Challenges in Finding Alternatives to TSMC

TSMC's dominance in chip fabrication is due to economies of scale, unrivaled specialization, and strong partnerships across the semiconductor supply chain. The US has taken steps to mitigate dependence by limiting high-end AI chip exports to China and encouraging chip production in the United States. However, TSMC's production capacity in the US is relatively modest, and the most advanced semiconductor production capabilities will remain in Taiwan. Finding alternatives to TSMC's advanced AI chip production, such as Samsung or Intel, poses challenges in terms of technology, scalability, and timeline. Losing the ability to produce cutting-edge AI chips would have severe consequences for the progress of artificial intelligence.