Taiwan expects tsmc's dominance to last another decade

2025-09-18 tsmc

taipei, Thursday, 18 September 2025.
Taiwan’s National Development Council Chairman, Yeh Jun-hsien, predicts that tsmc’s semiconductor manufacturing lead will extend for 5 to 10 years. This forecast comes as tsmc’s stock hits a new high, exceeding nt$1285 and boosting its market capitalization above nt$33 trillion. Yeh credits this continued success to customer trust, taiwan’s education system, morris chang’s strategy, work culture, and government policies restricting overseas semiconductor investment. This outlook offers key insights for investors analyzing tsmc’s future market position.

Stock performance and market capitalization

Tsmc’s stock recently reached an intraday high of nt$1285 [1]. This surge propelled the company’s market capitalization to over nt$33 trillion [1]. Foreign investors also showed confidence, adding 13,671 shares of tsmc on september 16, 2025 [1]. Tsmc’s robust performance is underpinned by strong demand for advanced semiconductors and its leading position in the global foundry market [4]. The company’s commitment to technological leadership, as emphasized by ceo c.c. wei, reinforces investor confidence [1].

Factors behind tsmc’s sustained advantage

Yeh jun-hsien attributes tsmc’s success to several key factors, summarized as ‘tsmc+1’ [1][4]. ‘t’ represents customer trust, built on tsmc’s fabless model, customization, and high yields [4][7]. ‘s’ signifies the robust education and ecosystem support in taiwan [4][7]. ‘m’ refers to morris chang’s foundry-only strategy, avoiding competition with clients [4][7]. ‘c’ denotes taiwan’s strong work culture [4][7]. The ‘+1’ represents government restrictions on overseas semiconductor investment, crucial for protecting taiwan’s industry [4][7].

Economic impact and gdp growth

Tsmc’s success significantly impacts taiwan’s economy [3][4]. Dr. lee, an economic analyst, notes that tsmc contributes over 20% to taiwan’s gdp [1]. Taiwan’s per capita gdp is projected to surpass south korea’s in 2025, a feat yeh jun-hsien attributes to tsmc and the ai industry [1][3]. Yeh anticipates taiwan’s economic growth rate to exceed 4% this year [7]. Strong ai demand is expected to drive exports and domestic investment, further bolstering economic expansion [7].

Manufacturing capacity and future plans

Tsmc is actively expanding its manufacturing capacity to meet growing demand [1]. The company announced a new investment of $100 billion usd over the next three years [1]. Tsmc plans to commence production of 2 nm chips by 2027 [1]. Tsmc’s q2 2025 revenue reached $15.6 billion usd, demonstrating its strong financial performance [1]. The company’s ability to adapt to the evolving ai industry demands will be crucial for its continued success [6].

Geopolitical considerations and government support

Government support, particularly restrictions on overseas semiconductor investment, plays a vital role in tsmc’s success [4][7]. Yeh jun-hsien emphasizes that these restrictions are crucial to prevent taiwan from facing the same challenges as other industries that have moved to china [7]. The taiwanese government announced a new initiative on september 15, 2025, to further support the semiconductor industry [1]. This initiative underscores the government’s commitment to maintaining taiwan’s competitive edge in the global semiconductor market [1].

Bronnen

semiconductor tsmc