A Delightful Tale of TSMC’s Path to $2 Trillion Glory

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Ah, but what a splendid spectacle we have before us! Half a century ago, the mere notion of a company cresting the $2 trillion mark was as fanciful as a butler becoming the prime minister. In 1975, if you can believe it, the entire U.S. GDP limped along at a modest $1.7 trillion. But here we are in 2025, with tech giants like Nvidia, Microsoft, and Apple strutting their financial prowess, each worth more than the economy of many small nations. The world, it seems, has become a little less quaint and a tad more, shall we say, mercenary in its wealth accumulation.

But, I digress. A certain company, often overlooked yet with a certain… heft, stands poised on the brink of joining this exalted club. That company is none other than Taiwan Semiconductor Manufacturing Company, or TSMC for short, with a market cap currently at a respectable $1 trillion. Why, one might ask, is this unsung hero of the chipmaking world poised for such a meteoric rise? Well, brace yourselves, for this story is one of slow yet steady dominion in the semiconductor world, like a gentleman entering a room and quietly taking his rightful seat.

Why TSMC Could Easily Stroll into the $2 Trillion Club

Now, I shan’t keep you in suspense. You see, TSMC is not your average run-of-the-mill factory operation. No, no, TSMC is what one might call a “pure-play semiconductor foundry,” which, in layman’s terms, means that it does not engage in the whimsical business of chip design. No, its expertise lies in the manufacturing of said chips, toiling away in the background like a very capable butler making sure the house runs smoothly, while the designers of chips sip tea and make grand declarations about the future of tech.

Now, here’s the crux of the matter: TSMC currently commands a staggering 70% of the global foundry market. Yes, you read that right – 70%. To put it into perspective, it would be as if one butler were responsible for 70% of the tea in a rather grand country house, while the others tried to catch up, but, alas, struggled to maintain their composure. And if that weren’t enough, TSMC’s hold over the most advanced chip markets is equally impressive, claiming a commanding 35% share in the first quarter of 2025.

With a second-quarter revenue of $30 billion from its foundry operations alone, TSMC dwarfs its nearest competitor, Samsung, whose revenues in the same quarter came in at a meager $3.16 billion. It’s almost as if TSMC were the favourite child, effortlessly excelling at everything it does, while the others scramble to keep up.

How TSMC Might Slip Into the $2 Trillion Seat by 2028

Now, to the matter at hand: Is it possible, even plausible, that TSMC could double its market value within the next three years? A most intriguing question, to be sure. You see, TSMC is currently trading at a price-to-earnings ratio of about 22, which, given its stellar performance, could be considered modest, like a humble servant with a gleam in his eye, offering his services without asking for much in return.

If TSMC can manage to double its net income – a feat that is, on the surface, quite achievable given the trajectory of its current growth – it could very well reach the $2 trillion mark by 2028. The company’s projected earnings for 2025 are around $48 billion, and with a little bit of financial elbow grease, that could swell to $90 billion to $100 billion within three years. Wall Street, in all its wisdom, is forecasting revenue growth in the high teens through 2027, which bodes rather well for the company’s prospects.

But, as with all great tales, there are a few slight obstacles, don’t you think? TSMC doesn’t exist in a bubble, and various geopolitical factors, such as the ongoing tension between China and Taiwan, could, one assumes, throw a spanner in the works. In fact, it was this very geopolitical uncertainty that led the esteemed Warren Buffett to sell off a large portion of his TSMC shares not so long ago. The United States, as it is wont to do, recently revoked fast-track export licenses for chipmaking equipment bound for TSMC’s key Chinese plant, which could complicate matters somewhat.

However, on the flip side, TSMC finds itself at the very centre of the AI revolution, a veritable linchpin in the technological symphony. As the world embarks on the grand voyage of artificial intelligence, the demand for TSMC’s advanced chips is bound to soar. This is especially true as the company embarks on the production of 2-nanometer chips, which, according to their own research, will consume 25% to 30% less power than their current 3-nanometer chips, all while maintaining the same blistering speeds. It’s a classic case of TSMC putting the finishing touches on a masterstroke, like a butler adjusting a dinner setting to perfection.

So, can TSMC reach that magical $2 trillion figure by 2028? Well, my dear friend, with political hurdles out of the way and tailwinds firmly at its back, there is every reason to believe that TSMC could indeed pull it off. After all, in the world of finance, the most unexpected turn of events is often the one that leads to the grandest victory. A triumph, one might say, is always just around the corner, awaiting the most industrious of gentlemen to lay claim to it.

And so, the stage is set. TSMC, like a dutiful yet dashing young heir, stands ready to claim its place among the financial titans. Let us watch with bated breath as it embarks on this thrilling journey to $2 trillion. But no matter what happens, rest assured that the tale itself will be worth the telling. 🏆

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2025-09-17 11:59