earticle

영어

This study analyzes the case of TSMC placed the dominant position in the foundry in the semiconductor industry but exposed to the political risks stemming from the US-China trade disputes. Based on the findings of the study, TSMC has strategically reacted to the political risks due to semiconductor nationalism and sanctions against trade and investment by the dispersion of production facilities, structural integration, and organizational capabilities to minimize the transaction costs. In particular, TSMC attempts to implement both compliance and challenge against the sanctions imposed by the US government and the effectiveness of this strategy is based on technological capacity, customer relations, and the prevailing position in the semiconductor supply chain. The case of TSMC shed a light on companies exposed to a political risk by indicating potential strategies to avoid possible risks as well as the importance of dynamic strategy to grasp opportunities. In addition, it also implied that structural integration and organizational capabilities were critical factors to immune from the potential political risks and to disperse the negative consequences.