TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. is benefiting from its advanced chip technology and high-performance computing clients, keeping the foundry ahead in the global market, according to a Motley Fool report published Saturday.

TSMC dominates advanced processor manufacturing, with its 3nm and 5nm chips accounting for 60% of sales, the report said. The company has also secured 2nm production agreements with 15 tech firms, keeping competitors like Samsung far behind.

High-performance computing now drives TSMC’s growth. In Q2, it accounted for 60% of revenue, while smartphones contributed 27%, showing a successful pivot from mobile devices to AI data centers.

Revenue from other sectors was smaller: Internet of Things and automotive each contributed 5%, digital consumer electronics 1%, and others 2%. TSMC produces around 90% of the world’s most advanced processors, positioning it to benefit from projected NT$121 trillion (US$4 trillion) in AI data center investments over the next five years, the report said.

North American tech giants are the largest buyers. The region accounts for 75% of TSMC’s sales, up from roughly 50% five years ago. China and Asia-Pacific each represent 9%. Major AI firms including Nvidia, OpenAI, and Microsoft rely on TSMC for high-end chip production.

Founded in 1987, TSMC helped pioneer the pure-play foundry model, producing chips solely for other companies rather than designing its own. This approach allowed the firm to focus on advanced manufacturing and attract global clients lacking in-house fabrication capabilities.