Headquartered in Hsinchu, Taiwan, Taiwan Semiconductor Manufacturing Company Limited (TSM) manufactures and sells integrated circuits and semiconductors. It also offers customer service, account management, and engineering services. In comparison, NVIDIA Corporation (NVDA) in Santa Clara, Calif., operates worldwide as a visual computing company. It operates in two segments, Graphics and Compute & Networking. Its products are used in gaming, professional visualization, data center, and automotive markets.
While the semiconductor chip shortage and supply chain issues exacerbated by the Russia-Ukraine war are impacting the industry, robust demand from the automotive and electronics industries has allowed companies to raise prices for their chips and generate substantial profits. In addition, rising investments worldwide to ramp up semiconductor production should help the industry achieve significant growth in the coming months. Furthermore, the passage of the recent $52 billion CHIPS Act is also expected to strengthen domestic semiconductor manufacturing and research. According to BlueWeave consulting, the global semiconductor market is estimated to grow at a 5.2% CAGR between 2022 and 2028. Therefore, both TSM and NVDA should benefit.
