At the age of 23, Shih Chin-tay was setting out on a journey with a plane ticket to the United States in 1969, embarking upon a completely novel landscape.
He was raised in a fishing village among sugarcane fields. After attending university in Taipei, the capital of Taiwan, he was familiar with a city of noisy, congested streets and dull, uniform buildings, where most people were not fortunate enough to own vehicles.
He was headed to Princeton University. With the United States having sent a man to the Moon and the Boeing 747 operating in the skies, its economy was greater in size than the combined economies of the Soviet Union, Japan, Germany, and France.
Upon arriving, Dr Shih, who is now 77, was struck with surprise. He thought to himself, "Taiwan is so poor, I must do what I can to help it improve."
Dr Shih and a number of energetic engineers transformed a sugar and t-shirt exporting island into a major electronics producer.
Taipei currently enjoys a prosperous life; the high-speed trains that shuttle people up and down the western end of the island offer astounding speeds of 350km/h (218mph). The renowned structure of Taipei 101, once the tallest building in the world, is an unmistakable representation of the city's richness.
An electronic device which usually is not much bigger than a fingernail is a major factor in the success of many technologies, for example from iPhones to airplanes. The wafer thin silicon semiconductor is often referred to as a chip and is the core of these devices.
Taiwan is responsible for producing more than half the chips that operate essential aspects of our lives. It is home to the Taiwan Semiconductor Manufacturing Company (TSMC), the ninth-most valuable company globally.
That renders Taiwan almost irreplaceable - and exposed. China, scared of being blocked off from the most advanced semiconductors, is investing billions to take away Taiwan's leadership position. Or it could even take control of the island, as it has often warned.
Replicating Taiwan's path to chip superstardom will be no easy feat; the island has a unique advantage refined through long-term, diligent efforts by its engineers. In addition, the production process involves a complex network of economic relationships which the ever-growing antagonism between the US and China is making endeavours to unravel.
Upon his arrival at Princeton, Dr. Shih recalls "the US was just starting the semiconductor revolution".
It had been ten years since Robert Noyce developed the "monolithic integrated circuit", which saw electronic components placed onto one wafer of silicon - a primitive form of the microchip that heralded the emergence of personal computers.
For the two years following Dr Shih's graduation, he worked on designing memory chips for the Burroughs Corporation, making it the second largest computer-maker second only to IBM.
At that moment, Taiwan was searching for a new industry to replace the one that had suffered from the oil crisis that had drastically reduced its exports. Dr Shih believed he could contribute by looking into silicon, reasoning to himself, "It was time to come home."
In the late 1970s, he became part of a group of Taiwan's finest electrical engineers at a pioneering research lab - the Industrial Technology Research Institute, which sounded rather dull, would have an immense impact on transforming the island's economy.
Work commenced in Hsinchu, a small municipality located south of the Taiwanese capital Taipei, and it has evolved over time into a worldwide electronics center overseen by TSMC's gargantuan fabrication facilities. These semiconductor factories, covering an area the size of multiple soccer fields, are some of the cleanest spots on the planet. The precise manufacturing processes employed are strictly kept under wraps and no video cameras from outside are allowed entry.
Soon, the nearly $20bn fab 18 in southern Taiwan will be producing three-nanometre chips meant for use in the newest iPhones.
Dr Shih and his team were filled with optimism when they started up an experimental plant in the 70s. With technology obtained from a large American electronics manufacturer, they expected success - but were confounded when the factory did even better than its parent. To this day, the exact reasons for Taiwan's grand success are still difficult to explain.
Dr Shih remembered it rather blandly: "The production was better than at the RCA factory, with less expenditure. This assured the state that we were likely capable of achieving it."
First the Taiwanese government provided the initial funds for the United Micro-electronics Corporation, and then in 1987 to set up what later became the largest chip manufacturing plant in the world - TSMC.
Morris Chang, a Chinese-American engineer and ex-executive from US electronics behemoth Texas Instruments, was hired to make it operational. Unbeknownst to everyone at the time, this proved to be a fortunate or brilliant decision - the 93-year-old is now regarded as the patriarch of Taiwan's semiconductor sector.
He soon realized that trying to compete with American and Japanese giants at the same level would be unsuccessful. Therefore, TSMC chose to only produce chips for others, not designing their own.
In 1987, a revolutionary "foundry model" was introduced, transforming the industry as a whole and making Taiwan the front runner.
The emergence of Silicon Valley's latest startups, such as Apple, AMD, Qualcomm, and Nvidia, was perfectly timed, since they lacked the resources to create their own fabrication plants and would have faced difficulty finding manufacturers for the chips essential to their operations.
Dr Shih states that they were initially going to have to approach well-known semi-conductor organisations to enquire if they had any extra production capabilities, before TSMC came on the scene.
California's "fabless" companies could now collaborate with Taiwan's chip producers, who had no goals of pilfering their designs or contending with them.
Dr. Shih states that the primary regulation at Taiwan Semiconductor Manufacturing Company is not to vie with their patrons.
Annually, approximately one trillion computer chips are manufactured across the globe. Nowadays, automobiles can be outfitted with anywhere between 1,500 to 3,000 chips. The recently released iPhone 12, for example, implemented around 1,400 integrated circuits. Supplies of semiconductors in 2022 were insufficient to meet requirements during the Covid-19 pandemic, causing a reduction in earnings from washing machines and BMW cars alike.
Taiwan's remarkable success in manufacturing is demonstrated by its production of more than half the world's trillion-plus chips, a majority of which are of the most advanced variety; this has been made possible by its proficiency in large-scale production. To put it another way, the Taiwanese manufacturing system is highly efficient.
Producing silicon chips is costly and meticulous. It commences with an expansive block of extremely pure silicon which has been grown from a single crystal. The growth process of the ingot may take multiple days and can weigh up to 100kg.
Once a diamond cutter has sliced the slab into slender wafers, a machine then employs light to etch micro circuits onto every single wafer. There may be hundreds of microprocessors on an individual wafer, and billions of circuits in total.
The ultimate purpose is to secure the yield - that is, the portion of each wafer that is capable of being used as a chip. In the 1970s, US companies had a yield of anywhere from 10% to a maximum of 50%. By the 80s, the Japanese yielded an average of 60%. Allegedly, TSMC has outdone them with a yield that usually sits around 80%.
Through the years, Taiwanese companies have accomplished putting more and more circuits into surprisingly small areas. Utilizing today's latest extreme-ultraviolet light lithography devices, TSMC can engrave 100 billion circuits onto one microprocessor, or more than 100 million circuits for each square millimetre.
What is the reason for the success of Taiwanese companies in this area? The precise cause remains a mystery.
According to Dr Shih, it's a straightforward situation: they invested in new facilities equipped with the most modern technology, and assembled a team of engineers and operators who were all highly proficient. Furthermore, they not only obtained new techniques from the US, but they used a process of continuous improvement to utilize those techniques.
The individual who had been employed by one of Taiwan's major electronic corporations for quite a few years admits: "I believe that Taiwan's companies lack the capacity to pioneer groundbreaking technologies. Though, they are quite proficient when it comes to taking another person's invention and enhancing it. This capability has been honed through a steady process of experimentation and adjustment of minor aspects."
This is a crucial factor because in a semiconductor fabrication plant, the machines must be regulated regularly. Manufacturing microchips is a form of engineering but it is also more than that. Many have likened it to cooking, like concocting a delicious feast. Place two chefs in a kitchen with the same ingredients and recipe and the chef with more skillful cooking style will be able to prepare the better meal.
Put in different terms, Taiwan has an unbeatable ingredient.
The unnamed young man refused to divulge either his name or that of his company, but indicated that Taiwanese firms possess another advantage.
He commented that although engineers at the top firms in Taiwan are paid significantly less than those in the United States, their salaries are quite desirable compared to other Taiwanese industries. After a few years employed at a large electronics corporation, it will be possible for a person to attain a home loan, purchase an automobile, and commence married life. Thus, despite the low wages, many people opt to stick with this occupation.
He explained a 6-day period that usually began every morning with a meeting at 7:30 a.m. and would generally go on until 7:00 p.m. Furthermore, he would be requested to come in on weekends or holidays if any issues arose at the plant.
Without people who are ready to do the work, the business would be doomed. Thanks to individuals who are prepared to put up with hardship, these enterprises succeed.
In December 2022, TSMC paved the way for a $40bn factory in Arizona, a US state. President Joe Biden praised it as an indication that high-tech production was reappearing in America.
Since then, the news stories have been less positive.
Headline 1: Unheeded Warnings At Arizona Chip Plant
Headline 2: TSMC Recruitment Difficulties Amidst Union Pressure
The initiation of chip production which was planned for the next year has now been delayed until 2025.
From the beginning, the former Chairman of TSMC, Dr Chang, expressed his strong doubts. Last year, he referred to the decision to expand semiconductor production in the US as an "expensive and futile endeavor," because the cost of fabrication in the US would be 50% higher than in Taiwan. However, Taiwan's renowned abilities in chip-making have thrust it right in the middle of the ongoing tech battle between the US and China.
Washington aims to stop Taiwan from providing China with the advanced chips that it believes will be used to speed up its weapons development and progress its AI technology.
Following Russia's aggression in Ukraine, which disrupted Europe's energy provision, US politicians are nervous about Taiwan, for the concentrated high-end chip production on the island makes the US economy vulnerable to a potential Chinese assault.
Taiwanese companies are begrudgingly shifting production away from Taiwan due to political pressure, despite the lack of an economic incentive to do so.
Taiwanese people object to the notion that they should be held responsible for their accomplishments - and that Taiwan should voluntarily weaken its defense capabilities, deemed by some to be an impenetrable wall of technology, while other nations remain undecided on whether to safeguard the island and its democratic government against Chinese hostility.
Dr Shih expresses his disagreement with those who are attempting to reform global chip production without fully understanding its success.
He commented that semiconductor history does not have one single-country as its driving force. Taiwan may lead the way in manufacturing, but the supply chain and innovative ideas from all participants are what fuel the industry's progress.
A large share of the world's raw silicon originates from China, although most of it is used by the solar power sector. Germany and Japan are the primary suppliers of the chemicals needed for the production of wafers.
The German optoelectronics company Carl Zeiss, more commonly known for eyewear and camera lenses, manufactures optical components which are utilized in the lithography machines made by the prominent Dutch organization, ASML. The production process follows designs from American and UK-based Arm corporations.
Dr Shih expresses skepticism that Beijing has the capability to construct a chain, from raw materials to design and ultimately to superior production, within China.
He shrugged and said, "Good luck to them if they want to come up with something different, but to actually achieve innovation, you gotta have collaboration from people from all over the place - not just one firm or country."
He is just as unconvinced as the US about excluding China.
He commented, "It was a huge mistake, retrospectively speaking. I'm fortunate to have seen Taiwan's rapid economic expansion along with that period of peace. Unfortunately, it looks like unrest is spreading in many other countries, and I'm concerned it may eventually reach Asia."
I earnestly wish that individuals will recognize the valuable exertion we put forth and won't ruin it.
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