Ex-Intel CEO backs Trump's sovereign wealth fund plan — and says it can help the US keep up with China in the tech race

[Maximus]

Many governments and companies around the world have tried to copy the success of TSMC and Taiwan (ROC) in the semiconductor industry. But strangely, they often follow China’s (PRC) model instead of learning from what TSMC and Taiwan actually did. This is one reason why we haven’t seen another success story like TSMC or Taiwan.

Pat Gelsinger is one example. He misunderstands this and led Intel down the wrong path.

From what I’ve seen, TSMC and Taiwan followed free market principles more than government intervention. The government did play a role, but it was limited, especially when it came to providing founding capital. This could be an interesting topic to explore in a separate thread.

That’s a interesting point and it does make some sense. However, I can see how others—particularly many in China—might argue that SMIC was already on a successful trajectory, and that the only major obstacle to its continued rise has been the EUV embargo.

 

[Fred Chen]

Sounds like subsidized wafer yield loss Biggest incentive to not improve.

 

[Xebec]

From what I’ve seen, TSMC and Taiwan followed free market principles more than government intervention. The government did play a role, but it was limited, especially when it came to providing founding capital. This could be an interesting topic to explore in a separate thread.

FWIW.. According to wikipedia: Although the government of Taiwan is the largest individual shareholder,[11] the majority of TSMC is owned by foreign investors

i.e. Government involvement is substantial.

Also:
When Chang founded TSMC in 1987, he did so with $100 million in seed money from the Taiwanese government.

TSMC and Taiwan’s Government: Two Boats on the Same Tide - Domino Theory

The simple answer is an alignment between the interests and constraints of TSMC and the Taiwanese government. The government was instrumental in TSMC’s founding. Since then, a mutual dependency has developed. While the Taiwanese government may feel some apprehension about TSMC’s current outbound...

dominotheory.com

TSMC certainly succeeded because it was private and well run; but it wouldn't have existed without government.