Taiwan Semi’s Spending Spree Will Pay Off Big in the Long Term
Taiwan Semiconductor Manufacturing is hedging its geographical bets, with large new fabs planned for the U.S. and Japan. Here: a TSMC chip at a 2020 semiconductor conference in China. Taiwan Semiconductor Manufacturing is in a class by itself. But it’s in the same boat as the global tech hardware industry, which is looking leaky. U.S. senators predictably dwelled on a Chinese tech threat this past week, as they passed the Chips and Science Act, which earmarks $52 billion for domestic semiconductor manufacturing. The real obstacle to chip reshoring lies in friendly, but precarious, Taiwan. “Since the 1980s, Taiwan has built up a supply chain that’s all within walking distance,” says Mehdi Hosseini, senior tech analyst at Susquehanna International Group. The bonds of China’s property developers are taking a hit in the sector’s crisis. Here: a housing complex by Chinese property developer Evergrande in Beijing.
