Part 2/10:
TSMC specializes in manufacturing the most advanced semiconductor chips in the world. Unlike companies like Intel or Samsung that produce chips for their own products, TSMC operates as a foundry—making custom wafers and fully packaged chips for the largest tech firms globally. This business model means TSMC doesn’t design chips but fabricates the designs provided by their clients, establishing high demand driven by customer capacity reservations years in advance.
The company's revenue streams heavily depend on two key markets: smartphones and high-performance computing (HPC), which together generate roughly 87% of TSMC's revenue. Leading clients include Apple, Nvidia, AMD, Google, Amazon, Meta, and others—accounting for over 70% of total revenue.