TSMC’s high-tech stock beset by low-tech problems 18 Apr 2024 Shares of Taiwan's $640 bln tech titan are up 36% this year thanks to its AI chip dominance. Yet they trade at a decade-high valuation discount to peers. Geopolitical risk is one factor, as are sluggish handset sales and over-expansion fears. All look out of TSMC's control.
Biden’s subsidies are working a little too well 15 Mar 2024 The US president’s incentives for chips and clean energy have provoked a competitive scramble and raised the cost of building factories – which cuts the handouts’ real value to recipients like Intel. The risk is that investment zeal sets the scene for future gluts.
Taiwan navigates new waters with old map 15 Jan 2024 Lai Ching-te has won his independence-leaning party an unprecedented third term. That tees up a deterioration in the island’s relationship with China and will refocus global minds on the costs of a possible confrontation. It puts pressure on Lai to find new ways to minimise risks.
Taiwan elections can weaken an unstable status quo 4 Jan 2024 The Democratic Progressives are vying for a third term but another re-election of the independence leaning party will frustrate China. While market indicators are buoyant, more of the same in the island's local politics can make Sino-US ties worse.
Foxconn is still running with difficult status quo 27 Nov 2023 Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.
AI frenzy’s feedback loop stuffs Nvidia 23 Aug 2023 The $1.2 trln semiconductor designer’s second-quarter revenue doubled. Tech giants’ valuations are soaring on AI hype, so naturally companies are pouring money into it, including by buying Nvidia's chips. As long as investors quack for more, Jensen Huang's firm gets fed.
Foxconn’s global dealmaking suffers Sharp shock 24 May 2023 The iPhone supplier rescued the Japanese electronics group in 2016 with a promise to turn it around. Sharp’s surprise $1.6 bln writedown casts doubt on the Taiwanese group’s grip on its investment. It also raises questions about Foxconn’s push into assembling electric vehicles.
US-China chip spat hangs over TSMC’s recovery 19 Apr 2023 Quarterly earnings at the Taiwanese giant are set to fall 5%, but demand should rebound soon. Beijing's retaliatory strategy against US chip sanctions is a bigger worry. Pressure on TSMC customers like Apple to shift orders to mainland suppliers would really hurt.
How US and allies can find common ground on China 17 Apr 2023 Emmanuel Macron is not the only US partner wary of being drawn into a Taiwan crisis. But America and its allies will be stronger if they can agree more about dealing with the People’s Republic. Part of the answer is to focus on de-risking rather than decoupling, says Hugo Dixon.
Make-in-India dials up a tycoon premium 6 Mar 2023 Foxconn is leading a charge by foreigners to team up with local giants including Tata and Vedanta. Such partners can help cut red tape and tap subsidies, freeing up incoming manufacturers to focus on boosting production quality. For now, it is a win-win for those scaling up fast.
Foxconn reinvents itself, and EV supply chains 3 Jan 2023 The Taiwanese giant plans to make electric vehicles, and the chips and batteries that go into them, for global automakers. That’s a twist on its business of churning out iPhones for Apple in China. As far as strategic pivots go, this one is ambitious and much needed.
Chip dilemma will buy Beijing precious time 19 Dec 2022 America is pushing Asian and European allies to stifle semiconductor progress in China. But antagonising the $466 bln market will be costly for South Korea's Samsung and Dutch ASML as global demand slows. Their hesitancy to fully embrace the blockade will benefit Beijing.
Taiwan’s Foxconn slowly checks into iPhone detox 1 Dec 2022 The $45 bln electronics maker’s relationship with Apple was a money-spinner. Yet even before protests disrupted Chinese production lines in November, the latter was hedging its dependence on Foxconn, denting profitability. Withdrawal will be gradual, painful and healthy.
Piyush Gupta might be banking’s boldest boss 15 Nov 2022 Buying banking assets is complex at the best of times. Singapore’s $65 bln DBS added a geopolitical twist when it agreed to acquire Citi’s Taiwan consumer bank. As tensions rise, Gupta is holding his nerve on the deal due to close next year. Then again, he has little choice.
Buffett places classic chips in $4 bln Taiwan bet 15 Nov 2022 His Berkshire Hathaway now owns 1.2% of TSMC. The semiconductor giant’s stock has taken a beating this year, in part on fear China might invade Taiwan, its HQ. But the company has a near-monopoly in cutting-edge tech. Such traits have long appealed to the Oracle of Omaha.
Review: U.S.-China tech fight leaves global losers 30 Sep 2022 Historian Chris Miller’s “Chip War" offers a timely account of America’s increasingly frantic efforts to stay ahead of China on semiconductors. Both sides have policy and trade weapons at their disposal. The collateral damage to big companies and other countries will be immense.
Taiwan digs trenches in battle for chip talent 17 Aug 2022 Officials may force Foxconn to unwind an $800 mln deal with a Chinese chipmaker. This follows a crackdown on mainland companies poaching engineers, as Taipei tries to keep its tech expertise to itself. It could make a surprisingly powerful defence against hostile Beijing.
China’s economic plight ups Pelosi visit risks 2 Aug 2022 Despite Beijing’s warnings, U.S. House of Representatives Speaker Nancy Pelosi landed in Taiwan on Tuesday. Slowing growth and supply chain constraints make it hard for China to retaliate against American or Taiwanese firms. Oddly, that makes a military showdown more likely.
Moped charger gets trapped in electric-car traffic 7 Apr 2022 Shares in Engine No. 1-backed Gogoro have jumped 16% since this week’s debut, adding zip to the Taiwanese battery-swapping scooter maker’s valuation. Yet it trails most car-charging outfits. There are risks, but Asia’s reliance on two-wheelers warrants a narrower gap.
Russia is dry run for bigger China sanctions test 25 Feb 2022 The threat of penalties didn’t stop Vladimir Putin from invading Ukraine. Sanctions would have even less chance of preventing China from taking control of Taiwan. The deeper the trade ties, the greater the chance of self-harm. And China has a head start in creating workarounds.