TSMC: China's Tech Independence Ambitions Create Serious Risks
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APAC Investment News782 FollowersFollow5ShareSavePlay(13min)CommentsSummaryTSMC offers attractive fundamentals and valuation amid the AI boom, commanding 38% global foundry market share and ~43% net income margin.TSM's pure-play foundry model and technological moat underpin its dominant position, but geopolitical risks—especially China-Taiwan tensions—pose significant downside threats.China’s push for semiconductor self-sufficiency could eventually threaten TSMC’s global dominance, though such risks remain longer-term.I rate TSMC a buy, but investors must monitor geopolitical developments and be ready to react swiftly to emerging threats.
Getty Images The Taiwan Semiconductor Manufacturing Company (TSM), colloquially referred to as TSMC, is the world’s foremost semiconductor manufacturing foundry and has been enjoying incredible tailwinds due to the ongoing AI boom. The PE ratio looks quite attractive for aThis article was written byAPAC Investment News782 FollowersFollowMarkets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful investment insights. As society and technologies evolve, companies and other stakeholders will seize advantages. Figuring out which companies will take the best advantage of any given opportunities is not easy. I am especially interested in macrotrends, futurism, and increasingly, emerging technologies. However, as far as investing is concerned, it’s crucial to pay attention to the fundamentals, quality of leadership, product pipeline, and all the other details. In recent years, I have focused on marketing and business strategy, primarily for medium sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit work in the United States. Among other tasks, I evaluated startups and emerging industries/technologies. I have also moonlighted as a technology and economic news journalist. Now I’m looking to tie everything together. While my personal interests will always keep megatrends and technological developments in mind, I do believe fundamentals and technicals are vital to uncovering opportunities.Analyst’s Disclosure:I/we have a beneficial long position in the shares of INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I may go long on TSM in the near future.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You