to create a foundation for what would become one of the most critical sectors of the modern world.
TSMC: Reinventing the Semiconductor Paradigm
In the 1980s, as chip companies handled both design and production in-house, Chang envisioned a different model. He founded TSMC as a pure-play foundry—a manufacturer dedicated solely to producing chips for other companies. It was a groundbreaking separation of design and manufacturing that allowed TSMC to perfect production at an unprecedented scale and quality. Apple, NVIDIA, and Qualcomm didn’t just become TSMC’s clients; they became co-creators in a shared vision of advancing technology. TSMC wasn’t just making chips; it was enabling the digital infrastructure for the world’s most groundbreaking tech.
The Semiconductor Wars: Power in Every Chip
Today, TSMC’s technology is more than just advanced—it’s irreplaceable. As detailed in Chip War, the semiconductor industry has evolved into a geopolitical tool with enormous stakes. TSMC, capable of producing cutting-edge 5nm chips, has reached a level that few can match. Nations understand this: whoever controls semiconductor production controls the future. Advanced chips power everything from AI to national defense. TSMC’s dominance makes Taiwan a strategic focal point, amplifying the stakes in this technological “cold war.”
The U.S. and China are deeply invested in the semiconductor power struggle. With TSMC at the heart of the global supply chain, Taiwan has become a keystone in the delicate balance of technological power. But Chang’s vision and TSMC’s capabilities have allowed it to surpass simple manufacturing dominance; they have transformed it into an indispensable foundation of modern global innovation.
All the eyes are in NVIDIA (Black), but the real opportunity is TSMC (RED)
Reaching the Limits: The End of the Semiconductor Era
TSMC’s trajectory has been breathtaking, but the semiconductor industry now faces the limits of Moore’s Law. As TSMC’s chip designs approach atomic scale, they encounter quantum interference and heat dissipation issues that classical chips can no longer handle. Moore’s Law—the principle that computing power doubles every two years—is nearing its end.
The Dawn of Quantum Computing
Beyond the boundaries of classical semiconductors lies the next frontier: quantum computing. Unlike traditional bits confined to binary states, quantum bits—or qubits—exist in multiple states simultaneously. Quantum computing leverages superposition and entanglement, making it possible to solve problems at scales that classical computers could never dream of. Quantum technology doesn’t just sustain Moore’s Law; it renders it obsolete, promising an exponential leap in processing power.
TSMC isn’t building quantum computers directly, but it’s laying the groundwork for Taiwan’s role in this new era. Taiwan’s government has invested NT$8 billion in quantum technology, partnering with institutions like Academia Sinica and establishing a research base in Tainan. This initiative, with TSMC’s support, ensures that Taiwan will be pivotal in the future of computation. Taiwan is positioning itself not just to adapt to the quantum shift but to lead it, continuing Morris Chang’s legacy into the quantum future.
A Legacy Transcending Silicon
Morris Chang didn’t just build a semiconductor company; he built the world’s most crucial tech foundation. TSMC’s foundry model, global influence, and pivotal role in the “chip wars” make it much more than a business success—it’s a legacy in the making, one that will guide the transition from silicon-based technology to the new possibilities of quantum computing.
As the era of semiconductors reaches its peak, the quantum age is on the horizon. TSMC has been the linchpin of one technological epoch, and its support for quantum research suggests it will play a role in the next. Morris Chang’s story is a reminder that true visionaries look beyond what is, daring to imagine what could be.
Welcome to the quantum future.
Thanks for reading,
Guillermo Valencia A
Cofounder of Macrowise
October 27th 2024