The danger itself has existed for a long time. In my view, however, there are two reasons why TSMC is better off than it was a few years ago.
1) China has economic difficulties. If they were to attack Taiwan, they would have to reckon with massive Western sanctions, which would hit the economy even harder.
2. TSMC has massively diversified geographically in recent years, including with chip production in the USA. The more and the longer China threatens, the less bad it will be for TSMC.
If 100% of my production is in Taiwan I would be screwed, if only 30% is in Taiwan it would still be a hard blow, but 70% of the factories worldwide could continue to produce "normally".
1) China has economic difficulties. If they were to attack Taiwan, they would have to reckon with massive Western sanctions, which would hit the economy even harder.
2. TSMC has massively diversified geographically in recent years, including with chip production in the USA. The more and the longer China threatens, the less bad it will be for TSMC.
If 100% of my production is in Taiwan I would be screwed, if only 30% is in Taiwan it would still be a hard blow, but 70% of the factories worldwide could continue to produce "normally".
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•@Mister_ultra how about Trump’s tariffs? Because Trump accused TSM for stealing the US chip industry.
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