The Metley Fool made a depth of immersion in the income of TSMC for technology, platform and geography. This is what he found.

• Taiwan Semiconductor Manufacturing Company makes 60% of its sales by manufacturing some of the most advanced semiconductors in the market.

• The company has approximately 90% of the advanced processors market, and more than half of its income come from high performance computer space.

• TSMC is sold mainly to American technology companies, and could spend billions of dollars by 2030 to build new AI data centers.

• 10 actions that we like more than the manufacture of Taiwan semiconductors ›

Taiwan semiconductor manufacturing company (NYSE: TSM)Also known as TSMC, it is one of the main manufacturers of advanced processors, many of which are used for artificial intelligence. The company’s solid position in this space and its growth in recent years have turned out that the price of its shares will rise almost 200% in the last three years.

Recent research by The Motley Fool shed some light on how TSMC manufacturing technology is a step forward, how most of its income generates and where most of its customers are. It is important to note that all these factors work together to differentiate TSMC from the competition and make your stock intelligent that it has in the coming years.

TSMC manufactures some of the most advanced processors in the world, and the breakdown of the company’s income shows how much comes from its different manufacturing capabilities. Chips companies use the term chip node to describe how many transistors will fit into a semiconductor, with the nanometers chip measurement unit (NM). In general terms, the smaller, the more advanced the processor is.

Here is a snapshot of the five main income generators of Taiwan semiconductors, by chip size:

Data source: Taiwan semiconductor.

This income composition is important to highlight because it shows that huge 60% of the company’s semiconductor sales come from smaller and more advanced processors (3 Nm and 5 Nm) in the market.

No other company compares with the TSMC manufacturing skill, and it is likely to continue surpassing the competition. TSMC has already signed 15 agreements with technological companies for the manufacture of 2 Nm semiconductors, leaving rivals, including Samsungfar behind.

As important as the technology behind TSMC’s income is what technologies these processors feed. If we return five years, smartphones were the driving income force for TSMC. Now, it is high performance computing (think of AI data centers).

The company has dominated the manufacture of advanced processors so well, in fact, that TSMC manufactures 90% of the most advanced processors in the world.

Here is the company’s income distribution in the last four quarters:

Data source: Taiwan semiconductor.

TSMC obtains most of its income from high performance computer science is important because it shows that the company was successfully adapted with the times, going from its smartphone segment previously dominant to sales from chips to AI data centers.

A greater growth could also be on their way, considering that the semiconductor leader Nvidia He believes that technology companies could spend until $ 4 billion in the infrastructure of the AI ​​data center in the next five years.

Taiwan’s semiconductor is headquarters, he guessed it, Taiwan, but the vast majority of his sales come from sales processors to North American companies. About five years ago, North America represented just over half of TSMC sales, but that increased to 75% today. China and the Asia-Pacific region tied for second place with only 9% each.

Why does this matter? Some of the most advanced artificial intelligence companies, including Nvidia, Openai, Microsoft, Goaland AlphabetThey have their headquarters in North America. Taiwan semiconductor change towards sales in this geographical area is a reflection of the company that successfully attracts the world leaders of the world to which TSMC make their chips.

With TSMC making an estimated 90% of the most advanced processors in the world, the company exceeds its manufacturing competence and artificial intelligence companies ready to spend billions of dollars to build and update data centers, TSMC is well positioned to be a great action of AI in the coming years.

Just keep in mind that the star profits that TSMC actions have experienced in recent years have been the result of the early rise of AI, which means that future returns may not be so impressive.

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Chris Neiger has no position in any of the aforementioned actions. Motley Fool has positions and recommends Alphabet, Intel, Meta Platforms, Microsoft, Nvidia and Taiwan semiconductor manufacturing. The Motley Fool recommends the following options: Long January 2026 $ 395 calls in Microsoft, short of January 2026 $ 405 calls in Microsoft and brief November of 2025 $ 21 is put to Intel. The Motley Fool has a dissemination policy.

The Metley Fool made a depth of immersion in the income of TSMC for technology, platform and geography. This is what he found. It was originally published by The Motley Fool