The Motley Foolยท2025-09-17 08:30Core Viewpoint - The article discusses the potential for Taiwan Semiconductor Manufacturing Company (TSMC) to double its market capitalization to $2 trillion by 2028, driven by its dominance in the semiconductor foundry market and the increasing demand for advanced chips, particularly in the context of the AI boom [2][9]. Group 1: TSMC's Market Position - TSMC is the world's first and largest pure-play semiconductor foundry, manufacturing chips for numerous clients, including major tech companies like Nvidia and Apple [4]. - TSMC commands approximately 70% of the global foundry market and about 35% of the advanced foundry market for cutting-edge chips [5]. - In Q2 2025, TSMC's foundry revenue exceeded $30 billion, significantly outpacing its closest competitor, Samsung, which reported around $3.16 billion [6]. Group 2: Financial Projections - TSMC's current market cap is around $1 trillion, and to reach $2 trillion by 2028, it would need to double its net income from a projected $48 billion in 2025 to approximately $90 billion to $100 billion [8]. - Wall Street forecasts high-teens percentage revenue growth for TSMC through 2027, indicating strong potential for financial performance [9]. Group 3: Technological Advancements - TSMC is positioned at the forefront of technological advancements, particularly in AI, as demand for its advanced chips is expected to rise with the growth of AI models [12]. - The company plans to produce 2-nanometer chips, which are projected to consume 25% to 30% less power than its current 3nm chips while maintaining similar speeds [13].