TSM has a breakthrough! How important or unimportant it is? Please refer to comments of GROK and COPILOT. When you have interest, you can enter into the Nature Communications to read the original academic essay.
If you have no interest can just read the underlined sentences on previous pages. When talking about semiconductor, please do not look down upon the power of Taiwan. Even India has 1.4 billion people and China has 1.3 billion, come to a total of 2.7 billion, still cannot produce a company like TSMC which is one of the Top 10 capitalization of the world. Taiwan only has 2.3 million population, less than one-tenth of them. It is really a miracle!
So how do we should view on this news? As said on page 5, some other companies are also benefitted which are NVDA, APPL, AMD and QCOM. Some people said that the chips of Huawei can replace NVDA, please refer to the comparison on Sep 23rd of The Express, and then now Jensen Huang said they can do more then Moore’s Theory. That’s what I said will tell later how far the gap is. Why they said so, it is because of the Deep Seek success in early 2025. The first week they were on the top of the most downloaded app of Apple Store. It is because Deep Seek used distilled method. They got a preference.
When submarine was invented, it was treated as an immoral weapon and should not be used in war or else will be blamed. For attacking others under water is a coward deed and should float up and let each other can attack and defense. It started to use in World War I and widely used in World War II. But when everyone is wrong, it is correct. When everyone is immoral, it becomes a new rule of morality. So, everyone uses the distilled method of Deep Seek, they at once loss their preference. Such as owing a submarine cannot conquer the whole world now for others can also use and thus would not be considered as immoral.
The conclusion is that the semiconductor industry in Taiwan leads the world and matures in US by those IT giants. It is quite hard to be chased by others, even India said they join the competition in 2025. If others have no progress, the stars of tomorrow some day surely will chase up, but according to the Moore’s Law, the gap is wider and wider day by day. Now they even have a breakthrough to Moore’s Law, so the chasing up will be harder and harder.
Of course, western people are very lazy in comparison with Asians. The 9-9-6 working system in China gave them surprise. That is working from 9:00am to 9:00pm daily, and 6 days a week. This is known as 9-9-6. But in Taiwan, TSMC is working on a 24-hour base in 3 shifts a day, 7 days a week, 365 days a year. Therefore, the gap is farther and farther as times go by.
Mind that the engineers of TSMC mainly comes from 2 universities, that is the National Taiwan University and National Tsing Hua University. All the master candidates are marked by the TSMC one year before graduation. There are a lot of universities having a higher ranking than these 2 universities, but they still could not generate a TSMC which is on top 10 of the world. University rankings are quite important but not all in all. There is something rankings cannot shown. These 2 univariates are the backbone of Taiwan technology and semiconductor of the world. Please be noted that the National Tsing Hua University had no relation with the Tsing Hua University in Beijing, they are two different universities. Such as the Miami University had no relation with the University of Miami, they are 2 different universities, one is in Ohio and another in Miami.
When you go to Taiwan next time, do not forget to visit these 2 universities even though their rankings are not so high but they are unique. For trading strategies please refer to Market Observation on next page.