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Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest semiconductor foundry, with 72% of its revenue coming from the United States.

Updated: Jun 5

As is well known, Taiwan Semiconductor Manufacturing Company (TSMC) is one of the largest semiconductor foundries in the world, holding over 55% of the global market share.

The company's use of 3-nanometer technology places it at the forefront of the industry, a fact widely recognized in the tech world.


In terms of advanced processes, TSMC's performance is particularly outstanding. According to previous statistics from the United States, over 90% of chips below 7 nanometers are produced by TSMC, almost establishing an absolute monopoly.

This technological advantage makes TSMC the leader in the global semiconductor foundry field.


As a company headquartered in Taiwan, China, TSMC also has some influence in mainland China.


The company has factories in Nanjing and serves numerous Chinese clients.


However, over time, TSMC's ties with the U.S. market seem to have become increasingly close. Currently, 72% of its revenue comes from the U.S. market, while its connection with mainland China appears to have weakened somewhat.

Apart from changes in revenue, TSMC's reliance on the U.S. for technology, equipment, and other aspects has also increased.


This has led to TSMC's development being subject to a certain degree of control by the U.S., with the company losing some autonomy.


In the past, TSMC's U.S. clients contributed only a small portion, accounting for around 55-60% of TSMC's revenue.

In contrast, the contribution from mainland China accounted for over 20-25% of TSMC's revenue, with Huawei being one of its important clients.


However, due to U.S. concerns about the rapid rise of the semiconductor industry in mainland China and its own inadequacies in chip manufacturing, the U.S. intervened, leading to TSMC's inability to continue manufacturing for Huawei.


After losing such a major client like Huawei, TSMC's orders from mainland China sharply declined, while orders from U.S. clients such as Apple, Qualcomm, AMD, Broadcom, and Nvidia increased.


According to data, in the fourth quarter of 2023, revenue from North America accounted for as high as 72%, while the Asia-Pacific region accounted for 8%, China 11%, Europe, the Middle East, and Africa 4%, and Japan 5%.

These figures clearly indicate that nearly three-quarters of TSMC's revenue comes from the U.S. market, while the proportion contributed by mainland China is only around one-tenth.


Additionally, most of the EDA software, lithography machines, semiconductor equipment, and materials required by TSMC rely on the United States and its ally Japan.


Therefore, although TSMC is still a Chinese company, it is effectively under the control of the United States and cannot remain neutral.


It can be said that TSMC's development has been trapped by the United States, which is also a kind of tragedy.


The company is forced to operate under the will of the United States, losing some of its autonomy.


In this situation, TSMC can only balance between the U.S. and China in order to seek its own development and survival.

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