tsmc dominates semiconductor market: here's why investors are bullish
Hsinchu, Friday, 19 September 2025.
tsmc’s stock is up because the company now controls 38% of the global semiconductor market. this surge is fueled by advanced manufacturing and strategic ai expansion. tsmc’s commitment to sustainability further boosts investor confidence. the company’s revenue reached nt$335.77 billion in august 2025, a 33.8% increase from the previous year. with plans to source 40% of its electricity from renewables by 2030, tsmc is solidifying its position for long-term growth.
market dominance and financial performance
Taiwan Semiconductor Manufacturing’s (TSMC) stock is on the rise, driven by its commanding 38% share of the global semiconductor market [1]. This growth is fueled by its prowess in advanced manufacturing, strategic moves in the artificial intelligence sector, and dedication to sustainable practices [1]. TSMC’s revenue in August 2025 reached NT$335.77 billion, marking a substantial 33.8% increase compared to August of the previous year [1]. The company’s year-to-date revenue through August also saw a significant surge, reaching NT$2,431.98 billion, a 37.1% increase from 2024 [1].
expansion and capacity
TSMC is actively expanding its manufacturing capabilities to meet growing demand. The company’s CoWoS packaging capacity is projected to reach between 65,000 and 75,000 wafers per month by the end of 2025 [1]. Further expansion is planned, targeting a capacity of approximately 100,000 units by 2026 [1]. These expansions are crucial as MediaTek has announced its next flagship chip will utilize TSMC’s 2nm process, highlighting the demand for TSMC’s advanced technology [1].
sustainability initiatives
TSMC is making strides in sustainability. The company is committed to sourcing 40% of its electricity from renewable sources by 2030, with a longer-term goal of 100% renewable energy by 2040 [1]. In 2024, TSMC’s Taiwan fabs utilized 3,610 GWh of renewable power, a significant increase from the 1,450 GWh used in the previous year [1]. The company has also secured 4.4 GW of renewable energy contracts, which are estimated to cut 5.23 million metric tons of CO₂ emissions annually [1].
nvidia’s investment in intel: impact on tsmc
Nvidia’s recent $5 billion investment in Intel has sparked discussions about potential impacts on TSMC [3][4]. Nvidia and Intel plan to jointly develop chips for PCs and data centers [3]. Analyst Guo Ming-Chi suggests that while this collaboration could shift market share among competitors, TSMC’s dominance in advanced process technology is likely to persist until at least 2030 [3][5]. Guo believes TSMC’s AI chip orders should remain unaffected, as these chips require leading-edge manufacturing processes [3].
expert opinion on tsmc’s resilience
Despite Nvidia’s investment in Intel, analysts like Guo Ming-Chi believe TSMC’s overall risk is controllable [3][5]. Both Nvidia and Intel are expected to remain key clients of TSMC [3]. Huang Renxun, Nvidia’s CEO, has praised TSMC’s manufacturing capabilities, referring to their capacity as ‘magic’ [5]. This sentiment reinforces confidence in TSMC’s ability to maintain its market position and continue serving major industry players [5].