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Taiwan Semiconductor Manufacturing Company, Limited is the world’s largest independent semiconductor chip manufacturer. In recent years, the company has undergone a number of challenges, and as of today, this precedent offers them some big opportunities.
The semiconductor manufacturing process is complex as many sub-industry applications are intertwined, and for some more complex chips, delivery times can reach more than 18 months. This is because many raw materials are in short supply (neon gas is mainly produced in Ukraine, and these factories are out of service as of now) and factory utilization ratios are close to 100%.
We expect that basic consumer electronic prices will experience a large price increase because of this shortage. This in turn is positive for TSMC since basic electronics often have a common semiconductor chip that can be manufactured with a below-average effort and with a highly standardized method. TMSC has taken steps to plan the company’s production capacity to prioritize support for these kinds of chips.
Because of TMSC’s agile manufacturing capacities, the company is seen today as one of the most strategic and important companies in the world. In a world where everything has become technological, a processor is needed in many devices. For these processors to solve low processing power with low energy, they must be produced with the latest technology. Without TSMC, consumers wouldn’t have been able to reach out to the latest technology processors of AMD, Apple, Snapdragon, or MediaTek.
Knowledge is power.