Dylan Patel discusses TSMC's dominance in semiconductors, from phones and laptops to the servers training AI models. China is investing in older-node fabs to secure supply chains for non-cutting-edge chips that power everything from cars to power management systems.
And it is all about TSMC.
And so TSMC, you know, you cannot purchase a vehicle without TSMC chips, right? You cannot purchase a fridge without TSMC chips. You cannot, you get, you like, I think one of the few things you can purchase ironically is a Texas Instruments like graphing calculator, right? Because they actually manufacture in Texas. But like outside of that, like a laptop, a phone, anything you servers, right? GPUs, none of this stuff can exist. This is without, without TSMC. In many cases, it's not even like the leading edge, you know, sexy 5-nanometer chip, 3-nanometer chip, 2-nanometer chip. Sometimes it's just like some stupid power IC that's like converting from like, you know, some voltage to another, right? And it's made at TSMC, right?
It's like what China is investing in as well. They can build out this long tail fab where the techniques are much more known. You don't have to figure out these problems with EUV. They're investing in this and then they have large supply for things like the car door handles and the random stuff and that trickles down into this whole economic discussion as well, which is they have far more than we do. And having supply for things like this is crucial to normal life.