Will TSM Become the Amazon of Nanotech, Bezos's Parameters, TSM/APPLE?

[Arthur Hanson]

Jeff Bezos has stated a business requires three traits to become of massive scale, originality, ability to scale and ROI. The nanotech sector offers all three and TSM is in the best position of any company to dominate nanotech at this point in time and is in an industry that fits Bezos's parameters. TSM has mastered nanotech fabrication like no others and has an unrivaled set of partnerships over the years needed to totally dominate the nanotech industry. It has shown its best at the edge of technology and it's failures have been in commodity products like solar and LEDs. TSM has created a very unique position by its ability to bring together and being at the center of a circle of customers, suppliers and the market. From suppliers like AMAT and numerous EDA companies to end customers like Apple and Nvidia. TSM has built a circle of trust required like no other corporation of its size. They are the one corporation with the resources, financial, people, relationships, capital, reputation to pull this off to the benefit of all. If TSM does not make the shift, they will leave themselves open to other disruptors that will use their resources and be their customer to become the largest player. The stage is set, the only question is do they have the will to do it and do they want to lead the entire industry like Amazon or just be the major player in their space where they are currently? The Apple/TSM relationship is what I consider the most important and key business relationship in the world today. Both corporations together have everything in place to change the world even more than Amazon, the choice is theirs. In the interest of full disclosure I have had a substantial holding in TSM for over twenty years and have listened to most of their conference calls.

All these companies have a runway of staggering size before them in medical, which is just the US is a 3.7 trillion dollar market in very, very desperate need of innovation and reform and both Apple and Amazon have so stated publicly. All this is just the tip of a tidal wave of innovation brought about by the "Great Acceleration"

ADDITION 9/8/18

The more I have thought about the alliance/partnership of Apple and TSM I have come to the conclusion that they have the expertise, resources and mindset to build one of the world's most powerful business platforms in history. The closest alliance I can compare this to is the alliance between Boeing and the world's airlines and how they have not only changed aviation, but the world.

Apple has built perhaps the most trusted/secure platforms in the tech sector, if not the most secure platform. They have and are taking their iPhone to a true personal computing device and depth perception is just the latest addition to the unparalleled power and versatility of what is truly a personal computing device. All this is built on the most intuitive and stable of networks that also is the most secure and trusted in the world. TSM as their close partner has pushed the limits beyond any other firm in delivering the most advanced semis imaginable in the processor of the latest phone and probably many other parts soon. Together they have pushed hand held communications, computing and versatility to heights once only imagined. Both have the resources and mind set to push not only technical boundaries, but creative business and social structure boundaries in such a secure stable way that opens the door for them to change finance, health care even governance and many other areas in ways that will change the world and be beneficial to all. It will be interesting to see what paths they take. I would like to see Apple extend their program to reuse and resell older phones that are traded in on a regular basis to give the world a low cost option for their phones so they can cover the everything from the low end to the very high end without leaving people out. Someone should be able to join the network at a level they can afford and just receive a new/certified used phone on a regular basis, just like is being done with car leases.
I truly hope these two firms come together to vastly extend their reach in the world as I know they can as they have already shown in the past. They both will have to add to the alliances and partnerships they already have to do this in creative new ways that they have both firmly demonstrated they have the capability and above all the trustworthiness to do.

Comments, thoughts and additions solicited and welcome

Bezos Unbound: Exclusive Interview With The Amazon Founder On What He Plans To Conquer Next

a-j-hanson@att.net

 

[Portland]

I would say more like alibaba which is a much bigger deal than the general public understands. Alibaba shapes the world too.

 

[spartak]

It's highly annoying how you persist in calling TSMC TSM. It's not their name.

On topic: its very easy to crown the current tech/node leader the absolute emperor from now on. Reality is always less clear cut. I expect Samsun to profit from G dropping out of the bleeding edge as customers will seek to diversify risk, secure supply and negotiate better pricing now that TSM has become so powerful. Qualcom is already doing so and I expect more clients, including AM at some point, to follow.

 

[Arthur Hanson]

I'm a stock trader by profession and generally use stock symbols, that's why I use just the first three letters. In my communications, I generally use stock symbols, faster, easier and no mix ups from similar names.