One of my questions is: why is TSMC (as Taiwanese company) trying to establish factories in other parts of the world? Doesn‘t that risk their Taiwan operations, as they are basically offshoreing their ops? Or is that exactly the goal, ie TSMC wants to survive outside Taiwan in the worst case?
I think the quick and dirty answer is TSMC hedging their bets i.e., de-risk from the impending geopolitical catastrophe.
However, the reality is more complex, i.e. The US Trade War with China is already a huge factor and the US' ban on advanced semiconductor tech to China. Plus, one could imagine backdoor deals between US-TW, ex. "Chips for Guns" (transferring technology for military aid and security).
From a finance/business perspective, I find it hard to believe these plants being as profitable as the current ones if there is no escalation of tensions i.e., blockade or invasion.
One of my questions is: why is TSMC (as Taiwanese company) trying to establish factories in other parts of the world? Doesn‘t that risk their Taiwan operations, as they are basically offshoreing their ops? Or is that exactly the goal, ie TSMC wants to survive outside Taiwan in the worst case?
I think the quick and dirty answer is TSMC hedging their bets i.e., de-risk from the impending geopolitical catastrophe.
However, the reality is more complex, i.e. The US Trade War with China is already a huge factor and the US' ban on advanced semiconductor tech to China. Plus, one could imagine backdoor deals between US-TW, ex. "Chips for Guns" (transferring technology for military aid and security).
From a finance/business perspective, I find it hard to believe these plants being as profitable as the current ones if there is no escalation of tensions i.e., blockade or invasion.