You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!
Bellow is a list of TSM's strategic and business advantages
Government backing not only of their largest company, but largest industry
A wealthy government with no debt with a high degree of efficiency and effectiveness
An top notch educational system in the semi and technical sector
TSM facilities close together for sharing human and physical resources
An extensive supporting ecosystem of support companies, both above and below
TSM doesn't compete with customers, largest pure play in the world
Few alternatives for Taiwan as a country, people very motivated by lack of alternatives (best seen in protest to bring Morris Chang back a few years ago)
After Morris Chang retirement mess, a very deep bench has been built
TSM's large breadth and depth of experience
TSM as a leader in MEMS
Almost a mono cultural country with a respect for education and hard work that is almost unmatched
For business, a long history of growth
Long term customers
AMAT's largest customer
Disadvantages
Lack of industry for end use products
Small country
Samsung as competition
Intel as the last flagship semi company in the US, with political implications
As the semiconductor industry expands and leverages its technology into new areas TSM is the best placed company to take advantage of this broadening and deepening of the market. Just a few areas are listed below.
LOCs, labs on a chip (Illunina is just one example, can lower the cost of a lab by factors of a thousand opening up whole new frontiers)
Solar (TSM is already in this)
Semi technology for 3D printing of all types, from nanotech to houses
Lighting (TSM was in this with technology from Bridgelux and then sold it to a business that could scale it)
Mems, medical(sensors and actual control systems), sensors of all types, micro machines and functions enabling control of processes never thought possible or economical, vision for blind people (done, prototype), hearing for deaf (done and on the market), very advanced sonograms for imaging everything in real time from medical to oil exploration (done and done and still advancing) and to many other things to list and many things to come
Even more advanced wireless communications
Surfaces with active characteristics and functions
In short we are just seeing the beginning of the semi industry going far deeper and broader into every facet of our world
I feel AMAT and TSM are the two companies that have almost to many opportunities before them. The only limitation they have is the ability to keep up with the opportunities before them.
The best opportunity a government could have is to get out of the way and let private industry pay for the failures and benefit from the successes. To do this new ways of training and education will have to be on a subscription basis due to going obsolete or rendered useless at an accelerating rate.
For me, you have missed the main advantage, which is TSM's ownership of over 50% of the market that permits it to incur capex against pre sold customer commitments. That is why, IMO, TSM out manufactures Intel. It is certainly the reason why I hold the shares. MC has told us again and again that his capex is not speculative but covered by committed sales. There appear to be few, if any, analysts that believe him.
Brian, They have far less than 50% of the market when you count Intel, Samsung and the others. They do have over 50% of the foundry market. Both Intel and Samsung have larger market caps. No one has the breadth of knowledge that TSM does though and I have listened to Morris Chang for over ten years. I also hold a substantial number of shares. The entire semi market is going to keep expanding as mems put semis in touch with the real world. Solar, batteries, 3D printing, medical, LOCs (lab on a chip) and many other industries and fields will be profoundly changed by the semi market and keep growth expanding for years.
