When Morris Chang was interviewed after the Industrial Technology Research Institute (ITRI) Academia Sinica meeting, he made the following statements. He stated that the Chinese government forbids products that are manufactured outside Chinese territory to be sold locally. This includes Samsung and Intel, and they must obey this regulation and establish factories in China.

Due to this issue, TSMC is also planning to move a portion of its production to China in anticipation of the N-2 generation (28 nm) in order to avoid a situation of being unable to obtain local orders.

Morris Chang pointed out that the Chinese market is growing extremely rapidly and TSMC has not had a base in China for the past ten years. Now it has surpassed Japan and has an equivalent to TSMC’s revenue in Europe, and it is expected to surpass Europe within the next few years.

Currently, China clients’ primary demand is for 28nm, and it will be the trend for the next five to eight years.

However, he emphasized that TSMC’s production in Mainland China will still only be a small portion, and the primary production base will definitely remain in Taiwan.

As for ideas regarding the expansion of N-2 (28nm) in China, they are still being evaluated, and there are not any concrete specifics. However, the proportion will not be expanded beyond 10%.