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TSMC can weather geopolitical tensions

Chipmaker is well placed to cope with disruption caused by increasing US restrictions on chip tech exports to China

Taiwan Semiconductor Manufacturing Company’s position at the heart of the global artificial intelligence supply chain continues to pay off. While intensifying geopolitical tensions pose risks to the world’s chipmakers, TSMC’s dominance leaves it well-placed to weather potential disruptions.

For evidence of TSMC’s strengths, look no further than the world’s largest contract chipmaker’s record-beating fourth-quarter results. Rising demand for AI chips and its growing client base drove net profit to NT$374.7bn ($11.4bn) in the December quarter, up 57 per cent on a 39 per cent gain in revenue.

Share prices reflect the continuing growth. TSMC’s Taipei-listed shares are up 90 per cent in the past year. There is also growing global interest in the stock, with TSMC’s American depositary receipts up 103 per cent during the same period.

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