Taiwan Semiconductor Manufacturing (TSMC) dominates the market for advanced AI chips, outperforming competitors and generating high revenue from high-performance computing. Its success in manufacturing chips for tech products, like Apple’s iPhone, has led to a market cap of over $1.7 trillion.

The surge in demand for advanced AI chips has shifted TSMC’s focus from smartphones to high-performance computing. In Q3 2025, revenue from high-performance computing accounted for 57% compared to 30% from smartphones. This trend aligns with the company’s growth and market dominance.

TSMC’s revenue from high-performance computing has seen exponential growth, reaching $18.87 billion in Q3 2025 from $7.26 billion in Q3 2023. This surge in revenue reflects the increased demand for advanced AI chips and data center expansions, solidifying TSMC’s position in the tech industry.

Despite being renowned for its AI chips, TSMC’s manufacturing prowess extends to various tech products, making it a staple in the industry. Its market dominance, high yields, and advanced technologies position TSMC as the go-to company for chip manufacturing, with over 90% market share in advanced AI chips.

TSMC’s consistent annual returns of close to 22% over the past five years highlight its industry dominance and long-term investment potential. The company’s indispensable role in the tech world and competitive moat make it an attractive investment choice for investors seeking stability and growth.

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