Core Insights - The U.S.-Taiwan deal aims to expand chip production capacity in the U.S., but analysts believe it will not fully reduce reliance on Taiwan's advanced semiconductors in the near term, keeping the "silicon shield" intact [1][5] Industry Overview - Taiwan is a dominant player in global chip production, with the Taiwan Semiconductor Manufacturing Company (TSMC) producing a significant portion of the world's advanced chips. Approximately one-third of global demand for new computing power is fabricated in Taiwan [2] Strategic Importance - Taiwan's central role in the semiconductor supply chain is crucial for maintaining its de facto autonomy and deterring potential Chinese aggression, a concept referred to as the "Silicon Shield" [3] Trade Deal Details - Under a recent trade agreement, the Taiwanese government will provide $250 billion in credit to its chip and technology companies to enhance production capacity in the U.S. Additionally, Taiwanese companies will receive higher quotas for tariff-free chip imports into the U.S. In exchange, the U.S. will reduce tariffs on most goods from Taiwan from 20% to 15% and eliminate tariffs on certain categories [4] Production Goals and Challenges - The objective is to relocate 40% of Taiwan's semiconductor supply chain to the U.S., but experts express skepticism about the feasibility of this plan due to Taiwan's strict policies on keeping advanced technology domestically [5] Technology Restrictions - Taiwanese authorities have implemented the N-2 rule, which restricts TSMC's overseas fabrication plants from operating technologies that are at least two generations behind those developed in Taiwan [6]

Taiwan Semiconductor stock looks set up for a meaningful breakout.When it comes to leading semiconductor stocks, most investors probably don't bother looking past Nvidia, Advanced Micro Devices, and Broadcom. These three powerhouses dominate the market for AI accelerators -- graphics processing units (GPU) and custom application-specific integrated circuits (ASICs) used to develop generative AI.While investing in chip designers has been a good proxy for the overall health of the AI landscape, a more lucrati ...

Core Viewpoint - TSMC is increasing capital spending in response to strong demand for AI accelerators, indicating confidence in the AI market despite concerns about a potential bubble [1][3][10] Financial Performance - TSMC reported a 20.5% year-over-year revenue increase and a 35% jump in net income for Q4 2025, with expectations of nearly 30% revenue growth in 2026 and a 25% compound annual growth rate through 2029 [2][8] AI Demand and Capital Expenditure - The demand for AI accelerators is projected to grow by at least 50% annually through 2029, prompting TSMC to ramp up capital expenditures to between $52 billion and $56 billion in 2026, compared to around $40 billion in 2025 [3][8] - TSMC is also accelerating the start of production at its second fab in Arizona, with high-volume manufacturing expected to begin in the second half of 2027 [9] Market Confidence and Customer Insights - TSMC's CEO has engaged with customers to assess the sustainability of AI demand, concluding that "AI is real" and identifying it as an "AI megatrend" [6] - The financial health of hyperscale cloud providers, who are significant customers, has contributed to TSMC's confidence in future demand [6] Operational Efficiency - TSMC is utilizing AI to enhance productivity in its fabs, achieving gains of 1% to 2% at minimal cost [7] Industry Risks and Considerations - Despite the optimistic outlook, TSMC remains cautious about overexpansion, as the sustainability of AI demand and the financial viability of AI companies are uncertain [4][10][12] - The potential for unsustainable spending by AI companies raises questions about the long-term demand for AI computing capacity and TSMC's manufacturing capabilities [12][13]

TSMC has for decades provided a "Silicon Shield†to its namesake island. Now it sees both business and geopolitical reasons for going big in the U.S. ...

This company is one of 11 companies with a market above $1 trillion.The average person who deals with artificial intelligence or AI (typically through generative AI apps like OpenAI's ChatGPT and Alphabet's Gemini) is aware of what it can do, but many aren't aware of just how those tools can work so effectively. One answer is the chips that power the data centers that make training and scaling up AI possible.When it comes to manufacturing these AI chips, there's one company that's light-years ahead of its c ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Berkshire dumped major bank stocks just before a huge rally. Only Coca-Cola and American Express look like true "forever†holdings. ...

Taiwan Semiconductor (NYSE:TSM) posted this Thursday the kind of quarter that usually ends the debate. The numbers were undeniable: $16 billion in profit, 35% year-over-year growth, and forward guidance aggressive enough to pull semiconductor equipment maker ASML up 7% in sympathy.Many saw TSMC the undisputed king of the AI revolution, and analysts scrambled to raise price targets. On the surface, the narrative is simple: TSMC makes the chips that power AI, AI is booming, therefore TSMC wins.But if you stri ...

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) on Thursday delivered fourth-quarter results that blew past analyst expectations.Taiwan Semiconductor reported quarterly net sales of $33.73 billion (1.05 trillion New Taiwanese dollars), up 20.5% year-over-year (Y/Y), topping the analyst consensus estimate of $33.27 billion. Net sales grew 5.7% quarter-over-quarter (Q/Q).Net income and earnings per share were $16.31 billion (505.74 billion New Taiwanese dollars) and $3.14, up by 35.0% Y/Y, topping the ...

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) , the world's largest contract chipmaker, reported a larger than expected quarterly performance this week, with net income rising 35% year-over-year to almost $7 billion and revenues of roughly $18.5 billion, which exceeded analyst expectations by around 5%. The results help emphasize the sustained global demand for advanced semiconductor technology, and more specifically, investments in artificial intelligence.TSMC is at the center of the global semicon ...