TSMC Explained: The Company That Makes Everyone's Chips

The chip inside a new iPhone and the chips in Nvidia's AI computers were designed by different companies, but most of them were made by the same one: TSMC, in Taiwan. This video explains TSMC from the start: Morris Chang's 1987 idea of a company that only makes chips for others, what a wafer is, why yield matters, how that turns into keeping nearly 68% of its sales after the cost of making its wafers, and the two numbers to watch when TSMC reports. In this video: • 1987: a new kind of chip company • What TSMC sells: the finished wafer • Yield, and why almost no rival matches it • How yield turns into money, and the gross margin • What moves the profit: full factories and wafer prices • Two numbers to watch: gross margin and monthly sales • The risks: building too much, and location Full article, with all the numbers ▶ https://earningsdriver.com/tsmc-builds-oth... Where to find the numbers yourself ▶ https://earningsdriver.com/numbers/ The book Earnings Driver — how many more companies make money, explained from the start. Get notified on launch day ▶ https://earningsdriver.com/book/ Chapters: 0:00 One company makes the chips 0:27 1987: a new kind of chip company 0:53 What TSMC sells: the wafer 1:50 How yield turns into money 2:25 What moves the profit 3:03 Two numbers to watch 3:39 The risks 4:28 Proving it again 4:41 Where to go deeper — Educational content only. Not investment advice. Figures: TSMC results for the second quarter of 2026; foundry share from TrendForce (Q2 2026). #TSMC #semiconductors #chips #AI #investing #explained