Baillie Gifford’s McPadden Backs TSMC, SK Hynix Over China Chips

Baillie Gifford portfolio manager Paulina McPadden suggests that TSMC and SK Hynix maintain significant advantages in advanced semiconductor production that remain difficult for Chinese firms to replicate. She argues that these companies hold near-monopoly status in specialized chip manufacturing, creating a competitive moat that persists despite Beijing’s large-scale financial efforts to bolster its domestic artificial intelligence hardware sector.