Did TSMC win the future?

So, back to the analysis on TSMC.

If TSMC takes a stake in Intel fabs, it will gain access to state-of-the-art U.S. fabs at a fraction of the cost.

It will be the cheapest CAPEX in semiconductor fab building history.

How are the talks developing? Is TSMC on the right path to growth? Do you think investing in them is a sound judgment?

All of the above needs constant monitoring. Also, geopolitical tensions, plus the underlying business model of contract manufacturing these chips requiring constant “bet the company”-sized CAPEX, warrant caution.

But even with it said, a trillion-dollar market cap seems cheap when considering the amount of compute the world will need in the future to satisfy the insatiable demand for AI-powered models around the world.

Like Jeff Bezos said, “Every company will have its own large language model.” This speaks to the burgeoning demand in the advanced chip-building industry. Right now, there is only one major player; there is no viable alternative. TSMC is the leader.