TSMC careful about use of AI in sensitive research

TSMC's conservative stance on AI for sensitive R&D stands apart from the industry's rush to integrate AI everywhere. Y.J. Mii's "three-year-old superman" analogy shows a critical risk. AI's power is immense, but its judgment is not yet trustworthy for complex, unknown challenges. This reflects a pragmatic approach to innovation, balancing speed with intellectual property protection.

This caution will likely slow some internal AI adoption for TSMC. However, it reinforces Taiwan's position as a reliable chip manufacturing hub. The company's Q2 revenue grew 12 percent sequentially to US$40.2 billion. This growth, outpacing the 11.5 percent average for the top 10 foundries, suggests its current strategy works. Other Asian chipmakers should note TSMC's focus on human decision-making for critical R&D.

The real test for TSMC is whether this conservative approach impacts its lead in next-gen chip development. Mii noted AI is less useful for A14 or A10 technology. If rival foundries gain an edge by deploying AI more aggressively in these areas, TSMC's prudence could become a liability. The market will watch for any shifts in its 72.5 percent market share.