Carlo CocuzziAI Expert, Pod Cast Host, Real Estate Investor and Funding Specialist

TSMC Is A Sitting Duck

2 Sept 2026 · 1 min

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Eleven major tech firms are building their own AI chips, training models, and running data centers instead of buying from suppliers like TSMC. This vertical integration leaves TSMC vulnerable as a standalone chipmaker caught between these giants and geopolitical risk in the Taiwan Strait.

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Yeah, the vertical integration is completely unprecedented in history. It's something— it's a byproduct of the singularity that I don't think I fully grasped until now that we're living it. But if you look at the largest companies in history, you know, you'd have ExxonMobil doing oil, you'd have IBM doing mainframe computers, GE, where my dad was, doing nuclear reactors and toasters, but they did different things. Now, all 11 of the Magna Mobsta companies are building AI chips and building AI models And building data centers. Every one of them. So they're all colliding into vertically integrated super companies, and they're just doing the entire stack.
And robots next.
And robots next. They're all going to build robots.
And meanwhile, TSMC is a sitting duck. TSMC is waiting to be verticalized.
Isn't that amazing? Yeah. It's like the, the linchpin to this entire thing, and it's sitting there not doing anything.
Right across the Strait of Taiwan, ready to start World War III at a moment's notice.