"In the high tech universe, there is only a single common road that Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Apple (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Broadcom (NASDAQ: AVGO) and many others must go to get their chips made, no matter where they hail from. That road inevitably leads to Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM), the largest semiconductor foundry on the planet."
"When President Trump announced his initial round of reciprocal tariffs as a precursor to new international trade deals in late March, his tariffs on Taiwan sent shockwaves down the spines of the Artificial Intelligence (AI) industry. While the top semiconductor companies in AI are Nvidia and AMD, which are both American, neither company manufactures any of their Graphics Processing Units (GPU), which are essential for AI. Both of them go to Taiwan Semiconductor Manufacturing Company for all foundry manufacturing work."
"When a company like Nvidia designs a new chip, it takes it to TSM to actually print the design on a silicon wafer. TSM is the top choice for Nvidia, AMD, and many other chip designers, thanks to its precision, quality control, and innovative technical capabilities. As of mid-2025, TSM commanded an estimated 65% of global semiconductor manufacturing and of advanced 3nm chips for AI and other more demanding applications."
Taiwan Semiconductor Manufacturing Company (TSM) is the primary global foundry that manufactures chips for major companies including Nvidia, AMD, Apple, Qualcomm, and Broadcom. Reciprocal tariffs announced by President Trump in late March threatened supply chains and alarmed the artificial intelligence sector because leading GPU designers outsource all fabrication to TSM. A tariff exemption exists for products manufactured within the United States, which led to TSM's announcement of a $165 billion investment to build foundries in Phoenix, Arizona. As of mid-2025, TSM held about 65% of global semiconductor manufacturing and led in advanced 3nm chips while demand for GPUs and data-center chips surged.
Read at 24/7 Wall St.
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