Publication date:
April 19, 2024
Rising Energy Costs in Taiwan Impact Global Tech and Boost Local Semiconductor Giant
Taiwan's growing energy prices have implications for major tech industries, notably affecting American AI companies and benefiting TSMC.
Energy
Taiwan has experienced a significant increase in energy prices lately, which poses challenges and opportunities within the global tech sector. This rise in energy costs particularly impacts high-energy consuming industries such as AI technology firms in the United States. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip manufacturer, has seen an unexpected benefit from this situation. Despite TSMC's better-than-expected earnings, their stock price dipped, reflecting investor sentiments that had excessively high expectations. The situation underscores the intricate link between energy prices and technological manufacturing, especially in regions pivotal to global supply chains like Taiwan.