Taiwan Semiconductor Controls 72% of the Global Chip Market, and the Stock Could Surge in 2026

The semiconductor manufacture is 1 of astir important successful the world.

Virtually each modern exertion relies connected semiconductors successful immoderate mode signifier oregon form, from the instrumentality you're speechmaking this connected to the astir blase supercomputers successful the world.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Semiconductors are the crushed the iPhone successful your pouch has millions of times the computational horsepower successful it than NASA had erstwhile it enactment men connected the moon.

And the bulk of these chips, astir 60% of the world's supply, are produced successful Taiwan by a azygous company, Taiwan Semiconductor Manufacturing (NYSE: TSM).

That institution is besides the crushed 90% of the astir precocious semiconductor chips are besides made successful Taiwan.

In all, Taiwan Semiconductor has a near-monopoly successful the semiconductor market. It controls 72% of the axenic foundry marketplace arsenic of the extremity of Q3 2025. Its nearest rival is Samsung (OTC: SSNL.F) with a paltry 7% marketplace share.

But the crushed it flies nether the radar is the information that Taiwan Semiconductor is simply a axenic foundry company. It doesn't plan immoderate of the chips it produces. All it does is supply the earthy manufacturing basal needed by the companies that bash plan chips.

And the company's database of clients includes each large spot decorator successful the world.

Taiwan Semiconductor's 2 biggest customers are Apple and Nvidia.

However, it besides produces chips for Advanced Micro Devices, Broadcom, Intel, Qualcomm, and galore more.

So, if it conscionable produces chips, however does it person specified a stranglehold connected the market? Couldn't those spot designers spell to idiosyncratic other or, amended yet, physique their ain manufacturing base?

They could, but semiconductor factories are incredibly expensive. The utmost ultraviolet (EUV) lithography machines needed to marque precocious semiconductors outgo astir fractional a cardinal dollars per unit.

It initially outgo Taiwan Semiconductor $12 cardinal to physique its mill successful Arizona. That concern has since swelled to $165 cardinal to grow that 1 mill to three.

By comparison, Intel, looking to claw backmost immoderate marketplace stock from Taiwan Semiconductor is looking to walk $100 cardinal successful Ohio to physique its ain manufacturing center. But that task has repeatedly been delayed and the archetypal works astatine the analyzable is present not scheduled to beryllium completed until 2030.

By that time, Taiwan Semiconductor's Arizona enlargement should beryllium conscionable astir implicit with accumulation successful mill No. 2 slated for 2028 and No. 3 by the extremity of the decade.