Taiwan Semiconductor Manufacturing Company is the world's leading semiconductor foundry, manufacturing chips for fabless customers including Nvidia, AMD, Apple, Google, and Broadcom on a contract basis. TSMC does not design its own chips; it operates fabs that produce chips designed by others. Its competitive position rests on advanced process node leadership—TSMC is typically the first foundry to achieve volume production at each new process generation.

AI chip demand has become TSMC's primary growth driver. Nvidia's Blackwell GPUs, AMD's Instinct accelerators, Google's TPUs, and custom ASICs from hyperscaler in-house programs all run through TSMC's fabs. AI and high-performance computing workloads accounted for 57% of Q3 2025 revenue. TSMC has responded by expanding both wafer capacity at advanced nodes and its CoWoS advanced packaging capacity—the process bonding HBM memory to GPU dies. CoWoS capacity grew from approximately 35,000 to 80,000 wafers per month during 2025 and remains fully booked.

Annual revenue reached $122.42B in 2025, up 31.6% YoY. TSMC is ramping 2nm production, investing in the High-NA EUV equipment required for sub-2nm nodes, and planning $56B in capital expenditure for 2026. The company is also building new fabs in Arizona, Japan, and Germany to diversify manufacturing geography. TSMC's position as the sole manufacturer capable of producing the most advanced AI chips at volume makes it structurally central to the AI hardware supply chain.