TIVP024: TSMC (TSM): The Most Important Business in the World? w/ Daniel Mahncke & Shawn O’Malley | The Intrinsic Value Podcast - The Investor’s Podcast Network | Podwise
In this episode of the Intrinsic Value Podcast, Daniel and Shawn discuss TSMC, the Taiwan Semiconductor Manufacturing Company, exploring its history, its dominance in the semiconductor industry, and the factors contributing to its success, including Morris Chang's innovative foundry model and the company's technological leadership. They analyze TSMC's competitive advantages, such as economies of scale, high yields, and strong customer relationships, while also addressing the geopolitical risks associated with its location in Taiwan and the potential impact of Chinese military actions. They delve into the company's growth opportunities in AI, automotive, and high-performance computing, and discuss the challenges of replicating TSMC's ecosystem outside of Taiwan. Finally, they explore different valuation methods, including scenario analysis to account for geopolitical risks, and debate whether to add TSMC to their portfolio, considering the balance between its strong business fundamentals and the potential for a catastrophic event.
