MARK BARNES: We can’t win at everything, but we can punch above our weight
We need to find where our strengths lie and carve out that space to become price-makers
The Economist recently ran an article on the Taiwan Semiconductor Manufacturing Company (TSMC), which controls more than 80% of the world’s computer chip market. Not only does this translate into great operating margins, but it is at the centre of Taiwan’s geopolitical survival. Most of TSMC’s strategic client base is in the US, four times that of its closer neighbour client base in China.
TSMC has ensured the survival of its home manufacturing base through this indispensable, very specific, economic positioning. The US provides Taiwan with military support while China regards it as part of its territory. A profitable peacekeeper balance, or at least a detente...