TSMC Defies the Shadow! Can AI Chips Save Taiwan From Trade Tariffs?

A Chip Off the Old Block...Chain!

Hmph! A balrog of a quarter it has been for Taiwan Semiconductor Manufacturing Company! News has reached even my ears in Rivendell that TSMC has defied expectations much like Frodo defied the odds in Mordor. Their coffers are swelling with New Taiwan dollars – NT$361.56 billion to be precise! A 60.3% increase from last year they say. It seems the insatiable hunger for AI chips is proving quite the Elixir of Gondor for them.

Seventy Three Percent My Precious!

Seventy three percent! That is the portion of wafer revenue attributed to advanced technologies – 7 nanometer and less mind you. These are not your grandfather's chips like the simple tinderbox I used to start a cozy fire in the Shire. No these are finely crafted artifacts akin to the Rings of Power albeit hopefully less prone to corruption. TSMC it seems has become a master smith of the digital age.

The Shadow of Trump Looms Large

Alas no victory comes without its shadow. The specter of President Trump's trade policies darkens the horizon. Tariffs like Orc arrows threaten to pierce the Taiwanese economy. And stricter export controls on TSMC's clients Nvidia and AMD are akin to binding their hands with mithril chains. It appears that some men just want to watch the world burn...or at least impose a hefty import tax.

Biden's 'AI Diffusion Rules' One Does Not Simply Sell Chips!

And as if that wasn't enough whispers of these newfangled 'AI diffusion rules' from the Biden administration reached my pointy ears. More restrictions on chip sales? It reminds me of the Watcher in the Water guarding the doors of Moria. Must everything be so difficult? 'Fool of a Took!' I want to shout 'Just let the free market flow!'

A Hundred Billion Dollars...Run!

But fear not for there is a glimmer of hope! Like the Ents marching to Isengard TSMC is investing heavily in overseas facilities particularly in the land of the Eagles…err I mean the United States. An additional $100 billion on top of the already committed $65 billion. That's enough to make even Smaug blush! And AMD and Nvidia like eager hobbits are setting up shop in Arizona. Perhaps this is the way to 'pass' after all!

Shares Fall: Not All That Glitters Is Gold!

But hold your horses! Even with all this activity TSMC's shares have taken a tumble. Not all that glitters is gold as they say. A fall of nearly 1% recently and over 20% this year. It seems even the best wizards have their off days. Let's hope TSMC can weather this storm and continue to bring forth technological marvels. For as I always say 'All we have to decide is what to do with the time that is given us.'