When people think of trillion-dollar companies, names like Apple, Microsoft, or NVIDIA usually come to mind. But halfway across the world, Taiwan has been building a tech giant of its own.
Taiwan Semiconductor Manufacturing Company (TSMC) isn’t just a story of local success but also the core of the global semiconductor industry. Its foundry powers the chips for all big techs, which in turn power the devices we use daily, from phones and laptops to data centres and autonomous cars.
Recently, the giant hit the trillion-dollar mark, and as of July 24, its valuation stood at around TWD 29.69 trillion, or approximately $0.91 trillion. While this milestone places TSMC among the ranks of the world’s most valuable companies, this is not the first time. In July last year, the chipmaker briefly hit this mark before slipping amid market fluctuations.
Despite this development, a stark contrast exists within Taiwan’s corporate landscape. The next largest company by market value, Hon Hai Precision Industry, more commonly known as Foxconn, is valued at around TWD 2.70 trillion (~$90 billion).
This wide gap underscores how heavily Taiwan’s market is skewed towards a single dominant player.
Where are the Others?
TSMC’s rise to the trillion-dollar mark reflects its position as the core of the global semiconductor supply chain. As a contract chipmaker, it services tech giants including Apple, NVIDIA, AMD, and Qualcomm. Its specialisation in leading-edge nodes, including 3nm and the upcoming 2nm and 1.4nm technologies, has placed it in a league of its own.
An industry analyst from Bengaluru who works on semiconductor solutions, seeking anonymity, said that Qualcomm’s most significant revenue comes from its modem business, which is used in all phones, primarily Apple’s and Broadcom enjoys a near-monopoly on switches used in data centres. These firms rely on TSMC for manufacturing and that shows why its competitors are struggling or vulnerable.
Foxconn, by comparison, operates mainly as a contract manufacturer for consumer electronics. While it remains one of Apple’s primary assemblers and has a vast global manufacturing footprint, it does not hold proprietary technologies that can scale its value at the same pace.
The analyst noted that Foxconn’s strength lies in assembly and servers, not in the semiconductor brainpower that drives companies like TSMC.
MediaTek, another significant tech firm in Taiwan, focuses on chip design and is valued at around $72 billion.
Daniel Nystedt, research analyst at TriOrient Investments, told AIM that TSMC is the only Taiwanese firm listed in the US, benefiting from deeper capital markets and ADR premiums. He added that, unlike Foxconn, which regularly spins off new ventures into separate entities, TSMC has consolidated its growth, retaining more value under one roof.
Delta Electronics, Fubon Financial Holding, and Quanta Computer make up the rest of Taiwan’s top six in terms of market cap, ranging between $36 billion and $43 billion, much below TSMC’s valuation.
Ecosystem Bottlenecks?
The sharp gap between TSMC and its peers reflects broader systemic issues in Taiwan’s innovation and investment landscape. Some point to a heavy dependence on contract manufacturing, limited brand-building among hardware firms, and lower levels of investment in high-risk, high-reward technologies as contributing factors.
Taiwan’s government has supported TSMC’s growth through favourable policies, talent pipelines, and investment incentives. While reliance on contract manufacturing has limited brand-led firms, it has simultaneously enabled a thriving design/IP ecosystem.
As Nystedt noted, TSMC’s model has enabled the island to become the world’s second-largest base for chip designers, spawning companies like MediaTek, Realtek, and dozens of IP firms such as eMemory and M31. Even equipment suppliers have moved up the value chain, building advanced packaging machines tailored for TSMC’s cutting-edge CoWoS technology.
Some argue that the same support has not translated to other firms reaching comparable global visibility or valuation. In sectors like AI, software, and consumer tech, areas where American companies have created massive scale, Taiwanese firms have remained relatively niche or regional.
However, Nystedt argued that “it’s not just one company’s request. It ends up being a sector-wide request for government funds, aid, or policy change.”
While it may appear that government incentives are disproportionately TSMC-centric, he said that much of Taiwan’s policy support comes via associations such as the TSIA (Taiwan Semiconductor Industry Association) and TEEMA (Taiwan Electrical and Electronic Manufacturers’ Association), ensuring proposals reflect sector-wide needs rather than single-company lobbying.
Recent efforts to diversify Taiwan’s tech ecosystem include investments in electric vehicles, AI chips, and renewable energy. Foxconn has made headlines with its EV manufacturing plans and partnerships with startups and legacy automakers. Yet, these initiatives are in early stages and have not significantly moved the needle in terms of market capitalisation.
The Next Giant?
TSMC’s continued surge has brought renewed investor attention to Taiwan. With NVIDIA, Apple, and others relying on its cutting-edge nodes, the company is seen as critical to the future of AI, high-performance computing, and mobile technologies.
The firm’s performance in Q2 FY26, with $30.07 billion in revenue and strong projections for Q3, has further solidified its leadership. This has prompted questions about which other Taiwanese firms might be able to grow into the next global tech giant.
The gap between TSMC and the rest remains wide, but opportunities exist. Companies exploring AI chip design, vertical integration, and software-driven innovation may hold the potential to scale in the coming decade.
The trillion-dollar milestone, once seen as unreachable for non-American firms, has now been surpassed by TSMC twice. However, for another Taiwanese company to follow suit, significant shifts will be required. These include increased R&D investment, a stronger focus on IP creation, and more ambitious go-to-market strategies.
Nystedt points out that investor appetite is uneven. While semiconductor ventures can attract funding thanks to Taiwan’s deep industry know-how, startups in less familiar sectors may struggle to secure backing.
He said, “I see tremendous potential for India to play a leading role in AI, specifically due to US-China tensions. For Taiwan, the government focuses on building a strong ecosystem so entrepreneurs can do their thing.”
The post TSMC Broke Into the American Trillion-Dollar Club, But Where Do Other Taiwan Firms Stand? appeared first on Analytics India Magazine.