Semiconductors & Sudden Wealth

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Taiwan Semiconductor, or TSM as the cognoscenti whisper, has been making headlines. A new plant here, a handshake with a former administration there, and a cool $250 billion pledged to further complicate matters in America. One might suspect a scheme of considerable ambition, though in the world of capital, ambition is merely a synonym for “opportunity.” The recent quarterly report, naturally, confirms everything is proceeding swimmingly. Or, at least, that’s what they want you to believe.

Had you, a year ago, possessed the foresight—or, let’s be honest, a decent tip—to invest a modest ten thousand dollars in this enterprise, you’d now be admiring fifteen thousand. A 50% return. Not bad. Though one shouldn’t mistake luck for genius. It’s merely a fortunate alignment of silicon and speculation.

The Artificial Intelligence Racket

Artificial Intelligence, that modern elixir promising to solve all our problems and simultaneously create a new set, is, predictably, the engine driving this particular locomotive. Taiwan Semiconductor manufactures the little chips that make all this digital wizardry possible. And, naturally, they’re reporting growth. A 36% increase in sales, a 51% operating margin. Figures that would make a seasoned confidence artist blush. It’s a beautiful cycle, really: create a need, manufacture the solution, and collect the proceeds. A perfectly legal, and remarkably efficient, form of alchemy.

So, you missed the last year’s windfall? Don’t despair. The management, ever optimistic, assures us that even greater opportunities lie ahead. They’re increasing capital expenditures, naturally, because what better way to attract investment than by promising to spend even more money? It’s a self-perpetuating motion machine, fueled by optimism and other people’s funds.

The boat hasn’t sailed, they say. Though one suspects it’s less a boat and more a heavily subsidized freighter, laden with promises and heading towards a horizon shimmering with potential—and a distinct possibility of icebergs. Still, who are we to judge? In the grand casino of the stock market, everyone is merely playing the odds. And sometimes, just sometimes, the house loses.

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2026-01-26 20:42