Building Chips, and What That Says About Building Anything

There's this company, TSMC. They make chips. Not design them, just *make* them. That’s important. It's easy to think of technology as just software, or clever ideas, but somebody has to actually build the stuff. And TSMC builds a lot of it. They're planning to spend something like $56 billion this year to build more factories. That’s a big number. It got me thinking about building things. Not just factories, or chips, but anything. Companies, careers, even good habits. We're so focused on the *idea* these days, the funding, the marketing, that we forget about the actual work of construction. It's like everyone's designing buildings but nobody wants to lay the bricks.

TSMC isn't some flashy startup. They don't make the headlines with new apps or social media trends. They just quietly, reliably, build things. And that's turned them into one of the most important companies in the world. They’re in the middle of a trade deal between Taiwan and the US, making them even more important. They’re spending this money because they think demand will stay high. Orders are up. Clients like Nvidia, Google, and Apple keep ordering more and more chips. That’s AI, mostly. All this talk about an AI bubble… well, TSMC doesn't seem worried. They’re betting that the demand is real, and they’re willing to spend billions to meet it. It’s easy to get caught up in the hype. Is AI really going to change everything? Will these companies really deliver on their promises? It’s hard to say. But TSMC’s investment is a pretty strong signal. They’re not betting on hype, they’re betting on demand. Actual, measurable demand.

That’s a key difference. A lot of companies build things that might be useful. TSMC builds things that people are already buying. It's a subtle but important distinction. They’re not trying to create a need, they’re fulfilling an existing one. This got me thinking about startups. So many startups are chasing trends, trying to be the next big thing. They’re building apps that nobody asked for, solving problems that don’t exist. They’re focused on fundraising and marketing, hoping to attract enough attention to survive. But the really successful companies, the ones that last, they’re usually doing something simpler. They’re building things that people need. They’re solving real problems, providing real value. They’re not trying to disrupt the market, they’re just trying to build something useful.

Think about Amazon. They didn't start by trying to revolutionize retail. They started by selling books online. It wasn't a glamorous idea, but it solved a real problem. People needed to buy books, and Amazon made it easier. They focused on building a reliable, efficient service. And then, slowly, they expanded. It’s the same with Google. They didn't start by trying to organize all the world's information. They started with a simple search engine. It wasn't perfect, but it was better than anything else available at the time. They focused on building a fast, accurate search experience. And then, slowly, they added more features. These companies didn't start with grand visions. They started with small, practical problems. They focused on building something useful. And then, they slowly expanded. It's a much more reliable strategy than trying to disrupt the market with a revolutionary new idea. There’s a comfort in that. It's easy to get seduced by the idea of innovation, of changing the world. But most of the time, the most valuable thing you can do is just build something useful. Something that people need. Something that solves a real problem. TSMC isn’t chasing trends. They’re not trying to be the next big thing. They’re just building chips. And because they’re good at it, they’re incredibly valuable. It also says something about the importance of being a specialist.

TSMC doesn’t design chips. They make them. They’ve focused all their resources on mastering the art of manufacturing. They’ve built a world-class facility, staffed with skilled engineers and technicians. They’ve become the best in the world at what they do. This is a lesson that applies to all sorts of fields. It's tempting to try to do everything yourself. But it’s usually more effective to focus on a few key skills and become really good at them. It’s like building a house. You could try to do everything yourself, from laying the foundation to painting the walls. But it would probably take you a long time, and the quality wouldn't be very good. It's usually better to hire specialists. A foundation expert, a plumber, an electrician. People who have mastered their craft. TSMC is the specialist in chip manufacturing. They don’t try to compete with companies like Intel or Nvidia in the design space. They focus on what they do best: building chips. And that's why they're so successful. It also says something about the importance of long-term thinking. TSMC is investing billions of dollars in new factories. These factories won't be completed for years. But TSMC is confident that the demand for chips will continue to grow.

The fundamentals still matter. Build something people need, and they will come. And there is something oddly satisfying about that. It’s not glamorous, it’s not revolutionary, but it’s honest. It's building something real, something useful, something that makes a difference. It's also a reminder that success isn't always about being first. TSMC isn't the first company to make chips. But they're the best. They've focused on mastering their craft, building a sustainable business, and delivering value to their customers. And that's a lesson that applies to all sorts of fields. It's not always about being the disruptor. It's about being reliable, efficient, and delivering value. I’m not saying that innovation isn’t important. It is. But it’s not the only thing that matters. You also need to be able to execute. You need to be able to build something real. And you need to be able to deliver value to your customers. TSMC is a master of execution. They’ve built a world-class facility, staffed with skilled engineers and technicians. They’ve become the best in the world at what they do. And that's why they're so successful. It's a reminder that sometimes the most valuable thing you can do is just build something useful.