In this post, we take a closer look at semiconductor giant TSMC, discussing its recent results, the threat from competition and China, and its growth prospects.
It’s worrying how people dismiss geopolitical risk so readily. That was the case in Europe before Russia’s full scale invasion of Ukraine. The abrupt and shocking geopolitical reversal in Europe led to a drastic reevaluation of the associated risk, but by then it was too late for anything but a rushed, reactive response. Many people lost a lot of money.
I am definitely not trying to dismiss the geopolitical risks here, but rather acknowledge and discuss them, explaining why I am not overly worried at this point.
As always, a potential escalation in Taiwan will lead to significant geopolitical challenges, not only for TSMC but for pretty much all sectors globally.
Are you considering TSMC or already a shareholder? Or avoiding it because of geopolitical risks?
It’s worrying how people dismiss geopolitical risk so readily. That was the case in Europe before Russia’s full scale invasion of Ukraine. The abrupt and shocking geopolitical reversal in Europe led to a drastic reevaluation of the associated risk, but by then it was too late for anything but a rushed, reactive response. Many people lost a lot of money.
Hi Ruisla, thanks for your comment.
I am definitely not trying to dismiss the geopolitical risks here, but rather acknowledge and discuss them, explaining why I am not overly worried at this point.
As always, a potential escalation in Taiwan will lead to significant geopolitical challenges, not only for TSMC but for pretty much all sectors globally.
Are you considering TSMC or already a shareholder? Or avoiding it because of geopolitical risks?
I'm long TSM with some LEAPS. Think it has room.
I have some write-ups about potential Chinese chip competitors (https://emergingmarketskeptic.substack.com/t/china scroll way down). The problem is that the main challenger SMIC's origins lies with stolen TSMC technology "that led to a several year court battle ultimately won by the latter while hamstringing the former’s ability to come up with it’s own technology..." https://emergingmarketskeptic.substack.com/p/smic-chinas-most-important-chipmaker
I included your write-up in my Emerging Market Links + The Week Ahead (April 29, 2024) for today: https://emergingmarketskeptic.substack.com/p/emerging-markets-week-april-29-2024
This is great!
Thanks!