Taiwan Semiconductor Manufacturing Company (TSMC) produces the majority of the world’s semiconductors, along with 90% of the most advanced chips required for AI applications.
Its position makes it a core component of Taiwan’s sovereignty, with many international leaders likely to retaliate if China were to attack Taiwan.
However, Taiwan’s security situation is also important as it may provide the US with the chipmaking capabilities it needs, while China’s increasing military incursions raise fears of an invasion.
US-China trade tensions also affect TSMC, as the US looks to deglobalize the chip supply chain, while China is attempting to become more self-sufficient.
TSMC is attempting to maintain favor with the US, while also balancing China as an important client and competitor.