TSMC may face stiffer competition in the semiconductor industry. This was stated by the founder of the Taiwanese manufacturer Morris Zhang, writes Nikkei Asia.

He explained his opinion by saying that TSMC’s competitors are taking advantage of governments around the world’s desire to increase their own chip production capacity for national security reasons.

“In the semiconductor space, there is no globalization anymore; there is no free trade anymore,” he said. “The priority is national security only. I see this global competition going on. Our competitors may take advantage of this geopolitical trend, and want to beat us.”

Morris Zhang names Intel as one of the competitors. The largest US chipmaker is stepping up its efforts to get into the contract chip manufacturing industry, which is dominated by TSMC.

However, the TSMC founder warns that Intel will have a good chance of competing only if it can offer the same level of service, reliability, scale, and price as the Taiwanese company.

When asked by Nikkei Asia which regions among the US, Europe, Japan, and Southeast Asia have the best chance of winning the chip manufacturing race, Morris Zhang singled out Japan and Singapore.