TSMC CEO: I envy their 80% gross margins, but I would never do that(www.thestreet.com)
8 pointsby teleforce9 hours ago2 comments
  • fittingopposite5 hours ago
    I don't get it why TSMC doesn't use it's market power to increase their margins. The article was very light on the why. Any one else who has an idea why they don't abuse their monopoly?
  • SilverElfin5 hours ago
    > His comment had a clear target. > Memory makers Micron (MU), SK Hynix, and Samsung have turned a brutal shortage into record profit, and Wei signaled he could do the same but won’t.

    Why not? I don’t think anyone would punish TSMC for responding to supply and demand. And I doubt anyone will remember or reward them for not being greedy.

    • teleforce3 hours ago
      It's only my conjecture.

      While these 3 companies namely Micron, SK Hynix, and Samsung produce RAM modules, TSMC does not.

      TSMC from day 1, is mainly focusing on outsourced fabrication for computing system where RAM memory is fabricated just as embedded component or sub-system of a complete system.

      While increasing the price of thus RAM sub-component seems very attractive for short term gain but I think TSMC is focusing on long term business srategy where sudden RAM components price increased does not effect much of their overall profits.