TSMC is the world's largest dedicated semiconductor foundry — it manufactures chips designed by others, never competing with its own customers. Customers like Apple, NVIDIA, AMD, and Qualcomm provide proprietary chip designs, and TSMC fabricates those chips on silicon wafers at its fabs. TSMC charges a per-wafer price, with revenue driven by wafer volume, process technology mix, and utilization rates. More advanced nodes command higher prices, and advanced technologies (7nm and below) accounted for 74% of wafer revenue in 2025. HPC — covering AI accelerators, CPUs, and data center chips — is now TSMC's largest platform at 58% of revenue, followed by smartphones at 29%. TSMC also offers advanced packaging services (CoWoS, SoIC, InFO) under its 3DFabric brand, which are critical for AI chip integration and contributed roughly 8% of revenue in 2025. TSMC's core competitive advantage is technology leadership: it consistently delivers new process nodes first, with better yield and power efficiency than rivals. At sub-7nm nodes, TSMC faces no meaningful competition. TSMC is currently ramping its 2nm node (N2) and developing A16 for 2026 production. TSMC is also geographically diversifying, with $165B committed to six advanced fabs in Arizona, plus fabs under construction in Japan and Germany, though overseas fabs carry higher costs than Taiwan and pressure gross margins.