📊Executive Summary

TSMC's CEO, C.C. Wei, has highlighted critical supply risks for semiconductor manufacturing in Taiwan due to talent shortages and water availability issues. As demand for advanced chips continues to rise, these constraints could impact TSMC's production capabilities. Although recent rainfall has alleviated some immediate water supply concerns, the underlying risk remains, especially considering Taiwan's history of drought. The government is working on infrastructure improvements to address water distribution, but the talent shortage poses a more significant challenge for TSMC's expansion plans. This situation necessitates close monitoring by procurement teams, particularly those sourcing advanced semiconductors....