Arthur Hanson
Well-known member
It's not just the money, but the culture Morris Chang created that allows TSM to literally crush the competition. It not only has a very high growth rate but an equally high profit margin due to the inherent efficiencies and unmatched scale over which to spread its cost from research to capital expenditures. It also only builds capacity to orders on which deposits are made. TSM does not rest on its laurels, but constantly pushes the limits on advancing its technologies and the entire ecosystem of technologies and suppliers. It also hot rods its processes and equipment in a proprietary manner that others are not allowed to copy under strict agreements with its suppliers. 'Also, when you multiply TSM's profit margin by the sales growth rate you come up with a number that no other company in the foundry business can even come close to matching. TSM has literally achieved a scale and pace of innovation that is constantly increasing its lead which is attracting orders, capital, leading edge technologies at an unmatched rate. This has created a virtuous cycle of attracting the best talent, equipment, technologies, and customers. The only threat to this is China and if they try to take over Taiwan to get TSM, they have to realize this culture could never function under a communist system and would be totally destroyed by it. It is far better for China to be a customer than try and take over Taiwan and the sooner they realize this, the better for everyone. The sooner all sides realize everyone will win by collaborating and cooperating in the ecosystem Morris Chang created, the better place the world can be for everyone. Morris Chang has created one of the best win/win constructs on the planet and only the US Constitution and Bill of Rights are ahead of it. (I carry a pocket copy of this with me for I consider them the greatest documents ever penned and put into action by man). Comments and additions solicited and welcome for collaboration and cooperation are the greatest tools for mankind as the US and TSM, among others, have proven.
I posted a shorter version of this in Barron's in response to an article on TSM's massive capital spend compared to the competition this morning and hope it gets read by the right people in the financial community.
I posted a shorter version of this in Barron's in response to an article on TSM's massive capital spend compared to the competition this morning and hope it gets read by the right people in the financial community.
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