Bathgate: TSMC keeps margins below its customers to prioritize long-term platform value
John Bathgate · Complexity Investing & Semiconductors with NZS Capital (Extended Cut) · Acquired · Nov 3, 2021 · at 22:36
John Bathgate (NZS Capital) discusses TSMC's non-zero-sum business model and culture established by Morris Chang.
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“TSMC has lower margins than most of their gross margins than most of their customers. And so at any point they could probably take the margins from 50% to 60% and say, Hey, I'm obviously have a monopoly in this market, but the way, you know, Morris Chang architected the culture there. Is, is on, you know, long-term value creation and really creating a platform for their customers to, you know, create massive, you know, amazing businesses.”
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