The TSMC Thread

Actually it’s exactly the analog. Everyone thought too important too big to fail. And yet they collapsed like a pack cards.

While those companies failed, plenty of other companies received bailout funds and we’re there to pick up the pieces of the failed companies - ie the industry was saved. Who would pick up the pieces in the u.s. if intel failed? TI? :stuck_out_tongue:

You talk like Intel is Nokia. Wrong

Have ever a country closed down a coal mine in war?

Intel equity is dirt cheap, and shares are up by 50% in 2 months or what? Yes i agree TSMC is more specialized and is world best foundry, but politics comes before engineering.

Having said that, nothing stop Taiwan going towards Japanese bubble in 90s with 90 PE ratio.

This is why i have 25% in Taiwanese equities

And Samsung was thinking it could overtake TSMC with a measly 100 Billion spread out over the next decade.

https://www.bloomberg.com/news/articles/2021-04-01/tsmc-to-invest-100-billion-over-three-years-to-grow-capacity

Holy crap. That’s about equal to their current revenue ($34 billion). Sure hope they already have the orders booked.

This is good news. Competition will make them work harder. Economy is win win

Announcement isn’t the same as doing.

True but this makes it seem like they have the orders already:

“TSMC expects to invest USD$100b over the next three years to increase capacity to support the manufacturing and R&D of advanced semiconductor technologies,” the company said in a statement responding to local media reports. “TSMC is working closely with our customers to address their needs in a sustainable manner.”

It’s smart to say this.
It discourages other companies from competing.
It makes customers think only TSMC will be able to reliably satisfy demand…

The investment will only be made against annual reviews of demand.

But they’ll have 2nm down years before the others. Why wouldn’t they be full?

And TSMC employees can kiss their profit sharing goodbye.

They will still be rewarded. They don’t want to lose them all to China.

TSMC will complain for sure, but for sure profit sharing will fall. There is a reserve fund that we use for bad times that we take out of good times that will lessen the blow. That said, stock price has little to do with profit sharing. When you get more capital expenditures or hire more people, the TSMC profit sharing drops. It has always been this way. It is Not unusual in crazy good stock years for profit sharing to fall.

That said, TSMC isn’t stupid and management has always been conservative. They aren’t just going to spend 100B. They need to be sure they fill 90% capacity of each fab. Foundries are not a “if you build it they will come” situation.

Their stock jumped 5% after the announcement.

Blomberg calls in “Intel’s latest Hail Mary.” For those of you who don’t watch American football,

Funny they have Roger Staubach’s picture. His daughter went to Ursuline high school in Dallas.

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