---Political pawn TSMC---
TSMC is a very exciting company that is said to even have a technological edge over the competition.
Nevertheless, or mainly because of that, they are in the focus of the great powers China and the USA.
"...Dazu Taiwan is also the world's most important chip manufacturer. The company Taiwan Semiconductor Manufacturing Inc. (TSM) is the technological bellwether of the chip industry. TSMC is the world's largest independent contract manufacturer of semiconductor products with a significant technology advantage over its downstream competitors." [1]
If the West were to adopt sanctions similar to those against Russia in the future, China could well consider seizing TSMC. Given the importance of chips, that would be powerful leverage. Both the US and Europe have recognized the importance of domestic chip production. TSMC is thus already planning with 6 production sites in the USA. Europe passed a European Chip Act in February. The future will show whether all of this will come in time.
A decisive competitive advantage of TSMC is also extremely exciting:
"TSMC is the largest chip manufacturer for so-called fabless companies. The word stands for companies that do not have their own or do not have sufficient production capacities for chip manufacturing. Such as Apple, AMD, Qualcomm, NVIDIA, Marvell or Broadcom. This makes TSMC the key player in the chip industry. And chips are the cog in the modern gears of the global economy." [1]
A possible conflict between the U.S. and China is of course hypothetical but quite real. TSMC would certainly be at the center of it.
Market Situation:
In the medium term, I definitely see correction potential in the sector, regardless of the political situation. Thus, we could move from excess demand to excess supply in the next few years. The future will tell.
𝗪𝗶𝗲 𝘀𝘁𝗲𝗵𝘁 𝗶𝗵𝗿 𝘇𝘂 𝗧𝗦𝗠𝗖? 𝗦𝗲𝗵𝘁 𝗶𝗵𝗿 𝗲𝗵𝗲𝗿 𝗱𝗲𝗻 𝗪𝗲𝘁𝘁𝗯𝗲𝘄𝗲𝗿𝗯𝘀𝘃𝗼𝗿𝘁𝗲𝗶𝗹 𝗼𝗱𝗲𝗿 𝗱𝗶𝗲 𝗚𝗲𝗳𝗮𝗵𝗿 𝗲𝗶𝗻𝗲𝘀 𝗞𝗼𝗻𝗳𝗹𝗶𝗸𝘁𝘀?
