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Sacrificing Short-Term Profits for Long-Term Market Share Growth
Chung's strategy at TSMC involved sacrificing early profits to rapidly grow market share, a tactic employed by successful tech companies like Amazon. This decision was crucial for TSMC's long-term success as it allowed them to offer competitive prices to win over customers. By heavily investing in depreciation, spending billions annually, TSMC ensured its cost base remained appealing and helped them secure a leading position in the industry.