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NYSE: TSM
Taiwan Semiconductor Manufacturing co Ltd (TSM) stock, explained like you're 5
Taiwan Semiconductor Manufacturing Company, known as TSMC, is the world's largest chip foundry. A foundry is a factory that makes chips designed by other companies. So when Apple designs a chip for your iPhone, or Nvidia designs a chip for AI, TSMC is the one actually building it. Without TSMC, most of the world's smartphones, computers and AI hardware simply could not exist.
- Ticker
- TSM
- Exchange
- New York Stock Exchange
- Sector
- Technology
- Industry
- Semiconductors
- Size
- Mega cap, about 2.35 trillion dollars
- Led by
- Che Chia Wei
- Headquarters
- Hsinchu City, TPE, TW
- Employees
- 65,152
- Public since
- 1997
Is Taiwan Semiconductor Manufacturing co Ltd a small, medium or large cap company?
Yes. Taiwan Semiconductor Manufacturing co Ltd is a large cap stock, and an extra big one: it is a mega cap, worth more than 200 billion dollars. Its market cap, which is the total value of all its shares, is about 2.35 trillion dollars.
Here is how you can tell. Multiply the share price by the number of shares to get the market cap, then compare it to the usual sizes. Micro cap is under 300 million dollars, small cap is 300 million to 2 billion, mid cap is 2 to 10 billion, large cap is 10 billion and up, and mega cap is over 200 billion. Market caps move every day with the share price, so treat the number as a recent snapshot.
How Taiwan Semiconductor Manufacturing co Ltd makes money
- Wafer fabrication fees: TSMC charges companies like Apple, Nvidia and AMD to manufacture their chip designs on silicon wafers using processes such as its advanced CMOS logic technology.
- Packaging and testing services: after chips are made, TSMC also packages and tests them before they ship to customers, adding another revenue stream on top of raw manufacturing.
- Mask production: TSMC makes the photomasks, which are the stencil like templates used to print circuit patterns onto silicon, and sells these as part of its broader foundry service.
- Technology investments and other services: TSMC invests in technology startups and manages the full production and sales cycle for specialist products such as color filters.
What moves TSM stock
- Demand from key customers: because Apple, Nvidia and other giants depend almost entirely on TSMC to build their chips, any big order change or new product launch from those customers moves TSMC's revenue sharply.
- AI and high performance computing spending: a surge in demand for AI chips, which are among the most complex and profitable chips TSMC makes, directly lifts its factory utilisation and pricing power.
- Geopolitical tension around Taiwan: TSMC's factories are concentrated in Taiwan, so any escalation in tensions between Taiwan and China tends to unsettle investors quickly.
- Advances in process technology: when TSMC successfully rolls out a new, smaller chip process node it can charge premium prices and attract more orders, which is a direct positive for earnings.
Good to know about Taiwan Semiconductor Manufacturing co Ltd
- TSMC was founded in 1987 and is now one of the largest companies on Earth, with a market value of over 2.3 trillion dollars.
- The company employs more than 65,000 people and is headquartered in Hsinchu City, Taiwan.
- TSMC pays a dividend, meaning it sends a share of its profits directly to investors. The most recent annual dividend was around 3.50 dollars per share.
- With a beta of 1.38, the stock tends to swing a bit more than the broader market in both directions. Beta measures how bumpy a stock's ride is compared to the market average of 1.
In the news lately
- Taiwan Semiconductor’s (TSM) Profit Rose 69% Last Quarter. Is the Stock Still Cheap? (Yahoo Finance)
- Taiwan Semiconductor Supply Struggles To Keep Pace With Explosive Demand (TIKR.com)
- TSMC: The Easy Money Is Gone (NYSE:TSM) (Seeking Alpha)
- TSMC earnings beat all expectations; Why is TSM stock sliding? (Finbold)
- TSM Stock Snaps 6 Day Slide Premarket: Cathie Wood’s ARK Adds $20M Stake (Stocktwits)
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Questions about Taiwan Semiconductor Manufacturing co Ltd stock
What does Taiwan Semiconductor Manufacturing co Ltd do?
Taiwan Semiconductor Manufacturing Company, known as TSMC, is the world's largest chip foundry. A foundry is a factory that makes chips designed by other companies. So when Apple designs a chip for your iPhone, or Nvidia designs a chip for AI, TSMC is the one actually building it. Without TSMC, most of the world's smartphones, computers and AI hardware simply could not exist.
What does TSMC actually make?
TSMC does not design its own chips. It manufactures chips that other companies design, using advanced processes like CMOS logic and radio frequency fabrication. Its chips power iPhones, AI servers, cars and countless other devices.
Does TSMC pay a dividend?
Yes. TSMC pays a dividend, which is a cash payment made to shareholders from company profits. The most recent dividend was approximately 3.50 dollars per share.
Who is the CEO of TSMC?
TSMC is led by CEO Che Chia Wei, who runs the company from its headquarters in Hsinchu City, Taiwan.
Is TSMC a big company?
Very. With a market capitalisation, which is the total value the stock market places on a company, of over 2.3 trillion dollars, TSMC is one of the most valuable companies in the world.
What is the ticker symbol for Taiwan Semiconductor Manufacturing co Ltd?
Taiwan Semiconductor Manufacturing co Ltd trades under the ticker TSM on the New York Stock Exchange.
What is Taiwan Semiconductor Manufacturing co Ltd's market cap?
Taiwan Semiconductor Manufacturing co Ltd is a mega cap stock with a market cap of about 2.35 trillion dollars.
How does Taiwan Semiconductor Manufacturing co Ltd make money?
Wafer fabrication fees: TSMC charges companies like Apple, Nvidia and AMD to manufacture their chip designs on silicon wafers using processes such as its advanced CMOS logic technology. Packaging and testing services: after chips are made, TSMC also packages and tests them before they ship to customers, adding another revenue stream on top of raw manufacturing. Mask production: TSMC makes the photomasks, which are the stencil like templates used to print circuit patterns onto silicon, and sells these as part of its broader foundry service. Technology investments and other services: TSMC invests in technology startups and manages the full production and sales cycle for specialist products such as color filters.
What moves TSM stock?
Demand from key customers: because Apple, Nvidia and other giants depend almost entirely on TSMC to build their chips, any big order change or new product launch from those customers moves TSMC's revenue sharply. AI and high performance computing spending: a surge in demand for AI chips, which are among the most complex and profitable chips TSMC makes, directly lifts its factory utilisation and pricing power. Geopolitical tension around Taiwan: TSMC's factories are concentrated in Taiwan, so any escalation in tensions between Taiwan and China tends to unsettle investors quickly. Advances in process technology: when TSMC successfully rolls out a new, smaller chip process node it can charge premium prices and attract more orders, which is a direct positive for earnings.
How can I follow TSM stock every day?
Add TSM to your watchlist on Metric Finance. We post a free brief every trading day at 5 PM ET that explains what happened to the stocks you follow, in simple words.
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Updated October 12, 2026. Educational information, not financial advice. This guide explains the business in general terms and does not include live prices.