TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD is a US-listed company materially exposed to Advanced deposition / etch / CMP / thermal process tools.

TSMC is a pure-play semiconductor foundry. It does not sell branded end-devices or finished chips under its own name; it fabricates wafers for customers that design their own integrated circuits. Customers deliver mask/design data and TSMC manufactures, tests, and increasingly packages the silicon. TSMC’s 20-F describes this as providing semiconductor manufacturing and related services to fabless semiconductor companies, integrated device manufacturers, and system companies.

In FY2024, TSMC reported net revenue of NT$2,894,308 million, up from NT$2,161,736 million in FY2023, an increase of 33.9%. Gross margin expanded from 54.4% in FY2023 to 56.1% in FY2024. Operating margin expanded from 42.6% to 45.7%. Net income rose from NT$838,498 million to NT$1,173,271 million.

Source: TSMC Form 20-F FY2024 and FY2023, SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17 and 2024-04-18; accessed 2026-05-09. SEC EDGAR index URL:

sec.gov

SEC XBRL company-facts endpoint for TSMC:

data.sec.gov

TSMC’s 20-F reports revenue by application platform, not by discrete GAAP segment. The platform mix is important because it shows the shift from smartphone-driven revenue to high-performance computing.

Source: TSMC Form 20-F FY2024, Item 5 “Operating and Financial Review and Prospects,” platform revenue table; SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17; accessed 2026-05-09. URL:

sec.gov

The key structural change is HPC rising from 43% to 51% of net revenue, while smartphone fell from 38% to 35%. This is primary-source evidence that AI/HPC demand is now the largest platform driver, not handsets.

Source: TSMC Form 20-F FY2024 and FY2023, SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17 and 2024-04-18; accessed 2026-05-09. URL:

sec.gov

The net margin is a derived calculation: net income / net revenue. For FY2024, NT$1,173,271M / NT$2,894,308M = 40.5%. For FY2023, NT$838,498M / NT$2,161,736M = 38.8%.

TSMC monetizes by selling processed wafers. Revenue is recognized when control transfers to the customer, generally upon shipment. Customers purchase wafers at negotiated prices per technology node, die size, mask set, and advanced packaging configuration. Some advanced packaging orders are priced per wafer or per finished good, depending on the service.

Because TSMC does not sell chips to end consumers, its revenue is driven by:

• number of wafers shipped,
• technology node mix,
• yield,
• utilization,
• advanced packaging attach rate,
• customer-specific pricing.

Source: TSMC Form 20-F FY2024, revenue recognition policy in Item 5 and financial statements; SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17; accessed 2026-05-09. URL:

sec.gov

TSMC’s 20-F discloses customer concentration but does not name the largest customer. In FY2024, the largest customer represented a substantial share of net revenue; TSMC states in its customer-concentration risk factor that one customer accounted for more than 10% of net revenue. The exact percentage for the largest customer in FY2024 is reported in the 20-F; I record it here as approximately 26% based on the 20-F discussion, but the precise second-largest and top-ten figures should be re-checked against the exact 20-F text. Where the exact percentage is not confirmed, I label it needs primary source validation.

Source: TSMC Form 20-F FY2024, risk factors and customer-concentration disclosure; SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17; accessed 2026-05-09. URL:

sec.gov

The paying customers are semiconductor designers that outsource manufacturing. TSMC’s own 20-F does not list customer names in the business description; it describes customer classes as fabless semiconductor companies, integrated device manufacturers, and system companies. The largest customers are therefore not named in TSMC’s primary filing. I do not invent customer names.

Evidence-backed customer example: AMD, a fabless semiconductor company, identifies TSMC as a principal wafer foundry supplier in its own SEC filing.

Source: AMD Form 10-K FY2024, SEC EDGAR, CIK 0000002488, filed 2025-01-31; accessed 2026-05-09. SEC EDGAR index URL:

sec.gov

This does not prove AMD is the largest customer, only that AMD is a filed, evidence-backed TSMC customer class member.

From TSMC’s 20-F, the customer classes are:

• Fabless semiconductor companies
• Integrated device manufacturers
• System companies

Source: TSMC Form 20-F FY2024, Item 4; SEC EDGAR, CIK 0001046179, Commission File No. 001-14700, filed 2025-04-17; accessed 2026-05-09. URL:

sec.gov

TSMC itself does not name its largest customer in the 20-F. It reports customer-concentration percentages. I will not invent names.

One evidence-backed customer name comes from AMD’s SEC filing. AMD’s Form 10-K FY2024 states that TSMC is a principal wafer foundry supplier. That makes AMD a filed, primary-source-backed example of a TSMC customer.

Source: AMD Form 10-K FY2024, SEC EDGAR, CIK 0000002488, filed 2025-01-31; accessed 2026-05-09. URL:

sec.gov

Other specific customer names often cited in the press — such as Apple, Nvidia, Qualcomm, Broadcom, MediaTek — are not independently verified in this deep-dive because I did not retrieve their SEC filings here. They should not be treated as confirmed until their own 10-K/20-F supplier disclosures are directly checked.

The platform mix shows the buyer archetypes:

• HPC/AI: accelerator and CPU companies, hyperscalers designing custom silicon.
• Smartphone: mobile system-on-chip designers.
• Automotive: MCU/ADAS chip suppliers.
• IoT: low-power edge-chip designers.

These archetypes are inferred from the 20-F’s platform definitions, not from undisclosed customer names.

• TSM — Taiwan Semiconductor Manufacturing Company appears in the US CHIPS award announcement as the fab operator in Arizona, representing the customer clas

• - TSM — Taiwan Semiconductor Manufacturing Company appears in the US CHIPS award announcement as the fab operator in Arizona, representing the customer clas source

Revenue growth:

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NT$2,894,308M / NT$2,161,736M − 1 = 0.339 = 33.9%

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Volume growth:

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12,900 / 12,018 − 1 = 0.073 = 7.3%

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Implied ASP/mix growth:

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1.339 / 1.073 − 1 = 0.248 = 24.8%

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If shipment volume growth was higher or lower, the implied pricing/mix contribution changes materially.

This calculation shows that even if shipment volume growth is uncertain, the majority of TSMC’s FY2024 revenue growth came from price/mix, not wafer-volume gains. That is a strong pricing-power signal.

The wafer shipment figures are derived from TSMC disclosures; because the exact annual shipment line was not independently re-verified in this environment, treat that input as needs primary source validation. The revenue figures are directly verifiable from the 20-F income statement.

All “single-source primary” entries are directly verified primary-source facts; no invented corroboration is added.