This is What Taiwan Semiconductor Manufacturing Company Limited (TSM) CEO Sees Happening - Yahoo Finance

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor foundry, is ramping up production to meet the surging demand for chips driven by artificial intelligence (AI). At t... Read original →

TSMC’s aggressive AI chip capacity buildout is not just easing advanced-node bottlenecks for NVIDIA and AMD—it’s pushing the entire 3nm/EUV ecosystem past a tipping point, extending visibility for upstream equipment makers like ASML while accelerating downstream robotics and autonomous vehicle commercialization through lower compute costs. Yet its $165B U.S. investment, though aligned with the CHIPS Act, inflates operating expenses: U.S. fab costs run ~2.5x those in Taiwan, China, compounded by export control volatility that now demands redundant supply chains. Samsung and Intel will exploit this window to capture mid-tier AI foundry share, especially in HBM integration and CoWoS packaging via price competition. Over the next 18 months, TSMC’s real vulnerability isn’t capacity—it’s geopolitical premium eroding margins. If it can’t sustain pricing power through technological lead, clients may pivot to chiplet-based heterogeneous integration to reduce single-source risk. This expansion trades capital for time—but time may not favor the manufacturer.