TSMC - The Dilemma of the Semiconductor Giant in Geopolitical Risks
Amid geopolitical tensions, how can a Taiwanese semiconductor manufacturing leader navigate its supply chain?
At a glance
Founded in
1987
Region
Taiwan
Industry
Semiconductor foundry
Key Technology
Ultra microfabrication
Abstract
TSMC (Taiwan Semiconductor Manufacturing Company), the world’s largest dedicated semiconductor foundry, found itself in a predicament when the geopolitical tensions between the U.S. and China began to escalate. TSMC finds itself caught in an uncertain position, balancing its reliance on Taiwan's mature semiconductor ecosystem with the need to diversify its manufacturing operations.
TSMC's position as a major supplier to both U.S. and Chinese tech giants places it at the center of significant challenges such as talent acquisition, supply chain complexities, and higher costs. The case study delves into TSMC's history, the role of the Taiwanese government in fostering its growth, and the company's current dilemma and also raises critical questions about how TSMC must carefully weigh the benefits of diversifying its operations against the risks of compromising its core competencies and operational efficiency.
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