Taiwan performs a crucial function within the AI chip revolution and the worldwide semiconductor business, the chief govt of the Taiwan Stock Exchange advised CNBC in an unique interview.
Sherman Lin, chairman and CEO of Taiwan Stock Exchange Corporation attributed the sturdy positive factors on the Taiwan Weighted Index to “the AI revolution.”
“It is just because [of] the high demand of the high-end chip, and also the server supply chain. That’s why our stock market is going up,” he stated.
The Taiex has risen 27.93% within the final 12 months, however gave up some positive factors on Friday after most main markets within the area sank amid rising Middle East tensions.
Much of Taiwan’s dominance within the world semiconductor business could be attributed to Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker that produces superior processors for purchasers like Apple and Nvidia. TSMC is the primary producer of Nvidia’s highly effective AI processors.
“I think this is a lot of attraction for investors … So it means, actually, Taiwan plays [a] very crucial role in AI supply chain and also the semiconductor industry,” stated Lin.
Taiwan’s chip dominance
In 2023, Taiwan led superior chip manufacturing know-how, together with 16- or 14-nanometer and extra superior processes, with 68% world capability share, in accordance with TrendForce knowledge. This was adopted by the U.S. (12%), South Korea (11%), and China (8%), the information confirmed.
Taiwan additionally held practically 80% market share in excessive ultraviolet technology processes, corresponding to 7-nanometer and extra superior know-how, stated TrendForce. The smaller the nanometer measurement, the extra highly effective the chip is. EUV instruments are crucial within the manufacturing of the world’s most superior processors.
“We have very good fundamentals of ICT industries. So we can have the strength to facilitate, leveraging the success of the ICT and technology industries, new economy business,” stated Lin.
Quake and geopolitical dangers
Earlier this month, Taiwan was hit by its strongest earthquake in 25 years. TSMC stated building websites had been regular upon preliminary inspection, although employees from some fabs had been briefly evacuated. Those employees subsequently returned to their workplaces.
“Taiwan shows very good resilience … I understand that some listed companies that report to the TWSE – they had very little impact on their productions,” stated Lin.
“The kind of the challenge for Taiwan is the testing for our business continuity plan. We actually did quite well. And we refreshed, we responded really quickly. So you can see in the capital market, you can see the adjusted rebound quite soon,” stated Lin.
“Right now, it’s still in the uptrend in the capital market after the earthquake.”
On the end result of the U.S. elections and army conflicts, Lin stated such conditions “will always affect some capital markets” in addition to the Taiwan market.
“But [as] you can see, it will go back to the fundamentals. So I think Taiwan has good fundamentals, [has] resilience and [responds] quickly. I am pretty confident about our capital markets,” stated Lin.
https://www.cnbc.com/2024/04/19/taiwan-plays-very-crucial-role-in-ai-supply-chain-says-twse-chief.html
