Taiwan Semiconductor Manufacturing Company (NYSE:TSM) shares were in focus on Friday after key clients Nvidia (NASDAQ:NVDA) and Marvell Technology (NASDAQ:MRVL) reported strong quarterly earnings powered by AI chip demand.
Nvidia's quarterly revenue surged 56% to $46.74 billion, driven largely by its Data Center division and demand for Blackwell AI processors. "The AI race is on, and Blackwell is the platform at its center," CEO Jensen Huang said.
Marvell posted record year-over-year revenue growth of 58%, crediting demand for custom silicon and electro-optics alongside a recovery in enterprise networking.
Also Read: Taiwan Semiconductor Wins Praise From Jensen Huang As It Finalizes Six New Nvidia Processors
Taiwan Semiconductor is sharpening its strategic focus on U.S. expansion, cutting ties to Chinese chipmaking tools, and securing additional Nvidia orders, underscoring its pivotal role in the escalating U.S.–China technology competition.
As the world's largest contract chipmaker, the company is aligning investments with surging AI demand while reinforcing supply chain resilience and safeguarding future growth.
The company has already removed Chinese equipment from its most advanced facilities, a move designed to minimize exposure to U.S. export restrictions.
It also secured 300,000 more Nvidia H20 AI chips under revised U.S. rules, a deal that highlights Washington's broader effort to ensure Chinese firms remain reliant on American technology rather than alternatives from rivals such as Huawei.
The company is simultaneously fast-tracking its U.S. manufacturing footprint. While production has begun at its first Japan fab, the company has delayed plans for a second $20 billion Kumamoto plant in order to prioritize a sweeping $165 billion American expansion slated for 2024 and 2025.
By focusing on the U.S., Taiwan Semiconductor aims to strengthen supply chain security at a time when advanced chip capacity has become a geopolitical flashpoint.
Taiwan Semiconductor stock has gained 21% year-to-date, fueled by its essential role as the manufacturing backbone of the AI era.
The foundry's long-term roadmap also extends beyond U.S. projects. The company is preparing to break ground in October on its 1.4nm Fab 25 complex in Taichung's Central Taiwan Science Park, according to the Taipei Times.
The site will ultimately house four fabs, with the first expected to complete risk assessments by late 2027 and begin mass production in 2028.
Designed for a target output of 50,000 wafers per month, the project is set to generate 3 billion New Taiwanese dollars ($98.1 million) in opportunities for equipment and materials suppliers.
Price Action: TSM stock is trading lower by 1.39% to $234.95 premarket at last check Friday.
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