2023-07-20 06:30:26
Investors are betting that TSMC will become a major player in the global race to develop the next generation of artificial intelligence. The chips of the American company “Nvidia” – the most prominent customer of the Taiwanese company – are essential, whether for “GBT chat” or self-driving, or the new generation of artificial intelligence products. NVIDIA’s market value briefly crossed the $1 trillion mark this year, thanks to Wall Street’s obsession with generative AI, which reflected positively on TSMC and other electronics companies that provide the infrastructure needed to train AI models.
uncertainty in Taiwan
Other investors, including billionaire Warren Buffett, are concerned that China’s increasingly hostile policies may jeopardize Taiwan’s precarious position, which is reflected in the growth prospects of TSMC, which
It still keeps its most developed industries inside the country, despite US warnings that Beijing might decide to try to regain the island it considers its own.
With the aim of reducing customers’ concerns regarding geopolitical uncertainty in the Taiwan Strait; TSMC has diversified its manufacturing business over the past two years, investing $40 billion to establish two plants in the US state of Arizona and building an $8.6 billion manufacturing facility in Japan with financial support from the government. Discussions are still ongoing between the company and Tokyo regarding setting up a second facility, which may be located near its current factory in Kumamoto.
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