Overseas demand for chips used in smartphones, artificial intelligence and high-performance computing has helped fuel an appreciation of more than 7% in the Taiwan dollar versus the greenback over the past 12 months, even as the central bank worked to slow gains.
The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., plans to increase capital expenditure this year to as much as $28 billion to help address the shortage. Shares in the chip giant have surged 23% this year, on top of a 60% jump in 2020, making it the world’s 10th-largest company.
This is really good for the country but the geopolitical pressure will increase from China.
