Final answer:
The TSMC supply chain issue can be addressed by adopting new technologies, improving transportation, establishing policies for crisis situations, and enhancing labor rights. Economies of scale, both through domestic production and international trade, provide additional solutions, as exemplified by Taiwan and Korea. Companies such as Apple and Samsung illustrate the advantages of focusing on core competencies and engaging in beneficial trade.
Step-by-step explanation:
The issue of the Taiwan Semiconductor Manufacturing Company (TSMC) supply chain can be addressed through a combination of technological advancements, improved transportation methods, and the implementation of robust policies. Embracing the latest technology can lead to more efficient and quicker production, while employing various transportation vehicles enhances logistics capabilities. Establishing policies for maintaining supply chains during national crises ensures resilience against disruptive events. Further investment in labor, by protecting labor rights and amending labor policies, is essential for sustainable operation. Cooperation between nations, including sharing technological advances and labor standards, will also be advantageous.
To scale operations effectively, Taiwan and Korea have found success by building large factories capable of leveraging economies of scale and exporting their production. Alternatively, countries can benefit from economies of scale without domestic production by purchasing low-cost semiconductors globally. This specialization and trade approach allows countries to focus on their strengths, such as Taiwan's shift from textiles to high-end electronics, and trade for other commodities produced efficiently elsewhere.
Case studies like Apple and Samsung demonstrate that when companies concentrate on their core competencies and partake in international trade, it results in mutually beneficial exchanges, thereby improving the global supply chain network. Taiwan has successfully transitioned its economy to produce high-end goods through its skilled labor and is now a significant player in global electronics, contributing to a high standard of living for its citizens.