The Taiwanese Gambit
A generated image of the TSMC Headquarters in Taiwan
AI, semiconductors and technology. These are the craze of the 21st century, especially as we approach a new age of digitalization. Behind this growth are markets that centralize themselves around the process of it, and Taiwan is often one that is overlooked upon. Who could have known that such a geographically small nation can account for most of the growth for technologies. With their prime knowledge for constructing state-of-the-art tangibles, it comes to no surprise that Taiwan houses some of the most efficient foundries and practices for all things IT and semiconductors.
But being a powerhouse is not enough. It has to hold a leverage against all other industries and act as checkpoints for markets across the globe. The Taiwanese power-house, TSMC, does this extremely well. It isn’t just another exporter for semiconductors, it pioneers, engineers and modernizes the ability for ‘Big Techs’ such as Nvidia and even Samsung to strive within the world of technology.
Being the backbone of the semiconductor industry, it is paramount for us as economists to understand their importance in this ‘Game of Tech’. Within this article, we’ll dive deep into their significance by analyzing market structures, financials, macroeconomics, geopolitics, and also view this feat from a supply-chain lens, conclusively theorizing the viability of investing in the Taiwanese economy within the foreseeable future.