The artificial intelligence (AI) hardware race may have a winner that sits behind the biggest chip names. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest semiconductor foundry, could benefit regardless of whether NVIDIA or Advanced Micro Devices (AMD) ultimately dominates AI computing, according to a report published by The Motley Fool and carried by Yahoo Finance.
Also Read: TSMC Sees India as a Key Player in the Global Semiconductor Race Towards a $1.5 Trillion Market
TSMC Holds a Dominant Position in Chip Manufacturing
NVIDIA and AMD design computing products but outsource their manufacturing. TSMC sits further down the supply chain, making chips for companies that need advanced production capacity.
According to The Motley Fool’s research cited in the report, TSMC accounted for about 72% of global foundry revenue at the end of 2025. That gives the Taiwanese company a significant position in a market where other manufacturers share the remaining market.
The report argues that Nvidia and AMD need TSMC because of the production capacity required to meet demand for their chips. Its position is therefore less dependent on which chip designer wins the AI hardware competition.
Also Read: Apple and Intel Chip Pact Signals Transition in Global Semiconductor Race
AI Chip Demand Could Remain Strong through 2029-30
TSMC’s position could become more important if spending on AI infrastructure continues to rise. The company expects demand for advanced chips to remain elevated for several more years.
During TSMC’s latest quarterly conference call, Chief Executive C.C. Wei said he expects elevated chip demand to continue through at least 2029 or 2030. The company is also continuing to introduce newer chip technologies, allowing it to raise prices as customers adopt more advanced production processes.
The report therefore identifies TSMC as a potential beneficiary of the broader AI hardware boom, rather than a bet on one particular AI chip maker.
What this means for NVIDIA, AMD and TSMC?
NVIDIA remains a major AI hardware player, while AMD is competing for a larger share of the market. But the report’s central argument is that TSMC can benefit from industry-wide demand.
The Motley Fool describes TSMC as being at the centre of the AI build-out. She argues that its neutral position could make it a major winner irrespective of which AI models or computing products eventually become dominant.
The key figure to track is not only the next AI chip winner, but whether TSMC can maintain its commanding foundry position as AI infrastructure spending continues.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
