TSMC and the Global Semiconductor Industry
Table of Contents
Taiwan Semiconductor Manufacturing Company (TSMC) remains a dominant force in the global semiconductor industry, with a market capitalization of approximately $750.64 billion as of January 22,2026. The company’s influence extends across numerous sectors, including high-performance computing, artificial intelligence, and mobile devices.
Historical Overview
Founded in 1975, TSMC revolutionized semiconductor manufacturing by pioneering the dedicated foundry model. As of 2024, TSMC held a 56% market share, according to company reports. In 1999, TSMC began research and advancement of 193nm immersion lithography, and by 2010, it had established itself as a key supplier to major technology companies like apple, Qualcomm, and Microsoft.
Financial Performance and Investment
TSMC reported a revenue increase of 1.87% to NT$230.0 billion (approximately $7.6 billion USD as of January 22,2026) in December 2023. The company’s gross margin for the fourth quarter of 2023 was 54.7%. TSMC is investing heavily in advanced technologies, including 3nm process technology, and plans to spend $10 billion on a new fabrication facility in Japan.
HBM demand and AI Growth
Demand for High Bandwidth memory (HBM) is surging,driven by the rapid growth of artificial intelligence. SK Hynix and Samsung electronics are key suppliers of HBM, with TSMC playing a crucial role in their manufacturing processes. TSMC is also developing ”chiplet” technology-combining multiple dies-to meet the increasing demands of AI applications. According to a report by TrendForce, the HBM market is expected to grow to $20 billion by 2025. TrendForce HBM Market Forecast
Expansion and Future Outlook
TSMC is expanding its global footprint, with new facilities planned in the United States and Germany. The company’s long-term strategy focuses on maintaining its technological leadership and diversifying its manufacturing base. According to a report by the Korea Economic Daily, TSMC is aiming to achieve a 10% market share in the system semiconductor market by 2030. Korea Economic Daily Report on TSMC
source: Uimyung@hankyung.com
TSMC and SK Hynix Invest Billions in Semiconductor Expansion
South Korean tech giants TSMC and SK Hynix are making substantial investments in semiconductor production,signaling continued growth in the global chip market.As of January 22, 2026, these investments focus heavily on advanced technologies like High Bandwidth Memory (HBM) and artificial intelligence (AI) chips.
SK Hynix Stock Performance and Investment Details
as of January 22, 2026, SK Hynix saw a 1.87% increase in stock value, closing at 152,300 Korean Won. The company is investing approximately 3% of its revenue, roughly 1 trillion Korean Won, into expanding its production capacity. Currently, SK Hynix’s HBM production capacity stands at 992,000 wafers per month. Further investment aims to increase this to 1,000,000 wafers per month. SK hynix is also heavily involved in the development of HBM for AI applications,aiming to become a leader in the ”AI memory” sector.
TSMC’s Expansion and Key Partnerships
TSMC, a leading semiconductor manufacturer, is also significantly expanding its operations. The company is investing 160 billion Korean Won in new facilities. TSMC’s revenue in 2023-2024 was approximately 1.87 trillion Korean Won, representing a 15.23% increase. TSMC collaborates with major tech companies including Microsoft, Apple, Qualcomm, and JP Morgan.They are especially focused on securing a supply of ASML’s advanced lithography systems, crucial for producing cutting-edge chips.
Historical Context and SK Hynix’s Growth
SK Hynix was founded in 1975 and has grown to become a major player in the semiconductor industry.as of 2026, the company employs 44,000 people and has a total asset value of 100 trillion Korean Won. SK Hynix’s initial focus was on DRAM, but it has since expanded into NAND flash memory and other semiconductor technologies. The company’s growth accelerated in 1999 with the introduction of its first 1GB DRAM chip, and again in 2010 with its expansion into the HBM market.
HBM Investment and AI Demand
SK Hynix is investing heavily in HBM production, anticipating strong demand driven by the growth of AI. The company plans to invest 3 trillion Korean Won in HBM production between 2023 and 2024. Demand for HBM is also fueled by the increasing adoption of AI-powered data centers. SK Hynix is collaborating with companies like Nvidia to develop advanced HBM solutions. The company expects HBM to account for 50% of its revenue by 2026, with a target of 150,000 wafers per month by the first half of 2026.
IB Investment and Future Outlook
Investment bank (IB) analysts predict continued growth in the semiconductor market. They estimate SK Hynix’s capital expenditure will reach 24 trillion Korean Won in 2024, with an additional 20 trillion Korean Won planned for 2025.Analysts at UBI Research emphasize the importance of securing a stable supply of AI chips, predicting that the market will be worth 2028 trillion Korean Won by 2028.
