Taiwan Semiconductor Manufacturing Company (TSMC) Strategic Issues

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Article 1: Living on the Edge
Principal Theme
The principal theme is Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is one of the largest chipmaking companies in the world, producing approximately 39% of the world's semiconductors (Living on the edge, 2021). Despite the higher growth and development in the industry, the company also faces specific issues such as rivalry between China and United States. The company works in the identified countries, and rivalry heavily limits its growth and development.
Key Strategic Issues
The key strategic issue is the business expansion of TSMC. TSMC is based on new strategies and business models. For instance, the company has heavily invested in new technology above the competing companies, which allows it to use higher prices to accumulate huge revenue. The approach allows it to exploit different customers making two to three times the normal prices. The approach is critical to the company since it exposes it to the edge despite making more profits. Price exploitation is a key strategic issue that may adversely impact a company when not timely resolved.
The second strategic issue is the action of the United States which limits TSMC from working with China. The American relationship with China is a critical issue that significantly impacts the company. President Joe Biden also targeted approximately $50 billion that would be used to produce chips locally to limit the association with China (Living on the edge, 2021). The identified issues are critical and require effective business planning to restore TSMC's image and business.
Implications for Industry /Sector/Country
Different implications exist from the TSMC approach of profit exploitation. Extraordinary pricing is one of the strategies which kills most companies and industries. TSMC's strategy implies that its main goal is profitability with less consideration of the customer's demands. It adversely affects the industry by reducing innovation and market penetration of the upcoming industries.
Additionally, the issue of preventing TSMC from working with China implies that there is a poor business relationship between China and the United States. The relationship is detrimental since it jeopardizes successful business operations, and it would also imply a meddling regime in Beijing since it is the major area that the company operates. Therefore, the rivalry would be escalated, impacting the normal business operation in China.
Personal Commentary
I believe TSMC uses a poor business strategy of raising...