00:00U.S. chipmaker Micron has announced it will buy a facility in Taiwan for U.S. $1.8 billion.
00:06Micron is Taiwan's largest foreign direct investor. It's expanding across the world,
00:11making huge investments in the U.S. and Japan. So my question is, what's with this global push?
00:17Why would Micron buy this new factory in Taiwan now?
00:20Right now, in memory space, particularly in D-Ren, it's facing structural challenges,
00:27you know, shortage, actually. So there's a couple of ways you can fulfill the demand by spending
00:32capacity. You either build a new fab, which will take two to three years from the break ground to
00:38the first wafer out, or you can do it like what they did this time with PSMC, is to acquire an
00:46existing fab. Well, you purchase the fab and you just need to replace the equipment inside the fab,
00:51then you can ramp up the production within less than a year, right? So from Micron's perspective,
00:57the investment in Taiwan, and particularly this deal with TPSMC, is really to increase the capacity
01:03in the shortest time possible. We also know that Micron stock prices surged over 240% in 2025.
01:11So what is driving up these prices? Given the structural shortage, you know, basically,
01:16the simple economics, right? Supply demand, right? And when you are significantly in a
01:21significant shortage, and what happened in D-Ren is, if you couldn't have found enough supply,
01:28the buyer would just pile up the pricing, right? People buying the price, pile that higher, higher.
01:33I think the shortage will probably last through 2027, right? So given that, right, it's really not
01:40surprising the pricing environments just continue to be more and more variable for Micron.
01:44The other big news in Taiwan tech is the U.S.-Taiwan trade deal. The government is using Micron to
01:50defend the deal. It published this infographic on January 17th, stating at the bottom, quote,
01:56Micron invested in Taiwan, but didn't become Taiwan Micron. TSMC investing in the U.S. won't make it
02:04U.S. SMC. Do you think this comparison is reasonable?
02:09In Taiwan, really, we are just talking about TSMC, right? So the importance of that company going
02:17abroad and Micron going abroad for U.S. or for Taiwan is a significant difference, right? I think
02:22the comparison is still unreasonable, but I will also say the local concerns are a little bit overstated.
02:28The competition is a Sportsbook with it. It starts at the beginning of our culture, right? And we
02:42see what happens. And if I go abroad and I just spend days later, I just put a SAMC when putting
02:44completely out on the course. Okay. So losing weight in time and half give me more research.
02:45So I'm going to switch over to the competition and therefore I'mdirector.
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