[The Economist] TSMC is making the best of a bad geopolitical situation

Summary

- "Last year America strengthened its stranglehold on certain 'choke-point' technologies...to symie China's ambitions."

- TSMC seems like "a strategy to move closer to its customers" - Apple (Phoenix, US), Sony (Japan)
- Even though it seems that TSMC abandons Taiwan fabs, but it is not true. Fabs in other countries is just to provide "a baseline for expansion"; and the most of TSMC resources will remain in Taiwan.
- Profitability concern: 1) manufacturing in America is expensive 2) the subsidies might "support the revival of Intel"

- Against that concern: 1) loss for high cost: 'a gesture of goodwill to the country' 2) 'US customers are willing to pay higher price for the product manufactured in the US.') 3) "despite a cyclical downswing (economic contraction) in the global chip market, TSMC is boosting market share vis-a-vis rivals such as Intel" (because its product is the most advanced vis-a-vis competitors)

 

Vocabulary (definition from Dictionary.com)

straddle	to walk, stand, or sit with one leg on each side of; stand or sit astride of:
unfluster	in a state of agitated or nervous confusion
	"For a company worth $430bn that straddles one of the world’s most dangerous geopolitical flashpoints, there is something endearingly unflustered about Taiwan Semiconductor Manufacturing Company (tsmc)."
fallout	an unexpected or incidental effect, outcome, or product
	"It’s a far bigger supplier to the former than the latter, but if either superpower, through economic pressure or brute force, fully stifled its independence, the fallout would be immense."
insouciance	the quality of being insouciant; lack of care or concern; indifference.
	"Such insouciance runs the risk of sounding naive."
avail	to be of use or value to; profit; advantage
	"China has long sought, to little avail, to build a chip industry from scratch.'
stranglehold	any force or influence that restricts the free actions or development of a person or thing
stymie	to hinder, block, or thwart.
	"Last year America strengthened its stranglehold on certain “choke-point” technologies, such as artificial-intelligence chip design, chip software and semiconductor-manufacturing equipment, in order to stymie China’s ambitions."
pharaonic	Usually pharonic. impressively or overwhelmingly large, luxurious, etc
	"Spread out over miles of desert, it is pharaonic in size."
amass	- to gather for oneself; collect as one's own - to collect into a mass or pile; gather
baseline	- a basic standard or level; guideline:to establish a baseline for future studies. - basic or essential.
	"It enables TSMC to start the tough job of recruiting a workforce and amassing suppliers in America..."
bang the drum	to say or write things that strongly support (someone or something)  (from Merriam-Webster)
	"Second, the subsidies could support the revival of Intel, which long ago lost its lead in chipmaking to TSMCbut has since banged the drum for chip nationalism"
vis-à-vis	compared with
	"Moreover, despite a cyclical downswing in the global chip market, tsmc is boosting market share vis-à-vis rivals such as Intel"
cosy up	- to seek to become intimate or to ingratiate oneself (with someone) - to draw close to (somebody or something) for warmth or for affection; snuggle up
deftly	in a dexterous or nimble manner; skillfully
	"In some ways, TSMC is deftly cosying up to the Biden administration."
hedge	to prevent complete loss of a bet by betting an additional amount or amounts against the original bet.
	"In other ways, the company is building a long-term hedge into its own future"
imperative	absolutely necessary or required; unavoidable
	"Accessing more global brainpower, in America or elsewhere, will become an imperative."

 

Reference

- The Economist, TSMC is making the best of a bad geopolitical situation

- Dictionary.com