Commentary: These two companies will guide global supply chains


WHERE THEY GO, OTHERS WILL FOLLOW

Take TSMC. Although it doesn’t make cars, the company has chosen locations at the centre of the automotive supply chain. Volkswagen, BMW and Porsche all have facilities near Dresden, the site of TSMC’s forthcoming European fab. Co-investors in that factory include Robert Bosch, Infineon Technologies and NXP Semiconductors.

As a result, anyone who wants to supply materials or equipment to TSMC will need to have operations near the German city.

For its factory in Japan’s Kumamoto prefecture, TSMC is teaming up with Sony Group, Toyota Motor and automotive-electronics supplier Denso. This facility will serve Japan’s world-leading carmaking, industrial and consumer electronics industries.

The expansion plan, announced in 2021, spurred suppliers Mitsubishi Electric, Sumco and Kyocera to outline new investments in the area.

TSMC’s facility in Arizona is a different story. There’s no business case to be made for setting up there: The region lacks any related industries of note. But pressure from clients, and incentives from US governments at the state and federal level, left the Taiwanese company little choice. Even then, suppliers were quick to follow, including industrial companies LCY Chemical and Topco Scientific.



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