As the demand for AI chips continues to rise, major tech companies such as Google, Microsoft, Amazon, Apple, and NVIDIA have turned to Taiwan Semiconductor Manufacturing Co (TSMC) for production. This partnership shows no signs of slowing down as TSMC solidifies its position as a leader in the global semiconductor market. In Q2 FY25, the chip maker reported a 54.2% year-over-year increase in net income, surpassing analysts’ expectations. TSMC has outpaced its rivals Samsung and Qualcomm in the semiconductor foundry space, thanks to its advanced technology, manufacturing capabilities, research, and strategic partnerships. One of its long-standing partnerships is with NVIDIA, where TSMC produces high-end GPUs for the technology company. NVIDIA’s CEO, Jensen Huang, has emphasized the company’s reliance on TSMC’s expertise and trust, stating that they have no intentions of reducing this partnership. The global AI chip market is expected to grow significantly, and TSMC’s strong earnings have eased concerns about the sustainability of the AI hardware boom and global chip demand. Looking ahead, TSMC expects further growth in sales, driven by the increasing demand for chips. This impressive growth reflects investors’ confidence in TSMC’s ability to capitalize on the booming AI and semiconductor markets. TSMC’s partnerships extend beyond NVIDIA, with major players like AWS, Microsoft, Apple, and Google also turning to the company for chip manufacturing. This further solidifies TSMC’s position as a leader in the industry.
