2024-01-09 11:43:26
In Taiwan, where the presidential election is scheduled for Saturday, the world semiconductor champion, the TSMC group, has reluctantly joined the campaign. Its international strategy was hotly debated during the first televised debates between the presidential contenders.
One of the opposition candidates, in favor of appeasement with China, accuses the ruling party of being too hawkish towards Beijing and therefore of scaring away the investors that the country so badly needs. Taiwanese Semiconductor Manufactoring Company to maintain its technological superiority over all competitors. A controversial unpacking, because this company is almost a national monument in Taiwan, nicknamed “ the sacred mountain ».
TSMC is revered for its driving role in the economy as well as for its security virtues
Pretty much the entire planet depends on the company for its supply of chips. Including the United States, and especially the big Chinese brother who would like to bring the old Formosa into the communist fold. This undisputed superiority is supposed to offer life insurance to the country: neither China nor its best ally America has any interest in war which could destroy this precious tool. Since its creation in 1987, TSMC has chosen to remain on national territory, to better control its costs and above all to jealously defend its know-how.
But this dogma is being called into question: TSMC is now increasing investments abroad
Especially in the United States, where the company is strengthening with two new factories. TSMC has also invested in Japan and is arriving in Germany. TSMC is internationalizing in part to meet the demand of its customers keen to secure access to products vital to their economy since the supply disruptions caused during Covid. TSMC also wants to free itself from the limits inherent in its country of origin. In addition to the risk of war which has already set back investors like the American Warren Buffet, there are risks in Taiwan linked to access to water and electricity, two essential resources in quantity for manufacturing semi-finished products. -drivers.
TSMC consumes a significant share of Taiwan’s electricity production
About 7.5% supplied largely by coal. Thanks to its ultra-sophisticated chips, TSMC has reduced its consumption, but its needs are proportional to its XXL size, so they remain high. Are they sustainable in a country of 24 million inhabitants which must think about energy transition? TSMC’s exuberant growth raises other crucial questions for Taiwan’s future. The company attracts investors and pumps more and more capital to the detriment of other sectors of the economy. Another factor of imbalance: salaries. They are much higher in the semiconductor industry than in services which provide more than eight out of ten jobs. Growing very quickly, this sacred mountain casts more and more shadow on the rest of the economy. As much as national security, this is a concern for Taiwanese voters.
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