TSMC becomes the first Asian company to reach a $1 trillion market cap, briefly surpassing Berkshire Hathaway, driven by its extensive semiconductor portfolio.
On June 20, Taiwan Semiconductor Manufacturing Company Limited (TSMC), which is more commonly known as TSMC, briefly surpassed Berkshire Hathaway to become the eighth most valuable company in the world, becoming the first Asian firm to attain a market capitalization of over a trillion dollars.
The company’s gradual ascent is facilitated by its extensive portfolio of technology and manufacturing titans, which supply its semiconductors.
TSMC is the world’s greatest semiconductor manufacturer. Apple, AMD, Intel, Nvidia, Qualcomm, and Intel comprise its most significant clients.
However, Apple is by far its greatest client, as it accounts for approximately one-fifth of its total revenue, owing to the use of TSMC semiconductors in iPhones.
In essence, TSMC occupies a predominantly isolated position at the forefront of the market as a result of its extensive fabrication capabilities. Global competitors such as AMD, Intel, and Nvidia also employ it as a fabricator for certain processors.
Additionally, TSMC maintains a stronghold on cryptocurrency processing. Most miners, including the world’s most popular Bitmain Antminer variants, are equipped with its semiconductors.
Bitmain manufactures 98% of the Bitcoin mining machines in China, which are equipped with TSMC semiconductors. Additionally, Samsung has implemented its processors to expand its mining operations.
TSMC’s market capitalization has decreased from its early-day peak of over a trillion dollars to a more modest $859.69 billion as of the publication of this article. This places it in the ninth position on the global leaderboard, ahead of Tesla and Eli Lilly, and behind Berkshire Hathaway.
After excluding Nvidia, which is presently ranked third with a market capitalization of $2.9 trillion, the next highest chip maker on the list is Broadcom, which is ranked 12th with a market capitalization of $732.4 billion. Broadcom is another chipmaker that outsources fabrication to TSMC.
Although it is impossible to anticipate the market or the performance of individual businesses, TSMC’s distinctive position enables it to capitalize on its competitors’ successes.
For instance, the company’s fate is inextricably linked to that of Apple and Nvidia. As the demand for products like the iPhone and Nvidia’s GPUs increases, so does the demand for additional semiconductors.
TSMC has the potential to become the first Asian company to dethrone Meta (formerly Facebook) and officially reach the big tech zone at the top of the list of the world’s most valuable companies, provided that the artificial intelligence sector continues to experience growth rates and the demand for new chips is met.