TSMC became the first semiconductor-manufacturing specialist to reach a $1 trillion market capitalization.
The Taiwanese company reached the milestone in 2024, propelled by demand for advanced chips used in artificial intelligence, smartphones, data centers, and high-performance computing. TSMC’s business model is unusual among major technology companies: it primarily manufactures semiconductors designed by customers instead of competing with them through a large consumer-device brand.
TSMC’s role is often described as “foundry” manufacturing. It builds chips for companies such as Nvidia, Apple, and AMD, while investing enormous sums in fabrication plants and process research. This position makes its valuation sensitive to both technology demand and the strategic importance of semiconductor supply chains.
Nvidia is a frequent source of confusion because it also reached trillion-dollar valuations and became central to the AI boom. However, Nvidia designs processors, whereas TSMC manufactures chips for many customers. The two companies therefore occupy different parts of the semiconductor industry.