No, it's an economically wise move because of the politics. This plant allows TSMC to gets the CHIPS subsidy, but maybe more importantly it allows them to become part of the military industrial complex which requires that products are made domestically. This fab will print money.
You are definitive about defense spending in a recession. This is wrong. Aspects of the government will begin pulling back. We do not know how this will effect tsmc.
This move from a profitablity standpoint is break even as far as we know. It makes no economic sense.
Btw. This isn't something I'm making up. The CEO of tsmc mark liu stated this to Nancy pelosi during her visit. Also her husband is dumping tsmc stocks for unknown reasons.
Defense spending never goes down. It's a key way the government injects money into the economy during recessions.
> The CEO of tsmc mark liu stated this to Nancy pelosi during her visit
Every CEO tells politicians to give them more money, that isn't evidence of shit other than being competent.
Interest rates will increase spending will be pulled back to stop inflation. A recession is the tool being used to stop inflation.
The CEO did not ask for money. The money was already given. The CEO was simply stating the status quo. Helping her come to terms realistically with what is truly going on with the Arizona plant. Look it up.
It's not useless, it's all about power projection. When you go to rob a bank and take a gun with you that you will never use then you don't call that gun useless because thanks to projecting your deadly power with it you were able to successfully rob the bank.
The United States has had around 20 years of peace since the Declaration of Independence was signed in 1776.