10 Unrivaled Stocks of the Next 5 Years

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese company that designs and manufactures semiconductors. The company deploys distinct process technologies to manufacture products for various applications that cover a range of end markets including high-performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) holds a significant market share in contract chip manufacturing and advanced chip manufacturing.

Wedgewood Partners, an investment management company, discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q4 2024 investor letter. The letter noted that TSMC has maintained a near-monopoly in the fabrication of almost every new AI accelerator introduced in the market over the last couple of years. The investment management firm also noted that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) continues to invest heavily to expand its capacity as the demand for accelerated computing is surging.

The company is focused on expanding its manufacturing footprint to address the rising demand for semiconductors. In 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) began construction on a semiconductor fabrication plant in Dresden, Germany. The new facility will be designed for the production of TSMC’s 28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technologies. With production expected to start in 2027, the Dresden facility will bring TSMC’s advanced manufacturing capabilities to more customers in Europe.