26Q1 Taiwan Semiconductor Manufacturing Ltd (TSM)

Taiwan Semiconductor Manufacturing Company Limited (TSM), universally recognized as TSMC, operates as the vanguard of the global semiconductor industry. Having pioneered the pure-play dedicated semiconductor foundry business model in 1987, the company has catalyzed the rise of the fabless integrated circuit (IC) design ecosystem. As of the first quarter of 2026, TSMC retains an overwhelming dominance in the pure-play foundry market, commanding approximately 72% of global market share.1 The industry, often referred to by TSMC management as "Foundry 2.0" (which encapsulates logic wafer manufacturing, advanced packaging, testing, and mask-making), experienced a 16% year-over-year growth in 2025 and is forecast to expand by an additional 14% in 2026.2TSMC’s technological supremacy is the foundation of its competitive moat. The company deployed 305 distinct process technologies to manufacture 12,682 products for 534 customers in 2025.3 Its product portfolio is heavily weighted toward the most advanced nodes on the planet. As of Q1 2026, advanced technologies (defined as 7-nanometer and below) accounted for a staggering 74% of total wafer revenue.4 The 3-nanometer (N3) process alone contributed 25% of wafer revenue, while the 5-nanometer (N5) node contributed 36%, and the 7-nanometer (N7) node accounted for 13%.4 This product mix illustrates a structural transition where mature nodes are increasingly marginalized in terms of revenue contribution, replaced by the high-average-selling-price (ASP) wafers required for artificial intelligence (AI) and high-performance computing (HPC).