Latest news with #globaltech
Forbes
01-08-2025
- Business
- Forbes
How To Enter Emerging Semiconductor Hubs Strategically
Mkhitar Hayrapetyan, Minister of High-Tech Industry of the Republic of Armenia. The semiconductor industry has become a paradox of innovation and vulnerability. Ninety percent of the world's most advanced chips are fabricated in a single East Asian corridor. That extreme concentration turns every typhoon, shipping backlog or political flare-up into a global tech crisis. Governments and companies alike are now in a race to diversify. From Vietnam to Greece, a new generation of 'emerging hubs' is attracting interest. But while press releases come fast, progress often doesn't. Many initiatives stall once the reality behind headline numbers comes into focus. To move beyond announcements and toward successful execution, tech leaders need a new framework, one that accounts not just for costs and incentives but for the structural, human and geopolitical dynamics that shape long-term viability. Here is a strategic framework I have developed while advising companies on global expansion, including recent work in Armenia, where NVIDIA and Firebird recently announced a $500 million AI supercomputing infrastructure. 1. Infrastructure Today Vs. Development Tomorrow One of the most common mistakes in evaluating new markets is focusing solely on what's already built. That can be misleading. What matters more is a country's ability to scale the right infrastructure within your investment timeline. For example, I like to explain that while Armenia may lack legacy foundries, it boasts reliable nuclear power, strategic mineral access and a deep engineering tradition. These are not short-term fixes. But if your timeline allows, such long-range assets often matter more than current real estate. Ask: Is the location merely cheap, or does it have the right foundation to build a modern, sustainable tech ecosystem? 2. Talent Pipelines Beyond The Obvious Too many feasibility studies stop at headcount. A better question is: How deep is the bench? Look at historical STEM investments. Scrutinize diaspora talent that could be repatriated. Assess the strength of local universities and their collaboration with industry. Understand cultural attitudes toward engineering careers—not just whether people are available, but whether they are inspired to build. AI and semiconductor industries demand continuous talent renewal. A one-time training bootcamp won't cut it. 3. Specialized Due Diligence For Emerging Ecosystems Conventional due diligence processes are designed for mature markets. They often fail in emerging ones. You need a different lens, one that accounts for volatility and still reveals genuine upside: In both AI data centers and chip fabs, electricity can make up around 20% of total costs. But it's not just about price—it's about stability. Rolling blackouts or sudden rate hikes can destroy profitability. Investigate grid capacity, fuel diversification and forward-looking energy strategies. Consider whether the country is plugged into global value chains. Are there free trade agreements? How efficient is customs? What protections exist for IP? Can capital flow in and out freely? The more these systems resemble developed economies, the less friction you'll encounter at scale. 4. How To Enter Without Overcommitting The most resilient expansion strategies follow a phased approach. Don't start with a megafab. Start with talent development. Sponsor university labs. Run a pilot assembly line. Test logistics. This builds internal knowledge while creating local goodwill. Emerging markets may lack direct experience in semiconductors or AI—but often have untapped technical potential. Partner with institutions. Offer apprenticeships. Build mentorship networks. These programs create not just workers, but advocates. In emerging hubs, the state is often an active economic partner. Understand how policy is shaped. Join local advisory councils. Help define standards. The deeper your relationship, the more influence you will have when policies shift. Mitigating Risk Without Killing Momentum Expansion in emerging markets will always carry risk. But the companies that prepare for it without being paralyzed by it are the ones that win. Here are some factors to keep in mind: • Operational Resilience: Establish supplier redundancy. Create backup infrastructure. Develop cross-trained teams to respond to shocks. Financial Hedging: Balance local revenues and costs to protect against currency swings. Maintain relationships with multiple banks. Monitor capital controls and taxation updates. Exit Optionality: Design your investment for flexibility. Can equipment be moved or repurposed? Are your IP rights clearly delineated? Who can you sell to, partner with or hand off to if you exit? Strategic Takeaways The path to successful global expansion involves more than choosing the right location—it's about developing the right approach. Here are a few considerations: Companies should begin by forming cross-functional teams that combine technical, geopolitical and financial expertise to evaluate target markets holistically. Before making capital-intensive commitments, it's wise to initiate local partnerships. These early collaborations build credibility and uncover ground-level realities. At the same time, launching flexible pilot programs can generate vital insights and help organizations adapt quickly as they scale. This isn't just about reducing costs or chasing incentives. It's about shaping the next phase of global tech infrastructure. Done right, expansion into new hubs isn't a hedge—it's a competitive moat. The companies building genuine capabilities in emerging markets—investing in people, transferring technology, co-creating ecosystems—will gain advantages no one can replicate overnight. The Bigger Picture The semiconductor and AI industries are at an inflection point. Geographic concentration has gone from an efficiency advantage to a strategic liability. The shift toward emerging tech hubs isn't just a backup plan—it's the foundation for a more resilient, distributed innovation ecosystem. But diversification alone isn't a strategy. Success will come to those who do more than follow the trend. It will come to companies that invest early, build local capabilities and turn uncertainty into a competitive advantage. The future of global tech won't be written in a single region. It will be built across dozens of rising ecosystems, from Southeast Asia to Eastern Europe and beyond. The real question for executives isn't should we expand—but how will we lead? Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
23-07-2025
- Business
- Yahoo
As Taiwan Semi Joins the Trillion-Dollar Club, Should You Buy, Sell, or Hold TSM Stock?
Taiwan Semiconductor Manufacturing Company (TSM) has crossed into Wall Street's most elite tier, becoming the latest member of the exclusive trillion-dollar market capitalization club. In the last quarter, the semiconductor giant stunned investors with a 61% leap in net profit and quarterly revenue surpassing $30 billion, while margins soared above many of its industry peers. With every major AI player, from Apple (AAPL), to Nvidia (NVDA), relying on TSM's advanced technologies, and the world holding its breath as the semiconductor supply chain evolves, investors find themselves at a remarkable crossroads. Can TSM keep up this blistering pace, and should you bet on (or against) the chip giant now that it towers among the world's most valuable firms? Let's dive into TSM. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Should You Buy the Post-Earnings Dip in Lockheed Martin Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. TSM's Q2 Financial Report Taiwan Semiconductor Manufacturing (TSM), the world's leading contract chipmaker, commands a market capitalization north of $1.24 trillion, cementing its status as the backbone of global tech for giants like Apple and Nvidia. TSM's share price is up 19% year-to-date and 39% over the last 52 weeks. TSM trades at a forward price-earnings multiple of 24.8x, compared to a sector median of 24.4x. This shows that TSM is likely fairly valued. On July 17, 2025, TSM reported blockbuster second-quarter numbers. Consolidated revenue reached $30 billion, surging 44.4% year-over-year and 17.8% sequentially. Net income was $12.8 billion, up 42.6% year over year, and dilted earnings per share came in at $0.49 and $2.47 per ADR. Production at the cutting edge remained the company's calling card: 3-nanometer technology deliveries accounted for 24% of wafer revenue, 5-nanometer 36%, and 7-nanometer 14%; advanced nodes (7-nm and better) captured an impressive 74% of total wafer sales. TSM's Growth Engines The company recently unveiled a $100 billion boost to its U.S. investment, expanding its American footprint to an extraordinary $165 billion overall. Rather than a routine capital allocation, this commitment will roll out three new state-of-the-art fabrication plants, two advanced packaging facilities, and a major R&D center. Together, these facilities are primed to reinforce the company's global leadership and ensure that heavyweight clients like Apple, Nvidia, Advanced Micro Devices (AMD), Broadcom (AVGO), and Qualcomm (QCOM) get a steady flow of the most advanced chips on the planet. This aggressive expansion is rooted in TSM's need to keep pace with persistent and intensifying customer demand. With orders surging, TSM is gearing up to open nine new fabrication facilities in 2025 alone, a testament to its unrivaled agility and capacity to scale. Partnerships continue to be a pillar of TSM's dominance, as TSM continues to secure and renew major manufacturing partnerships with global technology leaders. Significantly, both Nvidia and AMD (AMD) have selected TSM's cutting-edge HBM3E memory solution for their latest GPUs, the Blackwell and MI355X series, respectively, reinforcing TSM's dominance in critical high-performance and AI workloads. What the Experts See in TSM For the current quarter ending September 2025, analysts are forecasting average earnings per share of $2.53, up from $1.94 in the same period last year. Zooming out to the full fiscal year, consensus pegs TSM's average EPS at $9.68, a significant leap from the $7.04 reported last year. That translates to estimated year-over-year growth rates of 30.4% for the quarter and a striking 37.5% for the year. TSM's outlook for the third quarter of 2025 calls for revenue between $31.8 billion and $33 billion, supported by a gross profit margin in the 55.5% to 57.5% range and operating margins between 45.5% and 47.5%. That's a testament not just to the company's powerful pricing and scale advantages, but also to its ability to navigate large-scale capital investments and supply chain complexities without eroding profitability. The 11 analysts surveyed rate TSM as a consensus 'Strong Buy,' reflecting faith in both the momentum of its core business and its leadership in AI and advanced chip production. Their average price target stands at $257.88, representing 10% upside from current levels. Conclusion TSM is still the backbone of the global chip industry, and its growth story shows no signs of stopping. With profits soaring, strong analyst support, and expansion plans firing on all cylinders, holding or even adding a little more here looks smart, unless you expect a major tech rout. Personally, I think shares have room to edge higher over the next year as AI demand keeps fueling the fire. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Reuters
05-06-2025
- Business
- Reuters
Citi to cut 3,500 technology jobs in China as part of global revamp
HONG KONG, June 5 (Reuters) - Citigroup Inc (C.N), opens new tab will reduce the number of employees at two of its technology centres in China by about 3,500, the bank said on Thursday, as part of its efforts to simplify and shrink its global tech operations to improve risk and data management. The reduction of staff at the China Citi Solution Centres in Shanghai and Dalian is expected to be completed by the start of the fourth quarter this year, according to a statement issued by the bank. Last month, Reuters first reported that Citi was cutting around 200 information technology contractor roles in China.
RNZ News
21-05-2025
- Business
- RNZ News
Labour critical of govt's decision to scrap digital services tax
politics policy 24 minutes ago Labour has criticised the government's decision to can the digital services tax, saying it effectively hands $479 million in tax break to global tech giants. Labour Party Finance Spokesperson Barbara Edmunds spoke to Corin Dann.
