TSMC Hits $1 Trillion Milestone as AI Demand Skyrockets, Leading Asian Companies

Thanks to strong demand from major technology companies, TSMC briefly became Asia’s first trillion-dollar company, but its market value has since fallen slightly.

The Taiwan Semiconductor Manufacturing Company Limited, or TSMC, became the first company in Asia to have a market value of more than a trillion dollars on June 20. It was worth more than Berkshire Hathaway for a short time, making it the eighth most valuable company in the world. The company’s quiet rise can be attributed to the many tech and manufacturing companies that buy its semiconductors.

TSMC makes more semiconductors than any other company in the world. Some of its best customers include Apple, AMD, Intel, Nvidia, Intel, and Qualcomm. However, Apple is by far its biggest customer. Apple‘s use of TSMC semiconductors in iPhones contributes approximately 20% of the company’s net income.

Simply put, only TSMC matters in the market because it makes so much. AMD, Intel, and Nvidia three global competitors even use it to make some of their chips. It’s also simple for TSMC to mine cryptocurrency. Most miners, including the world’s most popular Bitmain Antminer cards, use its semiconductors.

TSMC chips power 98% of the Bitcoin mining rigs in China, according to reports. Samsung’s chips have also helped to grow its mining business. At the time, it was only $859.69 billion. This puts it back behind Berkshire Hathaway and on top of Eli Lilly and Tesla to become the ninth most valuable company in the world.

TSMC’s Potential to Surpass Meta

If you take out Nvidia, which is in third place with a market capitalization of $2.9 trillion, the next biggest chip maker after TSMC is Broadcom, which is in 12th place with a market capitalization of $732.4 billion. Another chipmaker, Broadcom, hires TSMC to manufacture its products.

Even though it’s impossible to tell what will happen in the market or with a business, TSMC can learn from its competitors’ successes.

Companies such as Apple and Nvidia significantly influence its future. We need more semiconductors as we buy products like iPhones and Nvidia’s GPUs.

TSMC can become the first Asian company to dethrone Meta (formerly Facebook) and become the world’s most valuable company.

We assume that the growth rates in artificial intelligence persist and the demand for new chips is satisfied.