Taiwan Semiconductor Manufacturing (TSM) – The Backbone of Advanced Chip Production
Taiwan Semiconductor Manufacturing (TSM) trades around $330, and we continue to view it as one of the most strategically important companies in the global technology supply chain.
TSM produces the majority of the world’s most advanced chips, and that position remains largely uncontested. The cost and complexity of running a leading-edge foundry are so high that only a handful of companies can even attempt it, giving Taiwan Semiconductor a durable competitive advantage.
What really stands out right now is execution at the cutting edge. The company has just started production of its next-generation 2‑nanometer chip, a major milestone. This new process delivers 25% to 30% better energy efficiency compared to its 3nm chips when running at the same performance level. That matters as demand continues to rise for faster, more power‑efficient chips across AI, data centers, and advanced consumer devices.
And this is not a one‑off improvement. Taiwan Semiconductor has multiple new technologies scheduled to roll out over the coming years, each designed to push performance and efficiency further. That steady cadence of innovation is exactly why the company remains indispensable to the global tech ecosystem.
There is always discussion around geopolitical risk given Taiwan’s location, but it’s worth noting that Taiwan Semiconductor is actively expanding its manufacturing footprint. New fabrication plants are being built in the United States, Japan, and Germany, which should gradually reduce geographic concentration risk over time.
At its core, owning Taiwan Semiconductor is a bet that the world will continue to need more advanced chips, in larger volumes, year after year. Given the company’s unmatched scale, technology leadership, and long runway of demand, we see TSM as a high‑quality stock to buy and hold for the long term.
