The TSMC Factor: Lessons to Learn from International Tech Giants

Core Insights - The international markets are experiencing significant growth, with Europe benefiting from fiscal stimulus, Asia focusing on technology, and Latin America capitalizing on commodity market upswings [2][4][8] Group 1: Market Performance - Financials had a remarkable growth of 70% in 2025, contributing significantly to overall market returns [4] - Projections for 2026 indicate that 60% of global growth will originate from Asia, particularly driven by technology sectors [4][11] - Technology and telecommunications accounted for 50% of returns in 2025, highlighting their importance in market performance [5] Group 2: Asian Market Dynamics - Taiwanese semiconductor companies, particularly TSMC, are performing exceptionally well, with market capitalization surpassing the combined value of Europe's top five companies [9] - The expected EPS growth for Taiwanese semiconductors is projected at 20-30%, compared to 4% for European companies, indicating a stronger growth outlook for Asia [11] - South Korea's chip players are also thriving, with the Kospi index performing well this year [6] Group 3: Comparative Analysis - European markets are facing challenges such as stagnation, declining population, and high energy costs, which contrasts with the growth potential in Asian markets [8][15] - The focus on innovation in Asia, particularly in sectors like solar and lithium, positions these markets favorably for future growth compared to Europe's reliance on traditional energy sources [15][16] - The cultural and governmental support for technology in Asia is significantly stronger than in Europe, which is seen as more defensive and focused on existing assets [10][14]