Taiwan Semiconductor: Strength Amid Uncertainty

Summary

• The China-Taiwan conflict has come back into the spotlight over the last week as Nancy Pelosi jetted off to Taipei.
• TSMC has started to mitigate this increased geopolitical risk over time as it has been gradually shifting operations away from Taiwan.
• Nonetheless, TSMC still has heavily Taiwan-centric production and is rightfully one of the companies in focus amid the turmoil as a large contributor to Taiwan's GDP.
• Renewed concerns will likely apply further pressure to TSMC and its share price, however, this should not detract investors from TSMC's strong fundamental strength.

BING-JHEN HONG/iStock Editorial via Getty Images

"Markets hate uncertainty" is a saying that is thrown around a lot by market participants and the press. This belief really has mixed substance, in some cases it appears applicable (recent Russia-Ukraine war) and in others (storming of the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.