Finding the Quiet Corners of a Noisy War
The immediate fallout has been predictable. American giants like Nvidia and AMD, once the undisputed kings of the AI castle, suddenly find their access to a massive market severely curtailed. It’s a bit like being the world’s best pub landlord but being told you can no longer serve your biggest spending customers. It’s bound to hurt.
This is where a shrewd investor might start looking for the beneficiaries of this fragmentation. Think of companies operating outside the direct line of fire. Taiwan’s TSMC is a prime example. As the world’s go-to contract manufacturer, it’s the factory floor for almost everyone who matters, from Apple to the big car makers. Whilst not entirely immune, its central role in the global ecosystem makes it almost indispensable. You can’t build a modern world without it, and everyone knows it.
Then you have the Dutch firm ASML. To me, this company is in an even more enviable position. It holds a monopoly on the ridiculously complex lithography machines needed to produce the most advanced chips. It doesn't matter whether the chips are made in America, Korea, or Taiwan, they all need ASML’s kit to do it. It’s the ultimate arms dealer in the chip war, happily selling shovels to all the gold miners.
