dive

Taiwan Semiconductor Manufacturing Company (TSM 1.50%), also known as TSMC, is one of the premier manufacturers of advanced processors, many of which are used for artificial intelligence. The company’s strong position in this space and its growth over the past few years have resulted in its stock price soaring nearly 200% over the past three years.

Recent research from The Motley Fool sheds some light on how TSMC’s manufacturing technology is a step ahead, how it makes the majority of its revenue, and where most of its customers are located. Importantly, all of these factors work together to set TSMC apart from the competition and make its stock a smart one to own for years to come.

1. The company is a leader in advanced chip manufacturing

TSMC manufactures some of the world’s most advanced processors, and the breakdown of the company’s revenue shows just how much comes from its different manufacturing capabilities. Chip companies use the term chip node to describe how many transistors will fit onto a semiconductor, with the unit of chip measurement being nanometers (nm). Generally speaking, the smaller, the more advanced the processor.

Here’s a snapshot of Taiwan Semiconductor’s top five revenue generators, by chip size:

Data source: Taiwan Semiconductor.

This revenue composition is important to highlight because it shows that a whopping 60% of the company’s semiconductor sales are from the smallest and most advanced processors (3nm and 5nm) on the market.

No other company compares to TSMC’s manufacturing prowess, and it’s likely to continue outpacing the competition. TSMC has already sign 15 deals with tech companies for 2nm semiconductor manufacturing, leaving rivals, including Samsung, far behind.

2. Its advanced processors are driving its growth

Just as important as the technology behind TSMC’s revenue is what technologies those processors power. If we go back five years, smartphones were the driving revenue force for TSMC. Now, it’s high-performance computing (think AI data centers).

The company has dominated the manufacturing of advanced processors so well, in fact, that TSMC makes an estimated 90% of the world’s most advanced processors.

Here is the company’s revenue distribution over the past four quarters:

Data source: Taiwan Semiconductor.

TSMC’s making the majority of its revenue from high-performance computing is important because it shows that the company successfully adapted with the times, moving from its previously dominant smartphone segment to sales from chips to AI data centers.

More growth could be on the way, too, considering that semiconductor leader Nvidia believes technology companies could spend up to $4 trillion on AI data center infrastructure over the next five years.

3. U.S. tech giants drive demand

Taiwan Semiconductor is based in, you guessed it, Taiwan, but the vast majority of its sales come from selling processors to North American companies. About five years ago, North America accounted for just over half of TSMC’s sales, but that’s jumped to 75% currently. China and the Asia-Pacific region tie for second place with just 9% each.

Why does this matter? Some of the most advanced artificial intelligence companies, including Nvidia, OpenAI, Microsoft, Meta, and Alphabet, are based in North America. Taiwan Semiconductor’s shift toward sales in this geographic area is a reflection of the company successfully attracting the world’s leading AI companies to have their chips made by TSMC.

Is Taiwan Semiconductor a buy?

With TSMC making an estimated 90% of the world’s most advanced processors, the company outpacing its manufacturing competition, and artificial intelligence companies poised to spend trillions of dollars to build out and upgrade data centers, TSMC is well positioned to be a great AI stock for years to come.

Just keep in mind that the stellar gains TSMC stock has experienced over the past several years have been a result of the early AI boom, which means future returns may not be quite as impressive.

THIS is the terrifying moment Ukrainian soldiers on fire dived from their speeding Humvee after a drone strike.

Footage shows brave Ukrainian troops cheating death as they jumped out of the military vehicle after being targeted by the Russian forces.

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Troops from the Kastus Kalinoŭski Regiment were travelling inside the Humvee when a drone attack struck them.

The soliders, who were engulfed in fire, took a leap of faith and dived out of their seats to escape.

They were seen rolling on the floor before dashing away from the burning car.

Smoke can be seen coming out of the US-made military vehicle as the soldiers look at it from a distance.

The Kastus Kalinoŭski Regiment is a military unit within the Armed Forces of Ukraine.

It is made up of Belarusian volunteers fighting agasint the Russians.

THe military unit was formed in March 2022 in response to Putin’s invasion of Ukraine.

The regiment is named after Kastus Kalinoŭski, a Belarusian national hero and leader of the 1863 January Uprising against the Russian Empire, symbolising resistance to oppression.

They view the Russian forces as a common enemy of both Ukraine and Belarus, and their aim is to defend Kyiv on the frontlines.

The fighting group also aspires to liberate Belarus from its authoritarian regime, which is aligned with Russia.

Their motto, “Liberation of Belarus through the liberation of Ukraine,” reflects this dual mission.

The unit has become a significant symbol of Belarusian solidarity with Ukraine and resistance to Russian influence, with its members fighting alongside Ukrainian forces to defend their homeland.

Previous footage from the frontlines showed the moment a landmine blew up a Humvee – with Ukrainian soldiers still inside.

The crew miraculously all survived the fireball blast thanks to the tough armour on the US-made military vehicle.

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The clip shows Ukrainian fighters riding in the truck – with one standing up through a gap in the roof to man the machine gun.

One of the soldiers then starts shouting as gunshots ring out in the background.

Two brave men grab their rifles and sprint out to join the battle.

Smoke can be seen rising in the distance as the armed defenders scour the immediate area for Russian attackers.

Suddenly a blast erupts under under the Humvee – with at least three soldiers still inside.

Flames are seen filling the cab, and debris falls from the roof.

The occupants then rush to escape as the vehicle fills with smoke.

And thanks to the incredible US-made armour, they all survived the terrifying blast.

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The Chargers gave up the fewest points in the NFL last season (301) and will need that kind of stout performance again to get a firm foothold in the AFC West.

They will be tested right away, as they open in Brazil against the AFC champion Kansas City Chiefs — a team the Chargers haven’t beaten since 2021 — then face Las Vegas and Denver in the following two weeks. All three division opponents in a row.

Coach Jim Harbaugh was especially pleased with his defense after it notched a strip sack and made a goal-line stand in a preseason victory over New Orleans.

“They just played with a lot of want-to and I’m thrilled with that,” Harbaugh told reporters. “I love guys that play like they want to be on this team. They want to show that they belong. That’s the way they practice and that’s the way they go out and play in the game. That warms the cockles of the heart.”

The defense is transitioning from a familiar fixture. Although his production had tailed off the past few years, Joey Bosa was a stalwart for this team since 2016, predating the club’s move to Los Angeles. The five-time Pro Bowl defensive end signed a one-year deal with Buffalo in March. The Chargers have moved on.

The leader up front is Khalil Mack, who is entering his 12th season and pointed to Harbaugh and general manager Joe Hortiz in explaining why he decided to re-sign with the franchise this offseason.

“Why not here?” Mack asked reporters. “Got tremendous leadership here. … Knowing what Coach Harbaugh is building and what Joe is building, that was a no-brainer.”

It might be an outlier, as he’s typically in single digits for the season, but Mack had 17 sacks in 2023.

Chargers linebacker Khalil Mack will once again be at the forefront of the team’s pass-rushing effort.

(Peter Aiken / Associated Press)

A promising disruptor off the edge is former USC standout Tuli Tuipulotu, who had 8½ sacks last season.

“My standard is to play Khalil,” he told reporters of entering his third season. “He is the standard, that’s what I’m chasing.”

Another seasoned veteran in the rotation is Bud Dupree, who played in all 18 games last season and was tied for second with six sacks. The 11-year veteran re-signed with the team this summer.

A youth infusion could come from outside linebackers Caleb Murphy, in his second season, and rookie Kyle Kennard, who was SEC Defensive Player of the Year at South Carolina last season.

Chargers coach Jim Harbaugh congratulates defensive tackle Teair Tart after a win over the Raiders in September 2024.

(Robert Gauthier / Los Angeles Times)

Moving to the interior of the defensive line, the Chargers leaned on Teair Tart and Otito Ogbonnia last season, and in an effort to get deeper and similarly athletic at the position, signed veterans Naquan Jones and Da’Shawn Hand.

Defensive coordinator Jesse Minter has praised Ogbonnia’s improved footwork and counter moves in camp.

Jones played with Tennessee and Arizona over the past four seasons and adds depth to the rotation along with Hand, who played with Detroit, Tennessee and Miami during the past six years.

A player to watch is 340-pound rookie Jamaree Caldwell, who is coming off a strong showing at camp.

Chargers linebacker Daiyan Henley could be primed for a breakout season.

(Denis Poroy / Associated Press)

Backing up that defensive front in the middle is Denzel Perryman, the veteran of the linebacker group. He’s in his second stint with the Chargers after brief stays with the Las Vegas Raiders and Houston Texans. He was arrested on a felony weapons charge during training camp, although no criminal charges have been filed in the case.

Among the defenders to watch is Daiyan Henley, a third-year linebacker who had 147 tackles last season, 10½ of those behind the line of scrimmage.

Harbaugh called him “a shining star… ascending to be a superstar.”

Rookie Marlowe Wax was spectacular in the preseason finale against San Francisco, making key tackles all over the place, so it will be worth watching whether he can continue that production when it counts.

The Chargers didn’t break the bank in free agency, but they did open their wallet wide for cornerback Donte Jackson, who had five interceptions for Pittsburgh last season after spending six years with Carolina.

Second-year corners Cam Hart and Tarheeb Still were pressed into duty last season and join Jackson as starters, with Still on the third receiver. There’s going to be a lot of passing in the AFC West with opposing quarterbacks Patrick Mahomes, Bo Nix and Geno Smith lurking.

The Chargers had 15 interceptions last season, almost one per game, putting them in the top quarter of the league.

Minter said during camp that he considers corner Benjamin St-Juste a “fourth starter.”

A young corner to watch is Nikko Reed, who had a pick-six in the Hall of Fame Game and consistently made big plays throughout camp.

“Derwin James told me Reed is a baller,” Harbaugh said. “I’m now agreeing with that statement.”

As for James, he rivals quarterback Justin Herbert as the best player on the roster.

Chargers safety Derwin James Jr. will once again be the biggest force in the secondary this season.

(Robert Gauthier / Los Angeles Times)

“I know when Derwin’s there, he’s going to be a wrecker,” Still told reporters. “It’s kind of like, he’s on the side of me and I got to know how he’s going to fit the run, what is he going to do in pass, if I can help him or how I can protect him, how he can protect me.”

Put bluntly by Jackson, intending this as a compliment: “I think DJ’s brain is a football. Literally, you open his head there’s probably a football in there.”

The Chargers line up James all over the defense.

Penciled in to start at free safety is Alohi Gilman, who is entering the final year of his contract. Elijah Molden and rookie R.J. Mickens figure to make significant contributions.