The more complex the process becomes, the harder it is to have equivalent competition so you're bound to have issues where a single company's investment decisions have widespread impacts.

My perspective on the China risk differs some, though. China wouldn't benefit much from attacking TSMC. This is the first time I've heard anyone suggest that they might. At best they'd like to have it in-tact if they do take Taiwan, but there have been talks about machines being rigged to explode to deny them from China, or the US striking them in that scenario.

If neither we nor China get to work with TSMC, then we're still ahead in relative terms. If China did attack TSMC, they set the norm that the fabs (including their own) are now a fair target which would be a larger disadvantage for them than it would be for us since China's physical power projection remains pretty regional outside of Chinese nationals abroad engaging in sabotage.

That is one of their biggest weaknesses. Yes they have a lot of manufacturing capacity and a large population with many talented people, but in a way we have lent them the power to scale up to see what they'll do. We are already putting some pressure on that scale now that they've shown who they are, but if it came to war it would be very doable to start reversing their scale and their capacity to do the same to us would degrade as ours increases.

Even if all the AI in the world was destroyed, that's how it would play out. The problem is that Taiwan remains in close proximity to China so similar to Ukraine it would likely come down to how long they're willing to throw everything at it.

If Russia and China wanted to be powerful, it's just idiocy to show the existing superpower that you cannot be trusted with the power you have. If they fancy a merit based society, they forgot that merit isn't omnipotence and you still need the right ideas to be at the top to accompany the merit. For China maybe they need AI for that alone, but western societies at least have ways for the right ideas to make it to the top without the strict need of AI.

I do not know if China could find a better window to take Taiwan,

Big tech manufacturers are treating consumers like crap by selling chips and memory to over-invested start-up companies that will go bankrupt, as these products will not be profitable due to the high costs (the technology that would make them profitable does not exist and has not even been conceived), in addition to the low long-term quality of what they offer.

The thing is, right now, billions of consumers around the world see how those big tech manufacturers are not serving them the pieces they need, and that such techs will not do in the near future with fair prices (prices abuse escalation, the consumers lost their strength).

Right now, if China takes Taiwan, 2026-2027, even if they lose the fabs, the billions of consumers in this planet will see this as a real f** you big techs, f** you overinvested startups hoarding, go go China, as we realize that we are third category citizens in this "first the riches" spiral, and will be no much difference of what is going on now.

If China takes his media news cards right, and makes know the consumers this is a revolution, and combine it with one of the numerous Taiwan's corruption scandals, I bet they will not find the opposition from citizens around the world that they would find in a different period of time.

The US has shown that it can't handle any level of discomfort. The reason Trump is back in the white house is because grocery prices went up a little bit. Can you imagine the failure of the tech companies that are propping up the entire economy? That would happen under a Taiwan invasion scenario. China has a much high pain tolerance than US citizens at least. I'd argue they would outlast the US. Would they outlast the US military? I don't know. But it may not matter as given enough pain the US population will make itself heard.

In my humble opinion, China taking Taiwan, if done under Trump, will be the market buying event of the century.

It will tank the markets because people will assume a depression-level event and WW3. But Trump isn't like other presidents. He'll make a deal with China. And finally, the China/Taiwan cloud over the markets will go away for good and countries can start trading freely with China again. Markets will severely over react initially.

I can see TSMC benefiting hugely from this long term, as long as the reunification is peaceful no damage to any TSMC fabs or people. The reason is because TSMC will most likely be forced to open up to both Chinese and US customers. Right now, they can't serve the world's second largest market. Nearly half of their customers can't use them.

I'm making these assumptions:

1. China won't use force (or very very little) to take Taiwan.

2. There won't be WW3 that will come out of this. You'd have to be an idiot to think that Americans will die defending Taiwan or that Europe will send troops when China is quickly becoming their biggest trading partners and US has shown they're susceptible to annexing Greenland.

3. China will operate 1 country 2 system long term with Taiwan.

Unpopular opinion: We don't really NEED these bleeding edge chips. What does humanity need? Clean air, clean water, healthy food, health care, compassion, education.