TSMC: The Semiconductor Giant β Is It Truly the Sun That Never Sets? [Part 1: The Birth of a Myth]
π Series Opener β Why the Entire World Depends on a Single Company | semomahal.com Semiconductor Deep Dive
βΆ Part 1: The Birth of a Myth β Why TSMC? (current)
Part 2: TSMC Γ NVIDIA β Symbiosis or Dependence?
Part 3: Samsung’s Pursuit β Why It Can’t Catch Up
Part 4: SK Hynix β The Hidden Side of HBM Dominance
Part 5: Broadcom & ASML β The Invisible Hands
Part 6: The Taiwan Risk β TSMC’s Achilles’ Heel
All analysis is based on publicly available corporate reports, semiconductor market data, and technical research.
A market cap of $1 trillion. A single company responsible for over 90% of the world’s most advanced semiconductors.
Apple, NVIDIA, AMD, Google β they all wait in line at this one company’s door.
This is the story of TSMC (Taiwan Semiconductor Manufacturing Company).
“TSMC can never fail.” “TSMC is the cornerstone of semiconductor supremacy.” This narrative has become almost mythological.
But we heard the same things about Bitcoin. And the dot-com bubble.
This series asks one cold, hard question: Is it really the sun that never sets?
π What Is TSMC? β Fabless vs. Foundry
The semiconductor industry is divided into two distinct worlds:
Fabless β Companies that design chips but outsource production (NVIDIA, AMD, Qualcomm, Apple)
Foundry β Companies that manufacture chips designed by others
TSMC is the undisputed king of foundries.
Founded in 1987 by Morris Chang, the company built its empire on one guiding principle: “We never compete with our customers.”
Why this principle is so powerful β that’s a story for Part 3 (Samsung).
| Type | Key Companies | Role | Relationship with TSMC |
|---|---|---|---|
| Fabless | NVIDIA, Apple, AMD, Qualcomm, Google | Design chips only | 100% production outsourced to TSMC |
| Foundry | TSMC (#1), Samsung (#2), SMIC (#3) | Manufacture chips only | TSMC itself |
| IDM | Intel, Samsung (Semiconductor) | Design + manufacture | Competitor or partial client |
π Why TSMC Is Truly Unmatched β Process Technology
In semiconductor manufacturing, “nm (nanometer)” refers to transistor size.
Smaller numbers mean more transistors packed into less space β higher performance, lower power consumption.
As of 2026, TSMC is the only company on Earth capable of mass-producing chips at 3nm or below.
β’ TSMC: 3nm in mass production; 2nm launched in 2025; 1.6nm (A16) targeted for 2026
β’ Samsung: 3nm GAA in trial production (ongoing yield issues)
β’ Intel: 18A process targeted for 2025 (still in validation)
β’ SMIC (China): Stuck at ~7nm due to U.S. export controls
β TSMC maintains a 1β2 generation lead over all competitors β and has done so for years.
π° The $1 Trillion Case β TSMC by the Numbers
| Metric | Figure (FY2024) | Significance |
|---|---|---|
| Revenue | ~$90B (~β©120T KRW) | 30%+ YoY growth |
| Operating Margin | ~42β45% | Best-in-class for any manufacturer |
| Advanced Node Revenue (β€7nm) | 70%+ | Extremely high-margin product mix |
| Global Foundry Market Share | ~60β62% | Samsung at #2 holds ~11% |
| Key Customers | Apple, NVIDIA, AMD, Qualcomm, Google, Broadcom | Every major Big Tech, consolidated |
β Why We Still Have to Ask Hard Questions
Every escalation in China-Taiwan tensions sends global tech companies into a cold sweat.
This is exactly why the U.S., Japan, and Europe are racing to lure TSMC onto their soil.
If Apple walked, or even cut orders significantly, the impact would be immediate.
The top 5 customers (Apple, NVIDIA, AMD, Qualcomm, Broadcom) account for 55%+ of total revenue.
The gap is wide today β but semiconductor process technology can eventually be closed with capital and time.
Intel is fighting back, backed by billions in U.S. CHIPS Act subsidies.
TSMC’s sub-3nm processes are impossible without ASML’s EUV (Extreme Ultraviolet) lithography machines.
And ASML is the only company in the world that makes them. (Full analysis in Part 5.)
π The Core Questions This Series Will Address
1. TSMC and NVIDIA β who needs whom more? (Part 2)
2. Is Samsung’s failure to close the gap a technology problem, or a trust problem? (Part 3)
3. How long can SK Hynix dominate the HBM market? (Part 4)
4. Could TSMC exist without Broadcom and ASML? (Part 5)
5. What happens to global semiconductor supply chains if a Taiwan conflict occurs? (Part 6)
β One-Line Takeaway
This series is not an attempt to tear down the myth β it’s an attempt to see the myth clearly.”
Next up: we dissect the TSMCβNVIDIA relationship.
Is this a true partnership β or does one side have the other in a chokehold? π‘
β’ TSMC Annual Report 2024 β ir.tsmc.com
β’ TSMC Investor Presentation Q1 2025
β’ Gartner Semiconductor Foundry Market Share Report 2024
β’ TrendForce Foundry Market Analysis 2024β2025
β’ Semiconductor Industry Association (SIA) Annual Report 2024
β οΈ Disclaimer: This article is not investment advice. All investment decisions should be made after consulting a licensed financial professional.