TSMC has transformed itself into an indispensable asset amid the AI ​​boom, allowing the company to introduce next-generation chips to push the industry to new technological heights. With the Taiwanese semiconductor giant reportedly building three new 2nm facilities in its home region to meet demand, it’s clear that there are major capacity issues yet to be resolved.

As every other company puts their trust in TSMC, its importance will skyrocket in the next few years, possibly even surpassing Apple, its biggest chip customer. According to one analyst, the semiconductor maker’s market value could surpass that of the trillion-dollar company within a few years, as Apple continues to face saturation, with its revenue growth very weak.

Analysts also mentioned that Apple’s core business does not have enough momentum, whereas TSMC is the heart of semiconductor manufacturing and could surpass its customers by 2030.

Details from senior analyst Keithen Drury, taken by the China Times, say Apple is a leader in consumer electronics, but faces difficulties. The company’s earnings have been very weak, with only one recorded quarter since mid-2022 experiencing double-digit growth. Drury believes that Apple’s core business is not generating enough momentum, but TSMC, which is a leader in semiconductor manufacturing, is now sought after by nearly every company looking to gain an edge in next-generation AI and lithography.

Previous reports stated that TSMC’s 3nm capacity would be nearly at capacity by 2026, and the current period is considered a golden age for semiconductor manufacturing, as the company is expected to mass produce 160,000 monthly wafers by the end of 2025. Two of TSMC’s 2nm facilities located in Taiwan appear to have sold out of capacity allocation, and the company is expected to increase production to 100,000 monthly wafers by the end of 2026.

If this isn’t impressive, $49 billion of investment will be pumped into 1.4nm wafer production, as TSMC begins building the first next-generation facilities for a number of customers. Looking at what the manufacturer has planned for the next few years, it’s hard to imagine Samsung being able to overtake its competitors in the foundry business, making TSMC the undisputed king in this category. Currently, Apple’s market value is $1.4 trillion, while Apple enjoys ‘king of the mountain’ status with a valuation of $4 trillion.

However, based on Drury’s predictions, TSMC has the opportunity to become the second largest company or even the largest by 2030. Drury cautions that these predictions contain high growth assumptions and may not come true. However, if the AI ​​data center market explodes as predicted, TSMC will hold a dominant position.

News Source: China Times

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