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🇹🇼 Taiwan /Technology

TSMC emerges as the biggest winner as global AI demand makes it indispensable

From Liberty Times · () Chinese

Translated from Chinese and summarized by DistantNews. Read the original for the full story.

At a glance

Analysis Named sources Context piece
  • TSMC accounted for about 72% of global foundry revenue by the end of 2025, according to cited research, and holds a strong position in advanced logic-chip manufacturing.
  • Nvidia and AMD design AI chips but rely on foundries such as TSMC to produce them at scale.
  • TSMC Chairman and CEO C.C. Wei expects high chip demand to continue until at least 2029 or 2030, while the company advances newer process technologies.

The fiercest question in the AI chip industry may not be whether Nvidia or AMD will prevail. It may be which company manufactures the processors needed by whoever wins. TSMC, the Taiwan-based foundry, stands to benefit from both sides of that contest.

The Motley Fool said the AI race extends beyond models and software. The industry’s expanding computing needs require large volumes of advanced chips, while companies such as Nvidia and AMD mainly handle chip design. Foundries then turn those designs into finished processors, placing TSMC in a central position in the AI hardware supply chain.

Research cited in the report estimated that TSMC held about 72% of global foundry revenue by the end of 2025. It also described the company as highly competitive in advanced logic-chip manufacturing. AI processors demand sophisticated production processes, substantial capacity and high yields, limiting the number of manufacturers able to produce them at scale.

It is better to focus on a company that could benefit regardless of who wins.

— The Motley Fool analysisThe analysis frames TSMC as a beneficiary of growth across the AI chip industry rather than as a competitor tied to one chip designer.

That position gives TSMC a different risk profile from chip designers. Investors who back Nvidia or AMD must contend with the possibility of choosing the wrong technology path or losing the market battle. TSMC does not need to select a single winner. If AI investment continues to expand, data centers keep being built and computing capacity grows, chip designers across the field may still need its manufacturing services.

TSMC’s leadership also expects demand to remain strong. Wei said at the company’s most recent earnings call that elevated chip demand could last through at least 2029 or 2030. At the same time, TSMC continues to develop next-generation processes, as AI customers seek greater performance and energy efficiency. The industry’s eventual champion remains uncertain, but the analysis presents TSMC as a bet on continued growth across the AI market rather than on one particular designer.

Chip demand will remain high until at least 2029 or 2030.

— C.C. WeiTSMC’s chairman and CEO gave the outlook during the company’s most recent earnings call.
About this summary

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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