Taiwan Semiconductor Controls 72% of the Global Chip Market, and the Stock Could Surge in 2026

By James Hires – Mar 22, 2026 at 5:05PM ESTKey PointsTaiwan Semiconductor controls 72% of the semiconductor foundry market. It produces chips for every major chip designer from Apple to Nvidia. The company is demonstrating incredible growth with even more projected through the end of the decade. The semiconductor industry is one of most important in the world. Virtually all modern technology relies on semiconductors in some way shape or form, from the device you're reading this on to the most sophisticated supercomputers in the world. Semiconductors are the reason the iPhone in your pocket has millions of times the computational horsepower in it than NASA had when it put men on the moon. And the majority of these chips, about 60% of the world's supply, are produced in Taiwan by a single company, Taiwan Semiconductor Manufacturing (TSM 2.79%). That company is also the reason 90% of the most advanced semiconductor chips are also made in Taiwan. Image source: Getty Images. The invisible monopoly In all, Taiwan Semiconductor has a near-monopoly in the semiconductor market. It controls 72% of the pure foundry market as of the end of Q3 2025. Its nearest competitor is Samsung (SSNL.F 2.79%) with a paltry 7% market share. But the reason it flies under the radar is the fact that Taiwan Semiconductor is a pure foundry company. It doesn't design any of the chips it produces. All it does is provide the raw manufacturing base needed by the companies that do design chips. And the company's list of clients includes every major chip designer in the world. Taiwan Semiconductor's two biggest customers are Apple and Nvidia. However, it also produces chips for Advanced Micro Devices, Broadcom, Intel, Qualcomm, and many more. So, if it just produces chips, how does it have such a stranglehold on the market? Couldn't those chip designers go to someone else or, better yet, build their own manufacturing base? ExpandNYSE: TSMTaiwan Semiconductor ManufacturingToday's Change(-2.79%) $-9.46Current Price$329.33Key Data PointsMarket Cap$1.7TDay's Range$325.90 - $337.4952wk Range$134.25 - $390.20Volume660KAvg Vol13MGross Margin58.73%Dividend Yield1.02% An unassailable fortress They could, but semiconductor factories are incredibly expensive. The extreme ultraviolet (EUV) lithography machines needed to make advanced semiconductors cost almost half a billion dollars per unit. It initially cost Taiwan Semiconductor $12 billion to build its factory in Arizona. That investment has since swelled to $165 billion to expand that one factory to three. By comparison, Intel, looking to claw back some market share from Taiwan Semiconductor is looking to spend $100 billion in Ohio to build its own manufacturing center. But that project has repeatedly been delayed and the first plant at the complex is now not scheduled to be completed until 2030. By that time, Taiwan Semiconductor's Arizona expansion should be just about complete with production in factory No. 2 slated for 2028 and No. 3 by the end of the decade. So, to say the company has a strong moat protecting its dominance would be something of an understatement. Nobody is building up to Taiwan Semiconductor's production capabilities easily. The perks of (near) monopoly And having a near-monopoly on an industry as critical as semiconductors is about as lucrative as you'd think. Taiwan Semiconductor generated $122.4 billion in revenue for 2025, up 35.9% over 2024 and its diluted earnings per share (EPS) for the year grew 46.4%. Plus, despite how expensive it is to build and maintain semiconductor factories, the company has a net profit margin of 45%. That growth is set to continue as well. The company projects 2026 revenue will increase 30% over 2025 and anticipates a revenue compound annual growth rate (CAGR) of 25% through 2029. Taiwan Semiconductor is sitting pretty as the king of the semiconductor industry and its reign looks like it will be a long one.Read NextMar 22, 2026 •By Will HealyAre Rising Geopolitical Tensions a Reason to Sell Taiwan Semiconductor Stock?Mar 21, 2026 •By Keithen Drury3 Reasons Why Taiwan Semiconductor Is the Ultimate Artificial Intelligence (AI) InvestmentMar 21, 2026 •By Chris Neiger2 Tech Stocks With More Long-Term Potential Than Any Cryptocurrency I've SeenMar 20, 2026 •By John Ballard2 Unstoppable Artificial Intelligence (AI) Stocks to Buy Right Now for Less Than $1,000Mar 20, 2026 •By Adria CiminoWhat Are the Best AI Stocks to Buy While Big Tech Is Spending $690 Billion on Infrastructure?Mar 18, 2026 •By Stefon WaltersThink It's Too Late to Buy Taiwan Semiconductor Manufacturing Company Stock? Here's the 1 Reason Why There's Still Time.About the AuthorJames Hires is a contributing analyst at The Motley Fool covering the technology, energy, and mining industries. He is also a contributing analyst at SeekingAlpha. Prior to The Motley Fool, James spend six years ghostwriting at The Oxford Club, a leading financial newsletter in his hometown of Baltimore, Maryland. He holds a bachelors in history from Towson University and enjoys covering companies with historical or cultural significance.TMFJamesHiresX@moneyguyjimStocks MentionedTaiwan Semiconductor ManufacturingNYSE: TSM$329.33(-2.79%)-$9.46AppleNASDAQ: AAPL$248.01(-0.38%)-$0.96IntelNASDAQ: INTC$43.93(-4.88%)-$2.26NvidiaNASDAQ: NVDA$172.90(-3.17%)-$5.66Advanced Micro DevicesNASDAQ: AMD$201.28(-1.94%)-$3.99QualcommNASDAQ: QCOM$129.90(-1.05%)-$1.38BroadcomNASDAQ: AVGO$310.27(-2.99%)-$9.57Samsung ElectronicsOTC: SSNLF$64.82(+55.02%)+$23.00*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.