💡 TSMC discontinues supply to Chinese chipmaker Sophgo: How geopolitics affects the semiconductor industry
Taiwan Semiconductor Manufacturing Company $TSM, a global leader in chip manufacturing, has suspended its cooperation with Chinese firm Sophgo after its chip was discovered in Huawei' s artificial intelligence processor . Huawei is banned from using advanced technology with American origins - TSMCchips are made with American technology and fall under US export restrictions. The move by TSMC is therefore not just a business decision, but also a consequence of international politics between the US, China and Taiwan. 🌐
Company Sophgo has responded to the allegations by stating that it has never had direct business ties with Huawei and that it complies with all laws and regulations. However, it still had to TSMC to inform the authorities in USA and in Taiwan, confirming its commitment to regulatory action. 🏛️
The geopolitical tensions between USA a China continues to escalate is becoming quite a serious issue, with a possible victory Donald Trump in the presidential election, this trade war could take on new dimensions. Indeed, political measures such as sanctions and trade restrictions can have a direct impact on stock values, operational stability and the long-term prospects of companies such as TSMC, ASML and other technology companies. Therefore, investors should pay attention not only to the technical capabilities and financial performance of companies, but also to their ability to effectively manage the risks that stem from an increasingly unpredictable global marketplace. 📉📈
This event is another example of the powerful impact that geopolitical decisions have on the stability and growth of technology sectors. Thus, a thorough analysis of not only the economic results but also the political environment becomes a necessity for our investment decisions.
What is your opinion on the trade war between the US, China and the EU? Which investments do you see as the riskiest from this perspective, is it the automotive sector or the technology sector just mentioned?
Let's see how it goes now. Trump is definitely not good for this and it may not be pleasant for European and Chinese stocks.
I sincerely hope that $TSM and $ASML will be minimally affected.
It's not good, and since I have that $ASML in my portfolio, the geopolitical decisions scare me sometimes, but hopefully it won't be that big of a deal.
Not only the US, but in fact the whole world is influencing these key companies not to give an advantage to anyone else. For shareholders, this is just extra grief for otherwise good businesses.