On June 20, Taiwan Semiconductor Manufacturing Company Limited (TSMC) became the first Asian firm to surpass a $1 trillion market capitalization. Briefly overtaking Berkshire Hathaway, TSMC secured its position as the eighth most valuable company worldwide.
Apple and the Gang
TSMC stands as the world’s largest semiconductor manufacturer, with a client list featuring tech giants such as Apple, AMD, Intel, Nvidia, and Qualcomm. Among these, Apple emerges as its largest customer, leveraging TSMC semiconductors in iPhones, which accounts for approximately one-fifth of TSMC’s total revenue.
The company’s dominance is largely attributed to its unparalleled fabrication capabilities. Even global competitors like AMD, Intel, and Nvidia rely on TSMC for fabricating some of their chips.
Cryptocurrency Mining
TSMC’s influence extends to the cryptocurrency mining sector. The company’s semiconductors power a significant portion of mining rigs, including the highly popular Bitmain Antminer models. In China, 98% of the rigs used to mine Bitcoin are equipped with TSMC semiconductors. Additionally, Samsung utilizes TSMC chips to bolster its mining operations.
Market Fluctuations
After its peak, TSMC’s market capitalization settled to a more modest $859.69 billion, placing it ninth globally, just ahead of Eli Lilly and Tesla, and behind Berkshire Hathaway. Beyond Nvidia, which ranks third with a market cap of $2.9 trillion, Broadcom is the next highest chip maker on the list, in 12th place with a market capitalization of $732.4 billion.
Future Prospects
TSMC’s future looks promising as its success is intertwined with the growth of its clients like Apple and Nvidia. The increasing demand for products such as iPhones and Nvidia GPUs drives the need for more semiconductors. As long as TSMC continues to meet the rising demand in sectors like artificial intelligence, it is well-positioned to potentially dethrone Meta and further solidify its place among the world’s most valuable companies.
