Bill Mann, financial expert and Motley Fool contributor, discusses the challenges facing the US dollar, semiconductor supply chains, Apple's political risks, and China's real estate market on the BiggerPockets podcast 'On The Market'.
Taiwan Semiconductor (TSMC) and ASML are crucial players in the global economy, with their disappearance or disruption having severe consequences.
The global economy is undergoing significant changes, with a shift from globalization to fragmentation, resulting in different economic environments in various regions.
Deep dives
Taiwan Semiconductor and ASML: Crucial Players in the Global Economy
Taiwan Semiconductor (TSMC) and ASML are two of the most important companies in the world that are often overlooked. TSMC dominates the production of advanced microchips and is crucial for many industries, including manufacturing for Taiwan Semiconductor. ASML, on the other hand, manufactures the equipment that makes the highest-end chips. These companies have a significant impact on the global economy, and their disappearance or disruption would have severe consequences. TSMC's advanced chip production is highly sought after, with no clear alternative if it were to vanish, while ASML plays a vital role in chip manufacturing processes.
The Global Economy: Uncertainty and Shifting Dynamics
The global economy is currently experiencing uncertainty and undergoing significant changes. In the past, countries moved in a relatively similar direction, but recent initiatives, such as China's Belt and Road Initiative, have led to countries using economics as a form of warfare. There has been a shift from a system that favored globalization to one that is more fragmented. Different regions now experience different economic environments. For example, the US, Europe, and South America face inflation, while China experiences deflation. The global markets are unsettled and searching for a new equilibrium, with interest rates and currencies playing major roles in shaping the future.
The Importance of Taiwan Semiconductor and ASML for the Future
Taiwan Semiconductor (TSMC) and ASML are critical players not only in the present but also for the future. TSMC's dominance as a chip manufacturer, especially in the production of advanced chips, makes it invaluable to various industries. Its strong position and advanced technology put it far ahead of competitors. ASML's manufacturing of equipment for chip production makes it an essential contributor to the industry. While TSMC and ASML may face challenges, such as geopolitical risks and technological espionage, they are indispensable to the global economy and will continue to shape the future of technology and manufacturing.
The Motley Fool’s Bill Mann recently appeared on the BiggerPockets podcast “On The Market”. Today’s episode is a feed drop of that show. Host Dave Meyer caught up with Bill to chat about what’s going on around the world. They discuss:
- Why the US dollar is a “bit of a wrecking ball.” - Semiconductor supply chains. - Apple’s political risks. - China’s real estate market.
Companies discussed: AAPL, TSM, ASML, FANUY
BiggerPockets credits:
Host: Dave Meyer Producers: Kailyn Bennett, Hager Eldaas Engineer: Exodus Media
Motley Fool credits:
Guest: Bill Mann Producer: Ricky Mulvey Engineer: Dan Boyd