Addressing employees at the company’s annual sports day, [no, really.ed]  Chang said globalisation and free trade are on the decline, which would lead to more countries competing with TSMC.

“Free trade of semiconductors, particularly the most advanced semiconductors, has died. In such an environment, our challenge lies in how to continue to drive growth,” he said.

He said that TSMC is now truly a turf all major powers want to secure.

The Apple and Nvidia supplier makes 99 per cent of the world’s AI accelerators, though it is restricted from making the most powerful AI semiconductors for Chinese customers.

SMC CEO C.C. WEi  said that progress on the 2nm technology is on track, with the A16 process now unveiled. Positive developments were also reported across TSMC's global sites: the Japan fab officially opened, groundbreaking began in Germany, and advancements continued in the US facilities.

TSMC's role in the global semiconductor industry has become increasingly pivotal, and its responsibilities have grown in tandem

TSMC is expected to report record revenue this year on strong AI demand and the price of its shares have nearly tripled since late 2022 after OpenAI launched ChatGPT.

However, TSMC is limited from providing its most advanced AI chips to Chinese customers as Washington and its allies work to hinder Beijing’s access to the technology, Bloomberg said, adding that China makes up 10 per cent of the company’s revenue.