TSMC has transformed itself into an indispensable asset around the AI boom, enabling companies to introduce next-generation chips to push the industry to new technological heights. With the Taiwanese semiconductor behemoth reported to be constructing three new 2nm facilities on its home turf to sate demand, it is clear that there is a major capacity problem that is yet to be resolved.
With every other company putting their faith in TSMC, its importance will skyrocket over the next couple of years, to the point where it can even outshine Apple, its largest chip customer. According to one analyst, the semiconductor manufacturer’s market value could surpass the trillion-dollar firm in a few years, as Apple continues to face saturation, with its revenue growth considerably weak.
Analyst also mentions that Apple’s core business has insufficient momentum, whereas TSMC is the heart of semiconductor manufacturing and could surpass its customer by 2030
Details from senior analyst Keithen Drury that were picked up by China Times, mentioning Apple is the leader in consumer electronics, but is facing difficulties. The company’s revenue has been notably weak, with only one quarter recorded since mid-2022 that witnessed double-digit growth. Drury believes that Apple’s core business is generating insufficient momentum, but TSMC, which is the leader in semiconductor manufacturing, is now sought out by nearly every company that wishes to gain an edge in AI and next-generation lithography.
A previous report stated that TSMC’s 3nm capacity will nearly reach its capacity by 2026, with this current period being regarded as the golden age of semiconductor manufacturing, as the company is estimated to mass produce a whopping 160,000 monthly wafers by the end of 2025. Two of TSMC’s 2nm facilities located in Taiwan are seemingly sold out in capacity allocation, with the company expected to boost production to 100,000 monthly wafers by the end of 2026.
If this wasn’t impressive, a mammoth $49 billion investment will be injected for 1.4nm wafer production, as TSMC breaks ground to establish its first next-generation facility for a bevy of customers. Looking at what the manufacturer has planned for the next couple of years, it is hard to imagine that Samsung can overtake its rival in the foundry business, leaving TSMC the undisputed king of this category. Currently, the latter’s market value is $1.4 trillion, while Apple is enjoying the ‘king of the mountain’ status with its $4 trillion value.
However, based on Drury’s predictions, TSMC has the opportunity to become the second-largest or even the largest company by 2030. Drury has cautioned that these predictions contain high-growth assumptions and may not end up coming true. However, if the AI data center market explodes as expected, TSMC will hold a dominant position.
News Source: China Times
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