TSMC is making the best of a bad geopolitical situation

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TSMC is making the best of a bad geopolitical situation
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Speak softly, and carry a big chip

Save time by listening to our audio articles as you multitaskSuch insouciance runs the risk of sounding naive. Like it or not, the big-power rivalry over semiconductors—what some call the Silicon Curtain—has solidified in recent months. China has long sought, to little avail, to build a chip industry from scratch.

It is unlikely to jeopardise its profitability, which generates the cashflows necessary to retain its edge. Yet it is thinking about a long-term future in which one day there may be a premium on geographical flexibility. In short, it is playing a subtle game of diplomacy in which its business interests come first.for those who fear “de-Taiwanisation”. Spread out over miles of desert, it is pharaonic in size.

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