As of last week, Taiwan Semiconductor Manufacturing Company (TSMC) experienced a rise of 1.26%, although it faced a decline of 5.16% in the past week. Year-to-date, TSMC's value has surged by 88.66%, bringing its latest market capitalization to approximately $1,000.779 billion.

On Monday, TSMC's shares opened weak and fell by more than 3%, reaching $197.32. Founder Morris Chang has voiced concerns regarding global semiconductor free trade, citing escalating geopolitical tensions as a significant challenge. Despite these challenges, Chang highlighted TSMC's record-breaking performance this year, underpinned by its technological advantage, manufacturing capabilities, and customer trust. However, he forewarned that the greatest challenges might still lie ahead for TSMC.

In light of global market dynamics, TSMC is taking steps to expand its reach. Reports indicate that TSMC is recruiting in the United States to prepare for a new 5nm factory in Arizona. The facility aims to utilize TSMC's cutting-edge 5nm process technology with a planned monthly capacity of 20,000 wafers. This project is expected to commence in 2021, targeting production by 2024, with a planned expenditure of about $12 billion from 2021 to 2029.

Furthermore, TSMC is said to be exploring price increases for its advanced manufacturing processes. In response to soaring demand for its high-performance computing and cloud AI chips, particularly its 3nm and CoWoS packaging technologies, reports suggest TSMC plans to raise prices by 5% for 3nm processes and up to 20% for CoWoS packaging by 2025. This move is indicative of TSMC’s efforts to manage supply chain dynamics while ensuring it continues to meet the burgeoning market demand effectively.

As TSMC continues to innovate, it has confirmed plans to incorporate state-of-the-art High NA EUV lithography machines into its production processes. These machines, procured from ASML, represent the pinnacle of semiconductor manufacturing technology, valued at approximately $3.5 million each. While there is no immediate necessity for these advanced tools, TSMC remains forward-thinking by preparing to integrate them post the introduction of its A10 production technology, potentially scheduled for after 2030.

TSMC's strategic moves come at a time when global semiconductor industry dynamics are rapidly evolving. With competition from peers like Intel and Samsung, TSMC is steadfast in its ambition to remain at the forefront of technological advancements, despite logistical and geopolitical hurdles. The company's cautious yet progressive approach suggests a readiness to adapt to global market demands and opportunities.