Paulina McPadden, investment manager at Baillie Gifford, said in a Bloomberg interview that TSMC and SK Hynix hold near-monopoly positions in advanced chip manufacturing, and that China is not catching up anytime soon. US export restrictions on extreme ultraviolet lithography technology have effectively locked Chinese manufacturers out of the most advanced chipmaking processes. Both TSMC and SK Hynix reached $1 trillion in market capitalization as of May 2026, and TSMC raised its full-year 2026 revenue guidance by over 40% while planning to spend $60 billion to $64 billion in capital expenditures, plus an additional $100 billion for US facilities. Baillie Gifford, which has held TSMC since 1999 and SK Hynix since 2000, has expressed interest in SK Hynix’s upcoming US share offering planned for July 2026.
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