TSMC rules out relocation amid Taiwan Strait tensions

TAIPEI (TVBS News) — During the shareholder meeting on Tuesday (June 4), Taiwan Semiconductor Manufacturing Company's (TSMC, 台積電) new Chairman, C.C. Wei (魏哲家), highlighted the impossibility of relocating the company's operations.

In highlighting geopolitical tensions as the company's primary challenge, Wei noted that if a conflict arises across the Taiwan Strait, TSMC, with 80-90% of its production capacity in Taiwan, cannot relocate the entirety of its operations.

Wei also emphasized TSMC's technological edge, stating no competitors currently match the company's prowess.

Meanwhile, NVIDIA's CEO, Jensen Huang (黃仁勳), praised Taiwan's manufacturing efficiency and cost-effectiveness, stating these qualities are not easily replicated overnight. He commended the excellence of Taiwanese companies and confirmed NVIDIA's ongoing investment in Taiwan.

During his visit to Taiwan, as NVIDIA's stock price soared, nearing Apple's market value, Huang became the world's 14th richest person.

Wei revealed that he had expressed concerns to Huang about the high prices of NVIDIA products, contemplating an increase in AI chip prices.

Huang responded by highlighting NVIDIA's unique market position, emphasizing the company's comprehensive offerings in chips, systems, and networking.

He stated, "NVIDIA has many competitors, but our positioning is very different. We don't just make chips; we create chips, systems, and networks. If they want to buy systems, we have them."

This exchange underscores the intricate relationships and strategic negotiations that define the tech industry's landscape, particularly between leading companies like TSMC and NVIDIA.

As these discussions continue, the global tech community watches closely, anticipating the next moves from these industry giants.