alt Hacker NewsSneak preview of the TSMC shortage that will sweep the world in 2027 when China takes Taiwan and the TSMC scuttles their chip fabs on the island.
I don’t know the hedge to position against this but I’m pretty sure China will make good on its promise.
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Alternatively, China could make progress fabricating and exporting its own chips and designing its own GPUs. The entire chip sector could go the way of solar panels and EVs with prices dropping and margins collapsing to near zero.
I'm about 100% positive America would consider that an act of war and respond accordingly.
> I don’t know the hedge to position against this
Buy in-demand fab output today, even at a premium price and even if you can't install or power it all, expecting shortages tomorrow. Which is pretty much the way the tech economy is already working.
So no, no hedge. NVIDIA's customers already beat you to it.
I'm not sure how true it is or not but I heard that TSMC has the ability to remotely destroy all of their main fab equipment in the event the Chinese are invading Taiwan.