Part 4/10:
TSMC’s dominance in manufacturing advanced chips is validated by their recent quarterly performance. In Q3, they reported $33 billion in revenue, marking a 10% increase from the previous quarter and an impressive 41% year-over-year jump. Their operating margins surpassed 50%, making TSMC more profitable than many software giants.
Their focus on cutting-edge process nodes—particularly 3nm and 2nm technology—is key to understanding their growth potential. Over 80% of TSMC's capacity is now dedicated to nodes 7nm and smaller, which produce the most powerful, energy-efficient chips for AI and HPC workloads. Their 2nm process is already in mass production with yields around 65%, aiming for 75% as the volume ramps up, which is on par or better than Intel’s yields.