The Taiwan Semiconductor Manufacturing Company's (TSMC) success in Taiwan is locking locals out of the housing market, according to a post on the social media platform DCard. TSMC is the largest and most valuable company in Taiwan, and its success in the global semiconductor market has made it an indispensable part of the island region's security and geostrategic significance. Taiwanese provinces regularly try to woo TSMC to build its facilities by offering incentives. However, an unintended consequence of the firm's success has been high housing prices wherever it chooses to operate.
TSMC Has Made Taiwan Stronger But Turned It Into A Battlefield For Capital, Says Social Media User
In their social media post, the user points out that housing prices in major Taiwanese cities such as Hsinchu, Taichung, Tainan, and Kaohsiung have skyrocketed over the past couple of years. According to them, the reason behind the rising prices is TSMC. The chip manufacturer is headquartered in Hsinchu and has chip manufacturing plants in all these cities.
While the user admits that TSMC has made the world realize Taiwan's semiconductor strength, they also believe that the firm has damaged the makeup of Taiwan's real estate market. Wherever TSMC decides to either set up a manufacturing plant or expand existing facilities, housing prices soar, they point out.
The social media user adds that the housing price increases are not localized to the regions close to TSMC's plants. Instead, they soar throughout the city and end up affecting non-engineers and professionals who are not working in the medical and legal industries or those without inherited wealth.
These people are forced to rent out instead of owning a house or apartment and as a result face housing insecurity and rent increases. The shifts in the housing market have made Taiwan into a pyramid, the social media user points out, where people in high-paying professions accumulate all of the resources while those at the bottom can, at most, save for a downpayment.
Comparing the current generation's situation with the older generations, the social media user shares that in the past a stable job and a long-term loan were sufficient to buy a house in Taiwan.
Responding to her post, some commentators pointed out that not only does TSMC affect the housing market but it also affects the job market as higher salaries attract most workers to the firm. Others pointed out that low holding costs were the real problem as 70% of Taiwanese owned more than one house.
Some respondents placed the blame on the government's shoulders and outlined that high housing prices were due to speculation in the real estate market. They point out that since building a house is cheap, landlords and builders are unconcerned about whether a fully constructed house remains empty. Instead, the real estate industry wants the market to stay hyped up to ensure their assets do not lose value.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
Follow Wccftech on Google to get more of our news coverage in your feeds.
