AI Chips
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World's largest semiconductor foundry, manufacturing virtually all leading-edge AI chips for NVIDIA, AMD, Apple, and others. Over $90B annual revenue with 60%+ global foundry market share and a monopoly on cutting-edge nodes at 3nm and 2nm. Diversifying geographically with new fabs in Arizona, Japan, and Germany while maintaining its process technology lead.

Company Profile

Foundries

The world's most important company you've never heard of — manufactures virtually every cutting-edge chip.

Key Products & Platforms

N3E / N3P

3nm Process

Current leading-edge for Apple, NVIDIA, AMD

N2

2nm Process

Now in volume production, powering next-gen chips

CoWoS Packaging

Advanced Packaging

Critical for stacking HBM on AI chips

InFO

Packaging Technology

Fan-out packaging for mobile chips

Key Customers

NVIDIAAppleAMDBroadcomQualcommMediaTek

Competitive Position

Market Share

~60% of global foundry revenue, ~90% of leading-edge (<7nm)

Competitive Moat

5+ years process tech lead, massive scale, deep customer co-design relationships

Key Risk

Taiwan geopolitical risk; single point of failure for global chip supply

Why This Company Matters

Every NVIDIA GPU, every Apple chip, every AMD processor is made by TSMC. If something happened to TSMC's Taiwan fabs, the entire AI revolution — and most consumer electronics — would grind to a halt. That's how critical they are.

Key Milestones

Feb 1987
Milestone

Founded February 21 in Hsinchu, Taiwan by Morris Chang as the world's first pure-play foundry; backed by Taiwan government (48%), Philips (28%) and Taiwanese conglomerates, the model would upend integrated chipmakers worldwide.

Jun 1989
Milestone

Began commercial production at Fab 1 in Hsinchu Science Park on 3-micron CMOS, the foundry's first revenue node; early customers included VLSI Technology and Adaptec.

Oct 1997
Milestone

IPO on Taiwan Stock Exchange and NYSE October 8 (ADR); first major foundry public listing and the financial engine for the multi-fab buildout that followed.

Dec 2000
Milestone

Began 130nm production at Fab 12, drawing first lead-customer wins from Altera and Xilinx; revenue topped $5B as PC graphics, modems and FPGAs migrated to the foundry model.

Sep 2003
Milestone

Began 90nm production at Fab 12 in Hsinchu; first foundry to lead a node ahead of IDMs, putting TSMC on a structural path past UMC and IBM.

Dec 2008
Milestone

Began commercial 40nm production; early yield issues at TSMC delayed key NVIDIA Fermi GPUs by 6+ months and triggered a strategic review of the foundry partnership.

Apr 2012
Milestone

Began 28nm volume production at Fab 14, the high-K-metal-gate node that made TSMC the foundry of record for fabless mobile chips; ramped past 10K wafers/week within a year.

Jun 2014
Milestone

Began 16nm FinFET volume production, the foundry’s first 3D-transistor node; enabled Apple A10 and full mobile SoC migration off 28nm planar transistors.

Jun 2018
Milestone

First foundry to begin volume production of 7nm FinFET (N7) at Fab 15 in Tainan; Apple A12 was lead customer at iPhone XS launch September 2018, validating TSMC's lead over Intel.

Sep 2018
Commercial

Surpassed 1B 7nm chips shipped milestone with Apple A12 as flagship customer at iPhone XS launch; cumulative N7 wafer volume hit 1M by mid-2019.

May 2020
Expansion

Announced $12B Arizona fab (Fab 21) for 5nm production, the largest US foreign greenfield FDI; later expanded to three fabs and $65B+ commitment under CHIPS Act incentives.

May 2020
Regulatory

US Commerce Department added Huawei to Entity List with foreign-direct-product rule; TSMC stopped Huawei HiSilicon Kirin shipments September 2020, removing 10-15% of TSMC revenue.

Oct 2020
Milestone

5nm (N5) entered volume production, debuting in Apple A14 for iPhone 12 with 1.8x density vs N7; AMD Zen 4, NVIDIA H100 and Apple M-series followed through 2022-23.

Apr 2021
Expansion

Broke ground on Phoenix Arizona Fab 21 with 5nm process target, kicking off the largest US foreign greenfield FDI; ground-breaking attended by VP Kamala Harris and Tim Cook.

Apr 2022
Expansion

Began JASM Kumamoto Japan fab construction in partnership with Sony and Denso; Japan government provided ~$3.5B in subsidies as part of supply-chain reshoring policy.

Oct 2022
Regulatory

October 7 BIS rules forced foundries to flag advanced AI/HBM chip orders destined for China; TSMC stopped accepting orders from sanctioned Chinese AI startups including Biren and Moore Threads.

Dec 2022
Milestone

Began 3nm (N3) commercial production at Fab 18 in Tainan with Apple as lead customer; N3 wafer pricing reached ~$20K vs ~$17K for N5, reflecting the EUV-heavy mask layer cost.

Aug 2023
Expansion

Joint venture ESMC announced with Bosch, Infineon and NXP for a 10B+ euro Dresden fab on 28/22nm and 16/12nm; Germany committed up to 5B euros in subsidies for European chip sovereignty.

Feb 2024
Expansion

Opened JASM Fab 1 in Kumamoto, Japan February 24, the first TSMC majority-owned overseas fab on 12-40nm process; second JASM fab broke ground later in 2024 for 6nm/7nm production.

Apr 2024
Regulatory

Awarded preliminary $6.6B CHIPS Act funding plus $5B in loans, with plans for a third Arizona fab on 2nm/A16; Taiwan government urged TSMC to keep most-advanced node in Taiwan despite US pressure.

Apr 2024
Paused

Phoenix Fab 21 ramp delayed by labor and equipment-install issues; first wafers slipped to late 2024 from initial 2024 H1 target, intensifying scrutiny of US fab competitiveness.

Jul 2024
Milestone

Began N2 risk production at Hsinchu Baoshan, the foundry's first nanosheet GAA node; targeted N2 mass production for H2 2025 with Apple, AMD and NVIDIA as initial customers.

Sep 2024
Expansion

Doubled CoWoS advanced-packaging capacity to ~35K wafers/month, struggling to meet AI accelerator demand; CoWoS booking lead time stretched to 18 months by Q4.

Nov 2024
Regulatory

Finalized $6.6B CHIPS Act direct funding award November 8; Phoenix Fab 21 began ramping 4nm chips in volume to lead customer Apple ahead of formal opening.

Jan 2025
Milestone

Completed N2 risk production with ~5,000 wafers at Hsinchu, on track for H2 2025 mass production; Apple A20 and AMD MI400 confirmed as lead N2 customers.

Sep 2025
Expansion

Pulled Phoenix Fab 21 third fab forward to 2027 to host 2nm and A16 production for US AI customers; first time TSMC committed to leading-edge node outside Taiwan.

Dec 2025
Milestone

Began N2 volume production at Hsinchu Fab 20 December 31, lead customers Apple and AMD on CDNA5; output target was 50K wafers/month exiting Q1 2026, ramping to 100K+ in 2026.

Dec 2025
Expansion

CoWoS-L/S capacity reached ~75K wafers/month; both lines fully booked through 2026 driven by NVIDIA Rubin and AMD MI400 demand.

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AI Chips - TSMC | Sterling