Stocks of Taiwan Semiconductor, the world’s largest semidconductor manufacturer, are trading 40% off their peak prices. Geopolitical tensions between china and Taiwan are affecting its stock prices, while few believe these tensions may result in a real military clash. TSM is considered to be a “Silicon shield” of Taiwan against China as the company’s dominance in the semiconductor industry and its significance for global economy is extremely vital. Any disruptions of production at TSM will strike China’s economy badly as the country imported semiconductors worth $430 billion in 2021, 30% of which came from Taiwan.

North America is responsible for 68% of TMS sales. The company reported $50.1 billion in sales in the region during 2022, 34.5% up from the previous year. Nvidia, AMD, and Apple are among its clients. Digital expansion in business, cloud computing, electric vehicles, and AI require semiconductors and are therefore likely to secure the future of TMS. However, geopolitical risks should also be considered. These stocks could be added only to long-term investment portfolios.